Last edited 20 Mar 2015

PPC 2000

PPC 2000 'Standard form of contract for project partnering', was the first standard form Project Partnering Contract developed following the government’s Construction Task Force report, Rethinking construction, published in 1998, which suggested that the industry was under-achieving and proposed:

  • Integrated project processes.
  • Decent and safe working conditions.
  • Improved management and supervisory skills.
  • Replacing competitive tendering with long-term relationships.
  • Public sector bodies should become best practice clients.

Partnering is a broad term used to describe a collaborative management approach that encourages openness and trust between parties to a contract. It is most commonly used on large, long-term or high-risk contracts.

PPC 2000 was launched in September 2000 by the chairman of the Construction Task Force, Sir John Egan. It was formulated by the Construction Industry Council (CIC) in collaboration with the Association of Consultant Architects (ACA). It is published by the Association of Consultant Architects, and is a joint venture with the Association of Consulting Engineers (ACE). They also publish TPC 2005, the first standard form Term Partnering Contract launched by Sir Michael Latham, author of the 1994 Latham report. TPC 2005 applies the principles adopted by PPC 2000 to term contracts.

PPC 2000 pilot schemes were undertaken before its initial implementation, on a range of housing, office and school projects, including refurbishments and new builds in both the public and private sectors. PPC 2000 was amended in 2003, 2008 and most recently in 2013.

PPC 2000 provides a pathway for the partnering process. It creates a single contractual hub that allows all team members to contract on the same terms. It aligns project management processes, methods and behaviour covering all project stages from design to completion. Trust and cooperation are encouraged and promoted through PPC 2000.

Clients, consultants, contractors, and specialists are brought together under a single multi-party contract which eliminates the need for clients to sign different bilateral contracts. A joining agreement is signed by additional team members that join the project, and specialist sub-contractors sign an SPC 2000 agreement. A commencement agreement confirms whether or not the project is ready to proceed on site.

Project progress is monitored and reviewed by a core group which reaches decisions by consensus. Early warning of potential problems can be given to the core group to minimise and avoid disputes.

PPC 2000 contracts promote early planning, clear pricing and integrated teamwork to achieve:

  • Reduced capital and whole life costs.
  • More sustainable solutions.
  • Quicker design, supply and construction.
  • Fewer defects and better quality.
  • Fewer accidents.
  • Respect for people.
  • More predictable outcomes.
  • Higher productivity and profitability.
  • Better incentivisation.

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