Title Details

David Mosey is Professor and Director of the Centre of Construction Law and Dispute Resolution at Kings College London. He joined the Centre after spending over 30 years as a specialist construction lawyer. During his career in private practice Professor Mosey advised on a wide variety of construction and engineering projects in the UK and internationally, with a particular focus on improving procurement and contractual techniques for integrated project delivery. 

Preface

Acknowledgements

Authors

1. What is Collaborative Construction Procurement?

1.1 Overview

1.2 What is collaborative construction procurement?

1.3 Why is collaborative procurement important?

1.4 What research has examined collaborative procurement?

1.5 What case studies support collaborative procurement?

1.6 How is collaborative procurement connected to digital technology?

1.7 How is collaborative procurement connected to contracts?

1.8 Who was Sir Michael Latham?

1.9 How can collaborative procurement reflect ISO 44001?

1.10 What should collaborative procurement provide?

2. What are the foundations for Collaborative Construction Procurement?

2.1 Overview

2.2 What is different about collaborative construction procurement?

2.3 How are construction contracts formed?

2.4 What is different about a collaborative construction contract?

2.5 What is an alliance?

2.6 How does BIM affect collaborative procurement?

2.7 What is early contractor involvement?

2.8 What are two stage open book, cost led procurement and integrated project insurance?

2.9 What is supply chain collaboration?

2.10 What are the supply chain collaboration activities?

3.  How does a project alliance operate?

3.1 Overview

3.2 What is a collaborative project team?

3.3 How can a collaborative team form a project alliance?

3.4 How does a project alliance operate?

3.5 How can a project alliance use early contractor involvement?

3.6 How can a project alliance use supply chain collaboration?

3.7 How can a project alliance measure and reward performance?

3.8 How can a project alliance improve project outcomes?

3.9 How can a project alliance deal with problems?

3.10 Project alliance case studies

4. How does a framework alliance operate?

4.1 Overview

4.2What is a framework?

