The Aqua Group Guide to Procurement, Tendering & Contract Administration Edited and updated by

Mark Hackett, lan Robinson & Gary Statham Davis Langdon LLP

.,. Blackwell '-b Publishing

DAVIS LANGOON

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Contents

Foreword by Rob Smith, Davis Lmgd(l/1 LLP Introduction

Part I Briefing the Building Team

1 The Building Team Introduction Parties to a building contract and their supporting teClms

Rights, duties and responsibilities The employer The architect/contract administrator The quantity surveyor The status of named consultants Unnamed consultants with delega ted powers The project manager The planning supervisor The principal contractor Sub-contractors Thederk of works

Statutory requirements TheCDM Regulations

Avoiding disputes Communications

2 Assessing the Needs The structu re The brief The initial programme

xvi xviii

1

3 3 3 4 4 5 5 5 5 6 6 7 8 8 8 9

10 11

12

12 12 14

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VI Contents

TIle appointment 16 Appoin tment documents 17 Collateral warranties 17

Part 11 Available Procurement Methods 19

3 Principles of Procu rement 21

Simple theory - complex practice 21 The eternal triangle 21 Other considerations 25

The Construction (Design and Management) Regulations 1994 25 Risk 26 AccolUltability

Making the contract Type of contract Selection of the contractor - the tendering procedure Establishing p rice and time

The dynamics of tendering

4 Bas ic Concepts Economic use of resources

Labour Materials Plant Capital

Contractor's contribution to design and contract p rogramme Prod uction cost savings Continuity Risk and accountability

Accountability Summary

5 Accountability l3ackgrolUld The modern concept of pu blic accolUltability Contract documentation Proper price Dispensing with competition Inflation Value for money Summary

26 26 26 27 28 28

30 31 31 32 32 32 32 33 34 35 36 36

38 38 39 40 40 40 41 41 42

Contents

6 Value and Risk Management Value management

Value articulation and project definition Optimisation of benefits and costs Learning lessons and performance optimisation

Risk management Risk must be managed Nothing ventured nothing gained Understanding the project

Risk management strategies Allocating management actions Value and risk are complementary

Similarities in the processes The integrated process

7 Fixed Price and Cost Reimbursement Fixed price Cost reimbursement Application to contract elements Fluctuations Target cost contracts Use

The employer's position The contractor's position

Programme Summary

8 Fixed Price Contracts JCT flXed price contracts

The Standard Building Contract Design and Build Contract Major Project Construction Contract Intermediate Building Contract Minor Works Building Contract

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Advantages and disadvantages of fixed price contracts Advantages Disadvantages

, Cost Reimbursement Contracts Thefec The Prime Cost building contract

Characteristics of the form

vu

43 43 44

45 45 46 47 48 48 50 51

52 52 53

57

58 58 59 59 60

60

60 61 62 62

64

64 66 66 67

68 69 70 70 70

71 71 72 72

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VI11 Contents

Advantages and disadvantages 72 Advantages 73 Disadvantages 73

Budget and cost control 73 Administering the contract 74 Procedure for keeping prime costs 75

Labour resources 76 Materials 76 Plant 77

Credits 77 Sub-letting 77

Defective work 78 Cost control 78 Final account 78

10 Target Cost Contracts 79 Guarantc'Cd maximum price contracts 82 Competition 82 Contract 82 Advantages and disadvantages 83 U,e 83

11 Management and Construction Management Contracts 84

Payment and cost control 84 Selection and appoinhnent of the contractor 86 Contract conditions 87 Contract adm inistration 88

Professional advisers 89 Advantages and disadvantages 89

Advantages 89 Disadvantages 90

Construction Management 91 Use 92 Programme 92

12 Design and Build Contracts 94 The Contract 95 Where to use design and build (and when not to do so) 97 Managing the design process 98 Novation 99

Evaluation of submissions 99

Post-contract administration 100 Financial administration 100

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Contellts ox

Programme 101 Advantages and disadvantages 102

Advantages 102 Disadvantages 102

13 Continui ty Contracts 104 Seria l contracting 104

Purpose and use 105 Operation 106

Continuation contracts 107 Purpose and use 108 Operation 108

Term contracts 110 Purpose and use 110 JCT Measured Term Contract 110 Operation III

I. Partnering 113

A definition 114 When to adopt a partnering approach 115 The agreement 116 JCf Framework Agreement 116 The partnering workshop 11 7 The benefits 117 The risks 118 Future of partncring 119

Part III Prepari ng for and Inviting Tenders 121

15 Procedu re from Brief to Tender 123 Initial brief 123

Developing the brief 123 Feasibility stage 124 Sketch scheme 124 Costs 125

Procurement 126 Detail design 127 Programming 128

Design team meetings 129 DraWings 129 Specifications 130 Bills of quantities 130 Specialist sub-contractors and suppliers 131

,

Quality assurance Obtaining tenders

COlltellts

16 Pre-Contract Cost Control Cost control Reporting Establishing a budget Approximate estimates

Preliminary estimate Element lmit quantities estimate Approximate quantities estima te Accurate quanti ties estimate

