Legal Issues Associated with Emergent Actor Roles in Innovative U.K. Procurement: Prime Contracting Case Study

Abstract

Pressure for reform in U.K. construction procurement has led to a move toward relational contracting. Long-term partnerships between clients and construction service providers have enabled traditional construction roles to change radically and the reconfiguration of relationships between these emergent actors. Social network analysis was used to examine the new roles and relationships under an innovative procurement strategy known as prime contracting. This public sector procurement approach involved the introduction of the role of cluster leader combining the skills and knowledge traditionally provided by the architect, the chartered quantity surveyor, and the construction manager. The role of cluster leader was adopted by specialist contractors using existing staff and in the absence of dedicated training. The role was voluntary, however, those performing it were obliged to absorb liabilities relating to design information produced by other actors, financial management on behalf of the prime contractor, and responsibility for the management of the contract period, upon which the contract between the employer and the prime contractor was based. The additional responsibilities associated with the role of cluster leader were accepted without financial compensation, on the basis of maintaining goodwill with the prime contractor and employer. Liabilities arise for the firms and potentially individuals within those firms. There are also concerns about the likelihood of appropriate professional indemnity insurance coverage being available to cluster leaders.