“I’m a Main Contractor Tendering for a project where the Contract will be an NEC Option A Contract. We want to understand what the potential impacts of this Contract Type are in terms of Cash Flow and, the best management practices generally.” That’s the scenario that we put forward to Jason Farnell, Adjudicator and CEDR Accredited… Continue reading NEC Contracts and Cash Flow Management
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Design and Build Contracts – Increase your profit
A Design and Build Contract is a contract where the Main Contractor offers to design and build a project for a price that includes both the design and construction. What I found striking throughout my career is the lack of contractual knowledge of even some of the most highly-skilled construction professionals – particularly the designers.… Continue reading Design and Build Contracts – Increase your profit
Can I claim for loss of profit in variations?
The scenario: I’m working on an unamended JCT 2016 Building Contract with a £3m lump sum Contract Sum. The Employer is looking to amend an element of the works and has issued an instruction to omit a relatively large portion (approximately 10% in financial terms) of our scope of works. These works are now to… Continue reading Can I claim for loss of profit in variations?
The client is late issuing their Notice to Commence works on site – what should I do?
Ever wondered the best way to respond when your client is late issuing their Notice to Commence works on site? We’ve put together a real-life scenario where this happened and asked Jason Farnell, Adjudicator and CEDR Accredited Mediator, to provide actionable guidance on how you can best manage this difficult situation. The scenario: I’m a… Continue reading The client is late issuing their Notice to Commence works on site – what should I do?
What happens when you are late issuing a Payment Notice?
We’ve all felt that pang of dread when you realise you’re late to issue a payment notice on time, and it’s on a questionable subcontractor valuation that you need to issue a Pay Less notice. What are your options when that happens? Well, we put the following scenario to the experts at Commercial Risk Management:… Continue reading What happens when you are late issuing a Payment Notice?
Giving Notice – Project Lifecycle 13
On almost every project, whether you’re a Main or Subcontractor, you’ll have experienced a delay to your works due to a lack of access on site. The Contract states you’ll be granted unrestricted access in an area but that isn’t the case – you’re sharing the area, or the conditions in the area are not… Continue reading Giving Notice – Project Lifecycle 13
Notices to Commence – Project Lifecycle 12
A Notice to Commence (NTC) is a formal communication from the Client to the Contractor stating the date the Contractor can begin work. The reason NTC’s are so important is they confirm the date when the contract performance starts and therefore, they’re used to calculate the completion date and any important Sectional Completion dates in… Continue reading Notices to Commence – Project Lifecycle 12
PCSA Agreements – Project Lifecycle 11
Pre-Construction Services Agreements (PCSAs) are used to appoint design and build Subcontractors to carry out services before entering into contract and tend to be used as part of a strategy to remove risk. PCSAs are generally advantageous as the early involvement of ‘Specialists’ can lead to Value Engineering opportunities, as they contribute their expertise to… Continue reading PCSA Agreements – Project Lifecycle 11
Project Reviews – Project Lifecycle 10
For whatever reason, there is a whole list of names given for Project Review meetings in Construction. Depending on where you’ve worked, you’ve likely heard them referred to as ‘Project Reviews’, ‘Cost to Completes’, ‘MPR’s’, ‘CVR’s – the list goes on. What shouldn’t change however, is the importance placed on these meetings and your preparation… Continue reading Project Reviews – Project Lifecycle 10
Procurement & Subcontract Tendering – Project Lifecycle 9
We’ve discussed cash-flow and its importance to running a project. Good cash-flow gives you flexibility and control during Sub-Contract procurement. How often have you been offered a discount in trade for reduced payment terms by a Subcontractor? If your project is cash positive and you could afford reduced payment terms in return for a discount… Continue reading Procurement & Subcontract Tendering – Project Lifecycle 9