Cost plan Substructure Superstructure Internal finishes Fittings and furnishings Services External works Developmen t of the cost plan

Li Fe cycle costing Cash flow

17 Drawings and Schedules The role of drawings and documents Quality

Quality manuals Quality procedure codes Quality review

Types, sizes and layout of drawings Size Layout and revision Scale

Nature and sequence of drawing production Drawings for SBe contracts Drawings for design and build or management contracts Design intent information

Computer aided design D rawing file formats and translation

Project extranets Contents of drawings

Survey plan Site plan, layout and drainage

132 133

134 134 134 136 136 137 137 138 139 139 140 140 142 143 143 149 150 151 152

154 154 155 156 156 157 158 158 159 159 161 161 162 163 164 165 165 168 168 169

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COlltmts xi

General arrangement 169 Elevations of all parts of the building 171 Descriptive sections 171 Ceiling plans at ail floor levels 171 Construction details (scale 1 :20 and 1:10) 172 Large-scale details (scale 1:10 and 1:15) 172

Schedules 173 Drawings and schedules for records 174

18 Specifications 179 The use of specifications 179

Prescriptive specifications 180 Performance specifications 180 Descriptive specifications 181

Specification writing 181 Decide on format 181 Collect infonnation 182 Input information 183 Check and test 183 Ocliver 184

The specification as a contract document 185

19 Bills of Quantities 191 Tender and contract document 191 The wider role 192 Basic information 192

Preliminaries 192 Preambles 194 Measured works 194

Formats 194

20 Sub-contractors 201 Sub-contractors 201 Specialist sub-contractors 201 Design by the sub-contractor 202 The SBC and sub-<ontract agreements 203

SBC provisions under the main contract 204

21 Obtaining Tenders 205 Introduction 205 Tender list 206 Preliminary enquiry 207 Tender documents and invitation 208

xii

Tender period Tender compliance Late tenders Opening tenders

Contents

Examination and adjushnent of the priced document Negotiated reduction of a tender Notification of results Tender analysis

Pa rt IV Contract Administration

22 Placing the Contract Preparing and signing the contract documents

Sectional completion Contractor's designed portion Executing the contract

Performance bonds and parent company guarantees Collateral warranties Third party rights Issue of documents lnsurances

23 Rights, Duties and Liabilities under the SBC Introduction

llle employer The architect/contract administrator The quantity surveyor The plaIUUng supervisor The clerk of works The person-m-charge

Conclusion

24 Meetings Initial meeting

Introductions Factors affecting the carrying out of the works Programme Sub-contractors and suppliers Lines of communication Financial matters

Procedure to be followed at subsequent meetings Contractor's meetings Employer's meetings

209 209 209 210 210 211 211 212

213

215 215 216 217

219 219 220 220 220

222

227 227 227 240 243 244

244 245 245

246 246 247 247 248 249 249 249

251 253 253

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X>V Contents

Value added tax 300 Valuation and certificate forms 300

2. Completion, Defects and the Final Account 305 Practical completion 305 Partial possession 308 Possession of the building 309 Defects and making good 309 Final aCcOlmt 310

Adjustment of the contract sum 311 Practical considerations 313

Final certificate 314

30 Delays and Disputes 318 Introduction 318 Delays caused by the contractor 319 Delays caused by employers or their representatives 31. Delays caused by events outside the control of either party 320

Force majeure 321 Exceptionally adverse weather conditions 322

SBC procedure in the event of delay 322 Best endeavours 322 Notification of delay 323 New completion dates 323 Final adjustment 324 Duties and dl.>(:isions 325

Reimbursement of loss and/or expense under the SBC 326 Liquidated damages 327 Disputes and dispute resolution 328

Mediation 32. Adjudication 32. Arbitration 334 Litigation 336

31 Insolvency 339 Introduction 33.

Insolvency practitioners 33. Liquidation 340 Receivership 341 Administration 341

After the Enterprise Act 2002 342 Voluntary arrangements and compositions 343 Debentures 344

Conte/lts

procedure upon the insolvency of the contractor TheSBC provisions Early wamingsigns and precautionary measures Completion of the works Completion documentation Sub-contractors

Bonds Final accounts The procedure upon the insolvency of the contractor

32 Capital Allowances Introduction

Index

Eligibility for capital allowances The worth of capital allowances

Tax deductions for property refurbishment schemes Capital or revenue? Incidental capital expenditure Deferred rcvenueexpenditu re Action summary

Energy saving plant and machinery Key features Key exclusions How to claim ECAs Qualifying products and items

Pre-contract planning to optirnisccapital allowances Some questions and answers

xv

344 345 346 348 350 351 352 352 35-1

357 357

358 358 359 359 360 360 361 362 362 363 364 364 365 365

367

Index

Page numbers in italics refcr 10 figures

'account owner' (ri~k management), 51

accountabili ty, 26, 38-42 accuralcquantiticseslimate, 138-9 'action owner' (risk management), 51 additional work, sce vari.1tioni> adjudication,329-34 adjustments 10 contract sum, 31 1-13 adjustments 10 fmal account, 309-10 administration (insolvency), 341-3 Agrement Certificates, 263 annot.lled bills of quantities, 195 antiquities on site, delays caust.od by. 298, 313,

