Traditional contracting or procurement meaning

Background The term ‘MMC’ The Ministry of Housing, Communities & Local Government’s specialist sub-group has produced a definition framework for MMC, setting out seven categories: Category 1-Pre-Manufacturing-3D primary structural systems Category 2-Pre-Manufacturing-2D primary structural systems Category 3-Pre-Manufacturing-Non systemised structural components Category 4-Pre-Manufacturing-Additive Manufacturing Category 5-Pre-Manufacturing-Non-structural assemblies and sub-assemblies Category 6-Traditional building product led site labour reduction/productivity improvements Category 7-Site process led labour reduction/productivity improvements The framework seeks to standardise and clarify how MMC is described, capturing the wide array of innovative construction approaches now used across the market. Further details can be found here. For practitioners, establishing whether your scheme uses MMC and how extensively it influences delivery is valuable-particularly for key contractual risks such as structuring payments, title or insolvency exposure, programme, design responsibility, addressing climate change, and handling issues like materials shortages or fire safety. Construction Sector trends The construction industry has witnessed marked progress in off-site delivery, reflecting MMC’s increasing...

Comparison with traditional building or engineering contract The label ‘EPC’ contract (or ‘turnkey’ contract) is not a technical term. Perhaps the clearest way is first to set out how it diverges from other forms of agreement. A turnkey arrangement means that, once the project is finished and ready to pass to the user, it should need nothing more than the ‘turn of a key’ for the user to run it immediately. EPC denotes engineering, procurement and construction, and signals, in particular: a significant transfer of risk and responsibility placed on the contractor under such agreements, and a minimal need for the client to participate in the Works (beyond essential monitoring) in normal circumstances This contrasts with traditional domestic building or engineering contracts, where risks and duties (including those relating to design) are spread more evenly between contractor and client, and the client, through its representatives, may play a substantial role in decision making throughout the construction phase and programme. Many UK domestic...

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Taking-Over Certificate The certificate issued by the Engineer under a FIDIC form (or by the Employer under the Silver Book) confirming that the Works, or a Section, have reached the level of completion required by the contract, together with the date this milestone was met; akin to a JCT certificate of practical completion. See Practice Notes: FIDIC contracts 2017—time and FIDIC contracts (pre-2017 editions)—time. Taking off The noting of measured dimensions extracted from drawings or schedules. This is the initial step in assembling bills of quantities. Target cost contract A form of cost reimbursable contract where the contractor is paid the actual cost of delivering the works, subject to a target cost agreed by the parties at project commencement. At completion, an agreed mechanism/formula determines whether there were savings or an overrun—the contractor then either shares any saving...