4.3 How does a framework contract operate?

4.4 What is a framework alliance?

4.5 How does a framework alliance award work?

4.6 How can a framework alliance use supply chain collaboration?

4.7 How can a framework alliance measure and reward performance?

4.8 How can a framework alliance improve value?

4.9 How can framework alliance deal with problems?

4.10 Framework alliance case studies

5. How does a term alliance operate?

5.1 Overview

5.2 How does a term contract operate?

5.3 What are the term contract forms?

5.4 What is a term alliance contract?

5.5 How does a term alliance award work?

5.6 How can a term alliance use supply chain collaboration?

5.7 How can a term alliance improve asset management?

5.8 How can a term alliance improve value?

5.9 How can a term alliance deal with problems?

5.10 Term alliance case studies

6. How are collaborative team members selected?

6.1 Overview

6.2 What are the problems with single stage selection?

6.3 How can early contractor selection enable collaborative procurement?

6.4 How can early contractor selection create more accurate prices?

6.5 How are collaborative team members selected?

6.6 How do framework selection procedures operate?

6.7 How can evaluation criteria balance cost and quality?

6.8 Can early contractor selection comply with public procurement?

6.9 Can collaborative working occur during selection?

6.10 Collaborative selection case studies

7. Does collaborative procurement need a contract?

7.1 Overview

7.2 What is the impact of a non-binding agreement?

7.3 What is the impact of a letter of intent?

7.4 What is the impact of implied good faith?

7.5 What is the impact of express good faith?

7.6 What is a virtual organisation?

7.7 What is the impact of a no blame clause?

7.8 What is the impact of a collaborative contract?

7.9 What is the impact of a multi-party contract?

7.10 Collaborative construction management case studies

8. What types of contract support collaborative procurement?

8.1 Overview

8.2 What is a relational contract?

8.3 What is a conditional contract?

8.4 What is enterprise planning?

8.5 What is an enterprise contract?

8.6 What are the enterprise features of a project alliance contract?

8.7 What are the enterprise features of a framework alliance contract?

8.8 How can collaborative procurement support a joint venture or client consortium?

8.9 How can collaborative procurement support a public private partnership?

8.10 Collaborative joint venture and consortium case studies

9. What standard form contracts support collaborative procurement?

9.1 Overview

9.2 What is the role of standard form contracts?

9.3 How can standard forms support collaborative procurement?

9.4 How does FIDIC 2017 support collaborative procurement?

9.5 How does ICC 2014 support collaborative procurement?

9.6 How does JCT 2016 support collaborative procurement?

9.7 How does NEC4 support collaborative procurement?

9.8 How does PPC2000 support collaborative procurement?

9.9 Which standard form contracts support a project alliance?

9.10 How are collaborative project contracts used in practice?

10. How does the FAC-1 framework alliance contract operate?

10.1 Overview

10.2 What are the key features of FAC-1?

10.3 How does FAC-1 award work?

10.4 How does FAC-1 support supply chain collaboration?

10.5 How does FAC-1 measure and reward performance?

10.6 How does FAC-1 support collaborative risk management?

10.7 How does FAC-1 reflect different requirements?

10.8 How does FAC-1 reflect government and industry recommendations?

10.9 How is FAC-1 being used in practice?

10.10 FAC-1 framework alliance case studies

11. How does the TAC-1 term alliance contract operate?

11.1 Overview

11.2 How was TAC-1 developed?

11.3 What are the key features of TAC-1?

11.4 How does TAC-1 award work?

11.5 How does TAC-1 support supply chain collaboration?

11.6 How does TAC-1 measure and reward performance?

11.7 How does TAC-1 support collaborative risk management?

11.8 How does TAC-1 reflect different requirements?

11.9 How does TAC-1 differ from TPC2005?

11.10 How are TPC2005 and TAC-1 used in practice?

12. How is a collaborative culture created?

12.1 Overview

12.2 What is the role of people in a collaborative culture?

12.3 Who leads a collaborative culture?

12.4 Who manages a collaborative culture?

12.5 How can a collaborative culture include all stakeholders?

12.6 How can a collaborative culture improve communication?

12.7 What is the role of a core group or alliance board?

12.8 What is the value of training and workshops?

12.9 What is the role of an independent adviser?

12.10 Collaborative culture case studies

13. How can BIM support collaborative procurement?

13.1 Overview

13.2 What is the impact of digital technology?

13.3 What is the impact of BIM?

13.4 How can BIM enable collaborative procurement?

13.5 How can BIM support early contractor involvement?

13.6 How can BIM support whole life asset management??

13.7 How do collaborative teams use BIM in practice?

13.8 What is the impact of smart contracts?

13.9 What are the limits of smart contracts?

13.10 BIM research results

14 How does BIM support collaborative contracts?

14.1 Overview

14.2 How does BIM affect a duty of care?

14.3 How does BIM affect agreed deadlines and interfaces?

14.4 How does BIM affect intellectual property rights?

14.5 How does BIM affect reliance on data?

14.6 Who manages BIM data?

14.7 How is BIM treated in standard form contracts?

14.8 How does BIM affect alliances?

14.9 How can BIM deal with problems?

14.10 BIM alliance case studies

15. How can collaborative procurement improve economic and social value?

15.1 Overview

15.2 How can collaborative procurement benefit all team members?

15.3 How can collaborative procurement create cost certainty and cost savings?

15.4 How can collaborative procurement improve quality?

15.5 How can collaborative procurement improve supply chain relationships?

15.6 How can collaborative procurement create local and regional opportunities?

15.7 How can collaborative procurement support employment and training?

15.8 How can collaborative procurement improve safety?

15.9 How can collaborative procurement support environmental benefits?

15.10 Benefits of Two Stage Open Book and Supply Chain Collaboration

16. How is collaborative procurement costed and incentivised?

16.1 Overview

16.2 What is the impact of open book costing?

16.3 How can collaborative procurement achieve a fixed price?

16.4 How do target costs and cost reimbursement operate?

16.5 How can early contractor involvement control costs?

16.6 How is a framework alliance costed?

16.7 How is a term alliance costed?

16.8 How do pain/gain incentives operate?

16.9 What other incentives support collaborative procurement?

16.10 Collaborative costing case studies

17. How does collaborative procurement manage time and change?

17.1 Overview

17.2 Why is collaborative time management important?

17.3 Is a programme the same as a timetable?

17.4 How are programmes and timetables treated in construction contracts?

17.5 What timetables support a collaborative team?

17.6 What timetables integrate collaborative design?

17.7 What timetables support a framework alliance or term alliance?

17.8 How can an integrated timetable improve value?

17.9 How can a collaborative team manage change?

17.10 Collaborative time management case studies

18. How can collaborative procurementimprove risk management?

18.1 Overview

18.2 How are risks priced?

18.3 How can risks be managed jointly?

18.4 How do construction contracts treat risk management?

18.5 How can collaborative procurement improve risk management?

18.6 How can a collaborative team manage ground risk?

18.7 How can risk be managed through no blame clauses?

18.8 How can risk be managed through new insurance?

18.9 What is the role of project bank accounts?

18.10 Collaborative risk management case studies

19. How can collaborative procurement reduce disputes?

19.1 Overview

19.2 Are construction disputes a bad thing?

19.3 What are the causes of construction disputes?

19.4 How can early contractor involvement reduce disputes?

19.5 How can a collaborative team avoid disputes?

19.6 How can early warning avoid disputes?

19.7 How can a core group or alliance board resolve a dispute?

19.8 How can an independent adviser resolve a dispute?

19.9 Are there other collaborative ways to resolve a dispute?

19.10 Collaborative dispute resolution case studies

20.How does collaborative procurementoperate in Australia?

