Introduction-PPT Presentation

PPT Presentation

Pdf Summary

The session traces the history of construction contracting, from the Code of Hammurabi’s severe penalties for defective building to Vitruvius’s requirements for cost estimates backed by an architect’s property, and Vauban’s criticism of repeated price reductions that attracted unreliable contractors.<br /><br />It highlights the conflicting priorities traditionally built into contracts. Clients seek high-quality projects at low cost, delivered quickly, with unforeseen risks borne by contractors. Contractors, in contrast, need clear scope and quality requirements, adequate time and payment, and fair allocation of unknown risks.<br /><br />Current procurement practices often intensify this conflict. Competitive bidding may rely on vague or overly prescriptive specifications, strict tender rules, and lowest-price selection without sufficient regard for safety, quality, or sustainability. Contract clauses may also impose unrealistic schedules, shift risks unfairly, and restrict changes or compensation for incomplete information, design development, scope gaps, and unforeseen conditions.<br /><br />Meanwhile, construction projects face increasing complexity driven by digitalisation, expanding data, artificial intelligence, stricter codes, environmental challenges, and urban conditions. In foundation work, for example, underground conditions can vary significantly even within one site, making costs and production rates difficult to predict.<br /><br />The session argues for a shift from bureaucratic, adversarial contract management toward partnership and co-creation. New collaborative forms of contracting and project delivery—including approaches such as New Engineering Contracts (NEC)—could improve risk-sharing, reduce project costs and delays, and preserve information value throughout design and construction. The European foundation engineering sector recognises that substantial changes in market practices and procurement are needed to support more integrated delivery.

Keywords

construction contracting

procurement

competitive bidding

risk allocation

contract management

low-bid selection

foundation engineering

collaborative contracting

project delivery

NEC contracts