PFI and Construction Contracts

PFI and Construction Contracts Author David Hickman
ISBN-10 9781909287181
Year 2017-01-01
Pages 150
Language en
Publisher Chartridge Books
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Examines contracts in the construction industry in relation to the Private Finance Initiative (PFI), such as what distinguishes construction in a PFI environment from a traditional contract. The author analyses the key elements of the construction sub-contract and interface between contractor and operator. The author, David Hickman, is a Partner with a leading international law firm and has worked on many PFI projects. Contents: Construction issues on PFI projects: output specification, project company's solution, design and construction standards, warranties, government regulations, timescales, lifecycle costs, interface between construction/operational phase, design development, performance payment system. Flow down of risks to subcontracts: how risk is flowed down, termination risk, termination issues for the construction subcontractor, warranties, bonds and guarantees. Use and adaptation of standard forms for the construction subcontract: a standard form (JCT 81 or 98), preparation of the contract where a standard form is being adapted, bespoke contracts. Negotiating key elements of construction subcontract: scope of works, liability level, compensation events and relief events, extensions of time, liquidated damages, payments, variations, certification/completion, independent certifier. Collateral agreements. Interface between contractor/operator. Finance/funding: debt finance, subordinated debt, equity, bond finance, key funding issues, the financial model, banks and risk. Insurance: insurance and risk allocation, insurances required by the construction company, who effects these, levels and breadth of insurance, banks and insurance, authority issues, what the construction company must do. Post contract-construction phase problems: variations during construction, disputes, DRP at subcontract level, overruns/extensions of time. Future developments. Appendices: Treasury Taskforce Guidance.wordings. Sample risk matrix.

Construction Insurance and UK Construction Contracts

Construction Insurance and UK Construction Contracts Author Roger ter Haar
ISBN-10 9781317496199
Year 2016-05-20
Pages 800
Language en
Publisher CRC Press
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Construction Insurance and UK Construction Contracts has long been the premier text for legal professionals looking for a combined analysis of construction contracts and their relation to insurance law. In a new and updated third edition, this book continues to provide in-depth commentary and pragmatic advice on all the most important regulations and policies surrounding contracts and insurance in the construction industry. Including brand new chapters on reinsurance and energy products, this book covers subjects such as: Minor, intermediate and major project construction contracts Classes of insurance contract The role of insurance brokers Risks in construction and legal liability Professional indemnity insurance and directors' and officers' liability insurance Bonds and insurance Latent defect insurance Property insurance Health and Safety and Construction Regulations Contract Insurance FIDIC, JCT and NEC 3 regulations PFI/PPP projects in the UK Dispute resolution This book is a vital reference tool and practical guide for lawyers and in-house counsels involved in the construction industry as well as project managers, quantity surveyors, construction contractors, architects and engineers needing advice from an experienced legal perspective.

MacRoberts on Scottish Construction Contracts

MacRoberts on Scottish Construction Contracts Author MacRoberts
ISBN-10 9781118273432
Year 2014-09-29
Pages 576
Language en
Publisher John Wiley & Sons
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Provides a guide to the general principles of Scottish law relevant to construction contracts and the main provisions of the standard forms of construction contract used in Scotland including: the obligations of employers and contractors certification payment ending a construction contract remedies subcontracts collateral warranties insurance dispute resolution regulatory matters The new edition has been substantially updated and expanded to take account of the latest editions of the Scottish Standard Building Contracts and recent case law. Specific updates have been driven by the following changes to legislation and standard contracts Local Democracy Economic Development and Construction Act 2009 and the relative Scheme for Construction Contracts Arbitration (Scotland) Act 2010 Recognising the significant increase in use of NEC3 standard forms of contract, references to NEC3 provisions have been introduced throughout the relevant chapters so that each now covers the common law, the SBCC provisions and the NEC3 provisions. It also features new chapters on: litigation; competition; the Bribery Act 2010; and guarantees and bonds. From reviews of previous editions: ‘very approachable and readable… I would particularly recommend this book to non-legal construction professionals’ – Construction & Engineering Law ‘an informative textbook for the practitioner… [a] significant contribution to knowledge’ – Arbitration ‘a highly competent… textbook which would be of value for industry professionals with no legal background’ – Construction Law