321,327 appointments, 16- 18 approximate quantiti~ I:!:;limatc, 138-9 arbitration, 33-1 - 6 Arbit ration Act 1996,335 archaeological finds, delays caused by, 298,

313,321,327 architects

appointment, 16-18 instructions, 279-83 rights, duties& r~ponsibililies,5,

240-43 site duties, 257-60

'arrangement for a composition of debts', .3-13-4

artieltos of agr('('ment, 215-16 dtosign & build contr,lcts, 95-6

'as-built' dr,lwings, 174,262, 309

benefits capital allowances, 365 optimi<;ation,45

'best endeavour..', 322-3 'best value', 40-42 bill of quantities, 130-31. 182, 191-5, ]96-200 bonds, performance, 219-20, 225, 349, 352 BPF, see British Property Federation bricks, tests, 263 brief, 12, H, 123-6, see also Employer's

Requirements British Airports Authority

framcwork,lgreements, I 14 project extranei, 167

British Property Federation (BPF) form of consultancy agreement, 17 warranty agreements, 18,220

British Standards, 263 SS EN iSO 41 57: 1999, 156,159 SS EN 1505457:1999, 158 BS EN ISO 'XXlO, 132 SS EN rS09001 :2000, 156

budget control, Sf?e also cost control cost reimbur..emcnt contracts, 73

budgetsctting. 136 building control insIX'Ctions, 260 building control officers, directions from,

260-61 building log-book, 309 Building Regulations 2000

building log-book, 309 inspections, 260

368 IlIdex

building services operation & maintenance information,

309 spare parts, 309

building team, 3-8 busint'ss rescue, 344-5

CAD (computer-aided design), 155, 163-5 capital alluwances, 357-66 Capital Allowances Act 2001. 357, 358, 362,

363,366 cash flow, 32, 152-3, see a/so insolvency CDM94, see Construction (Design and

Management) Regulations 1994 cor (contractor's desi~,'ned portion),

see contractor's designed portion Cj·rtifiCl.lte ofCompletioll of Making Good

D.frcts, 308, 316 Certificate of Practical Completiol/, 305, 315 change:.. St'l'designchanges; variations CHI' (combined heal & power), ser combined

hcat& power CIB, see Construction industry I30drd C1C, see Construction industry Counci l CIMA I{ (Construction Industry Model

Arbitration Rules), 335 CIS, see Construction Industry Scheme CIS (Construction Industry Scheme),

employer as contractor, 296 Civil Procedure Rules, 336 cladding. tests, 263 classification (documentation), 159 clerk of works

daily diary, 26] - 2 instructions, 281 project reports, 262, 277 responsibilities, 69 rights, duties & responsibilities, 8, 244,

258-9 Co-ordinated Project Information (CPI), 130 codes of pr.lciice, 263

Code 0[ Pmc/ice for ti,e Se/ectiOlI of Maill COlltractors, 205

Code of Procedure for Sillgle Sta~e Se!t>ctil,.. Tmdering, 205

Considerate Constructors Scheme, 26-1--5

loilll Code of Practice 011 Ihe Pro/retial' from Fire 0fColls/fllctioll Sites and Buildillgs U/ldergolllg RI'IIOVIltiol', 269-70

'collaborative working', 114 colla teral warranties, 17-18, 220 combined heat & power (CHP), 364-5

CHl'Quality Assur.lnce Programme (CHI'QA),365

'commercial' settlements, 314

communication dispute avoidance, 10-11 electronic, 165-7, 183,263 fire precautions, 272 health & S<lfety, 268 information relca:.e schedule, 248-9 instructions, 279-83 lines of communication, 259

Companies Act 1985/89,343 competition

dbpensing with, 40-41 in target cost contracts, 82

completion, 305-17 completion certificate, 305-6, 315 completion dates

practical completion, 306 revision, 323-5

completion works, 349-52 componcnb

economics of sil.e, 32 ownership, 347-8 payments for, 298-9 samples, 263 standards, 263

compulsory liquidation, 34{)

computer·aided d~ign (CAD), 155, ]6]-5

concrete, tests, 263 Considerate Constructors Scheme, 264-5 Construction Act. see Housing Grants,

Construction and Regeneration Act 1996

Construction Confedera tion Considerate Constructors Scheme,

2~-5

Joint Fire Code, 269-70 Stmrdard Method of M(-'llsuremellt of Ruildi/lg

Works (SMM7), 66

index 369

Construction (lJcsign and Management) Regulations 1994 (COM94), 9-10,25- 6

rue prec,1utions, 269 health & safely, 265 planning supervisor, 6-7

Construction (Design and Management) Regulations 1994 (COM9-l), Amendment 2000, 9

