Base date in construction contracts - Revision history

Designing Buildings at 08:56, 26 January 2023

2023-01-26T08:56:14Z

← Older revision		Revision as of 08:56, 26 January 2023
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	NB: NRM3 Order of cost estimating and cost planning for building maintenance works, defines the 'estimate base date' as '...the date on which the cost limit (i.e. the sum of the works cost estimate, project/design team fees estimate, other related costs estimate and risk allowance estimate, excluding inflation) is established as the basis for calculating inflation, changes or other related variances.'		NB: NRM3 Order of cost estimating and cost planning for building maintenance works, defines the 'estimate base date' as '...the date on which the cost limit (i.e. the sum of the works cost estimate, project/design team fees estimate, other related costs estimate and risk allowance estimate, excluding inflation) is established as the basis for calculating inflation, changes or other related variances.'
		+
		+	[https://www.rics.org/uk/upholding-professional-standards/sector-standards/construction/icms3/ ICMS: Global Consistency in Presenting Construction Life Cycle Costs and Carbon Emissions, 3rd edition], November 2021, published by the ICMS (International Cost Management Standard) Coalition, defines the base date as: ‘The date at which the individual Construction Costs in ICMS cost reports apply exclusive of Price Level Adjustments after that date. However, there can be a separate allowance for Price Level Adjustments under the Risk Allowances Group. A different date (the Common Date) applies to Life Cycle Costs.’

	= Related articles on Designing Buildings =		= Related articles on Designing Buildings =

Designing Buildings at 10:59, 28 December 2021

2021-12-28T10:59:46Z

← Older revision		Revision as of 10:59, 28 December 2021
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	Traditionally the base date was set as the date of tender, however this was sometimes found to give rise to uncertainty because of the complexity and duration of tendering procedures. The usual practice now is to insert a date in the contract linked to the date of the return of tenders.		Traditionally the base date was set as the date of tender, however this was sometimes found to give rise to uncertainty because of the complexity and duration of tendering procedures. The usual practice now is to insert a date in the contract linked to the date of the return of tenders.

−	The FIDIC suite of standard conditions of contract (the ~~[http://www.icevirtuallibrary.com/content/book/100377~~ Red Book] and ~~[http://www.ribabookshops.com/item/fidic-conditions-of-contract-for-plant-design-and-build-yellow-book-1st-edition/32464/~~ Yellow Book]), set the base date at 28 days before the latest date for the submission of tender. The JCT Design and Build Contract suggests a date that is 10 days prior to the date of the return of tenders.	+	The FIDIC suite of standard conditions of contract (the Red Book and Yellow Book), set the base date at 28 days before the latest date for the submission of tender. The JCT Design and Build Contract suggests a date that is 10 days prior to the date of the return of tenders.

	NB: According to NRM1: Order of cost estimating and cost planning for capital building work, the term ‘base date of cost data’ means; ‘...the date on which rates and prices contained within cost analyses or benchmark analyses are taken as a basis for calculations.’		NB: According to NRM1: Order of cost estimating and cost planning for capital building work, the term ‘base date of cost data’ means; ‘...the date on which rates and prices contained within cost analyses or benchmark analyses are taken as a basis for calculations.’
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	NB: NRM3 Order of cost estimating and cost planning for building maintenance works, defines the 'estimate base date' as '...the date on which the cost limit (i.e. the sum of the works cost estimate, project/design team fees estimate, other related costs estimate and risk allowance estimate, excluding inflation) is established as the basis for calculating inflation, changes or other related variances.'		NB: NRM3 Order of cost estimating and cost planning for building maintenance works, defines the 'estimate base date' as '...the date on which the cost limit (i.e. the sum of the works cost estimate, project/design team fees estimate, other related costs estimate and risk allowance estimate, excluding inflation) is established as the basis for calculating inflation, changes or other related variances.'

−	= Related articles on Designing Buildings ~~Wiki~~ =	+	= Related articles on Designing Buildings =

	* Base year.		* Base year.
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	* Tenders.		* Tenders.
	* Variations.		* Variations.
−
−	~~= External references =~~
−
−	* [http://www.jctltd.co.uk/ JCT].
−	* [http://fidic.org/ FIDIC].

