4. Contracts and Procurement Flashcards
What is a contract?
It is a legal relationship and agreement between parties (eg. Individuals, companies) which is enforceable by law (contract law comes under civil law rather than criminal law). Under the housing act and the LI CoC, contracts have to be in writing.
Construction contracts are between the contractor and the client.
What are standard term contracts and what are the benefits?
Standard term contract specifically cover the who (parties involved), where, when (start and finish dates), what (nature and extent of project), cost of a project, and the terms.
The benefits are that the parties involved have more certainty of the roles, they will be more familiar with the contract and the contract is suited to purpose.
What are the contract documents needed for a valid construction contract?
- Production information: illustrative/qualitative (drawings), quantitative - BoQ, specification
- Contract documents: contract (e.g. JCLI, JCT) comprising typically of the agreement, the parties, recitals, articles, witnesses, conditions
What are the typical contents of a contract?
Typical Contract contents: • Definition and interpretation • Carrying out the works • Control of the works • Payment • Injury, damage and insurance • Termination • Settlement of disputes
What would you consider when selecting a contract?
- Type of work (e.g. engineering, architectural, landscape)
- Size of contract (cost)
- Complexity of work
- Whether the project is soft or hard landscape (or both)
- Degree of risk - how reputable and reliable the company you’re entering into legal relations with is.
What are some common types of construction contracts?
NEC: New engineering and Construction Contract.
- favoured by Highways, EA and defence projects
- range of payment options, includes BIM requirements
- has standalone landscape and maintenance contracts
JCT: (Joint contracts tribunal)
- Typically for building contracts
- Range of contracts such as Intermediate or minor works
JCLI (joint council for landscape industries)
- Appropriate for hard and soft landscape projects
- Types: Landscape works contract, landscape maintenance works contract, landscape works with contractors design, and landscape contract for homeowners
- Similar to JCT works
- Contractor only responsible for making good defects post-practical completion if they are responsible for maintenance of softworks
- Differs from others by including clauses specific to landscape: allowing for living material (plants) and also vandalism.
What contract might you consider for soft landscaping projects?
The JCLI contract, as it has clauses specific to living material (ie plants!)
What is the JCLI contract and what are its advantages to landscape architects?
The JCLI (joint council for landscape industries) contract is a standard contract specifically designed for landscape works, both hard and soft, and is appropriate for a project value of approximate £250,000 (guideline). It is similar to the JCT contract, but has clauses relating specifically to landscape such as for living material (plants) and vandalism. It has a number of types: landscape works contract, maintenance, homeowners.
What is an NEC contract?
New engineering and Construction Contract.
- favoured by Highways, EA and defence projects
- range of payment options, includes BIM requirements
- has standalone landscape and maintenance contracts
What is the JCT contract?
JCT: (Joint contracts tribunal)
- Typically for building contracts
- Range of contracts such as Intermediate or minor works
How long does the JCLI maintenance contract last?
Usually two years, sometimes extended if a project is particularly important or complex, or if there have been issues that need addressing.
What procurement options are there in terms of contracts?
There are several different types of procurement routes for construction contracts. These include:
- Traditional Contract
- Design and Build Contract
- Management Contract
- Framework Agreements
- Partnering (more of an approach)
- Design Competitions
What is a traditional contract procurement?
- The most simple approach to landscape contracts: a project is designed, it then goes out to tender and the most suitable contractor is selected, and then the project is constructed.
- Design consultants remain involved throughout (appointed by client)
- Usually lump-sum contracts
- Works defined at the pre-tender stage
- Client has different contracts for the design team and the contractor
- Client has more control and responsibility than Design and Build contracts
Example: Ebbsfleet. Design team work for the project’s client, separately to the main contractor who also works for the client (although design team were going to be novated - persuaded client to keep them client-side to ensure higher level of design quality and control.
What is a design and built contract?
- Main contractor is appointed to both design and construct the works
- There is a single point of delivery, as opposed to a client-side design team and a contractor team. This reduces risk to the client.
- Contractor is landscape architect’s client.
- Popular for large engineering and construction projects
- Design team CAN also be appointed by the client prior to construction, and design work taken on by contractor during construction, OR design team NOVATED to contractor during construction (contract transferred from client to contractor - contractor becomes the design team’s client).
What is a framework agreement?
A framework agreement is an agreement which sets out terms by which contractors will carry out projects - contractors produce a tender, and those accepted on to the framework may be given project based on the terms in the framework agreement.
They are usually used by local authorities, offering contractors repeat work: it is efficient and easy for both parties as all are used to the work - they are familiar with it and there is less work in procurement.
