The Chartered Institute of Building is calling for reviewers of its international complex projects contract following its launch in New York.
The last major form published by the CIOB was the first standard form of construction contract ever produced. It was published jointly with RIBA in 1871, over 140 years ago. This contract has been written for the 21st Century. It is designed to put the CIOB’s Guide to Good Practice in the Management of Time in Complex Projects into practice.
Former CIOB President (2008/09) Keith Pickavance said, “This is a modern day contract designed for the data age. It underlines the need for a collaborative, and competent, approach to how risks are managed utilising transparent systems of data. It can be used with, or without, Building Information Modelling and has been drafted to work within any country and legal jurisdiction around the world.
“The causes and consequences of delay are the single most common reason for uncontrolled loss and cost escalation in complex building and engineering projects, where the design is produced by the employer or contractor with or without BIM. This contract provides a means to managing those risks and we want the industry to review it and tell us what they think. Further down the track we [CIOB] are looking at how we educate and qualify people in the management of time; the currency of these skills will only increase.”
Within the Contract there are three standard form documents: The Contract Agreement, the Conditions of Contract and the Contract Appendices. In addition the below standard form agreements are to be used for projects in conjunction with the Contract:-
· Standard Form of Subcontract
· Agreement for Appointment of Contract Administrator
· Agreement for Appointment of the Project Time Manager
· Agreement for Appointment of the Design Coordination Manager
· Collaborative services agreement for use with Building Information Modelling
The Complex Projects Contract differs from other standard forms of contracts and can be used in both building and engineering projects and may be adopted for other types of work. It can be used for turnkey, design and build, for construction only, or for part contractors design, both in the UK and internationally.
It has a number of advantages including:-
· In contrast to the information available under other standard forms, it requires complete transparency in planned and as-built information in compliance with the CIOB’s Guide to Good Practice in the Management of Time in Complex Projects.
· It is currently the only standard form of contract available which requires a resourced critical path network, a planning method statement and the keeping of progress records to a specified, quality assured standard, with significant redress for a failure to comply with the contract requirements.
· The contract contains detailed requirements for the identification and use of time and cost contingencies, defines float and concurrency and sets down rules for their use. It provides the power for the contractor to keep the benefit of any time it saves by improved progress as its own contingency, which cannot be taken away. No other currently available standard form of contract does this.
· The contractor’s schedule is not only the time control tool but also the cost control tool against which interim valuations are made and the predicted cost of the works is calculated contemporaneously permitting out-turn cost and total time prediction on a daily basis though the updated working schedule.
· It clearly identifies the employer’s time and cost risks in tables, which can be customised for particular projects with a variety of distributions of risk.
The CIOB is looking for comments and criticism on the Review Edition of the CIOB Contract by Monday, 30 July 2012. All comments will be acknowledged and taken into consideration in future review and revision of the form and its constituent standard form documents. The contract can be accessed at www.ciob.org.uk/CPC.