	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]		[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Designing Buildings at 06:29, 1 September 2020

2020-09-01T06:29:19Z

← Older revision		Revision as of 06:29, 1 September 2020
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	* [http://fidic.org/ FIDIC].		* [http://fidic.org/ FIDIC].

−	[[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Designing Buildings at 10:54, 5 July 2019

2019-07-05T10:54:18Z

← Older revision		Revision as of 10:54, 5 July 2019
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	NB: NRM3 Order of cost estimating and cost planning for building maintenance works, defines the 'estimate base date' as '...the date on which the cost limit (i.e. the sum of the works cost estimate, project/design team fees estimate, other related costs estimate and risk allowance estimate, excluding inflation) is established as the basis for calculating inflation, changes or other related variances.'		NB: NRM3 Order of cost estimating and cost planning for building maintenance works, defines the 'estimate base date' as '...the date on which the cost limit (i.e. the sum of the works cost estimate, project/design team fees estimate, other related costs estimate and risk allowance estimate, excluding inflation) is established as the basis for calculating inflation, changes or other related variances.'

−	~~= Find out more =~~	+	= Related articles on Designing Buildings Wiki =
−		+
−	=== Related articles on Designing Buildings Wiki ===	+

	* Base year.		* Base year.
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	* Variations.		* Variations.

−	=== External references ===	+	= External references =

	* [http://www.jctltd.co.uk/ JCT].		* [http://www.jctltd.co.uk/ JCT].

Editor at 12:54, 3 August 2018

2018-08-03T12:54:09Z

← Older revision		Revision as of 12:54, 3 August 2018
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	The FIDIC suite of standard conditions of contract (the [http://www.icevirtuallibrary.com/content/book/100377 Red Book] and [http://www.ribabookshops.com/item/fidic-conditions-of-contract-for-plant-design-and-build-yellow-book-1st-edition/32464/ Yellow Book]), set the base date at 28 days before the latest date for the submission of tender. The JCT Design and Build Contract suggests a date that is 10 days prior to the date of the return of tenders.		The FIDIC suite of standard conditions of contract (the [http://www.icevirtuallibrary.com/content/book/100377 Red Book] and [http://www.ribabookshops.com/item/fidic-conditions-of-contract-for-plant-design-and-build-yellow-book-1st-edition/32464/ Yellow Book]), set the base date at 28 days before the latest date for the submission of tender. The JCT Design and Build Contract suggests a date that is 10 days prior to the date of the return of tenders.

−	NB According to NRM1: Order of cost estimating and cost planning for capital building work, the term ‘base date of cost data’ means; ‘...the date on which rates and prices contained within cost analyses or benchmark analyses are taken as a basis for calculations.’	+	NB: According to NRM1: Order of cost estimating and cost planning for capital building work, the term ‘base date of cost data’ means; ‘...the date on which rates and prices contained within cost analyses or benchmark analyses are taken as a basis for calculations.’

	And the term 'estimate base date' means '...the date on which the cost limit (excluding inflation – i.e. the sum of the works cost estimate, project/design team fees estimate, other development/project costs estimate and risk allowance estimate) is established as a basis for calculating inflation, changes or other related variances.'		And the term 'estimate base date' means '...the date on which the cost limit (excluding inflation – i.e. the sum of the works cost estimate, project/design team fees estimate, other development/project costs estimate and risk allowance estimate) is established as a basis for calculating inflation, changes or other related variances.'
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	Fluctuation may allow for; changes in taxation; changes in the cost of labour, transport and materials; and even changes in head office or administrative costs.		Fluctuation may allow for; changes in taxation; changes in the cost of labour, transport and materials; and even changes in head office or administrative costs.

