Early contractor involvement in building procurement : contracts, partnering and project management

Early Contractor Involvement in Building Procurement......Page 1
Contents......Page 7
INTRODUCTION: Who Remembers Mott the Hoople?......Page 13
1.1 Early contractor involvement – why bother?......Page 18
1.2 Early contractor involvement and project pricing......Page 20
1.3 Early contractor involvement and risk transfer......Page 22
1.4 Early contractor involvement and payment......Page 23
1.5 The role of building contracts......Page 24
1.7 Contractor contributions to design, pricing and risk management......Page 27
1.8 The client, communicatios and project programmes......Page 28
1.10 Preconstruction commitments under framework agreements......Page 30
1.11 The influence of project managers and project partnering......Page 31
1.12 So what is stopping us?......Page 32
1.13 Government and industry support......Page 33
2.1 The conditional preconstructin phase agreement......Page 34
2.2 Recognised categories of contract......Page 37
2.3 Effect of the number of parties......Page 39
2.4 The planning function of contracts......Page 41
2.5 Choices and contractual conditionality......Page 43
2.6 Limited efficiency caused by unknown items......Page 44
2.7 Risk and fear of opportunism......Page 45
2.8 Conditional relationships without full consideration......Page 46
2.9 Need for long-term relations......Page 47
2.10 Alignment of different interests......Page 48
2.11 Preconstructon phase agreements as project management tools......Page 50
2.12 Contracts and new procurement systems......Page 51
3.2 The role of standard form building contracts......Page 53
3.3 Standard forms and the assumption of complete information......Page 54
3.4 Origins of standard forms and lack of trust......Page 55
3.5 Criticisms of effectiveness of standard forms......Page 57
3.6 Causes of claims......Page 58
3.7 Links between claims and preconstruction phase activities......Page 60
3.8 Links between claims and building contracts......Page 63
3.9 New procurement procedures in place of gambling on incomplete information......Page 66
4.1 Introduction......Page 69
4.2 Preconstruction design processes......Page 71
4.3 Preconstruction pricing processes......Page 80
4.4 Preconstruction risk management processes......Page 90
4.5 Preconstruction subcontractor appointments......Page 98
4.6 Perceived benefits of early contractor appointments......Page 103
4.7 Early contractor appointments and sustainability......Page 104
5.2 The role of the client......Page 107
5.3 The role of communication systems......Page 114
5.4 The role of binding programmes......Page 123
6.2 Building contract options......Page 137
6.3 Letters of intent......Page 142
6.4 Non-binding arrangements......Page 144
6.5 Benefits of contractual clarity......Page 149
7.1 Commercial attraction of frameworks......Page 151
7.2 The relationship between frameworks and partnering......Page 153
7.3 Frameworks and preconstruction phase processes......Page 154
7.4 Published forms of framework agreement......Page 155
7.5 Frameworks and the Private Finance Initiative......Page 157
7.6 The impact of frameworks on changing behaviour......Page 158
8.2 Preconstruction phase agreements and project management......Page 163
8.3 Preconstruction phase agreements and partnering......Page 172
9.2 Project-specific obstacles......Page 188
9.3 Procedural obstacles......Page 193
9.4 Personal obstacles......Page 198
9.5 Education and training......Page 205
9.6 The role of the partnering adviser......Page 207
10.2 Importance of government and construction industry support......Page 209
10.3 Support for contractor and subcontractor design contributions......Page 210
10.4 Support for two-stage pricing......Page 211
10.5 Support for selecting contractors by value......Page 212
10.6 Support for joint risk management......Page 214
10.7 Support for greater client involvement......Page 215
10.8 Government and industry views on partnering......Page 216
10.9 Government views on preconstruction phase agreements......Page 217
10.10 Industry experience of preconstruction phase agreements......Page 220
10.11 Preconstruction phase agreements in an economic downturn......Page 221
CHAPTER ELEVEN: CONCLUSIONS – THE GOLDEN AGE OF ROCK ‘N’ ROLL?......Page 226
11.1 Functions of building contracts and their potential to govern project processes......Page 227
11.2 The assumption in standard form building contracts of complete project information and consequent problems and disputes......Page 228
11.3 Preconstruction phase processes that can be improved by early contractor appointments......Page 229
11.4 The role of the client, communication and programming of preconstruction phase processes......Page 230
11.5 Contractual and non-contractual options to govern preconstruction phase processes......Page 231
11.7 The relationship of preconstruction phase agreements to project management and partnering......Page 232
11.8 Circumstances and attitudes that are obstacles to early contractor appointments or to preconstruction phase agreements......Page 233
11.9 Government and industry support for early contractor appointments under preconstruction phase agreements......Page 234
Use of preconstruction phase agreements on single projects......Page 237
Use of preconstruction phase agreements on multi-project frameworks......Page 263
1: Introduction......Page 274
2: Design development......Page 275
3: Two-stage pricing......Page 281
4: Risk management......Page 283
5: Communications......Page 287
6: Programmes......Page 295
7: Team integration......Page 300
JCT framework agreement......Page 303
NEC3 framework contract......Page 306
APPENDIX D: FORM OF RISK REGISTER......Page 310
APPENDIX E: FORM OF PARTNERING TIMETABLE......Page 311
APPENDIX F: ASSOCIATION OF PARTNERING ADVISERS CODE OF CONDUCT......Page 312
Part 1: Contract forms......Page 314
Part 2: Articles and books......Page 316
Part 3: Government/industry reports......Page 318
Part 4: Table of cases......Page 320
Index......Page 321