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Purchase
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Collaborative
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Guide
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Guide to risk
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Purchase/
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About
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1 |
Aim and
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2 |
Underpinning
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3 |
Flexibility |
4 |
Clarity |
5 |
Other features |
6 |
Informal
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A |
Appendix: Draft risk allocation schedule |
3 |
Guide to useFlexibility |
3.1 |
The contractual documents relating to the supply of "Services" |
3.1.1 |
A unique feature of the documentation is that it is intended to be used not simply for the engagement of contractors, but also for the engagement of professional consultants, subcontractors and subconsultants. This flexibility is achieved by the optional provisions in the Purchase Order, which can bring into play all, or only some, of the provisions of the Collaborative Construction Terms. This offers the unique possibility that all project participants can be engaged on the same basic terms. Because of this flexibility, the description of the parties as "client", "contractor" or "consultant" would not fit without amendment of the Purchase Order and the Collaborative Construction Terms for each different party. Accordingly, the terms "Purchaser" and "Supplier" are used throughout. This may be disconcerting at first, but soon becomes second-nature. |
3.1.2 |
The Purchase Order is intended to provide prompts for all the necessary information required to enable the Collaborative Construction Terms to function. The Collaborative Construction Terms themselves are intended to remain unchanged, albeit that not all the provisions will apply in every case: in some cases, optional clauses are provided (e.g. in relation to payment) and in other cases, clauses will not be applicable by reason of the completion of the Purchase Order (e.g. if used for the appointment of a professional consultant, the provisions relating to certifying completion of the works, the defects liability period, and liquidated damages will not apply). |
3.2 |
Separate documentation for the supply of "Products" |
3.2.1 |
A simplified version of the Purchase Order and the "Collaborative Supply Terms" applicable to the supply of "Products" (plant and materials) has also been drafted in conjunction with the Construction Manufacturers Partnering Association (COMPASS). This meets the wishes of suppliers for a specific contract that deals only with the supply of plant and/or materials yet still taps into the collaborative framework established "upstream". |
3.2.2 |
Where a Supplier is providing both plant or equipment and labour to install it the "Services" contractual documentation should be used. |
3.3 |
3.3 One of the central messages of the Egan Report, and one that makes profound common sense, is not to separate design and construction but to treat them as a continuous, joined-up process. Where a Supplier is responsible for both design and construction this is not a problem. However, where a Supplier is to be solely or primarily responsible for construction alone, there is merit in engaging him early:-
This early involvement can be achieved by engaging the Supplier on a 2-stage appointment with separate Purchase Orders for the design input (stage 1) and for the construction stage (stage 2). During stage 1, the provisions relating to the completion of the Works, liquidated damages and the like will almost certainly not apply, and if it will be easier, the Risk Allocation Schedule need also not apply. |
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