Project progression via GCC:

International/national standard forms

Standard forms of contract are published by learned bodies and related pro- fessional industry organisations and are commonly used with respect to civil works. Standard contracts provide continuity and familiarity, and seek an equitable balance of risk between the client and their builder/design builder.

Nonstandard, stand-alone, ad hoc, bespoke contracts used in mining/ resources industries are somewhat less common in civil engineering in that

• Bespoke contracts (new, from-scratch, unique, project-specific con-

tracts) with one-of project-by-project clause developments are some- what expensive to generate, albeit they offer a client an opportunity to establish their own form of contract in a structure that addresses

Table 5.3 Step selection

Step 2 Step 3 Step 4 Step 5

Project particulars arrangementContractual Appointment approach Standard contract form

a. Development of potential/ subsequent parts/ phases Continuity contractual arrangement Selective competitive tendering then further negotiation based on existing phase-one BQ’s GCC AS2124/4000 b. Structured maintenance requirement Term contractual arrangement Selected competitive ‘schedule of rates’ comparison between known firms Asset maintenance and services AS4919 c. Fire damage

needing early work and timeous reopening Cost- reimbursement contract Negotiated

appointment with one specialist/expert firm GCC AS2124/4000 d. Projects of differing design complexities and variable degrees of technical innovation

• Complex, unfamiliar, innovative, high-specification designs and projects might seek to ‘dictate’ quality via a traditional approach (or perhaps in an alliance), where a specialist (local or overseas) design engineer first prepares all designs in advance and then invites qualified (local) builders to bid for (or align together) to construct exactly what has been given to them (power stations and the like) with obligations made explicit in GCC (traditionally using AS2124/4000)

• Noncomplex, commonplace and standardised functional designs and projects might benefit from a design-and-build arrangement, in which experienced (local) firms, familiar with standard requirements, are invited to submit their own design(s) to construct (roads, schools, etc.), formalised by GCC (AS4300/4902)

that company’s own risk profile (unilaterally, it might be argued) for execution of contract work, alongside their own (unilateral) project organisational/management structure adaptations.

Globalisation in civil engineering workload alongside cross-national sources of funding increasingly requires more internationally applicable GCC. Indeed, many countries find that their construction industry makes use of not only local standards of GCC’s (such AS2124 or AS4000 in Australia) but also of international (neutral jurisdiction) standard forms of contract.

The New Engineering Contract, principally the NEC3 Engineering and Construction Contract (ECC), is one such standard form drafted specifi- cally for an international application;17 _{indeed, NEC is being increasingly}

used throughout the Australasian region, particularly perhaps in New Zealand as an alternative to NZS3910.

Seven NEC contract forms exist, all of neutral jurisdiction, to comple- ment the various procurement options for civil engineering projects. Formats include: priced and target contracts, cost reimbursement and management contracts, short (minor/simple projects) contracts, term service contract and framework contracts.

Other widespread, globally recognised contracts include the suite of standard forms offered by the International Federation of Consulting Engineers (more commonly known as FIDIC—Fédération Internationale des Ingénieurs-Conseils),18 _{used between employers and contractors on}

international construction projects.

FIDIC publishes a number of forms of contract for different procurement category types, including

• CONS: Conditions of contract for construction, facilitating progres- sion of works designed by an employer’s engineer, then built by a main contractor (traditional)

• P&DB: Conditions of contract for plant design build, for mechanical and electrical (M&E) asset installation via one contractor’s design then construction

• EPCT: In which all engineering, procurement, construction and sub- sequent ‘turnkey’ operational status at handover, is by one design- and-build contractor

• Short form of GCC used in small capital value projects

This FIDIC suite of standard forms of contract is endorsed by, amongst others, the World Bank,19 _{which provides a source of financial and techni-}

cal assistance to developing countries and newly developing regions around the world.20

Progression of works in all World Bank projects is by (stipulation of the use of and) application of FIDIC standard forms of contract, which clarify

the responsibilities and obligations of employers and contractors on a wide range of international construction and engineering projects.

Standard forms of contract, both international and national, share a common goal; namely, to facilitate the smooth administration of civil engi- neering work on-site. Standard forms of contract (and the clauses therein) clarify expectations related to

• On-site civil engineering project commencement

• Appropriate mechanisms for the posting of notices related to claims and disputes

• Progress and more particularly progress payments

• The means to address any suggested variations to the scope of the works • Appropriate certification of the completion of all work on-site

Australian Standards (AS) standard form of GCC, AS2124 (1992) GCC is somewhat of a precursor for the 43 clauses described within the newer AS4000, AS standard form of GCC. It might be suggested that the older AS2124 is perhaps more prescriptive and, therefore, some might suggest, somewhat more explicit in its description of obligations and responsibilities compared with the newer AS4000, which provides more opportunities for stakeholders to review and agree upon project-specific timelines for compliance and the like. Both AS2124 and AS4000 have their supporters and detractors.

Whether AS4000 or AS2124 is selected, both forms share a number of key stages to bring a civil engineering project to fruition including com- mencement, project notices, progress payments, variations and completion certificates. These project stages are tabulated below alongside clauses that direct the contract parties.

Commencement of the civil engineering project and on-site start-up

expectations are clarified in standard forms of (general conditions of) con- tract clauses.

The following table uses a GCC standard form of contract (AS212421,22₎

to show linkages between commencement activity, party responsibilities and applicable GCC clauses (in AS2124).

Commencement

Activity Requirement and AS2124 clause

Access/possession Principal gives Builder authorisation to take possession as a notice in writing (clause 27.1)

Commence work

notice Builder gives client representative 7 days notice of a start date; within 14 days of gaining access (clause 35.1) Security/bond Builder gives third party a security bond 28 days after tender

acceptance (clause 5.4)

Notices applicable to the civil engineering project and appropriate mech-

anisms for posting such notices for contract claims, disputes and the like are tabulated next.

Notices

Notice AS2124 clause

Disputes Clause 47.1

Default Clause 44

Extra work claims Clause 21.4

Time extension claims Clause 35.5

Suspension of work notices Clause 33 and 34

Progress, timeline and progress payments for civil engineering proj-

ects are referenced in contractual clauses that state the programme of the work to be done and staged payment procedures such as those illustrated in the following.

Progress payment

Activity Requirement and AS2124 clause

Progress Programme of work (clause 33)

Payment claim Builder gives client representative claim as a percentage of completion of works (clause 42)

Payment certificate Client representative authorises payment in 14 days or remeasures (clause 42)

Variations applicable to the scope changes and the like of intended civil

engineering works are open to consideration by the parties based on con- tract clauses such as those shown next.

Variations

Activity Requirement and AS2124 clause

Variations Clauses may require a Builder to vary work and correct defects (clauses 30 and 40); pricing variation items are made explicit (clauses 40, 40.5 and 41)

Completion (both practical and final completion) of a civil engineering

project requires appropriate certification, clarified in contractual clauses illustrated next alongside instructions and timing of the release of retention money withheld by the client.

Completion certification

Activity Requirement and AS2124 clause

Practical completion Builder requests practical completion certification from client representative (clause 42.5)

Final completion Certification occurs approximately 28 days after the defects- liability period (clause 42.7 and 42.8)

Although structural integrity in design and build quality is the raison d’être of the civil engineer, cost/payment, time and design change concerns remain ever on the table.

5.1.4 Project progression: Variations, quality,