Collaborative Construction Procurement and Improved Value

David Mosey

• Publisher: Wiley-Blackwell
• Year: 2019
• Print ISBN: 9781119151913
• eBook ISBN: 9781119151937
• Edition: 1
• Topic: Technologie et ingénierie
• Subtopic: Droit de la construction

The guide that explores how procurement and contracts can create an integrated team while improving value, economy, quality and client satisfaction

Collaborative Construction Procurement and Improved Value provides an important guide for project managers, lawyers, designers, constructors and operators, showing step by step how proven collaborative models and processes can move from the margins to the mainstream. It covers all stages of the project lifecycle and offers new ways to embed learning from one project to the next.

Collaborative Construction Procurement and Improved Value explores how strategic thinking, intelligent team selection, contract integration and the use of digital technology can enhance the value of construction projects and programmes of work. With 50 UK case studies, plus chapters from specialists in 6 other jurisdictions, it describes in detail the legal and procedural route maps for successful collaborative teams. 

Collaborative Construction Procurement and Improved Value:

• Examines the ways to create an effective contract that will spell success throughout the procurement process
• Contains helpful case studies from real-world projects and programmes
• Explores the benefits of the collaborative construction process and how to overcome common obstacles
• Bridges the gaps between contract law, collaborative working and project management
• Includes the first analysis of the NEC4 Alliance Contract, the FAC-1 Framework Alliance Contract and the TAC-1 Term Alliance Contract

1
What Is Collaborative Construction Procurement?

1.1 Overview

Collaborative construction procurement comprises a set of processes and relationships through which teams can develop, share and apply information in ways that improve the design, construction and operation of their projects. It supports team selection and team integration, and it offers a fresh approach to legal and cultural issues that can otherwise reduce efficiency and waste valuable resources.

This book explores the delivery of economic and social value through improvements in strategic thinking, team selection, contract integration and the use of digital technology, and it considers how the processes and relationships of collaborative construction procurement can be brought more into the mainstream. It uses analysis, guidance, and case studies to illustrate how collaborative approaches can be adopted successfully by any team in any part of the construction sector. With contributions from six other countries, this book also shows how the models that comprise collaborative construction procurement can operate in a range of common law and civil law jurisdictions.

Many procurement models provide little time or opportunity for consultants, contractors, subcontractors, manufacturers and operators to integrate their work. Instead, these models attempt to fix prices without joint cost analysis and to transfer risks without joint risk management, often encouraging misunderstandings and disputes that lead to cost overruns, delays and defects. This book examines collaborative approaches that can anticipate and avoid the problems created by incomplete data, by fragmented contracts and by the neglect of team integration.

We will review the collaborative bridges that connect and integrate the work of different team members and that translate their aspirations into actions, plus a range of factors that may encourage or obstruct progress. New procurement models will not gain widespread support unless they offer benefits for all parties, and we will examine the ways in which procurement processes, digital technology and collaborative contracts can accommodate the differing aspirations and requirements of all team members.

This chapter summarises recent research and commentaries that identify the need for procurement reform, and notes the links between collaborative procurement, digital technology and contracts. Chapter 2 considers the foundations for collaborative construction procurement and Chapter 3 describes the features of collaborative working through a project alliance. Chapters 4 and 5 consider the greater potential for improved commitments and improved outcomes where team members create strategic alliances through frameworks and other long‐term contracts.

Chapters 6–8 consider how collaborative team members are selected, whether collaboration needs a contract at all and, if so, whether a new type of contract is required to fulfil this role. They explore how team selection and contractual commitments can help to build a collaborative culture, and test whether team members can integrate their work by making non‐binding declarations. The collaborative and alliance features of standard form project contracts are considered in Chapter 9, and the FAC‐1 Framework Alliance Contract and the TAC‐1 Term Alliance Contract are explained in Chapters 10 and 11.

