Early Contractor Involvement in Building Procurement: Contracts, Partnering and Project Management

by David Mosey (Trowers and Hamlins, London)

• ISBN13: 9781444309874
• ISBN10: 1444309870
• Additional ISBN(s): 9781405196451, 9781444309867
• Format: eBook
• Copyright: 2009-11-01
• Publisher: Wiley-Blackwell
• More Book Details
• Purchase Benefits

Summary

Can contractors and specialists add value to a project by their early involvement in design, pricing, risk management and programming? How can this be structured and what role do contracts have to play? What is the impact on procurement and project management?Commentators from Banwell to Egan have recommended earlier contractor appointments, and this has also been linked to successful project partnering. How are the two related? Early Contractor Involvement in Building Procurement considers the case for a two stage procurement approach based on a system of agreed project processes during the preconstruction phase. It examines the ways in which a contract can describe and support this model throughout its procurement, partnering and project management, and is illustrated with case studies taken from projects and programmes across the construction and engineering industry.The roles of the various parties involved, the obstacles they encounter and the benefits they can achieve are examined in detail. There is practical guidance on how to improve speed, economy, sustainability, change control, dispute avoidance, and client satisfaction. This book bridges the gap between contract law, partnering and project management and will be essential reading for middle and senior management at construction contractors, consultants and clients in both the public and private sectors.

Table of Contents

Introduction Who Remembers Mott the Hoople?

Early Contractor Involvement An Overview

Early contractor involvement why bother?

Early contractor involvement and project pricing

Early contractor involvement and risk transfer

Early contractor involvement and payment

The role of building contracts

The limits of construction phase building contracts

Contractor contributions to design, pricing and risk management

The client, communications and project programmes

But do you need an early building contract?

Preconstruction commitments under framework agreements

The infl uence of project managers and project partnering

So what is stopping us?

Government and industry support

Conditional Contracts and Early Project Processes

The conditional preconstruction phase agreement

Recognised categories of contract

Effect of the number of parties

The planning function of contracts

Choices and contractual conditionality

Limited effi ciency caused by unknown items

Risk and fear of opportunism

Conditional relationships without full consideration

Need for long-term relations

Alignment of different interests

Preconstruction phase agreements as project management tools

Contracts and new procurement systems

Problems and Disputes Under Construction Phase Building Contracts

Introduction

The role of standard form building contracts

Standard forms and the assumption of complete information

Origins of standard forms and lack of trust

Criticisms of effectiveness of standard forms

Causes of claims

Links between claims and preconstruction phase activities

Links between claims and building contracts

New procurement procedures or gambling on incomplete information

Early Contractor Involvement in Design, Pricing and Risk Management

Introduction

Preconstruction design processes

Preconstruction pricing processes

Preconstruction risk management processes

Preconstruction subcontractor appointments

Perceived benefi ts of early contractor appointments

Early contractor appointments and sustainability

Client Leadership, Communication Systems and Binding Programmes 95

Introduction

The role of the client

The role of communication systems

The role of binding programmes

Contractual and Non-contractual Preconstruction Options

Introduction

Building contract options

Letters of intent

Non-binding arrangements

Benefi ts of contractual clarity

Preconstruction Commitments Under Framework Agreements

Commercial attraction of frameworks

The relationship between frameworks and partnering

Frameworks and preconstruction phase processes

Published forms of framework agreement

Frameworks and the Private Finance Initiative

The impact of frameworks on changing behaviour

Project Management and Project Partnering

Introduction

Preconstruction phase agreements and project management

Preconstruction phase agreements and partnering

Obstacles to Early Contractor Appointments

Introduction

Project-specifi c obstacles

Procedural obstacles

Personal obstacles

Education and training

The role of the partnering adviser

Government and Industry Views and Experience

Introduction

Importance of government and construction industry support

Support for contractor and subcontractor design contributions

Support for two-stage pricing

Support for selecting contractors by value

Support for joint risk management

Support for greater client involvement

Government and industry views on partnering

Government views on preconstruction phase agreements

Industry experience of preconstruction phase agreements

Preconstruction phase agreements in an economic downturn

Conclusions the Golden Age Of Rocknw Roll?

Functions of building contracts and their potential to govern project processes

The assumption in standard form building contracts of complete project information and consequent problems and disputes

Preconstruction phase processes that can be improved by early contractor appointments

The role of the client, communication and programming of preconstruction phase processes

Contractual and non-contractual options to govern preconstruction phase processes

Increased preconstruction commitments under framework agreements

The relationship of preconstruction phase agreements to project management and partnering

Circumstances and attitudes that are obstacles to early contractor appointments or to preconstruction phase agreements

Government and industry support for early contractor appointments under preconstruction phase agreements

Project Case Studies

Use of Preconstruction Phase Agreements on Single Projects

Use of Preconstruction Phase Agreements on Multi-project Frameworks

Preconstruction Phase Processes Under Standard Form Building Contracts

Introduction

Design development

Two-stage pricing

Risk management

Communications

Programmes

Team integration

Preconstruction Phase Processes Under Standard Form Framework Agreements

Introduction

JCT Framework Agreements

NEC3 Framework Contract

Form of Risk Register

Form of Partnering Timetable

Association of Partnering Advisers Code of Conduct

Bibliography

Contract forms

Articles and books

Government/industry reports

Table of cases

Index

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