Corutruction (Health, Safety and Welfare) Regulations 1996,9,269

Construction Industry Board (erB) Codeof Practice for ti,e Selectiml of Mai11

Contractors, 205 Considerate Constructors Scheme, 264-5

Construction IndustryColUlcil (erC) Guide to Quality BaSt.'d Selcctio11 of

Consultants, 17 warranty agrcements, 18, 220

Construction lndustry Model Arbitr<1tion Rules (ClMAR), 335

Construction Industry Scheme (CIS), employer as contractor, 2%

construction management contracts, 84-93 Construction Specifications Institute,

Masterformat, 182 construction team, 4 consul tants

appointments, 16- 18 rights, duties & responsibilities, 5-6 site visits, 260

contingency sum, 288 continuation contracts, 107- 9 continuity contracts, 104-12 continuity of activity, 34-5 contract (s)

completion work;;, 349-50 forms of contract, 26-7

scleo::tion, 30-37 professional appointments, 16-18 sub-contracts, 201-4, st'e alS{! sub­

contractors tendering procedure, sec tendering

contract administration capital allowances, 357-66 completion, defects and the final account,

305-17

cost reimbursement contracts, 74 delays & disputes, 318- 38 insolvency, 339-56 instructions, 279-83 interim payments, 291-304 management & construction management

contracts, 88- 9 mcetings, 246- 56 placing the contract, 215-26 rights, duties & responsibilities under the

SBC,227- 45 site duties, 257-78 variations & post-contract cost control,

284-90 contract administrator

instructions, 279-81 rights, duties & responsibilities, 5, 7,

240-·!3 contract price, 36-7 contract sum

adjustments to final account, 310- 13 non-competitive con tracts, 40- 41 value added tax, 300 variations, 251, 288 - 9

'Contract Sum Analysis', 96 contractors

approved,206- 7 caused by contractor, 322-3 contribution to design & programming,

32- 3, see also contractor's df..>signed portion (COP)

cost management, 33-4 daywork records, 287-8 delays caused by, 318-19, 322-3, st'e a/St.)

liquidated damages financial difficulties, 343-4, 345-6 health & safety resporuibilitics, 265-8 interim payments, 296-7 meetings, 253 reimbursement for employer caused

delays, 325-6 responsibility for sub-contractors, 67 rights, duties & responsibilities, 7-8, 96,

233-9 selection, Sf'e tendering site records, 262

370 Index

contractors (cout'd) sub· letting, 77 terminalion of 'employment'. 307-8, 346,

349 contractor's designed portion (CDP),66.

217-19,221 CDI' Analysis, 217 design & build contracts, 95 drawing & information, 307 sub-contractors' design. 203

Contractor's Proposals contractor's desih·m.-d portion (CDP), 217 Design and Build Contract (DB), 96

Contracts (Rights of Third Parlies) Act 1999, 18,220

Coord inated Projfft lnformation (Cri), 66 cost (s), 31-2, see also prime costs (PC); value

management estimates, 125-6 fixed price versus cost reimbursement

contracts,57- 63 materials, 32, 76, 77 optimisation, 33-4,45

cost control cost reimbursement contracts, 73, 78 management & construction management

contracts, 84- 6 post-contract, 288- 9, 290 pre-<:ontract, 134- 53

coslelements, 140- 50 cost fluctuations, 59- 60, 66, 68

cost limits, 136, 288- 9 guaranteed maximum price contracts, 82,

83,86 cost planning, 33, 139-51 'cost plus' contracts, 59 cost reimbursement contracts, 71-8

versus fixed price contracts, 58-63 COSI reporting, 134-6 County Court Rules, 336 CPI (Co-ordinated Project Information), 66,

130 cn.-'ditors, 341,344

daily diary, 261 data exchange format, 165

datl-' of completion practic.ll completion, 306 revision, 323-5

dayworks, 285, 287-8 DB (Design and Bui ld Contract), see Joint

Contracts Tribunal, Design and Build Contract

DBFO (design, build, finance and operal(') schemes,97

debentures,341,J.H defective work

allowance for in cost reimbursement contracts, 78

making good, 306-7, 308, 309-10 defcrrl-d rcvt'nuc expenditure, 360-61 delays

caused by contractor, 318-19, 5N' also liquidated damages

caused by employer, 318,319-20, 326

'neutr.ll events', 320-22 reimbursements to contr.lctor, 326-7 SBC procedure, 322-5

descriptive specifications, 181 design and build contracts, 94-103, s..t' alS<.1

Joint Contracts Tribunal. Dcsignand Build Contract (DB)

drawings, 162-3 design, build, finance and operate (DBFO)

schemes, 97 design changes, 159, see also variations design documentation

drawings, 154-78 pre~ontract, 129-30

design intent information, 163-4 desih'l1 process, set also contractor's designed

portion (COP) costing alternative designs, ]5(}-51 Desib'l1 and Build Contract (DB), 98 dl'Sign changl'S, 159 detaik-d dl'Sign, 127-8 outiincdcsign, 124-5

design team, 3-4 inIorm.ltion release schedule, 248-9 pre-contract meetings, 129 site r('Cords, 262

llldcx 371

detailed design descriptive specifications, 1 81

design process, 127-8 sub-contractors design, 202-3

detaile~.:t materials and workmanship specifications, 180

development control approval, 124-5, 127-8 dispute avoidance, 10-11 d ispute resolution, 328-36 document codes, 156- 7 documentation

