PhD Final Thesis April 2013.pdf - Anglia Ruskin Research Online

Thesis Keith Gale 2013concepts contained in the contract may constitute a breach of conditionswhich can be actioned at law.The move toward collaborative arrangements continues but the pace of changeappears momentous. Partnering agreements accounted for 2.7% of all buildingcontracts in 2004 and this had reduced to 2.3% by 2007. Framework agreements, bycontrast did not appear in the 2004 survey, but by 2007 accounted for 4.5% of thenumber of the contracts used (RICS, 2010). It would appear that partnering hasalready been replaced by framework agreements.3.15 Relationship between procurement, tendering and contractualarrangementsProcurement is a method of buying goods and services (Hackett et al, 2006) andcomprises an engagement process from invitation of a supplier up until signature of acontract. Within construction, Hughes et al, (2006) recognised two broad classes ofprocurement – traditional and competitive or innovative and collaborative. Thechoice between each class or variation between procurement choices is primarilydetermined by risk allocation of the client. At one extreme a client may choose toaccept all risks regarding cost and reimburse a supplier on a cost plus mark up basis.The opposite position places all risks with a supplier for a fixed lump sum price.Whilst allocation of risk is a prime concern, other criteria are used when clientschoose a procurement strategy. Murdoch and Hughes (2008, pp88-93) identify theseas:• Certainty of price• Programming requirements• Complexity of the project• Separation of design from construction• Flexibility of specification• Client’s involvement with the process• Client’s contractual viewpointSupporting procurement strategies are tendering procedures and contractualarrangements. Traditional tendering, when set within a context of public68