Early contractor involvement: a review of pre-construction service agreements

Abstract

Early contractor involvement involves engaging contractors to work with the client’s design team during the pre-construction stage before agreeing on a construction stage contract. Despite the growing use of two-stage contracting, there is a lack of research into the forms of pre-construction service agreements and their effectiveness. This study aims to evaluate the optimal contract ingredients for a pre-construction stage agreement that can be used with a range of standard-form construction contracts based on industry preferences. Four agreements are critically evaluated: those of the Joint Contracts Tribunal and NEC3 and two bespoke agreements. Key ingredients were found to include scope of services, time obligations, design obligations, key personnel, price formation, confidentiality of material and communication and co-operation. Industry preferences were obtained through semi-structured interviews with 21 construction participants across New Zealand.