Construction Contract Preparation and Management

Construction Contract Preparation and Management Author Geoff Powell
ISBN-10 9780230370289
Year 2012-02-22
Pages 528
Language en
Publisher Palgrave Macmillan
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Construction industry professionals produce terms of contracts all the time; whenever they write a specification clause or put a dimension on a drawing for example. Unfortunately, a lot of graduates leave university without realising this, or the significance of contracts in general, where misunderstandings and mistakes can be extremely expensive and cause considerable delay. This new text is a practical and reader-friendly approach for students and new professionals in Civil Engineering and the Built Environment, starting at the very beginning of construction projects and making important connections between stages. The text is full of helpful illustrations and real-life industry examples. Includes: • Extensive explanation of two of the most commonly used forms of contract, NEC3 ECC and JCT SBC05 • General principles of contracts; concepts such as the importance of time and programmes, and payment and pricing mechanisms; processes such as tendering; and the importance of stakeholders • An introduction to contract law and negligence as they affect the construction professional • The EU Procurement Directive and framework agreements • Site investigation and how to carry one out • The CDM regulations and safety

The Role of Cost Saving and Innovation in PFI Projects

The Role of Cost Saving and Innovation in PFI Projects Author Construction Industry Council
ISBN-10 0727728792
Year 2000-01-01
Pages 128
Language en
Publisher Thomas Telford
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As PFI matures, inevitably questions are being asked about the role of cost saving and innovation. This publication presents the findings of a study designed to test the proposition that PFI will yield value for money by stimulating innovation. It surveys people responsible for managing the purchasing, designing, building and operation of PFI projects, and poses questions about the extent to which cost saving improved value for money in various projects in both the construction and operation of facilities. The study also sought to discover the main reasons for variation in the levels of cost savings achieved in different projects. To do this, the factors affecting the extent of innovation achieved in a PFI project were investigated - these factors are the enablers and inhibitors of innovation. The data discussed in this report represents the opinions of informed and expert respondents, from all parts of the PFI industry, including both private and pubilc sectors.

Managing the Waste Pfi Programme

Managing the Waste Pfi Programme Author Great Britain. National Audit Office
ISBN-10 0102954496
Year 2009
Pages 50
Language en
Publisher The Stationery Office
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The European Union introduced a Directive in 1999 requiring all Member States to reduce the amount of biodegradable municipal waste disposed in landfill, with targets set for the years 2010, 2013 and 2020. Failure to achieve the targets will result in fines being levied by the European Commission. The Department for Environment, Food and Rural Affairs (Defra) is responsible for ensuring that these landfill targets are met at a national level. As part of this, Defra is overseeing a programme of new locaI authority PFI contracts for the construction of waste treatment facilities. The review focuses on Defra's role in seeking to promote the achievement of value for money from the waste PFI programme, the progress being made in delivering new local authority waste projects and good practice in the development of these programmes.

The Termination of the PFI Contract for the National Physical Laboratory

The Termination of the PFI Contract for the National Physical Laboratory Author Great Britain: National Audit Office
ISBN-10 9780102937695
Year 2006
Pages 47
Language en
Publisher The Stationery Office
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In 1998, the Department of Trade and Industry (DTI) and Laser, a special purpose company jointly owned by Serco Group plc and John Laing plc, signed a 25-year long Private Finance Initiative (PFI) contract. Laser would build and manage new facilities for the National Physical Laboratory (NPL), comprising 16 linked modules, containing over 400 laboratories, and replacing many existing buildings. The planned cost of the new buildings was approximately £96 million. The DTI would pay Laser a unitary charge, of £11.5 million (1998 prices) a year once the new buildings were ready, the charge increasing annually based on the increase in retail prices. The project suffered considerable construction delays and difficulties in achieving the specification for some parts of the buildings, mainly due to deficient design. In December 2004, it was agreed to terminate the PFI contract. The DTI paid Laser £75 million for its interest in the new buildings. This was the first termination of a major PFI contract involving serious non-performance. This report examines the problems that led to the termination, why these problems arose, how the Department managed them and the value for money consequences of the termination. The report finds that the DTI successfully transferred risk in the PFI contract to the private sector, but that the project risks could have been reduced with firmer control and better communication. Up to and including the termination, the Department's investment in the new facilities was about £122 million (March 2005 prices). In return, the Department secured an asset valued at £85 million and for which all but eight of more than 400 laboratories should be capable of being made to meet its specification in full. The private sector reported a loss of at least £100 million.