−	NB~~. NRM3~~: Order of cost estimating and cost planning for building maintenance works, defines the 'estimate base date' as '...the date on which the cost limit (i.e. the sum of the works cost estimate, project/design team fees estimate, other related costs estimate and risk allowance estimate, excluding inflation) is established as the basis for calculating inflation, changes or other related variances.'	+	NB: NRM3 Order of cost estimating and cost planning for building maintenance works, defines the 'estimate base date' as '...the date on which the cost limit (i.e. the sum of the works cost estimate, project/design team fees estimate, other related costs estimate and risk allowance estimate, excluding inflation) is established as the basis for calculating inflation, changes or other related variances.'

	= Find out more =		= Find out more =

Designing Buildings at 05:36, 23 May 2018

2018-05-23T05:36:39Z

← Older revision		Revision as of 05:36, 23 May 2018
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	Fluctuation may allow for; changes in taxation; changes in the cost of labour, transport and materials; and even changes in head office or administrative costs.		Fluctuation may allow for; changes in taxation; changes in the cost of labour, transport and materials; and even changes in head office or administrative costs.
		+
		+	NB. NRM3: Order of cost estimating and cost planning for building maintenance works, defines the 'estimate base date' as '...the date on which the cost limit (i.e. the sum of the works cost estimate, project/design team fees estimate, other related costs estimate and risk allowance estimate, excluding inflation) is established as the basis for calculating inflation, changes or other related variances.'

	= Find out more =		= Find out more =

Designing Buildings at 14:02, 9 March 2018

2018-03-09T14:02:09Z

← Older revision		Revision as of 14:02, 9 March 2018
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	NB According to NRM1: Order of cost estimating and cost planning for capital building work, the term ‘base date of cost data’ means; ‘...the date on which rates and prices contained within cost analyses or benchmark analyses are taken as a basis for calculations.’		NB According to NRM1: Order of cost estimating and cost planning for capital building work, the term ‘base date of cost data’ means; ‘...the date on which rates and prices contained within cost analyses or benchmark analyses are taken as a basis for calculations.’
		+
		+	And the term 'estimate base date' means '...the date on which the cost limit (excluding inflation – i.e. the sum of the works cost estimate, project/design team fees estimate, other development/project costs estimate and risk allowance estimate) is established as a basis for calculating inflation, changes or other related variances.'

	NB: Fluctuation clauses are a way of dealing with inflation on large projects that may last for several years. The contractor may be asked to tender based on current prices and then the contract makes provisions for them to be reimbursed for price changes over the duration of the project (a fluctuating price). This may be done by setting a base date for specified items and defining the price indices by which fluctuations will be assessed.		NB: Fluctuation clauses are a way of dealing with inflation on large projects that may last for several years. The contractor may be asked to tender based on current prices and then the contract makes provisions for them to be reimbursed for price changes over the duration of the project (a fluctuating price). This may be done by setting a base date for specified items and defining the price indices by which fluctuations will be assessed.

Designing Buildings at 13:59, 9 March 2018

2018-03-09T13:59:02Z

← Older revision		Revision as of 13:59, 9 March 2018
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	The FIDIC suite of standard conditions of contract (the [http://www.icevirtuallibrary.com/content/book/100377 Red Book] and [http://www.ribabookshops.com/item/fidic-conditions-of-contract-for-plant-design-and-build-yellow-book-1st-edition/32464/ Yellow Book]), set the base date at 28 days before the latest date for the submission of tender. The JCT Design and Build Contract suggests a date that is 10 days prior to the date of the return of tenders.		The FIDIC suite of standard conditions of contract (the [http://www.icevirtuallibrary.com/content/book/100377 Red Book] and [http://www.ribabookshops.com/item/fidic-conditions-of-contract-for-plant-design-and-build-yellow-book-1st-edition/32464/ Yellow Book]), set the base date at 28 days before the latest date for the submission of tender. The JCT Design and Build Contract suggests a date that is 10 days prior to the date of the return of tenders.
		+
		+	NB According to NRM1: Order of cost estimating and cost planning for capital building work, the term ‘base date of cost data’ means; ‘...the date on which rates and prices contained within cost analyses or benchmark analyses are taken as a basis for calculations.’

