Alternative Contract Value
In the UK construction industry, "Alternative Contract Value" (ACV) typically refers to an alternative valuation of the works or services provided under a construction contract. This is a crucial concept for managing financial aspects of construction projects, ensuring that both parties are fairly compensated for any changes and that the project remains on track financially.
This term can arise in various contexts, including:
- Variations and changes - When there are changes or variations to the original scope of work, the contract value may need to be adjusted. The ACV represents the new value of the contract after these changes are considered. It ensures that both the contractor and the client have a clear understanding of the revised financial implications of the altered scope.
- Dispute resolution - In situations where there is a dispute over the value of completed work, an alternative valuation may be proposed. This can be part of an adjudication, arbitration, or negotiation process. The ACV would be the value agreed upon or determined as a fair and reasonable assessment of the work done.
- Tendering process - When contractors submit tenders they might propose alternative solutions or methods to achieve the project goals. The ACV in this context would be the cost associated with these alternative proposals, providing a basis for comparison with the original tender value.
- Cost management - ACV can be used in cost management to refer to the re-evaluation of project costs at different stages. This helps in maintaining control over the budget and ensuring that the project remains financially viable despite any unforeseen circumstances.
[edit] Related articles on Designing Buildings
- Code of Estimating Practice.
- Evaluation of claims.
- Fixed charge.
- Fluctuations.
- Force account work.
- Guaranteed maximum price.
- Lump sum contract.
- Lump sum contract - pros and cons.
- Negotiated contract.
- Open-book accounting.
- Price.
- Procurement route.
- Provisional sums.
- Relevant events.
- Target cost contract.
- Time and material contract (T&M).
- Traditional contract - pros and cons.
- Variations.
Featured articles and news
RTPI leader to become new CIOB Chief Executive Officer
Dr Victoria Hills MRTPI, FICE to take over after Caroline Gumble’s departure.
Social and affordable housing, a long term plan for delivery
The “Delivering a Decade of Renewal for Social and Affordable Housing” strategy sets out future path.
A change to adoptive architecture
Effects of global weather warming on architectural detailing, material choice and human interaction.
The proposed publicly owned and backed subsidiary of Homes England, to facilitate new homes.
How big is the problem and what can we do to mitigate the effects?
Overheating guidance and tools for building designers
A number of cool guides to help with the heat.
The UK's Modern Industrial Strategy: A 10 year plan
Previous consultation criticism, current key elements and general support with some persisting reservations.
Building Safety Regulator reforms
New roles, new staff and a new fast track service pave the way for a single construction regulator.
Architectural Technologist CPDs and Communications
CIAT CPD… and how you can do it!
Cooling centres and cool spaces
Managing extreme heat in cities by directing the public to places for heat stress relief and water sources.
Winter gardens: A brief history and warm variations
Extending the season with glass in different forms and terms.
Restoring Great Yarmouth's Winter Gardens
Transforming one of the least sustainable constructions imaginable.
Construction Skills Mission Board launch sector drive
Newly formed government and industry collaboration set strategy for recruiting an additional 100,000 construction workers a year.
New Architects Code comes into effect in September 2025
ARB Architects Code of Conduct and Practice available with ongoing consultation regarding guidance.
Welsh Skills Body (Medr) launches ambitious plan
The new skills body brings together funding and regulation of tertiary education and research for the devolved nation.
Paul Gandy FCIOB announced as next CIOB President
Former Tilbury Douglas CEO takes helm.
UK Infrastructure: A 10 Year Strategy. In brief with reactions
With the National Infrastructure and Service Transformation Authority (NISTA).