Procurement routes for JCT contracts

This form of procurement allows early contractor involvement (sometimes called ECI) and is considered a more sophisticated form of procurement than traditional single stage tendering as it allows contractor input (such as buildability studies, value engineering, programme management, etc.) into the design process/pre-construction stage. Such input can be very useful resulting in considerable efficiencies during the construction stage.

Two-stage tendering requires more input into the tender processes and can extend the duration of the tender process. Single stage/traditional tendering is probably more popular but as already noted, 2-stage tendering can result in many efficiencies.

This form of procurement involves the introduction of the contractors during the design stage of a project and the contractor acting essentially as a consultant. Contractors tender for this role by identifying their preliminaries/site overheads, fees for their pre-contract role and profit margins. Once a contractor is selected, a pre-construction agreement is usually signed.

A bespoke form is often used in such a situation. These forms are usually similar to a consultant agreement although it will have a different fee arrangement and must include a break clause so as to allow the client the option to cancel the project or proceed with another contractor. It is important that the contractor's scope is agreed in advance as it is not always clear what is expected of the contractor in this situation and there may be conflicts with the consultant's scope.

In response to this situation, the JCT published the Pre-Construction Services Agreement (General Contractor) 2016 (PCSA), which is well drafted and a suitable alternative to bespoke agreements. Where the services of a specialist subcontractor or supplier are required during the design stage, then the JCT Pre-Construction Services Agreement (Specialist) (PCSA/SP) can be used. Again, it is important that the contractor's scope and fee is agreed and recorded accurately in these standard forms.