Lewis, S J and Greenwood, D J (2002) The treatment of risk in construction contracts under PFI/PPP. In: Greenwood, D (ed.) Proceedings of 18th Annual ARCOM Conference, 2-4 September 2002, Northumbria, UK.
Abstract
In the U.K. the Private Finance Initiative (PFI) has not only had a fundamental effect on the way many construction projects are procured, but also upon the terms of contract under which the building works are let. There are some examples new standard forms appearing, for example those produced by the National Health Service and the Treasury. Comparison of two of these contracts - issued by the Private Finance Unit of NHS Estates and the Treasury Task Force Guidance- with the more 'traditional' contracts for design and construction (such as those produced by JCT and ICE) reveal considerable differences in the way certain issues are dealt with. Most important amongst these are design risks and liability for site conditions; the treatment of variations, delays, and claims; and the approach to Practical or Substantial Completion, and defects liability.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | contract; risk allocation; PFI; PPP |
| Index terms: | risk allocation, design and construction, design risk, construction contract, variation, defects liability, private finance initiative, construction project, JCT, liability, health service, private finance |
| Subjects: | standard forms of contract, contract type, contractual arrangements, public and environmental health, financial risk, production management, contractual remedy, contractual condition, liability law |
| Topics: | Project Management, Cost Management, Health and Safety, Procurement, Legal Issues, Contract Administration |
| Descriptive scope: | 2 PC |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here