New Year, New Public Works Contracts

Monday, 23 January 2017

From 9 January 2017 it is now mandatory for Contracting Authorities to use the amended versions of the Public Works Contracts suite of documents which have been revised and are cited with reference number V.2.

Links to the contract documents and relevant Guidance notes are available on constructionprocurement.gov.ie.

All Contracting Authorities must use the new versions of the contracts unless they have applied for and obtained a derogation from the GCCC. The revisions include changes in four areas and these relate to the contract forms PW-CF1 - PWCF5. It is important for Main Contractors to familiarise themselves with the amended clauses prior to submitting a tender.

The four areas where amendments have been made are as follows:

1. Pricing Document

The Bill of Quantities makes a come back and the BOQ/Pricing Document is now a Compensation Event* for Employer designed forms PW – CF1, PW-CF3 and PW-CF5 as set out in Schedule Part 1K (17).

2. Reserved Specialists

A new procedure for Contracting Authorities to obtain tenders directly from Specialist sub-contractors* who are then appointed by the Contractor has been introduced for Employer designed contract forms PW-CF1, PW-CF3 and PW-CF5.  This new procedure is an additional procedure and the existing procedure of novation of Specialists from the Employer to the Main Contractor continues to be available in forms PW-CF1 - PW-CF5 inclusive.

3. Dispute Resolution Procedures

The dispute resolution procedures have been amended to include an informal without prejudice dispute resolution method prior to Conciliation and the introduction of a Project Board* to resolve disputes in relation to Determinations made by the Employer's Representative.  Further, for contract forms PW-CF1 – PW-CF4 with a Contract Sum in excess of €10m a Standing Conciliator* must be appointed by the parties who will act as Conciliator for all disputes which arise throughout the project and who will have a role during the project in assisting the parties in avoiding disputes.

4. Construction Contracts Act 2013

The Construction Contracts Act 2013 applies to all construction contracts awarded after 25th July 2016 and provides new rights and obligations for both parties in relation to payments made under the contract and the dispute process with the introduction of statutory adjudication for payment disputes. Relevant amendments have been made to the various forms of contracts to take account of the provisions in the Act.

* These terms are defined in the PWC Contracts.