David Mosey's Early contractor involvement in building procurement : PDF

By David Mosey

ISBN-10: 1444309870

ISBN-13: 9781444309874

Early contractor involvement : an summary -- Conditional contracts and early undertaking procedures -- difficulties and disputes lower than building section development contracts -- Early contractor involvement in layout, pricing and hazard administration -- shopper management, conversation platforms and binding programmes -- Contractual and non-contractual preconstruction thoughts -- Preconstruction commitments below framework agreements -- undertaking administration and venture partnering -- hindrances to early contractor appointments -- govt and perspectives and event -- Conclusions : the golden age of rock 'n' roll?

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Extra resources for Early contractor involvement in building procurement : contracts, partnering and project management

Example text

However, I suggest that dependence on a personal relationship only, without the support of a clear written contract, is unlikely to be a sufficient basis for the commitments required to undertake a building project63. Milgrom & Roberts observed that under relational contracts: ‘The parties do not agree on detailed plans of action but on goals and objectives, on general provisions that are broadly applicable, on the criteria to be used in deciding what to do when unforeseen contingencies arise, on who has what power to act and the bounds limiting the range of actions that can be taken, and on dispute resolution mechanisms to be used if disagreements do occur ’64.

7 Risk and fear of opportunism One challenge to creating a successful contract derives from what Williamson termed as ‘bounded rationality’91. This describes the difficulties that people face by reason of limited foresight, imprecise language, the costs of calculating solutions and the costs of writing down a fully comprehensive contractual plan92. Wherever there is an omission or a lack of clarity in a contract, there is the risk of what Williamson describes as ‘opportunism’93. In a preconstruction phase relationship where a full deal has not yet been concluded, there is a risk that the parties will fear opportunistic behaviour by each other that exploits any gaps or room for differing interpretations, and that they may not fully rely on each other as a consequence.

See MacNeil (1981), 1041 as to an incremental process of agreement using increasing amounts of information. 3 (Standard forms and the assumption of complete information). 85 31 Early Contractor Involvement in Building Procurement the client to make a series of choices ultimately justifying an unconditional construction phase building contract. A process contract can overcome the fear of opportunism that will otherwise dissuade the parties from entering into an incomplete agreement. It should also tackle head on the concern that an incomplete agreement will permit a lack of commitment to completing the remaining commercial details on competitive terms87.

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Early contractor involvement in building procurement : contracts, partnering and project management by David Mosey


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