Civil Engineering Reference
In-Depth Information
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CIOB Complex Projects Contract 2013. 2013.This new form published by the Chartered
Institute of Building is intended for use in complex projects and imposes
collaboration obligations on the parties in a more prescriptive manner than other
forms.
In addition, the 2011 edition of the JCT and SBC contracts introduced a new optional
supplementary condition as follows:
The Parties shall work with each other and with other project team members in
a co-operative and collaborative manner, in good faith and in a spirit of trust
and respect. To that end, each shall support collaborative behaviour and address
behaviour which is not collaborative.
Itcouldofcoursebearguedthattheveryfactthatthisisonlyanoptionalclause
indicates that a collaborative culture in the construction industry has not yet been
fully achieved, and indeed some might suggest that the period since 2008 has seen a
slow-downinthetrendtowardspartneringalongwithadesirebyemployerstoexploit
the increased competiveness in the market and the pressure on tender prices.
hatsaid,anumberofmajoremployershaveinrecentyearsadoptedaformof
partnering contract, known as 'alliancing'. This form of procurement was originally
adopted in the early 1990s in the UK oil and gas industry and was subsequently devel-
oped in major infrastructure projects in Australia, such as water projects, highways
and dams, with the aim of avoiding the traditional client/contractor confrontational
approach. The essence of an alliance contract is that the parties work together col-
laboratively in one integrated team and are bound by a risk/reward scheme which
provides for a collective sharing of project risks and consequential savings or losses.
This is in fact a step further than a partnering contract, since while the former focuses
on cultural change in contractual relationships, the latter (at least in its true sense)
aligns the parties' commercial and financial interests to the assumption of collective
responsibility for the successful achievement of project goals.
A current UK example of alliancing is the Electricity Alliance operated by the
National Grid, under which the gain share is calculated at the end of each year and
divided among each regional partner based upon evidence of collaborative working,
sharing best practice and driving efficiencies.
What is said to be the first UK rail sector example of a 'pure construction alliance'
is the Stafford Area Improvement Programme on the West Coast Main Line, where a
unified agreement was formed in early 2013 between Network Rail and the contrac-
tors and consultants, under which all parties share the benefits and risks under a 'one
project, one organization' structure.
1.4.9 Framework contracts
Although framework contracts have been used for a number of years, their popu-
larity, particularly in the public sector, has grown significantly since the late 2000s.