20.1 What is the approach to alliances in Australia?

20.2 What is the approach to BIM in Australia?

20.3 What is the approach to construction contracts in Australia?

20.4 What is the potential for a framework alliance in Australia?

20.5 What are the legal issues affecting an alliance in Australia?

21.How does collaborative procurementoperate in Brazil?

21.1 What is the approach to alliances in Brazil?

21.2 What is the approach to BIM in Brazil?

21.3 What is the approach to construction contracts in Brazil?

21.4 What is the potential for a framework alliance in Brazil?

21.5 What are the legal issues affecting an alliance in Brazil?

22.How does collaborative procurementoperate in Bulgaria?

22.1 What is the approach to alliances in Bulgaria?

22.2 What is the approach to BIM in Bulgaria?

22.3 What is the approach to construction contracts in Bulgaria?

22.4 What is the potential for a framework alliance in Bulgaria?

22.5 What are the legal issues affecting an alliance in Bulgaria?

23.How does collaborative procurementoperate in Germany?

23.1 What is the approach to construction contracts in Germany?

23.2 What is the approach to alliances in Germany?

23.3 What is the potential for a framework alliance in Germany?

23.4 What is the approach to BIM in Germany?

23.5 What are the legal issues affecting an alliance in Germany?

24.How does collaborativeprocurementoperate in Italy?

24.1 What is the approach to alliances in Italy?

24.2 What is the approach to BIM in Italy?

24.3 What is the approach to construction contracts in Italy?

24.4 What is the potential for a framework alliance in Italy?

24.5 What are the legal issues affecting an alliance in Italy?

25.How does collaborative procurementoperate in the USA?

25.1 What is the approach to alliances in the USA?

25.2 What is the approach to BIM Australia in the USA?

25.3 What is the approach to construction contracts in the USA?

25.4 What is the potential for a framework alliance in the USA?

25.5 What are the legal issues affecting an alliance in the USA?

Appendix A Research Timelines

Appendix B Trial Projects Process

Appendix C Case Studies

Appendix D BIM Research Projects and Interviewees

Appendix E FAC-1 and TAC-1 Consultation Group

Appendix F Amendments to FAC-1 and TAC-1 Consultation Drafts

Appendix G Completing FAC-1

Bibliography

1.       Sir Rupert Jackson PC, retired Lord Justice of Appeal:

‘A successful procurement exercise or construction project is one in which all participants work together collaboratively to achieve a common end.  That is not easy to achieve because the participants each have their own commercial interests and reputations to protect. I have long believed that the mere inclusion of platitudes that "the parties will work together in good faith" adds little to the implied term of co-operation, and a series of recent cases have shown that such wording seldom avails the parties when a dispute erupts.
 
The present book goes far beyond platitudes.  It explores new ways of working and new contractual structures which can actually bring about collaborative working.  It demonstrates how the use of BIM can facilitate the ready sharing of information between members of the team.  It explains how the team members can benefit from the creation and development of a project alliance.  The research and case studies set out in this book will offer practical guidance to all who are working in the construction sector.’
 
 
2.       Matthew Bell, Senior Lecturer and Co-Director of Studies for Construction Law, Melbourne Law School:

 ‘For many in the construction industry, collaborative procurement is the holy grail. This new text by Professor David Mosey and leading practitioners from around the world provides a uniquely-valuable road map in pursuit of that goal. It not only explains the benefits of collaborative ways of working, it also helps industry professionals and their lawyers navigate the potential pitfalls by compiling a critical assessment of experience to date.
 
The text harnesses lessons learned and the value of technological innovations such as BIM. In this way, it provides both a ‘how to’ and ‘why to’ manual for realising the potential of collaborative construction procurement as we enter the third decade of the 21^st century. ‘
 
 
3.       Mark Farmer, CEO Cast Consultancy and author of ‘Modernise or Die’:

‘There is a crucial need to adopt an integrated procurement model in order to deliver projects more efficiently, for example through increasing ‘pre-manufactured value’ by moving processes from the final site into controlled manufacturing environments. I commend this book whose international co-authors have collated an excellent global reference point, demonstrating how organising projects differently can create better outcomes for all parties.
 
The recommended procurement and contract systems are shown to achieve better aligned interests by harnessing learning and relationships from project to project and by using value-based selection and remuneration techniques. Unless you can deliver specific value-adding expertise through integrated working behaviours, the construction world will become an increasingly difficult place to make money and survive. Reading this publication is a vital part of future-proofing yourself!’
 
 
4.       Ann Bentley, Construction Leadership Council Board Member and Rider Levett Bucknall Global Board Member:

 ‘As any harassed parent knows, telling restive children to “play-nicely” is no guarantee that they will. Collaboration is much the same, and a broad expression of collaborative intent is no guarantee of collaborative behaviour: it requires knowledge, structure and commitment.