bills of quantities, 191- 5, 196- 200 completion works, 350- 51 contract, 40, 21 5- 19, 220- 22 from contractor at completion, 307 drawings, 154-78 management of, 156-7, 159, 164,166,184 specifications, 179-90 tender, 208-9

drawings, 154-78 pre-contract, 129-30

duties,4- R,227- 45

ECA (Enhanced Capital Allowances) scheme, 362- 5

EDI (Electronic Data Interchange) Agreements, 167

Egan, John, report Rethinkillg COlls/ructioll,

30 Electronic Data In terchange (EDI)

Agreements, 167 element unit quantities estima te, 137- 8 elemental bills of quantities, 195 emergency plans & procedures, 268, 272

employers delays caused by,318, 319- 20, 325- 6 health & safety responsibilities, 265

insolvency, 354 meetings, 253 requirements, 96, 98, 217, see also initial

brief rights, duties & responsibi li ties,4- 5,

227-32

Employers' Liability (Compulsory insurance) Regulations 1989, 222

Employer's Requirements, 96, 98, 217

energy saving plant & machinery, capita I allowances, 362- 5

Energy TechnologyCriter ia List, 362, 363 Energy Technology Product List, 362, 363 engineering works, design responsibility, 33 Enhanced Capital Allowances (ECAs)

scheme, 362-5 Enterprise Acl 2002, 339, 341,342 environmental health officer inspections,

261 estimates, 136- 9 European Construction Institu te, Partnerillg

ill fhe Public Sector, 115

Eu ropean Union, procuremen t rules, 207 exceptional weather conditions, 322 execution of contract, 219 expenses (contractor's)

adjustments to final account, 309, 312- 13

reimbursement for employer caust'CI delays, 326

extension of time, 322-5

for employer caused delays, 318, 320, 326 for 'neutral events', 321

external cladding, tests, 263 extranels, 165- 7

FA (Framework Agreement), 116-17 faults, making good, 306- 7, 308, 309-10 feasibility Slage, 124 Federation of Civil Engineering Contractors,

Daywork Schedrlle, n fee;

architects',16- 17 management & construction management

contracts, 85, 87 final account, 310- 14

cost reimbursement contracts, 78 inwlvency adjustmen ts, 352- 4, 355- 6

final certificate, 314, 317

Financc Act 2001 /03, capital allowances, 362,

363 financial administration, 249- 51, see also

accountability; cost control iX-sign and Build Contract (DB), 100-101 managemcnt & construction management

contracts, 86

------------~----~-~ .. ~.~~~---,. ............................. ~

372 Index

finan cial reviews, 289, 290 Fire and Ci vil Defence Authority,

inspections, 261

fire~fjghting equipment, 271 fire precautions, 269- 72 fire prevention, 270

Fire Protection Association,Joitlt Fire Code, 269-70

'firm price' contracts, 59- 60 fitling-oul works, capital allowances, 359,

365-6 fixed price contracts, 64-70

versus cost reimbursement, 58-63

fixed price variations, 289 force majeure, 321-2 forms of agreement, 17 fossils (antiquities) on site, delays caused by,

298,313,321,327 Framework Agreement (FA), 116- 17

'gain-share pain-share' contracts, 79 groS5 valuation, 297 gUilranteed maximum price contracts, 82,

83 management & construction management

contracts, 86 guarantc'es, 219-20 Guide 10 Qlllllity Based Selectiml ojGmsultal1/s,

17

'hand-over' mc'(-'ting, 309 hazards, health & safety, 265-1:\ health and safety, 9-10, 265-8

responsibilities, 25 Hcalthand Safety at Work ete. Act 1974

(HASAW),265

I icalthand Safety at Work H.egulations 1999, 9

Health ,1I1d Safety Commission, 9

Ilealth and Safety Executive, health & safety policy document, 265

health and sa.fety file, 10, 174 handover,309

I-Iealth and Safety Inspectorate (I ISI),

il15pection.'i,261 hotel allowance, 358, 359

Housing Grants, Construction and Regeneration Act 1996

dispute resolution, 328 interim paynll'nts, 291

HSI (Health and Safety Inspectorate), inspections, 261

IC (Intermediate Building Contract), 27, 68- 9

incidental capital expenditure, 360 incomplete work, 306, 348-52 industrial buildings allowances, 357,358,

359 inflation, 41

information rcle,l5e schedule, 248-9 initial brief, 12, 14, 123- 6

initial meeting, 246- 51 in.iti,ll programme, 14, l!i

insolvency, 339-44 contractor's, 344- 54

employer's, 354 In50lvency Act 1986

administration, 341, 3-l-2 insolvency practitioners, 340 receivership, 341 voluntaryarrangements,343

insolvency practitioners, 339-40, 344 inspections, site, 258 - 61 instructions, 279- 83

to suppliers, 249 insurance, 222-4

at practical completion, 307, 309 risk management, 35 for terrorism, 223- 4, 312

integrated risk & value management,53, 54-6

interest payments, 295 interim certificates, 297- 9, 301,304,307

issue of, 294 interim payments, 291-304 interim valuations, 294, 302 Intermediate Building Contract (IC), 27,

