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Picking the right contract

We are now in a position on our project where the procurement route has been selected. The next step is to identify and agree the most appropriate standard form of contract to go with the procurement route. The contract to be used will be detailed within the tender documents issued to contractors.

The contract will be entered into after the tender process has been completed and, between the client and the contractor, chosen to carry out the construction works.

The contract is normally selected based upon the experiences and preferences of the client and the client’s construction advisors – which is of no help to a student who does not have that experience.

However, help is at hand as follows, and these links when viewed will help in picking the right standard form for the project in hand by answering a series of questions:

For JCT contracts

For NEC contracts

For FIDIC contracts

Your task

Identify what you think is the most appropriate standard form of contract for the following projects:

  • The refurbishment of a multi-storey office block which is to be the new headquarters for a global telecommunications company. The procurement route is selected as design and build.

  • The construction of a new bridge linking the mainland to an outlying island. The client wishes for cost certainty on this project, so has selected the traditional procurement route.

  • The building of Kaito’s hotel where the full extent of the works is not known and Kaito has requested an early start on site. The procurement route is yet to be decided.

Share your decision with your fellow learners, noting there can be several ‘right’ answers.

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This article is from the free online course:

Procurement Strategies and Tendering

Coventry University