A review conducted by Arup and concluded in September last year
was recently published by the Office of Government Commerce, UK
(OGC). The review found that three contract forms
now satisfy the principles of the OGC Achieving Excellence in
The three contracts fulfilling the OGC's Evaluation Criteria
are the NEC3 (ECC), ACA's PPC2000 and the JCT Constructing
Excellence Contract (CE).
Fundamentals of the NEC3 are hailed as flexibility, clarity and
simplicity, and stimulus to good management. It has recently been
confirmed suitable for International use.
ACA's PPC2000 suite has been updated and re-launched. An
International version specifically for use in jurisdictions outside
the UK was issued in October 2007 after extensive trials on
projects in the Middle East.
The JCT Constructing Excellence Contract (CE) is not immediately
suited to all International jurisdictions. Notably, however, the
JCT suite includes a "Non-binding Partnering
Charter" suitable for use with most standard forms of
construction and engineering contracts and subcontracts.
The code of conduct encouraged in this type of
"agreement" is increasingly being incorporated into the
formal contract between the parties. At a time when parties to a
construction contract want and need to act fast to take advantage
of opportunities while at the same time setting up guard to avert
or steer potential disaster, clients are asking their lawyers to
formalise such culture codes within the provisions of the
Many of the contractual mechanisms aiming to achieve this
outcome were used by Arup as evaluation criteria. These
Encouragement of collaborative working
Encouragement of the achievement value
Encouragement of supply chain management
Encouragement of dispute prevention
Encouragement of early dispute resolution
Provision of processes for dealing with variation control and
Incentivisation of supply chain performance
Encouragement of risk management
Provisions for performance management
Provision for risk allocation
Clear provisions regarding variation pricing and impact of
variations on programme
User friendliness of the contract documentation.
These forms of contract are used in a variety of public and
private projects internationally and some argue that such forms
could and should see further use in Australia.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The Council announced planning policies to encourage more inner suburban retirement village and aged care development.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).