68-9 lS04157:1999, 156, 159

ISO 5457:1999, 158 ISO 9001 :2000, 156

-

Index 373

/oilll Code of Practice 011 the Protectioll from Fire ojColIstmc/ioll Sites alld Buildings U"dergoing Rellom/io", 269-70

Joint Contracts Tribunal

•

Construction lndustry Model Arbitration Rules (ClMA R), 335

Con!!truction Management Contract, 87 Design ilnd Build Contract (DB), 66-7, 95-7

interim payments, 293 fixed price contracts, 64-70 form.!> of contract, 27 Framework Agreement (FA), 116- 17 Intermediate Building Contrilct (lC), 27,

68-9 Major Project Construction Contract (MP),

67-8,95 Management Building Contract, 87 Measured Term Contract, 110-12 Minor Works Building Contract (MW),

69-70 Practice Note 6 Maill COII/ract Tendering,

205 Prime COl>t Building Contract (2005), 58,

72-3 Standard Building Contract (SBC)' 4, 8, 27,

66,192,193 architects' instructions, 279-81 certificates& payments, 293-7 contractor'sdesigned portion, 217-19 contr.lctor's programme, 248 delays, 318-28 dispute procedures, 329, 334, 337 drawings, 161-2 insolvency provisions, 344-54 insur.lnce, 222-4 issue of documents, 220- 22 parti.ll possession, 308-9 practical completion, 305-8 preparing & signing, 215-19 Private With Quantities 1998 Edition

OCT9'),8 rights, duties & liabilities, 227-45 rights of third parties, 18 section.ll completion, 216-17 specifications as contract documents,

)90

sub-contracts, 202-4 third party rights, 220 variation .. , 284-90 warranty agreements, 220

/0111/ rire Code, 269-70 'joint names policy', 223 JCT, see Joint Contracts Tribuna l

key performance indicators (KPls), 114

laboratory tests, 263 labour costs, 31-2

cost reimbursement contracts, 76 Lath.lm, Michac\

Carls/mc/illg till' TI'allI, 30 Tmslillg Ihe Tt'alll, 47

LD, see liquidated damages legislation

Arbitration Act 1996,335 Building Regulations 2000, 260, 309 Capital Allowances Act 2001, 357,358, 362,

363,366 Companies Act 1985/89,343 Construction (Design and Management)

Regulations 1994 (CDM94),9-1O, 25- 6

fire precautions, 269 health & S<1fety, 265 planning supervii>Or, 6-7

Construction (Design and Management) Regulations 1994 (CDM94), Amendment 2000, 9

Construction (Health Safety and Welfare) Regulations 1996,9,269

Contracts (Rights of Third Parties) Act 1999,18,220

Employers' Liability (Compulsory Insurance) Rel:,'lJlations 1989, 222

Enterprise Act 2002,339, 341, 342 Health and Safety at Work etc. Act 1974

(HASAW),265 Health and Safety at Work Regulations

1999,9 Housing Grants, Construction and

Regeneration Act 1996

•

374 Index

legislation (collt'd)

dbpute resolution, 328 interim payments, 291

[nsolvt!ncy Act 1986 administration, 341, 342 insolwncy praclitionl'Ts, 340 receivership, 341 VO!untMY arrangements, 3-13

Management of Health and S,lfcty at Work Regulations 1999, 9

Safety Representati\es and Safety Committees Regulations 1977,265

Sale ofGcxxis Act 1979, 348 Scheme for Construction Contracts

(England and Wales) Regulntions 1998,291

dispute resolution,329-34 life cyclt" costing, 151 lines of communication, 259 liquidated damages (LD)

contractor liability, 319, 323, 327-8 deductions from payments, 296, 306,

3U>!~9

liquidation,340-41 'listed items',ownership. 347,348 litigation, 336-7 local authority, site inspections, 260-61 locational bills of quantities. 195 losses (conlr,lclor's)

adjustments to final account 309, 313 reimbursement for employer cau:st.-d

delays, 326 lump sum premium, 350-52

maintenancc manua Is, 309 m,lintenancc work

taxation, 359-62 term contracts, 110-12

Major Project Construction Contract (M r), 67-8,95

project documentation, 163 making good defects, 306-7, 308, 309-10 'management action' (risk management), 51

Management Building Contract, 87-S management contracts, 84-93

drawings, 162-3

Management of Ilealth and Safety at Work Regulations 1999,9

masonry, tests, 263 Ma~terformat, 182, IS3 Masterspec, 183 makrials

acquisition in cost reimbursement contracts, 76, n

costs & availability, 32 delivery dates, 2-1S interim payments for, 298- 9 ownership, 347-8 samples, 263 standards, 263

means of escape, 270-71 Measured Term Contract, 110-12 measured works, bil ls of quantities, 194 mediation, 329 meetings, 246-56 method statements, deviation from, 260

Minor Works Contract (MW), 27, 69-70 MP (Major Project Construction Contract),

67-8,95 MW (Minor Works Contract), 27, 69-70

'named' sub-contractors, 68, 201 National Building Specification (NBS), 183 National Health Service p rocurement, 114 National Joint Consultative Committee for

