Pre-Construction Services Agreement Sample

The PCSA defines the benefits that the contractor needs at the construction stage and is generally similar to a consulting agreement. It should be specified whether the contractor is carrying out design work, whether he has a design responsibility and what happens to that responsibility if he is not designated for the second stage. It should also define payment terms and possible provisions for deferral of payment. Elsewhere, there are standard obligations in terms of address and maintenance, prohibited equipment, insurance, confidentiality and collaboration with the project team. The copyright license is without means of payment. However, the PCSA does not include construction work, as they are generally project-specific and must be flexible to work either in traditional markets or in design and construction markets under different circumstances. Inevitably, there will be projects for which two-stage tendering will not be appropriate. While the guidelines state that it can be adapted to a project management structure, the need for a pre-construction phase could hinder the objective of this procurement strategy, namely the rapid start of work. Similarly, for projects where employers have a finalized project capable of identifying potential risk areas, employers can accurately predict the expected amount of the contract without having to spend time and expense on a two-step tender. JCT`s Pre-Acceleration Services Agreement (General Contractor) is designed to designate a contractor for preliminary work as part of a two-stage tendering process.

In a two-stage tender, the first phase is for the employer to select a preferred contractor by tender at an early stage of design development. Bidders submit a lump sum proposal for preliminary work, a program and method statement, but instead of being a flat price for the construction phase, this is an offer only for overhead, profits and preliminary work. After the selection, preferred employers and contractors work together, as it provides factory packages for fixed-price packages. If most parcels are validated, the contractor will submit its offer in the second phase and the employer will decide whether to accept it and enter into a lump sum contract for the entire plant. The contractor`s participation in the pre-construction phase is valuable and often essential for the final project design process, as well as for the preparation of the construction phase, such as the program, cost plans, construction capacity and any specialized acquisition. One of the concerns of employers in the pre-construction period is the potential leverage of the preferred contractor to increase the amount of the contract or renegotiate the conditions of execution of the work. To deal with this problem, the parties agree, in the details of the PCSA, to the criteria on which the contractor must submit its second tender offer, including the form of the work contract (including possible modifications) that must be concluded. This is where a pre-construction contract is concluded. It determines the relationship between the employer and the preferred contractor for the pre-construction period, which begins with his appointment and ends with the signing of a construction contract.