The Department of Finance and Public Works in Ireland have put together a new Contract.  It is called “Department of Finance (GCCC) Public Works Contract”.  It comes in a number of forms but essentially covers traditional procurement designed by the Employer, procurement designed by the Contractor and both styles are either in the form of Civil Engineering or Building Works.  In essence there originally were four forms with a fifth for minor works for works of traditional Building and Civil Engineering valued at €5 m or below.  In addition to this there is a further standard contract of engagement for Construction Consultants.  It applies to all new public procurement Contracts i.e. Government jobs or anywhere there are bodies which are part funded by Government (50% or more) they also require the Contract i.e. semi state bodies such as ESP and An Post and some types of Private Schools.  The form is not to be amended, it is encouraged to be a best practise form, in particular with regard to payment conditions of employment for Sub-Contractors.  

The main features of the new Contract are that the cost of identified risks are to be tendered on a lump sum basis i.e. costs for delay.  There is an inflation risk tendered in on the fixed price lump sum basis for 3 years including a 6 month lead in time.  It is for all purposes, fixed price lump sum.  The new arrangement is particularly to give greater cost certainty that is value for money and more efficient delivery of capital projects.  This is set against the UK re-thinking Construction finding by the DTI in 1998 where Construction projects were 40% late, 50% over budget and 30% have failed to meet the needs of expectation of the end user.  It is hoped that the new contract will eventually cause less disputes as the actions of the parties are precisely defined.  There are early warning procedures built in similar to NEC wherein delay events incur additional time and compensation events incur additional money but they are clearly described and prescribed and in some ways are “bought out” for an agreed period of time.

The new Contract pushes forward best practise, however for it to work effectively and cause little or no dispute it is entirely and absolutely reliant upon the quality of information available to the Contractor from the design team.  For instance consideration at the out set of the design must look for completeness, notify clearly and precisely the risk such as ground conditions, archaeology to seek to reduce the risk of time costs overrun associated with lack of information.  The Contract comes into being by a letter of acceptance and time runs from that date.  The starting date onsite must occur within 20 working days of the Contract date.  There must be clarity in all aspects of the work and the contract document is divided into 13 sections as follows:

a)  The Contract

b)  The law

c)  Loss damage and injury

d)  Management

e)  Contractors personnel

f)   Property

g)  The side

h)  Quality testing and defects

i)   Time and completion

j)   Claims and adjustments

k)   Payment

l)    Termination

m)  Disputes 

The pricing document is identified in the schedule and completed by the Contractor which includes the Bill of Quantities (if any) or pricing schedules or Contract sum analysis and other documents to which the Contractor provides his detailed pricing proposals.  It is in the form of lump sum fixed price.  Work proposals stating how the Contractor proposes to carry out the works as method statements and sequencing programming and resource allocations are requ