Building (NJCe), Code of Procrdurt

for SillK'e Stagr SelectiVt' Tend(7ing, 205

NBS(National Building Specification), 183 NEC (New Engineering Contract), 27 negotiatl-d contracts, 40-41 'neutral evcnts', 318, 320-21 New Enginl't'ring Contract (NEC), 27 NJCC (National Joint Consultative

Committee for Building),Codroj Procrourr for Sillgle Stage SeIn:tiVf' Tendering, 205

'nominee',3+I non-competi live contr .1cts, 40-41

non-completion certi ficate, 306 non-completion of work, 306, 348-52 notice of adjudication, 330

Tlldel' 375

notification of delay, 323 Notification of RroisiOll to Compld/oll Date, 323,

338 novation, 98-9

Odean Theatres case (1971),360 Official Referees, 336 'open book' approach, 58 operating manuals, 309 outline design, 124-5 Olltlitlt' Plan afWork, RlBA, 12, 13 ownership of materials, 3-17-8

package COnIT.lcts, 84-5, 88-9, 91 dr.1Wings fo r, 162-3

parent company guarantees, 219-20, 226 partial possession, 216, 308-9 partnering. 113-20 payments

adjuShnents for defective work, 310 adjuShnents to contract sum, 31 1-13 cost reimbun.cment contracts, 78 deductions for liquidated damages, 2%,

306,308-9 dc<;ign & build contracts, 96-7 final account, 310-14 insol"cncy adjuShncnts, 352-4, 355-6 interim,291-3(}4 reimbursement for cmployer caused

delays, 320, 326 PC (primc costs), see prime cosl!. performance bonds, 219-20, 225 perfonnance uptimisation, 45-6 performance requiremenb, 130 perfonnance specifications, 180-81 pcrson-in-charge, rights, dutie; &

responsibilitk'S,245 I'FI (PriV.,te Financl' Lnitiati,'e), 97, 163 photogr.lphic rccords, 262 pl.lnningsuJX·rvisor, rights, duties &

responsibilitics, 6-7, 244 plans, S('(' drawings; programme plant, SRI! also building services c~ts, cost reimbursement contracts, 77 economics of siJ:e, 32 health & safety, 267-8

plant and macruneryc.lpital allowances, 357, 358-9,366

possession of the building, 306, 308-9 possession of the site

access delays, 322 compll'lion of work, 306

practical completion, 305-8 preambles (bills of quantities), 194 preferential creditors, 341, 344 preliminary enquiry (tendering), 207-8 preliminary estimate, 137 prcscripti\especifications,l80 Prime Cost building contract, 72-3 prime costs (PC)

allowance for defective wurk, 78 reconciliation, 78 record keeping, 75-7

principal contractor, rights, duties & r~ponsibilitie;, 7-8

Priv.lte Fin.lnce Initiative (p1:1), 97, 16-1 privity of contract, 18 procurt'ment

accountability,38-42 basic concepts, 30-37 continuity contracts, 103-12 cost reimbursement contr.lcts, 57-63,

71-8 design & build contracts, 94-102 fIXed price contracts, 57-63, 64-70 management & construction management

contracts, S-l-93 partnering, 11}-20 principle;, 21-9 target COl>t contracts, 79-83 value& risk management, 43-56

production costs, 33- 4 productivity, 33-4 programme

contractor's pro\'isiun of, 248 desigo & build contracts, 101 example, 254 initial, 14, 15 managl'men t & construction management

contracts, 92 pre-contract clement, 128-9 progn'Ss chL'(:king, 262

376 Index

progress ceports, contractor's, 252 project brlet 12, 14, 123- 6 project extraneis, 165-7 project inform.1tion, sel' documentation project managers, 88

pre-contractelemcllt, 129 rights, duties & responsibilities, 6

'project partnering', 115 project review, value management, 45- 6 project value

opportunities to increase, 48- 9, 52 value management, 43- 6

proprietary systems, 33, 97 provisiona 1 sums, in bill of quantities, 193-4 public sector procurement, 38, 39, 42, 97, 1 1.t

quality assurance, 132 dC'Sign documentation, 155-8

quality m.muals, 156 quality procedure codes, 156-7 quality review, 157- 8 quantity surveyor, scr also v.1iuations

record keeping for cost reimbursement contracts, 75- 7

rights, duties & responsibilities, 5, 243- 4

receivership, 341 records

dayworks, 287- 8 photographic, 262 ,rime costs, 75- 7 sitediary,261

rectification period, 306, 308 refurbishment work

capital allowances, 366 tilxation, 359- 62

repair work tilxation, 359- 62 term contracts, 110- 12

reports architects',260 clerk of works, 261 - 2, 277- 8 site inspt.-'<:tions, 261

research and development allowances, 358 responsibilities, 4-8, 227-45

accowltability -,38-42

responsibility code, 157 retention fund, 32, 292

cost reimbursement <:ontracts, 78 retention amounts, 297- 8, 299-300, 307

RlBA Publishing appointments, 17 architects' instru<:tions, 282-3 Certificate of Completion of Making Good

