The Aqua Group Guide to Procurement, Tendering and Contract Administration

387 Pages·2016·6.001 MB·English

by  Bowsher, Michael, Hackett, Mark, Statham, Gary

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The Aqua Group Guide to
Procurement, Tendering and
Contract Administration
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The Aqua Group Guide
to Procurement,
Tendering and Contract
Administration
Second Edition
Edited by
Mark Hackett and Gary Statham
with contributions from
Michael Bowsher, John Connaughton,
Michael Dallas, Paul Morrell, Alan Muse,
Erland Rendall, Simon Rawlinson, Nick Schumann,
Andrew Shaw and Peter Ullathorne
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Thiseditionfirstpublished2016
©2016byJohnWiley&SonsLtd
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LibraryofCongressCataloging-in-PublicationData
TheAquaGroupguidetoprocurement,tenderingandcontractadministration.–Secondedition/
editedbyMarkHackett,GaryStatham;withcontributionsfromMichaelBowsher[and5others].
pagescm
Includesbibliographicalreferencesandindex.
ISBN978-1-118-34654-9(paperback)
1.Buildings–Specifications.2.Constructioncontracts–GreatBritain.3.Lettingofcontracts–
GreatBritain.4.Constructionindustry–Management.I.Hackett,Mark,1962-editor.II.Statham,
Gary,editor.
TH425.A6782015
692–dc23
2015008101
AcataloguerecordforthisbookisavailablefromtheBritishLibrary.
Wileyalsopublishesitsbooksinavarietyofelectronicformats.Somecontentthatappearsinprint
maynotbeavailableinelectronicbooks.
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1 2016
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Contents
PART I BRIEFING THE PROJECT TEAM 1
1 TheProjectTeam 3
Introduction 3
Partiestoabuildingcontractandtheirsupportingteams 3
Rights,dutiesandresponsibilities 4
Theemployer 5
Thearchitect/contractadministrator 5
Thequantitysurveyor 5
Theprincipaldesigner 5
Theclerkofworks 6
Thestatusofnamedconsultants 6
Unnamedconsultantswithdelegatedpowers 7
Theprojectmanager 7
Theprincipalcontractor 7
Sub-contractors 9
Statutoryrequirements 9
TheCDMregulations 10
Avoidingdisputes 12
Communications 12
2 AssessingtheNeeds 14
Thestructure 14
Thestrategicdefinition 14
Contributiontotheinitialprojectbrief 16
Theinitialprogramme 17
Theappointment 17
Appointmentdocuments 19
Collateralwarranties 20
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vi Contents
3 BuildingsasAssets 21
Buildingsasassetsaswellasbuildings 21
Singlebuildingorprogramme? 22
Buildingsassolutionstobusinesschallenges? 23
Everydaysolutions-basedthinking 24
Summary 25
PART II AVAILABLE PROCUREMENT METHODS 27
4 PrinciplesofProcurement 29
Simpletheory – complexpractice 29
Theeternaltriangle 29
Otherconsiderations 32
TheConstruction(DesignandManagement)Regulations2015 32
Risk 33
Accountability 33
Enteringintothecontract 33
Typeofcontract 34
Selectionofthecontractor – thetenderingprocedure 35
Establishingpriceandtime 35
Thedynamicsoftendering 36
5 BasicConcepts 37
Economicuseofresources 38
Labour 38
Materials 39
Plant 39
Capital 39
Contractor’scontributiontodesignandcontractprogramme 40
Productioncostsavings 40
Continuity 41
Riskandaccountability 41
Accountability 43
Summary 43
6 Accountability 45
Background 45
Themodernconceptofpublicaccountability 46
Contractdocumentation 46
Properprice 47
Dispensingwithcompetition 47
Inflation 47
Valueformoney 48
Summary 49
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Contents vii
7 ValueandRiskManagement 50
Valuemanagement 50
Valuearticulationandprojectdefinition 52
Optimisationofbenefitsandcosts 52
Learninglessonsandperformanceoptimisation 53
Riskmanagement 54
Riskmustbemanaged 54
Nothingventured,nothinggained 55
Understandingtheproject 56
Riskmanagementstrategies 57
Allocatingmanagementactions 58
Valueandriskarecomplementary 59
Similaritiesintheprocesses 63
Theintegratedprocess 63
8 FixedPriceandCostReimbursement 64
Fixedprice 64
Costreimbursement 65
Applicationtocontractelements 65
Fluctuations 66
Targetcostcontracts 66
Use 67
Theemployer’sposition 67
Thecontractor’sposition 67
Programme 68
Summary 69
9 FixedPriceContracts 70
JCTfixedpricecontracts 70
Thestandardbuildingcontract 71
Designandbuildcontract 71
Majorprojectconstructioncontract 73
Intermediatebuildingcontract 74
Minorworksbuildingcontract 75
Otherfixedpricecontractsavailable 75
Advantagesanddisadvantagesoffixedpricecontracts 76
Advantages 76
Disadvantages 76
10 CostReimbursementContracts 77
Thefee 77
Theprimecostbuildingcontract 78
Characteristicsoftheform 78
Advantagesanddisadvantagesofcostreimbursementcontracts 79
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viii Contents
Advantages 79
Disadvantages 80
Budgetandcostcontrol 80
Administeringthecontract 80
Procedureforkeepingprimecosts 81
Contractor’ssitestaffanddirectworkforce 81
Materials 82
Plant 82
Credits 82
Sub-letting 83
Defectivework 83
Costcontrol 83
Finalaccount 84
11 TargetCostContracts 85
Guaranteedmaximumpricecontracts 87
Competition 88
Contract 88
Advantagesanddisadvantages 89
Use 89
12 ManagementandConstructionManagementContracts 90
Paymentandcostcontrol 90
Selectionandappointmentofthecontractor 92
Contractconditions 93
Contractadministration 94
Professionaladvisers 94
Advantagesanddisadvantages 95
Advantages 95
Disadvantages 95
Constructionmanagement 96
Use 97
Programme 97
13 DesignandBuildContracts 99
Thecontract 100
WheretouseDB(andwhennottodoso) 101
Managingthedesignprocess 102
Novation 103
Evaluationofsubmissions 104
Post-contractadministration 104
Financialadministration 104
Programme 105
Advantagesanddisadvantages 106
Advantages 106
Disadvantages 106