Type of contract
Growing demand for bespoke forms of contract and more detailed design information at tender stage
Our key findings
increase in the use of bespoke forms of contract.
decrease in the use of design and build forms of contract.
decrease in preference for tenders with Stage 2 information.
“If we accept Stage 3 [design] we agree there is a risk, but there are always fundamentals that should be raised by the client team, rather than be buried among hundreds and hundreds of documents. A high percentage of the design we inherit is not adequate.”
Large main contractor
What it means for projects
Design and build has retained its place as the dominant form of contract. The proportion of projects going to market with Stage 3 and 4 design remains broadly the same.
There has been an increase in bespoke forms of contract, perhaps suggesting a growing appetite for more innovative approaches to collaborative procurement than standard forms permit.
What it means for client outcomes
In several places in our survey data, concern is expressed from supply chains over the quality of design provided at tender stage. This is not just about the stage of design, but how well it is coordinated and articulates the desired client outcomes.
Poorly articulating the outcomes that clients are hoping to achieve is clearly a recipe for failing to achieve them.
Whilst we see a move towards more detailed design at tender stage, it is evident that what is more important is the overall risk allocations, quantum and quality of design and route to get to a contract sum. Procurement cannot be a “one size fits all” approach.
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