Collaborative construction procurement needs to be sustained by personal relationships, and different ways to create and support a collaborative culture are explored in Chapter 12. The potential for digital technology to create new connections between team members, and also to integrate the capital and operational phases of a project, is examined in Chapters 13 and 14, together with the impact of Building Information Modelling (‘BIM’) on procurement and contracting practices.

The lessons learned from case studies show how economic and social value can be improved through collaborative construction procurement, and these are considered in Chapter 15. The different options available for costing, incentivising and programming a collaborative project or programme of work are considered in Chapters 16 and 17. Collaborative risk management systems are analysed in Chapter 18, and collaborative ways to avoid or resolve disputes are explored in Chapter 19.

Chapters 20–25 have been contributed by leading practitioners in Australia, Brazil, Bulgaria, Germany, Italy and the USA. They describe how new approaches to procurement, contracts, and BIM are adopted in each country, and explore the different challenges arising in common law and civil law jurisdictions.

1.2 What Is Collaborative Construction Procurement?

This book uses the terms ‘collaborative construction procurement’ and ‘collaborative procurement’ to describe how projects and programmes of work can be planned and delivered by integrated teams. It examines how collaborative procurement can be supported by early contractor involvement, by digital technology such as BIM and by new contractual structures and processes in order to improve the outputs from construction, engineering and asset management.

Construction projects should always be a team endeavour, yet despite extensive evidence as to the benefits of collaborative working, most procurement models and contracts do not support teamwork but instead focus on the transfer of risk down the supply chain. This traditional defensiveness reminds us that organisations are obliged to protect their own interests, and it is important to examine the extent to which collaborative alternatives provide equivalent or improved legal and commercial protections.

Collaboration among individuals engaged on a project or programme of work is only made possible by integrating the differing needs and commercial priorities of the organisations who employ them. Knowledge is power, and the legal and commercial tests of collaborative construction procurement should include:

• Firstly, whether team members build up shared knowledge at a time when it can be used to improve project outcom...

Table of contents

• Cover
• Table of Contents
• Reviews
• Preface
• Acknowledgements
• About the Authors
• 1 What Is Collaborative Construction Procurement?
• 2 What Are the Foundations for Collaborative Construction Procurement?
• 3 How Does a Project Alliance Operate?
• 4 How Does a Framework Alliance Operate?
• 5 How Does a Term Alliance Operate?
• 6 How Are Collaborative Team Members Selected?
• 7 Does Collaborative Procurement Need a Contract?
• 8 What Types of Contract Support Collaborative Procurement?
• 9 What Standard Form Contracts Support Collaborative Procurement?
• 10 How Does the FAC‐1 Framework Alliance Contract Operate?
• 11 How Does the TAC‐1 Term Alliance Contract Operate?
• 12 How Is a Collaborative Culture Created?
• 13 How Can BIM Support Collaborative Procurement?
• 14 How Does BIM Support Collaborative Contracts?
• 15 How Can Collaborative Procurement Improve Economic and Social Value?
• 16 How Is Collaborative Procurement Costed and Incentivised?
• 17 How Does Collaborative Procurement Manage Time and Change?
• 18 How Can Collaborative Procurement Improve Risk Management?
• 19 How Can Collaborative Procurement Reduce Disputes?
• 20 How Does Collaborative Procurement Operate in Australia?
• 21 How Does Collaborative Procurement Operate in Brazil?
• 22 How Does Collaborative Procurement Operate in Bulgaria?
• 23 How Does Collaborative Procurement Operate in Germany?
• 24 How Does Collaborative Procurement Operate in Italy?
• 25 How Does Collaborative Procurement Operate in the USA?
• Appendix A: Research Timelines
• Appendix B: Trial Projects Process
• Appendix C: Case Studies
• Appendix D: BIM Research Projects and Interviewees
• Appendix E: FAC‐1 Consultation Group Members
• Appendix F: Amendments to FAC‐1 and TAC‐1 Consultation Drafts
• Appendix G: Completing FAC‐1
• Bibliography
• Index
• End User License Agreement