IACCM most negotiated terms & conditions survey

Dear all,

Recently, The International Association for Contract & Commercial Management (IACCM) launched its 11th annual study of ‘the most negotiated terms and conditions’. I've found this to be really interesting in the past and will upload the results when completed. In the meantime please find time to complete this. IACCM say........

"This unique study is used by companies and advisors around the world to develop and inform their contracting and negotiation strategies. As a contributor to the survey, you can be among the first to know the results – as well as contributing to the status and understanding of our professional community.

This survey will take 5 – 10 minutes to complete. We ask you to tell us which terms you negotiate with greatest frequency, as well as your view regarding some key trends in negotiation. The results of this study offer insights to jurisdictional, geographic and industry perspectives, ensuring that it can immediately be put to practical use as well as inspiring new ideas and approaches to managing today’s complex negotiations environment."

Thanks,
Rob

https://www.surveymonkey.com/s/topterms2012

Student NEC research

Dear all,

Another student in need of a bit of your time. The student says....

"I am currently in my final year of an Honours Degree in Quantity Surveying in the School of the Built Environment at Heriot Watt University. For my dissertation, I have chosen the topic "Does the NEC3 Contract improve the Client and Contractor relationship"

As part of my research I require input from within the construction industry from those who have had practical experience in using this contract. I am writing to you to ask for the link below to my questionnaire to be forwarded onto anyone who would be appropriate to contribute their opinions.This will assist me in gathering the research required to allow me to comprehensively complete my dissertation."
Rob

http://www.surveymonkey.com/s/63PMBP6

The National Building Specification (NBS) launches procurement survey

Dear all,

The NBS would like to ask for your feedback about the construction contracts you use and any legal issues you may have encountered. This survey covers projects that were commenced, completed or went into dispute in 2011. It relates to UK based projects and international projects handled from the UK by UK based companies.

The questionnaire should take no more than about 10 minutes of your time, depending on your answers. All responses are completely confidential and will be treated in accordance with the MRS code of conduct; your personal details will not be shared with others.  All completed surveys can be entered into a prize draw for a chance to win an Apple iPad.

Thanks and good luck!
Rob

http://www.thenbs.com/support/survey/contracts-and-law/index.htm

Should the Fee be fixed in ECC target cost contracts?

A question from a client at the recent NEC Users' Group annual Seminar related to the thoughts of changing the variable Fee approach with target cost contracts. These are his further thoughts, a Newsletter article is likely but some opinion in the meantime would be very helpful.....

ECC target cost contracts (main Options C and D) provide a mechanism for charging Fee based on the tendered fee percentage x the cost (Defined Cost). This is a variable Fee approach.

A number of alternative approaches are being adopted by clients to either fix the Fee amount regardless of costs incurred (a lump sum Fee), or to “invert” the fee calculation to base the Fee on the target (Prices) rather than the Defined Cost. In doing so, this is thought to provide benefits of a “double incentive” to the Contractor to optimise or dilute Fee when costs are below or above target, to give the client better cost certainty of the amounts paid in respect of Fee sums, and not to “reward” the Contractor by way of additional fee recovery when costs exceed the target.

Comments, thoughts and soundings on these alternative approaches are welcomed. Are these alternative approaches commonplace throughout the  industry, are they seen as fair and equitable, are there any unintended consequences?

Rob

z clauses v Works Information

I see quite a few examples of very poor tender documents indeed - both in terms of conditions of contract (Contract Data with z clauses) and the brief (Works Information). The z clause part of the document is often very extensive indeed, to the point of wondering why bother using an NEC3 Contract at all. Apart from tackling this, I'm curious as to what users think is a realistic and sensible split of time/cost spent between preparing lets say z clauses against the Works Information, assuming NEC3 ECC is the contract chosen.

Although each contract/project has its own constraints/risks etc, I believe the intelligent client should probably spend 10 or 20 times more time/cost on producing a high quality, clear and comprehensive Works Information as opposed to z clauses. I sense the reverse is often too - that has to be madness!

What do you think?

NEC Users' Group Annual Seminar discussion

Hi all,

Hopefully many of you made the annual NEC Users' Group Annual Seminar last Monday, a really good turnout, event and plenty of debate as usual. If there's any follow up queries, something you didn't get chance to ask or not sure of any issue then by all means debate here or use the Users' Group helpline if you prefer.

What came across to me were problems associated with not following the contract or not using the correct language - both are extremely important and will put you in a better place than you would otherwise be.

Rob

Student NEC research

Dear all,

You can all have long lunches today!

More student research, this student says...

I am currently an Honours level student at Glasgow Caledonian University studying Quantity Surveying. As part of my final year dissertation I am conducting a survey of people in the industry with practical experience of NEC3 projects. The title of my dissertation is 'Dispute Avoidance and NEC3; to what extent has use of the NEC3 contract reduced disputes?' The purpose of the survey is to gather information from NEC3 users on their experiences of how successful the contract is at reducing disputes.

Thank you,

Rob

https://www.surveymonkey.com/s/V7J8XXT