PCSA Flashcards
Pre-construction Services Agreement
What is the difference between a letter of intent and a PCSA?
Letter of Intent allows contractor to carry out their contractual role before the contract is signed.
PCSA - contractor provides services outside the scope of the typical building contract. They are acting as an adviser in the procurement process.
A PCSA must:
- define the services required
- define if contractor is to do any design work
- If yes what is their design liability - what will happen to this if they are not awarded the second stage?
- set out payment methods and provisions for deferred payment
What is the aim of a PCSA?
To gain contractor input on the design process. Generally used in two stage tender processes.
What does a contractor typically advise on when a pre-construction services agreement is used?
- build-ability and construction risk
- packaging of works
- specialist contractors
- cost plan
- construction programme
- method of construction
- site layout and facilities
- planning issues to do with build - ie waste, access and traffic management
What is the benefit of getting this advise early?
Aims to improve cost-certainty and build-ability and a more integrated team.
Tends to result in less variations and less claims than one stage tenders even though initial tender prices are generally higher.
When can a PCSA be used?
- Generally on larger more complex projects
- Two stage tenders
- Design and Build for early contractor input
- to get pre-construction services info from specialists (appointed by either employer or contractor)
- Or by when a consortium is bidding on a larger PFI or PPI bid to help them get contractor input on the bid
