International Construction Law Review
INTRODUCTION
HUMPHREY LLOYD
DOUGLAS S JONES
This issue starts with two contrasting articles from Australia. In the first, at page 4, Mr Roger Quick of Gadens, Brisbane, describes the process by which the Queensland Department of Main Roads examined and developed a model form of procurement used in the United Kingdom and known as Early Contractor Involvement (ECI). The background was a boom in the construction market but coupled with a forecast of a downturn. It was necessary to devise a flexible procurement model which was sensitive to market conditions but at the same time, as Mr Quick says, “solving what may be called the value for money puzzle”. Thus the article covers a wide field. Entitled “Queensland’s ECI Contract”, it describes ECI fully, it looks at risk and legal factors such as relational contracting, it considers the local factors that might affect its use in Australia and, most interestingly, it compares ECI with project alliancing and then explains what happened in Queensland. Mr Quick concludes that the result gives value for money to a government principal; the contract incorporates both relationship management and partnering techniques that have been established in project alliancing; and that it does so by extending the UK model which was drawn up for use in civil engineering so that it is usable for building projects. As the conditions in Queensland are comparable to those found in many other countries we believe that Mr Quick’s thorough and detailed article will be of considerable value elsewhere.
The second contribution, which comes from Mr Bill Smith of Blake Dawson Waldron, Sydney, is called “Scope for Improvement—A Survey of Pressure Points in Australian Construction and Infrastructure Projects” (at page 36). Although drawn from experience in Australia it is presented, as Mr Smith says, to enable readers to recognise if they have similar problems which need to be faced. The survey was of some construction and infrastructure projects undertaken by Mr Smith’s firm but carried out in conjunction with the Australian Constructors Association. The survey was published in May last year. It was about the types of problems which occur on major projects, from their conception to completion, and during any disputes thereafter. The aim of the study was to identify the root causes of such problems and to see how they might be reduced or avoided. Its findings were constructive, particularly in the procurement of major projects. Thus its results, to an extent, match Mr Quick’s conclusions, since one of Mr Smith’s main points is that much depends on adopting the procurement model best suited to the project, with an appropriate allocation of risk between the project participants. However, the study also revealed that, of the projects surveyed which were not sufficiently scoped, 39% were not completed on time and 55% were over budget. Mr Smith, therefore, also emphasises the need to invest time and money to pre-plan a
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The International Construction Law Review
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