PPC 2000 Ironing Out The Risk In Contracting

Contracting is a risky business by its nature but traditional procurement exacerbated the problem. Both Latham and Egan recognised that traditional procurement practices of contractors tendering against client prepared documentation of incomplete designs inadequate surveys and contracts which simply dumped risks inevitably led to the poor relationships which plagued the industry.

The industry is being challenged to change these practices - to enter into less adversarial relationships - to manage risk fairly in its contract documents and to plan its procurement so that all concerned in the process have the opportunity to add value and are Not simply asked to sign up to a price.

PPC 2000 is a document that seeks to achieve that goal by making the Contractor ("Constructor") and other significant contributors to the process part the client team almost from day one. The traditionally Client led pre-construction phase of developing the brief and the Constructor led post construction phase are rolled into one contract but with two distinct phases. A Partnering Team sign up to a multi-party contract that requires them to go through activities according to a timetable.

The early phase is to develop a project brief to the level of a design for which full planning permission is sought and to develop a supply chain on the basis of whose prices an Agreed Maximum Price...