Having established the mischief then justifying the need to address it, next we need to make a decision and perhaps test it.
So does it stack up (perhaps sometimes financial appraisal only will not justify the need) and shall we put this into effect? Do we really need this in a one-off contract or could we elevate it somehow to a barrier to entry to working with our organisation - if you (as supplier) cannot demonstrate this or have done that then unfortunately there's a mis-match and we cannot do business together. Policing issues at this level should be far more effective than trying to make it happen with countless contracts. Surround yourself with suppliers that should give you the best service possible.
Once you've made a decision that perhaps a z clause is needed why not test this - why not ask tenderers to offer a price with and without this z clause. What if this causes the tenderer to significantly increase his tender total beyond the level you thought it would? How will you otherwise ever know?
There are loads more things you could look at here but you think there is justification, you need to make a decision to effect the z clause but possibly have one more chance at tender stage to test the financial impact this brings to tenderers.
After this, you can only measure what impact this has and consider the applicability of this for future contracts. As usual, be careful what you wish for!!!
Showing posts with label NEC. Show all posts
Showing posts with label NEC. Show all posts
Thursday, 5 February 2015
Z clauses....thinking about them from a different angle (part II the justification)
Having established the mischief and everyone being comfortable with that, I wonder if we can bring a simple scientific test to help justify the need.
Hopefully there are challengers in the drafting team and we are not letting people loose with blank cheques to write z clauses, so the challenger(s) says:
1. What is the likelihood of this mischief actually occurring on this project (somewhere between 0% and 100%)?
2. What would be the severity of this if it did occur (try not to complicate, 1st go at this just think about additional cost the client might be put to) - order or magnitude, is it £1, £100k, £1m or something else?
3. What would be your fee to write the z clause, write a corresponding guidance note and set of flow charts so all are completely clear what it addresses and how it fits into the rest of the NEC3 contract?
You must by now know where by stealth I'm going here.....if 3 in £££ will cost more than the £££ of 2 x the % of 1 then only the z clause salesperson will be better off. It would be cheaper to give half of the sum of 3 to charity and can the proposed z clause.
So this part of the note is making sure there is justification, the proposed z clause not only has merit but also is financially prudent. Funnily enough, this is now looking like a business case!
Hopefully there are challengers in the drafting team and we are not letting people loose with blank cheques to write z clauses, so the challenger(s) says:
1. What is the likelihood of this mischief actually occurring on this project (somewhere between 0% and 100%)?
2. What would be the severity of this if it did occur (try not to complicate, 1st go at this just think about additional cost the client might be put to) - order or magnitude, is it £1, £100k, £1m or something else?
3. What would be your fee to write the z clause, write a corresponding guidance note and set of flow charts so all are completely clear what it addresses and how it fits into the rest of the NEC3 contract?
You must by now know where by stealth I'm going here.....if 3 in £££ will cost more than the £££ of 2 x the % of 1 then only the z clause salesperson will be better off. It would be cheaper to give half of the sum of 3 to charity and can the proposed z clause.
So this part of the note is making sure there is justification, the proposed z clause not only has merit but also is financially prudent. Funnily enough, this is now looking like a business case!
Saturday, 23 March 2013
Student NEC research
Please find below a survey monkey link from Peter Higgins who
is in his final year studying Quantity Surveying at the University of Ulster. If
you could please take the time to complete Peter’s questionnaire to assist him
with his studies, this would be most appreciated.
Rob
MPL call for papers on BIM
Dear all,
It's snowing, no golf, no football so what better to do than catch up on many emails/Blogs etc that have been hanging around a bit too long.....
The first is a call for papers on best practice and new directions in building information modelling (BIM). This is from Management Procurement and Law (MPL) who publish original research and practice papers on all civil engineering and construction aspects of management, procurement and law as part of the proceedings of the Institution of Civil Engineers.
Have a look and please contribute if you have a paper in you, maybe from an NEC contractual angle....
Rob
https://docs.google.com/file/d/0B0zCdliicY9meDF5MkNKbVd3X1E/edit
It's snowing, no golf, no football so what better to do than catch up on many emails/Blogs etc that have been hanging around a bit too long.....
The first is a call for papers on best practice and new directions in building information modelling (BIM). This is from Management Procurement and Law (MPL) who publish original research and practice papers on all civil engineering and construction aspects of management, procurement and law as part of the proceedings of the Institution of Civil Engineers.
Have a look and please contribute if you have a paper in you, maybe from an NEC contractual angle....
Rob
https://docs.google.com/file/d/0B0zCdliicY9meDF5MkNKbVd3X1E/edit
Monday, 4 February 2013
MPL call for papers on EU construction
Dear all,
There's a call for papers from Management, Procurement and Law (MPL) journal
on the similarities and differences affecting management, procurement and law as it affects construction in the EU. See below if you are interested in more details on this...
https://docs.google.com/file/d/0B0zCdliicY9mRjJ4SGJoU1ByWUE/edit
There's a call for papers from Management, Procurement and Law (MPL) journal
on the similarities and differences affecting management, procurement and law as it affects construction in the EU. See below if you are interested in more details on this...
https://docs.google.com/file/d/0B0zCdliicY9mRjJ4SGJoU1ByWUE/edit
Monday, 15 October 2012
Built in Britain - BBC programme
An interesting BBC documentary on engineering challenges in Britain eg CTRL/Olympics. Great messages like our project, alignment of objectives, incentivisation and NEC. What more can you ask for...?!
Enjoy
http://www.bbc.co.uk/iplayer/episode/b01ngs45/Built_in_Britain_Episode_2/
Enjoy
http://www.bbc.co.uk/iplayer/episode/b01ngs45/Built_in_Britain_Episode_2/
Thursday, 12 July 2012
An interview with Dr Martin Barnes....
Dear all, take a look at an interview between NEC consultant Robert Gerrard and NEC creator Martin Barnes, discussing the inspiration behind the NEC and how it differs from other contract forms.
http://www.neccontract.com/about/index.asp
http://www.neccontract.com/about/index.asp
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