Thesis GCCC
1.1 Introduction
This research dissertation was written to fulfil a major element of the final year of the BSc Construction Management (Honours) degree programme in the Galway Mayo Institute of Technology.
The subject selected, Construction Procurement Reform, was chosen following a procurement reform put in place on 1st January 2007 to take effect on 19th February 2007. I chose this topic for my dissertation as this reform, to the method of contracting for public works projects, is of such significance that it fundamentally alters the relationships between the Client and Contractor involved in these projects.
In May 2004 the Government decided to reform the approach to procuring public works projects. The reforms were a Value for Money initiative to help address concerns in Government circles, in the media and amongst the public generally regarding project cost overruns on public works contracts, the main objective being to allocate risk to those best able to manage and control it. This would involve shifting responsibility for managing and controlling risks from the public sector to Contractors.
Following discussions between Government departments and the forum for the construction industry known as the Government Contract Committee for Construction (GCCC), the main issue identified by the Government departments was that the current contracting arrangements were failing to achieve Cost Certainty resulting in major cost and time overruns.
A number of principal objectives were then set out by the GCCC for these contracts. They are:
Greater Cost Certainty and Value for Money
More cost effective delivery of public works
Standardised public sector terms and conditions
Also included in the construction procurement reforms is a ‘Standard Condition of Engagement for Construction Consultants’ contract. The objective here is to develop more client-focused and standardised conditions for the employment of construction consultants. Prior to this,
This research dissertation was written to fulfil a major element of the final year of the BSc Construction Management (Honours) degree programme in the Galway Mayo Institute of Technology.
The subject selected, Construction Procurement Reform, was chosen following a procurement reform put in place on 1st January 2007 to take effect on 19th February 2007. I chose this topic for my dissertation as this reform, to the method of contracting for public works projects, is of such significance that it fundamentally alters the relationships between the Client and Contractor involved in these projects.
In May 2004 the Government decided to reform the approach to procuring public works projects. The reforms were a Value for Money initiative to help address concerns in Government circles, in the media and amongst the public generally regarding project cost overruns on public works contracts, the main objective being to allocate risk to those best able to manage and control it. This would involve shifting responsibility for managing and controlling risks from the public sector to Contractors.
Following discussions between Government departments and the forum for the construction industry known as the Government Contract Committee for Construction (GCCC), the main issue identified by the Government departments was that the current contracting arrangements were failing to achieve Cost Certainty resulting in major cost and time overruns.
A number of principal objectives were then set out by the GCCC for these contracts. They are:
Greater Cost Certainty and Value for Money
More cost effective delivery of public works
Standardised public sector terms and conditions
Also included in the construction procurement reforms is a ‘Standard Condition of Engagement for Construction Consultants’ contract. The objective here is to develop more client-focused and standardised conditions for the employment of construction consultants. Prior to this,
References: Constructing the Team, The Latham Report, 2004 Public Works Contracts for Building Works Designed by the Employer, Department of Finance Public Sector Procurement Regulations, Department of Finance, 2006 Public Expenditure 2007, Department of Finance, 2007 The RIAI Contracts, David Keane, 2001 Forms of Tender, Agreement and Bond for use in Works of Civil Engineering Construction, Institute of Engineers of Ireland, 2002 GDLA Agreement and Conditions of Contract for Building Work, Royal Institute of the Architects of Ireland, 1982 Public Works Construction Contracts Training Manual, National Public Procurement Policy Unit, May 2007.