	NB: Fluctuation clauses are a way of dealing with inflation on large projects that may last for several years. The contractor may be asked to tender based on current prices and then the contract makes provisions for them to be reimbursed for price changes over the duration of the project (a fluctuating price). This may be done by setting a base date for specified items and defining the price indices by which fluctuations will be assessed.		NB: Fluctuation clauses are a way of dealing with inflation on large projects that may last for several years. The contractor may be asked to tender based on current prices and then the contract makes provisions for them to be reimbursed for price changes over the duration of the project (a fluctuating price). This may be done by setting a base date for specified items and defining the price indices by which fluctuations will be assessed.

Editor at 08:52, 18 October 2017

2017-10-18T08:52:29Z

← Older revision		Revision as of 08:52, 18 October 2017
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	The exact provisions will depend on the specific form of contract that is adopted. For example, in the Joint Contracts Tribunal ([http://www.jctltd.co.uk/ JCT]) Design and Build Contract, the base date determines the allocation of risk in relation to changes in statutory regulations, changes to VAT exemptions and changes to definitions of dayworks.		The exact provisions will depend on the specific form of contract that is adopted. For example, in the Joint Contracts Tribunal ([http://www.jctltd.co.uk/ JCT]) Design and Build Contract, the base date determines the allocation of risk in relation to changes in statutory regulations, changes to VAT exemptions and changes to definitions of dayworks.

−	Traditionally the base date was set as the date of tender, however this was sometimes found to give rise to uncertainty because of the complexity and duration of tendering procedures. The usual practice now is to insert a date in the contract linked to the date of the return of tenders. The FIDIC suite of standard conditions of contract (the [http://www.icevirtuallibrary.com/content/book/100377 Red Book] and [http://www.ribabookshops.com/item/fidic-conditions-of-contract-for-plant-design-and-build-yellow-book-1st-edition/32464/ Yellow Book]), set the base date at 28 days before the latest date for the submission of tender. The JCT Design and Build Contract suggests a date that is 10 days prior to the date of the return of tenders.	+	Traditionally the base date was set as the date of tender, however this was sometimes found to give rise to uncertainty because of the complexity and duration of tendering procedures. The usual practice now is to insert a date in the contract linked to the date of the return of tenders.

−	NB Fluctuation clauses are a way of dealing with inflation on large projects that may last for several years. The contractor may be asked to tender based on current prices and then the contract makes provisions for them to be reimbursed for price changes over the duration of the project (a fluctuating price). This may be done by setting a base date for specified items and defining the price indices by which fluctuations will be assessed. Fluctuation may allow for; changes in taxation; changes in the cost of labour, transport and materials; and even changes in head office or administrative costs.	+	The FIDIC suite of standard conditions of contract (the [http://www.icevirtuallibrary.com/content/book/100377 Red Book] and [http://www.ribabookshops.com/item/fidic-conditions-of-contract-for-plant-design-and-build-yellow-book-1st-edition/32464/ Yellow Book]), set the base date at 28 days before the latest date for the submission of tender. The JCT Design and Build Contract suggests a date that is 10 days prior to the date of the return of tenders.
		+
		+	NB: Fluctuation clauses are a way of dealing with inflation on large projects that may last for several years. The contractor may be asked to tender based on current prices and then the contract makes provisions for them to be reimbursed for price changes over the duration of the project (a fluctuating price). This may be done by setting a base date for specified items and defining the price indices by which fluctuations will be assessed.
		+
		+	Fluctuation may allow for; changes in taxation; changes in the cost of labour, transport and materials; and even changes in head office or administrative costs.

	= Find out more =		= Find out more =

Designing Buildings at 11:27, 6 June 2017

2017-06-06T11:27:24Z

← Older revision		Revision as of 11:27, 6 June 2017
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	* Liquidated and ascertained damages.		* Liquidated and ascertained damages.
	* Loss and expense.		* Loss and expense.
		+	* Progress in construction.
	* Tenders.		* Tenders.
	* Variations.		* Variations.