Constructor s Key Guide to PFI

Constructor s Key Guide to PFI Author Construction Industry Council
ISBN-10 0727726625
Year 1998-01-01
Pages 83
Language en
Publisher Thomas Telford
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'The published guidance on PFI has so far concentrated on addressing the needs of public sector purchasers. The Constructors' Key Guide to PFI is a first. Written by those in the industry, it addresses the questions and concerns of the industry. It is targeted at those who are relatively new to the PFI - particularly those in large to medium sized companies which may become involved in bidding for or delivering projects as more opportunities occur. I am encouraged to see the industry responding to the needs of its members. The guide emphasises the importance of the relationships between designers, constructors, financiers and service operators. This, in turn, should lead to the development of strong partnerships within the public sector to help renew the country's infrastructure for the 21st Century.' Nick Raynsford MP Parliamentary Under-secretary of State Department of the Environment, Transport and the Regions. The Private Finance Initiative is an evolving form of procurement and is now a vital part of the Government's programme. It is a new way of working for companies involved in providing public services. All companies intending to seek construction work over the next few years in the public sector must be aware of how PFI operates and find out how they can benefit from it. The Constructors' Key Guide to PFI is the first, and so far only, published guide that provides a practical, straightforward explanation of PFI and fully describes the entire process of how to obtain construction work in the public sector. It specifically describes the different opportunities PFI presents to different types of company and how construction companies need to find new ways to work with a wide range of consultants and specialist service providers. This valuable guide explains the different roles in which constructors, be they consultants, builders or designers, can be involved in public sector work, and particularly highlights the opportunities that exist for smaller companies looking for sub-contract roles in PFI projects. Aimed at those construction contractors and consultants that do not have an expert knowledge of the complexities of PFI but are big enough to be affected by it, the guide answers some of the questions and concerns in the industry and unravels the current complexities of PFI, to enable more constructors to understand the risk so that they can better capture the rewards. Constructors' Key Guide to PFI shows you how to take advantage of the new challenges and great opportunities that PFI offers.

PFI in Housing and Hospitals

PFI in Housing and Hospitals Author Great Britain: Parliament: House of Commons: Committee of Public Accounts
ISBN-10 0215555929
Year 2011-01-01
Pages 36
Language en
Publisher The Stationery Office
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The Department of Health and the Department for Communities and Local Government (the Departments) are responsible for sizeable portfolios of PFI projects covering hospitals and social housing. By April 2009 there were 76 operational PFI hospitals in England and over 13,000 homes had been built or refurbished through PFI. The letting of contracts and the responsibility for managing them is devolved to NHS Trusts and local authorities. The Departments are responsible for overseeing their PFI programmes and reporting to the public and Parliament on value for money. The Committee can find no clear and explicit justification and evaluation for the use of PFI in terms of its value for money. In many cases local authorities and Trusts chose the PFI route because the Departments offered no realistic funding alternative. Other concerns are central government's failure to use the market leverage that comes from overseeing multiple contracts, and the lack of robust central data to support effective programme management. It is clear that the implementation of PFI projects could be improved. Many PFI housing procurements have taken very much longer, and cost a great deal more, than originally planned. On hospitals, most are receiving the services expected at the point contracts were signed and are generally being well managed. There are, however, wide and unexplained variations in the cost of hospital support services, such as cleaning, catering and portering. Departments are not using their own buying power to leverage gains for the taxpayer.