Defects, 310, ]16 Certificate of Practical Completion, 305, 315 Final Certificate, 31 4, 317

Notification of Revision to Completion Date, 323,338

Out/ille Plan of Work, 12

RICS, see Royal Institution of Chartered Surveyors

rights, 4-8, 227-45

risk management, 26, 35-6, 46- 53, 54-6 fixed price versus cost reimbursement

contracts, 60-62

health & safety, 265 'Romalpa' dausc, 348

Royallnstitution of Chartered Surveyors appointments, 17 Schedule of Basic Plant Charges, 77 Standard Method of Measurement of Building

Works (SMM7), 66 valuation forms, 301

Rules of the Supreme Court, 336

safety committee, 265 Safety Representatives and Safety

Committees Regulations 1977, 265

Sale of Goods Act 1979, 348 samples, testing, 263 SBC, see Joint Contracts Tribunal, Standard

BuildingContract (SBC) scale, drawings, 158- 9,159-61 Se/ledllle of Ra sic Plant Cimrges, 77 schedules, 173- 4,175- 8

defects, 309- 10 Scheme for Construction Contracts (Englilnd

and Wales) Regula tions 1998, 291

dispute resolution, 329-34 'scheme of arran.,sement', 343- 4 se<:tional completion, 216-17, 308

IlIdex 377

secured Cfl'CIitOrs, 34 1,344 serial contracting. HH-7 services con~ultants, site visits, 260 SFA/99 (Standard Form of Agreement),

updated 2(J()4, 258 'sh.lroo risk events', 318 shrinkagcs, making good, 306-7, 308, 309-10 site access delays, 322 site closure, 347-8 site diary, 261 site inspections, 258-61

checklist, 273-6 site management teamS,S5, SS site meetings, 251-3, 255- 6 si te records,261-2 si te safety, see health and safety site visits, 257-60 sketch .scheme, 12-l-S SMM7R (Standard Method of Measurement

of Building Works), 192, 193 Sp.1CC parts, building services, 309 specialist sub-contr.lCtors, 131, 201-2 Speci.1list suppliers, 131 specifications, 179-90

pre-contract, 130 St.lndard Form of Agreement (SFA /99,

updated 2CKH), 258 Stalldard Method of Measurement of Building

• Works (SMM7R), 192, 193 statement of retention, 301, JO]

statuscooe, 157 statutory duti .... , 25-6 statutory requirements, 8- 10 storage, drawings, 159 'strategic partnering', 115 sub-contractors, 201-4

design by, 203 issue of instructions to, 2-l9 meetings, 253 'named',68-9 ownership of materials, 3-\7-8 payments, 2%-7, 300 required construction periods, 248 rights, duti~ & responsibilitics, 8, 67, 203 specialist, 131 tender & contract documentation, 66

termination of contractor's 'employment', 351-2

sub-<:ontractor's d<.'Signed portion, 203 sub-letting, 77 supervision of work, 258-9 suppliers

issue of instructions to, 249 meetings, 253 spedalist, 131

suspension of work, 308 sustainable water use products, capital

al1owanc .... ,363

target cost contracts, 60, 79-S3 taxation, capital allowances, 357-66 TCC (Technology and Construction Court),

334,336 technical shf..'Ct colk'Ction, 183 Technology and Construction Court (TeC),

33-1, 336 tendering

bills of qu.mtitics, 191-200 continuation contracts, 108-9 contractor selection, 27-9, 30-37, 40- -l1,

206-7 Design and Build Contract (DB), 99- 100 management & construction

management contracts, 86-7, 89 design & build contracts, 99-100 drawings & schedules, 154-7S management & construction management

contracts, 86-7, S9 obtaining tenders, 205-12 pre-<:ontract cost control, 134-53 pre-tender process, 123-32,123-33 procedure,27-9,205-12 serial contracting, 106 specifications, 179-90 sub-con tractors,201--l tenn contracts, 111-12

tenn contracts, 110-12 tennsof appointment, consultants, 17 terrorism, 321

insurance for, 223-4, 312 tests, materials & components, 263 third party rights, 18,220

..

378 Index

time 'allarge', 322 transference of risk, SO-51 'turnkey' conlTacts, 94

Unified Classification for the Construction lndustry (Unic1ass), 159, 181-7

in bill of quantities, 194-5 unsecured creciilof5, 341, 344

Valuation Rules, 285 valuation";

cost reimbursement contracts, 78 design & build contracts, 100 final account, 313 interim payments, 293-4, 296, 297, 298

forms, 300-301 ,302 management & construction management

contracts,89 variations, 193, 19.1, 285, 286

•

value added tax, 300 value drivers, 44-5 value engineering, 44-6 'value for money',40-41, 40-42 value management, 43-6, see also cost

control variations, 284-90

adjustments to con tract sum, 31 1-12 valuation, 193,194,285,286

voluntary arrangements (insolvl'l1cy), 343-4

voluntary liquidation, 340

warranties, collateral, 17-18, 220

Water Technology List, 363 water use products, sustainable, capital

allowances, 363

weather conditions, delays caused by, 322 whole life costing, 151