contract documentation an introduction

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NBS Educator
Contract documentation An introduction NBS Novem
ber 2008
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contents

• why why do we prepare contract documentation?
• what what is contract documentation?
• who who prepares it?
• when when is it prepared?
• how how do we prepare it?

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contract documentationwhy
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why

• two ways of acquiring products
• pre-made, off-the-shelf applies to most products
• custom-made, bespoke tailored clothes,
  restaurant meals, hand-made bicycles, most large
  buildings
• architecture custom-made buildings
• buildings the costliest purchase most
  individuals and companies ever make

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why

• custom-made products
• how do purchasers convey their requirements to
  the supplier/fabricator?

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why

• purchaser is in contract with supplier
• offer and acceptance contract
• contract for buildings especially, given the
  size, cost complexity, better written than
  unwritten
• purchaser requirements therefore, also conveyed
  to supplier in written (and drawn) form aka
  contract documentation

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why

• risk management documentation provides
• certainty for both parties less risk
• proactivity, solving problems making decisions
  in advance less risk
• efficiency for resource planning, logistics by
  the builder
• equity, e.g. risks identified and costed by both
  parties
• profitability, e.g. no need to weight prices for
  unknown risks

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why

• pre-tender documentation provides
• greatest opportunity for minimising cost, by
  making decisions up front fewer resources
  affected, less inertia, more open to change
• maximum benefit for minimum effort

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why

• pre-tender documentation provides
• avoidance of costly and problematic on-site
  decisions, which would affect more resources,
  requiring inertia to be overcome
• minimal risk, if taking contract documentation as
  far as practicable
• but, sometimes time is of the essence

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why

• reactive documentation
• mopping up
• dealing with unforeseen events
• making good deficient proactive documentation
  costly, embarrassing
• Should be avoided

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why

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contract documentationwhat
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product

• contract documents comprise
• the rules of play for purchaser and supplier and
• the description of the products and services to
  be provided
• purchaser employer
• supplier contractor, builder
• products buildings, landscape, spares, tools
• services e.g. training, DLP maintenance,
  commissioning

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suite

• say it once and in the right place

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content

• rules of play
• anticipate events ranging from the certain to the
  unlikely, e.g. completion, variations,
  bankruptcy, war, occupation, dispute,
  non-performance, confused identification of
  parties
• and how they will managed, e.g. timing, costs,
  communications

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content

• description of work
• entities systems, and component, fabricated and
  built products
• attributes scope, layout, assembly, and quality
• scope, layout and assembly are usually described
  using drawings
• quality is usually described using a specification

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form

• proactive documentation
• drawings, specifications, contracts
• reactive documentation
• instructions, variations
• contractor proposals
• shop drawings
• manuals

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hybrids

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process

• process
• the contract documentation process can be seen as
  one of a nest of projects
• projects
• documentation stages inception, design,
  execution, finish
• documentation team multi-disciplinary,
  transitory
• nest of projects documentation nests into
  building procurement into facility

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procurement

• head contracting
• a project can be let to just one contractor, who
  subcontracts
• subcontract boundaries are the contractors
  affair except for NSCs

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procurement

• package contracting
• a project can be let to a series of contractors,
  who subcontract
• contract package boundaries must be defined in
  the contract documents
• consider temporary works and permanent works
  interfaces
• subcontract boundaries are the contractors
  affair except for NSCs

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contract documentationwho
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preparers

• proactive documentation
• produced by employers team of designers, in
  house or contracted
• reactive documentation
• produced by/for contract administrator
• produced by contractor and subcontractors

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integrators

• building design multi-disciplinary
• architects, structural/civil engineers, services
  engineers, landscape architects, interior
  designers, estimators, project managers
• acoustics, energy and greening consultants
• integrator usually, the architect
• integrates design
• integrates documentation

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users

• designers as a design record
• authorities planners, building control officers
• estimators during design, documentation etc
• tenderers during tendering
• contractors, employers as a contractual document
• trades, contract administrators on site
• arbitrators, courts serious disputes, if any
• facility managers after building handover

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contract documentationwhen
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when

• proactive documentation pre-tender
• A/B inception feasibility brief for full
  design-build procurement
• C outline proposals for design-build
  procurement
• D scheme design for design develop, document
  construct procurement
• E detail design for document construct
  procurement

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when

• proactive documentation pre-tender
• F/G production information drawings,
  specifications, conditions of contract, bills
  for conventional procurement

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extent of design
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when

• reactive documentation post-tender
• H tender action tenders, contractor proposals
• J project planning results in project
  programme.
• K operations on site completion
  instructions, variations, certificates,
  contractor proposals, shop drawings, manuals
• L feedback results in post-project review and
  post-occupancy evaluation reports

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contract documentationhow
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tools
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Co-ordination

• CPI
• Co-ordinated Project Information
• standard UK approach to cross referencing between
  the documents, for integration of the suite
• drawings to specification
• bills to specification
• not specification to drawings
• not specification to bills

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contract documentationfurther reading
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further reading

• Blackmore, C (1990) Clients tale, RIBA
  Publications.
• BPIC (1987) CPI Project specification A code of
  procedure for building works, BPIC.
• BS 49401994 Technical information on
  construction products and services.
• BS EN ISO 75191997 Technical drawings.
  Construction drawings. General principles of
  presentation for general arrangement and assembly
  drawings.
• BS EN ISO 90012000 Quality management systems
  Requirements.
• Construction Specifications Canada (2005)
  Principles of construction documentation, CSC.

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further reading

• Co-ordinating Committee for Project Information
  (2003) Production information a code of
  procedure for the construction industry, CPIC.
• Doran, D (2006) FMI/CMAA Sixth annual survey of
  owners, FMI (USA).
• Egan, J (1998) Rethinking construction, DETR
  Construction Task Force.
• Gelder, J (2003) Quality in contracts, NBS
  Journal 03.
• Gelder, J (2007) Yes! We have no
  specifications, NBS Journal 11.
• ICON (2000) Sainsbury's Standards Manuals, ICON.

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further reading

• Joint Contracts Tribunal (2005) SBC/Q Standard
  building contract with quantities, Sweet
  Maxwell.
• Joint Contracts Tribunal (2005) DB Design and
  build contract, Sweet Maxwell.
• Lead Sheet Association (1990) The lead sheet
  manual (3 volumes), LDA/LSA.
• Dalziel, R N Ostime (2008) Architects job
  book, RIBA Publications.
• PACE Central Advice Unit (1998) GC/Works/2
  Contract for building and civil engineering minor
  works, The Stationery Office.
• Phillips, R (2007) RIBA Outline Plan of Work
  2007, RIBA Publishing.

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further reading

• RIBA (2007) Standard agreement for the
  appointment of an architect, RIBA Publishing.
• Royal Institute of Chartered Surveyors
  Construction Confederation (1998) SMM7 Standard
  method of measurement of building works, RICS.
• SMM7 Standard method of measurement of building
  works, RICS.
• Tilley, PA SL McFallan (2000) Design and
  documentation quality survey, CSIRO (Australia).