Traditional contract for construction
The 'traditional' procurement route, sometimes referred to as 'design bid build', 'bid build' or 'employer designed' remains the most commonly used method of procuring building works.
The client first appoints consultants to design the project in detail and then prepare tender documentation, including drawings, work schedules and bills of quantities. Contractors are then invited to submit tenders for the construction of the project, usually on a single-stage, competitive basis. This may be referred to as a 'traditional contract'. The contractor is not responsible for the design, other than temporary works, although some traditional contracts do provide for the contractor to design specific parts of the works.
Typically, the client retains the design consultants during the construction phase to prepare any additional design information that may be required, to review any designs that might be prepared by the contractor, and to inspect the works. Normally, one consultant (often, but not necessarily, the architect) will be appointed to administer the contract.
Traditional construction contracts are most commonly lump-sum contracts, however, measurement contracts and cost reimbursement contracts can also be used for ‘traditional’ projects where design and construction are separate, sequential activities.
This form of procurement is suitable for both experienced and inexperienced clients. Fully developing the design before tender gives the client certainty about design quality and cost, but it can be slower than other forms of contracting, and as the contractor is appointed only once the design is complete, they are not able to help improve the buildability and packaging of proposals as they develop.
It is considered to be a low risk method of contracting for the client, as the contractor takes the financial risk for construction. However, if design information is incomplete at tender, or if significant variations are required after the contractor has been appointed, the cost to the client can be significant. Because of this, and because of the separation of design and construction, traditional procurement can be seen as adversarial.
See also: Traditional contract - pros and cons.
The most common forms of traditional contract remain the JCT (Joint Contracts Tribunal) Standard Building Contract, Intermediate Building Contract and Minor Works Building Contract.
When might it be appropriate?
- If the employer has had the design prepared
- If the design is substantially completed at time of contractor selection
- The client wishes to retain control over the design and specification
- Cost certainty at start on site is important
- The shortest overall programme is not the client’s main priority.
What are the advantages of traditional procurement?
- Competitive fairness and transparent process.
- Design led – can ensure quality
- Price certainty before commencement
- Well known procedures
- Changes are reasonably easy to arrange and value
What are the disadvantages?
- Overall project duration may be longer than other procurement routes – sequential process
- No input into design and planning by the contractor
- Strategy based on price competition – could lead to adversarial relations
- Dual point of responsibility – design team for design and contractor for construction
- If the design is not complete at the time of tender, cost and time certainty are reduced.
For a detailed description of the sequence of activities necessary on a traditional contract see the work plan: Traditional contract: outline work plan.
[edit] Related articles on Designing Buildings
- Atkins v Secretary of State for Transport.
- Appointing consultants.
- Bill of quantities.
- Client.
- Construction contract.
- Contract conditions.
- Contractor.
- Design quality.
- Job order contracting.
- Notifications during construction works
- Procurement route.
- Temporary works.
- Tender.
- Tender documentation.
- Traditional contract: outline work plan.
- Traditional contract - pros and cons.
- Two-stage tender.
- Variations.
[edit] External references
Featured articles and news
From the UKs largest manufacturer and supplier of lime.
From mud bricks to smart concrete
A brief history from 7000BC to a future on the moon.
Regulator of Social Housing publishes latest fire safety report
Covering remediation of 11 metre plus social housing sector buildings.
Apartment and Duplex Defects Remediation Bill 2024
Approved for priority drafting by Government of Ireland.
The long list with in the frame of key historical events.
Competence frameworks for sustainability in the built environment
Code of practice, core criteria consultation draft for comment.
UK Net Zero Carbon Buildings Standard Sept update
Pilot version for testing and feedback on its adoption due.
New Floods Resilience Taskforce
With a wet met office autumn prediction.
National Retrofit Hub takeover of Net Zero stage
At Birmingham UK Construction Week in October.
AT Awards 2024 finalists announced
With more to come, prior to the Awards ceremony in October.
London construction cools as hotspots appear nationally
Increases in the East of England, Yorkshire and Scotland.
ARB proposals for a new Architects Code
Announced in the shadow of the final Grenfell Inquiry report.
Combining human creativity and tech innovation now and in the future
Building automation and control systems market study
BSRIA 2024 North America BACS software & services.
Impact of digital technology on productivity in construction
New CIOB academy guidance for companies of all sizes.
Demolition and retrofit approaches in Planning Policy
MHCLG demolition and retrofit survey to inform future updates to national planning policy.
Expert taskforce to spearhead new, new town generation
Sir Michael Lyons given 12 months for recommendations.
Government policy statement on new towns
A coded vision for a new generation of new towns.
Comments