As a Quantity Surveyor working for a small main contractor, you’ve been issued a Letter of Intent (LOI) by your client whilst the contract is finalised. Although having not commercially managed a project pre-contract before, you have some queries as to what a Letter of Intent is and its parameters. This C-Link articles aims to… Continue reading Letter of Intent – What’s it for and should I start works upon receipt?
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Preliminaries in Construction
If the direct or permanent construction works’ bill of quantities or work schedule is prepared using the design and specification, then general project ‘overheads’ such as time related elements (e.g. project management and general supervision), plus individual items such as approvals and testing, are included and measured as preliminaries or ‘prelims’. The prelims pricing document… Continue reading Preliminaries in Construction
LADs in Construction
Construction contracts place emphasis on the insertion of clear dates for starting works, when the works must be completed by, and the provision for inserting dates that sections of the works must be completed by. Commercial factors drive this necessity for clarity on the timing of the works. The Contractor wants a back-stop date against… Continue reading LADs in Construction
Schedule of Works
What is a Schedule of Works? A Schedule of Works is a contract document that lists the works required on a project. The Schedule references the requirements included in the specifications and contract drawings plus any additional ‘builders work’ or ‘fixing schedule’ type items, this is commonly referred to as a specified schedule of work.… Continue reading Schedule of Works
Construction Partnering
What is Construction Partnering? Construction partnering originated in the United States during the early 1980s. It was developed in connection with procurement as a technique for reducing the cost of contract disputes through improved communications, processes and relationships across the project team. Construction Partnering is premised on delivering the best possible value for all parties.… Continue reading Construction Partnering
Construction Phase Plan
What is a Construction Phase Plan (CPP)? If you have worked in the construction industry then you are likely to have heard reference made to the Construction Design Management Regulations or CDM. The CDM Regulations were first introduced in 1994 following a European Directive (92/57/EEC) concerning the minimum requirements or standards for health and safety… Continue reading Construction Phase Plan
Practical Completion – When is it achieved and how is it managed?
Practical Completion, often referred to as “PC”, is considered to mean the building is finished to a state where it can be put to its intended use, but small or minor defects may still be present. Practical Completion is not expressly defined within the JCT suite of Contracts, but it may be defined as: “When… Continue reading Practical Completion – When is it achieved and how is it managed?
Dispute Resolution in Construction – An Overview
Disputes are unfortunately common in the construction industry due to several factors, most of which can be traced back to issues concerning payment or workmanship. One example area would be a difference in assessment of a change in scope or, before even getting to the assessment, disputes can arise due to differing opinions on entitlement.… Continue reading Dispute Resolution in Construction – An Overview
Contract Sum Analysis
What exactly is a Contract Sum Analysis? A Contract Sum Analysis (CSA) is an alternative pricing document to a Schedule of Works (SoW) / Bill of Quantities (BoQ). It’s often prepared in a standard format by the Employers Agent to support the tender returns review. The Employers Agent requests that all tenders are returned on… Continue reading Contract Sum Analysis
Performance Bonds in Construction
You’re about to enter into a contract as a developer placing a contract. You have concerns about the credit of the organisation you are about to enter into contract with or simply want surety concerning the contractor’s performance to protect your investment. Rather than seek alternative suppliers you are keen to find out what other… Continue reading Performance Bonds in Construction