ICE - Institution of Civil Engineers - Virtual Library

The procurement of work, goods and services by public authorities is subject to a new EU Directive and new implementing Regulations in the UK. The aim of the new laws is to bring the legislative framework into line with practical developments in procurement and new European case law. The changes are also intended to simplify the law for lawyers and construction professionals alike. Have the new Regulations achieved these aims? This briefing suggests that the answer is a qualified yes, and explains some of the most important changes brought about by the new laws.

Managing cost is an integral part of any engineering project. The impact of overspending can be significant in both private and public sectors. Despite better cost management systems and training, major projects are still suffering large cost overruns. In this article, the author examines the impact of how we think and the project environment on how we manage cost. From the early profit motive, or budget ceiling, to the delivery pressure during construction, managers are often pushed either to reduce budgets or spend unwisely. Contracts such as rates-based design can encourage the wrong behaviours and increase cost dramatically. There is no single answer. We need to consider how our thoughts affect our behaviour and look at the bigger picture of the overall (business) project beyond a short-term cost issue. Communication is how we convey are thoughts, so needless to say it is vital to effective cost management.

This article is intended to be a guide for those asked to be expert witnesses in legal proceedings, focusing particularly on the effect of recent case law in this area. It is not a substitute for looking directly at the terms of part 35 of the Civil Procedure Rules and the accompanying practice direction, nor the Protocol for the Instruction of Experts to Give Evidence in Civil Claims prepared by the Civil Justice Council.

Two challenges from history illustrate how to mobilise an industry to face a major challenge: the engineering infrastructure for the Normandy landings and the establishment of the UK's motorway network. China has already applied the lessons learned from these challenges to undergraduate education, but the focus is now moving to professional development. A group of leading firms, academics and ICE is cooperating to tackle this problem. This is a small step on an arduous journey but to those who judge Chinese engineers only by where they are today and not where they have come from it would be worth remembering the following Zhuang Zi quotation from the 5th century BC. ‘When Heaven is about to place a great responsibility on a man, it always first frustrates his spirit and will, exhausts his muscles and bones, exposes him to starvation and poverty, harasses him by troubles and setbacks so as to stimulate his spirit, toughen his nature and enhance his abilities.’

The appraisal phase of the project life cycle commences with the inception of the project and ends with the sanction of the project for implementation. During the appraisal phase the key decisions on the viability of the project and the most feasible project option are made in sequence. To enable good ideas and realistic projects to be recognised, both risk management and value management techniques are used, among others. This paper examines current industrial practice in project appraisal and indicates why some practitioners expressed a preference for one of these techniques and some for the other. Those preferring value management prior to risk management stated that the objectives of the project and the definition of options must be examined first, whereas those implementing risk management first considered that assessing the risks of the plan developed to achieve project objectives must take priority over maximising opportunities. Both techniques are important in decision making under uncertainty during project appraisal but greater knowledge of their application will reduce future costs incurred through failure to correctly identify viable projects at an early stage.

There is considerable interest in construction disputes among both researchers and practitioners; however, most of that interest is in the techniques used to resolve disputes. Practitioners are understandably interested in efficiency in resolution; human nature perhaps allows them to expect that disputes are inevitable. However, there seems to be little interest among researchers in considering the wider issues associated with disputes, which might allow explanation and prediction. There is little empirical evidence in the literature and anecdote abounds. This paper aims to generate debate by proposing that an aetiological approach to construction disputes is to be welcomed since it may lead to explanation or prediction of construction disputes. The work is theoretical and it is argued that the lack of an empirical base means that there has been little scientific consideration of construction disputes. Although it is commonly accepted that disputes need to be avoided, the absence of any empirical data dictates that structured prediction and avoidance are unlikely. An aetiological approach to construction disputes will help develop a mature and sophisticated research base, which may help industry performance. Prediction allows avoidance or at least informed management action if avoidance is not preferred.

This paper sets out to explore how recent changes in procurement in construction have affected the roles that professions play in the design process. It discusses how professions that traditionally took the role of design manager now find themselves participating within previously unforeseen contexts, working in multi-disciplinary teams led by contractors and with changed responsibilities at the design stage. Supply chain members who were not previously involved during the early project phases are being engaged at the earliest phases of the project life cycle and even taking leadership roles while designers sometimes work as supply chain partners. A study of design in construction and other sectors shows that in dealing with design management issues it is critical to deepen appreciation for the unique characteristics of design and the design process. The paper argues that contractors and designers taking on design management roles in a dynamic industry seeking to explore best practice and innovative approaches to procurement and in the delivery of projects need to acquire new skills, management education and develop the necessary qualities.

Members of the Management, Procurement and Law editorial advisory panel provide overviews of their areas of expertise, highlighting recent and forthcoming developments likely to affect engineers and others working in the fields of management, procurement and law.