With this comprehensive and far-reaching analysis, taking us from the birth of collaborative contracts to their relevance and use around the world, David Mosey and his King’s College team go a very long way to filling important knowledge gaps. Collaborative Construction Procurement and Improved Value should be recommended reading for anyone considering undertaking a construction project, and compulsory reading for their advisers. I commend David and his team for this work and the contributions that it will make to improving the way construction is procured and delivered.’
 
 
5.       Professor John Uff CBE QC:

‘This seminal work brings together the fruits of studies and writings spanning many years and encompassing many projects throughout the world under a variety of legal systems.  The need for collaboration in the construction process has been a constant theme in the search for procedures and systems which can harness the expertise and energies of parties with divergent commercial interests while avoiding disputes. 
 
Procurement is the point at which collaboration begins, with the choice of project alliancing for a single enterprise or a framework or other longer-term arrangement bringing wider opportunities for collaboration.  These extended relationships are supported by the authors’ work in developing the FAC-1 and TAC-1 models for which impressive case studies are described.  The key to success is seen as the development of personal relationships, enhanced by digital technology including BIM, shared knowledge and appropriate motivation.’
 
 
6.       Shelagh Grant, Chief Executive, Housing Forum:

 ‘David Mosey’s extensive knowledge of the construction industry, and his well thought through solutions to delivering the best possible outcomes, come over strongly in this work.  Many examples are given of the collaborative links and early interactions that help achieve good quality and good value in difficult and complex situations.

The elements of successful collaboration are clearly laid out with particular emphasis on the selection of and relationships between team members. The application of digital technology is shown to work in particular alliance with this approach.’
 
7.       Nick Barrett, Editor, Construction Law:

‘Anyone viewing a typical construction project sees the impressive collaboration that brings designs, people, machinery and materials together in the one place, but they may not see the dangerous divisions that still exist in construction’s procurement and contractual underpinnings.This book’s authors show how a new focus on collaborative procurement can treat many of the industry’s ills. Evidence has been gathered internationally, not just from the UK, that collaborative approaches can make a major difference to outcomes. 
 
The need for a new industry strategy has never been greater, particularly after the Grenfell Tower disaster and the Carillion collapse. Collaborative procurement approaches that can be easily adopted are detailed in these pages, with a diversity of case studies that should convince even the sceptical.’ 
 
8.       Jason Russell,Executive Director, Highways, Transport & Environment, Surrey County Council:

‘As a Local Government Director, I am being challenged as never before to reduce costs whilst improving outcomes for our communities.
 
This timely book demonstrates that bringing together the wider supply chain at the right time, with clear outcomes and underpinned by effective processes, can deliver significant benefits. It provides a practical guide, built on the experience of many projects that have delivered proven results over a number of years, and it is essential reading for anyone interested in getting better value from their construction projects.’
 
9.       Kevin Murray, Deputy Director - Construction & Property, Government Property Agency:

‘This book provides comprehensive evidence that lays waste to the myth that collaboration does not need contractual provisions, commitment and accountability.’
 
 
10.    Dr David Hancock, Construction Director, Infrastructure and Projects Authority, Cabinet Office:

‘Since the success of Terminal 5 Heathrow, I have been a great supporter of collaborative approaches and ECI for complex construction projects. This book recognises that collaboration may not be a universal panacea, and it sets out the arguments and opportunities that need to be debated prior to making procurement decisions. Where those opportunities outweigh the risks, it provides the foundations both contractually and behaviourally to ensure the best chance of success, with real examples from industry. 
 
This is a book that will benefit both the novice and the expert, providing a high-level overview and a dive into details for the practitioner to implement, without bias to a single contract type and with guidance on Alliance Contract forms for those who wish to realise their benefits.’
 
 
11.    Don Ward, Chief Executive, Constructing Excellence:

‘Many people have worked to implement the recommendations of Latham and Egan for construction reform, but few can match David Mosey’s first-hand experience and expertise in delivering the approaches which he promotes in this book with characteristic clarity and skill. He has probably worked on more collaborative projects than anyone else in the UK construction industry in the last two decades. He can literally point to billions of pounds worth of projects which he directly influenced and helped on a journey to implement better collaboration, using contracts and procurement routes as a key enabling tools.
 
Consequently, David has had more success and gained extensive first-hand knowledge of what works and what doesn’t, and the plentiful case studies throughout this book illustrate this so very well. I have been honoured to work alongside him, including in the trial projects programme on which he draws heavily, and I hope this book will provide many more people with access to his thinking, approaches and practical advice. I hope you find David’s experience and expertise as valuable as I have done, and that he convinces you to implement collaborative procurement just as energetically.’