Clients who ask us to help them draft forms of guaranteed maximum price (GMP) contracts, have a variety of reasons for their decision to contract on this basis. Fixed price lump sum contracting, they point out, assumes that the design will be more or less complete at the time the contract is signed. …
While there are constraints to the implementation of PPPs in the Middle East, the region remains a fertile ground for innovative PPP solutions and governments are working hard to overcome the obstacles that currently exist, writes Joanne Emerson*. …
by Dennis Brand
How does the New Engineering Contract (NEC) compare to FIDIC? Dennis Brand examines the uptake of NEC in the region and outlines what you need to know. …
by Gordon Moffat
The NEC Engineering and Construction Contract (ECC) – previously the New Engineering Contract – was first introduced in 1993 and the third edition, NEC3, came into operation in 2005. Despite the considerable press coverage it has received in the UK, it is still very new to a lot of contractors and employers. …
Owners and lenders are becoming increasingly receptive to the idea of offering engineering, procurement, and construction management (EPCM) contracts, as opposed to EPC contracts, for the advantages it offers, writes JONATHAN BRUFAL*. …
Whichever procurement type is adopted by the contracting parties it is essential to bear in mind both the advantages and disadvantages of each strategy so that informed decisions can be made prior to project commencement, warns JOANNE EMERSON. …
A cost-plus contract, more accurately termed a Cost Reimbursement Contract, is a contract framed in such a way that when the contractor finishes the agreed-upon work, they receive compensation equal to their expenses plus a profit. Cost reimbursement contracts contrast with fixed-price contract, in which the contractor is paid a negotiated amount regardless of incurred expenses. …
Design and build procurement – the way forward?
by Paul Taylor on Saturday, 08 March 2008 Paul Taylor, partner, HBJ Gateley Wareing UK LLP, considers procurement of construction projects on a design and build basis.
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Nick Carnell, lead partner at Kennedys, discusses how successful ‘design and build’ is down to understanding what the clients wants.
Paul Taylor’s article published on 8 March on design and build contracts reminded me of some of my own experiences of projects procured in this way. Paul quite rightly pointed out that for design and build to work there needs to be changes in both the mindset and philosophy from projects procured in the traditional manner. …
