18.1 A complex project for a contracting authority that has expertise and wishes to develop its design solution in collaboration with an integrated team. Only five strategies are suitable for integrated teams, and of these four, they are suitable for complex projects: 11.3 The use of a revenue financing model assumes that the private sector assumes the risk and responsibility for both the performance and availability of contractual services, which may include the provision of the building. The public sector defines its service requirements in the form of a performance specification that imposes the level and quality of services required. This is normally done through a long-term contract and the delivery standard is controlled by the public sector for the duration of the contract, with deductions from the monthly payment if the declared services and standards are not provided. Value for money is achieved through innovation in the private sector, efficient use of the competitive process, performance incentives and adequate allocation of risks to the party best placed to manage them. The contractor may use its own in-house designers to design the building, or it may appoint consulting designers, or the client`s designers may be commissioned by the contractor to complete the design (either by Novation or through changes of consultants). 28.1 In the case of construction projects, unless an integrated team or revenue-financed procurement strategy has not been adopted, the contracting authority will have to choose, in most cases, between a YCW (SBCC) or an NEC contract. The advice of professional consultants should always be seek to assist in making this decision, but care should be taken to ensure that such advice is impartial and avoids any personal interest of the adviser. 29.1 The YCW offers a wide range of different forms, depending on the supply route – traditional contract, design and construction, management contract, etc. – and the size and complexity of the project. The NEC starts from the opposite position: there is a single common form of main contract and flexibility is achieved by choosing one of the first price options (lump sum, target costs, etc.), and then from a wide range of secondary clauses dealing with issues such as damage due to delay, the conclusion of sections, limitation of liability and performance ratios. 5.5 A back-to-back construction contract (under which the contract between hubCo and the Tier 1 contractor reflects hubCo`s commitments to the participant) is concluded simultaneously between hubCo and its Tier 1 contractor.
Standard lifting conditions are based on those of a design and construction contract. By recognising the period during which the integrated team has identified, reduced and assessed the risks, the conditions provide that risks related to soil conditions, weather conditions, refuelling facilities and contamination (with the exception of areas that cannot be studied) are transferred to hubCo and, therefore, to its Tier 1 contractor. 12.9 The two-stage tender allows the client to transfer the design risk to the contractor, but the customer inevitably loses influence, as the contractor is integrated into the team and competition is less threatening. If, initially, bid prices for two-tier contracts may be higher than for single-tier tenders, which are subject to unlimited competition, the final account tends to contain fewer variations and fewer claims. Longer familiarity with the project improves relationships and reduces learning curves and program performance. 9.3 Contracts relating to the different packages of works are concluded between the contractor and the various commercial operators. Costs are managed through the development of a cost plan in which estimates of the cost of construction packages are first used for budgeting purposes before being replaced by actual costs obtained through open tenders. The projected final costs (still subject to risk events) will only be known after the final work package has been allocated, and it is therefore extremely important to manage the cost plan, with a focus on risks and contingencies.. . . .