Understanding NEC3 Professional Services Contract

Understanding NEC3   Professional Services Contract Author Kelvin Hughes
ISBN-10 9781135047986
Year 2013-08-15
Pages 216
Language en
Publisher Routledge
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As use of the NEC (formerly the New Engineering Contract) family of contracts continues to grow worldwide, so does the importance of understanding its clauses and nuances to everyone working in the built environment. Currently in its third edition, this set of contracts is different to others in concept as well as format, so users may well find themselves needing a helping hand along the way. Understanding NEC3: Professional Services Contract uses plain English to lead the reader through the NEC3 Professional Services Contract’s key features, including: Main and Secondary Options the use of early warnings programme provisions payment compensation events preparing and assessing tenders. Common problems experienced when using the Professional Services Contract are signalled to the reader throughout, and the correct way of reading each clause is explained. The ways in which the contract affects procurement processes, dispute resolution, project management and risk management are all addressed in order to direct the user to best practice. Written for construction professionals, by a practising international construction contract consultant, this handbook is the most straightforward, balanced and practical guide to the NEC3 PSC available. It is an ideal companion for Employers, Consultants, Contractors, Engineers, Architects, Quantity Surveyors, Subcontractors and anyone else interested in working successfully with the NEC3 PSC.

Code of Estimating Practice

Code of Estimating Practice Author The Chartered Institute of Building
ISBN-10 9781405129718
Year 2009-07-27
Pages 176
Language en
Publisher John Wiley & Sons
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This code of practice, long established as a leading publication for the construction industry, provides an authoritative guide to essential principles and good practice in estimating for building work. The seventh edition includes new material on estimating strategy, tendering, procedures and best practice, as well as the build-up of unit rates of cost, overheads and profit, and e-commerce.

Code of Practice for Project Management for Construction and Development

Code of Practice for Project Management for Construction and Development Author CIOB (The Chartered Institute of Building)
ISBN-10 9781118378182
Year 2014-07-23
Pages 360
Language en
Publisher John Wiley & Sons
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The first edition of the Code of Practice for Project Management for Construction and Development, published in 1992, was groundbreaking in many ways. Now in its fifth edition, prepared by a multi-institute task force coordinated by the CIOB and including representatives from RICS, RIBA, ICE, APM and CIC, it continues to be the authoritative guide and reference to the principles and practice of project management in construction and development. Good project management in construction relies on balancing the key constraints of time, quality and cost in the context of building functionality and the requirements for sustainability within the built environment. Thoroughly updated and restructured to reflect the challenges that the industry faces today, this edition continues to drive forward the practice of construction project management. The principles of strategic planning, detailed programming and monitoring, resource allocation and effective risk management, widely used on projects of all sizes and complexity, are all fully covered. The integration of Building Information Modelling at each stage of the project life is a feature of this edition. In addition, the impact of trends and developments such as the internationalisation of construction projects and the drive for sustainability are discussed in context. The Code of Practice will be of particular value to clients, project management professionals and students of construction, as well as to the wider construction and development industries. Much of the information will also be relevant to project management professionals operating in other commercial spheres.

Cost Planning of PFI and PPP Building Projects

Cost Planning of PFI and PPP Building Projects Author Abdelhalim Boussabaine
ISBN-10 9781134224876
Year 2013-04-03
Pages 336
Language en
Publisher Routledge
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This topical and timely book presents and innovative approach to dealing with the complexities of cost planning in PFI. PFI/PPP projects have a significantly different costing environment from conventionally procured projects, requiring cost analysts to use their expertise and innovative thinking to develop whole-life cost solutions that deliver value for money to the client, thus improving public building assets performance. Abdelhalim Boussabaine provides a thorough grounding in the theory of PFI, from its early evolution through to examples of current projects. In particular, the rationale for private financing of public services, arguments for and against PFI and 'value for money' mechanisms are discussed. The book presents an innovative framework for whole-life value and calls for changes in the way whole life cycle value is perceived, created and exchanged. Cost Planning of PFI and PPP Building Projects provides the reader with existing knowledge as well as present innovative thinking for future development and management of PFI/PPP cost planning processes. Given the importance and novelty of this book, academics, professionals, undergraduate and postgraduate students will find this book valuable.