ICE - Institution of Civil Engineers - Virtual Library

Regional prime contracting consists of a number of 7–10-year frameworks for the maintenance and improvement of the UK Ministry of Defence estate. Part of the regional prime contractor’s remit is to undertake capital works up to £15 million in value and whose core procurement method is design and construct. Due to the need for early contractor involvement, there can be no affordable, pre-agreed fixed price for these complex projects due to the risk permutations. This paper discusses the methodology behind the management of these projects so they are progressed quickly using maximum price target cost. Adapted from Ministry of Defence equipment procurement, this assesses cost and risk including a pain/gain sharing mechanism. A crucial element is the risk register and the mathematical assessment of uncertainty. By these measures, the project team is able to successfully manage cost and risk while achieving known improvements to timescales of 25%. There is anecdotal evidence that the period from inception to site commencement may improve by up to 50% in comparison with traditional fixed-price procurement.

Since the inception of the UK Construction (Design and Management) Regulations 1994 through to the 2007 Construction (Design and Management) Regulations a duty has been imposed upon the client of premises where a notifiable project has been carried out, to provide a health and safety file which may be needed during future work. This work includes cleaning, maintenance, alterations, extensions, refurbishment and demolition. The Construction (Design and Management) Regulations 2007 also impose further duties on clients to provide information to those who will use their premises as a workplace. This paper reports the results of a study which assessed whether information relevant to the health and safety file for magnetic resonance imaging (MRI) installations in hospitals having had passive magnetic shielding installed was available from National Health Service trusts in Wales, Scotland and England. Information on both the site-specific design and the actual position of the static magnetic field was lacking, as were the existence of as-built drawings showing the magnetic shielding. Information relevant to the risk management of the static magnetic field of MRI suites in the form of a health and safety file is sparse, incomplete and sometimes irrelevant.

In Hong Kong, getting paid is not always easy and the construction industry stands as an illustration of how much effort may be needed to achieve this and how adverse impacts can escalate from payment problems. At the moment, many jurisdictions have adopted some form of legislation or practical measures to enhance the ease and security of payment in the construction industry. Experience and insights from their operations provide guidance to Hong Kong for its way forward. By studying practices and feedback in other jurisdictions, this paper outlines and reviews the options and alternatives implemented for securing payment in the construction industry in Hong Kong. In addition, it also seeks to appraise their respective practicability for Hong Kong and highlight those areas to be considered if they are to be adopted or adapted for use in the Hong Kong construction industry. The ultimate aim is to provide an objective, balanced and reasoned overview for further study and discussion among stakeholders in the Hong Kong construction industry when moving forward. This is not intended to be an exhaustive review of all means adopted to achieve security of payment but aims to discuss those methods which are more likely to be suitable to be adopted in Hong Kong in the light of the circumstances and environment prevailing there. Furthermore, this study did not investigate the many modes of procurement that are available and which may address the concern of security of payment but focuses on the traditional form of contracts in use in Hong Kong. Public–private partnerships or private finance initiatives which would call for different discussions are not covered.

Mediation can no longer be said to be a new phenomenon for the resolution of construction disputes. It has been used, in the commercial context, for the resolution of disputes in a wide range of industry sectors both before the commencement of and during formal proceedings. There are some useful data in respect of the use and effectiveness of mediation in the construction industry and court-annexed mediation services, however these are mainly anecdotal. In order properly to assess the effectiveness and cost savings associated with mediation in the construction industry, an industry-based survey was developed between King’s College London and the Technology and Construction Court. This paper explores the results of that survey which indicate that the court appears to be dealing with fewer disputes which relate to changes in the scope of works, project delays and site conditions than those generally arising 10 years ago. The incentives to consider mediation provided for by the Civil Procedure Rules appear to be effective; and that those advising the parties to construction disputes now routinely consider mediation to try and bring about a resolution of the dispute. It is clear that mediation has transformed from a novel idea to an indispensable tool for construction litigators.