Pre Construction Agreement
At Bluestone Construction, we offer a Preconstruction Services Agreement (EPI) that includes drawings, specifications, certificates and budget to be integrated into the architecture and design of the house. While PSAs are less used, Bluestone owner Kevin Reed says, “I really think it`s the right way to choose a builder.” A thriving construction market, as observed in 2005 and 2006, supports the two-stage tendering process. In such times, the lack of capacity means that the most important contractors have their choice of projects. For more complex and faster developments, this means that many employers have to turn to a two-step tender to obtain rewarding offers. One of the concerns of employers in the pre-construction period is the potential leverage of the preferred contractor to increase the amount of the contract or renegotiate the conditions of execution of the work. To deal with this problem, the parties agree, in the details of the PCSA, to the criteria on which the contractor must submit its second tender offer, including the form of the work contract (including possible modifications) that must be concluded. If the contractor is required to complete the construction according to the PCSA, he has no design responsibility unless the construction contract is concluded. Employers may also question the lack of provisions on the rights of third parties or guarantees. The JCT believes that the construction contract will deal with both issues and, if not concluded, will be less relevant. The PCSA defines the benefits that the contractor needs at the construction stage and is generally similar to a consulting agreement.
It should be specified whether the contractor is carrying out design work, whether he has a design responsibility and what happens to that responsibility if he is not designated for the second stage. It should also define payment terms and possible provisions for deferral of payment. The contractor in charge of the PCSA is not necessarily designated for the second phase of construction. However, the client inevitably loses his influence in the second phase of the tendering process, as the contractor is integrated into the team and potential competitors lose interest as soon as they discover that another contractor has received the first tender. The JCT contract is available in two variants. The “General Contractor” form is intended for the requirement for a senior contractor to provide inputs. The “specialist” version is appropriate when an employer or contractor intends to hire a consultant or subcontractor. The unused building materials mapping tool has been launched Inevitably, there will be projects for which two-tier tenders will not be appropriate. While the guidelines state that it can be adapted to a project management structure, the need for a pre-construction phase could hinder the objective of this procurement strategy, namely the rapid start of work. Similarly, for projects where employers have a finalized project capable of identifying potential risk areas, employers can accurately predict the expected amount of the contract without having to spend time and expense on a two-step tender.
For owners who use pre-gifted contracts, check out our pre-contract page for housing projects. JCT`s Pre-Acceleration Services Agreement (General Contractor) is designed to designate a contractor for preliminary work as part of a two-stage tendering process. Elsewhere, there are standard obligations in terms of address and maintenance, prohibited equipment, insurance, confidentiality and collaboration with the project team. The copyright license is without means of payment. However, the PCSA does not include construction work, as they are generally project-specific and must be flexible to work either in traditional markets or in design and construction markets under different circumstances. Pre-Construction Services Agreements (PCSAs), sometimes referred to as service agreements