9 January 2017 – Amendment to Employer designed public works contract to cater for tendered rate of delay costs of named Specialists

The amended forms of Employer designed public works contracts (PW-CF1, PW-CF3 & PW-CF5) include new arrangements for direct tendering to specialist works contractors who are to be appointed by the main contractor – Reserved Specialists.  The arrangement for novating Specialist works contractors to the main contractor continues to be available under the amended forms of public works contract.  Both types of specialists are known as ‘named Specialists’ and, where applicable, the categories of specialist works will be listed in the Form of Tender and Schedule, part 1F (iii).  If novated Specialists are to apply, the identity of the specialists to be novated will also be provided in part 1F (iii) where they have been appointed.

A separate tender competition is held for Reserved Specialists where they respond independently to the tendered hourly rates, tendered percentage addition for costs of materials, tendered percentage addition/deduction for costs of plant and tendered rate of delay costs.  Because the tender deadline for the main contract is in advance of that for the Reserved Specialists, tendering main contractors will not be aware of the rates that the Reserved Specialists are applying in their tender response.  Sub-clause 10.6 was amended to reflect this but sub-clause 10.7 was not amended at the time of publication of v2.0 to reflect that the same position is to apply to calculating the Delay Cost should it arise under the Contract.

Whilst the tender for a novated Specialist (and their appointment) will typically take place in advance of the main contract, the same principle will apply.  Tendering main contractors are only to take account of their own costs when responding to the Form of Tender and Schedule, part 2D, where named Specialists are to apply to an Employer designed public works contract.

Sub-clause 10.7.1 (1) has now been amended to clarify that where sub-clause 10.7.1(1) applies to the Delay Cost calculation under the Contract then, in calculating the sum due to the Contractor, the tendered rate of delay costs of the named Specialist must be taken into account where the named Specialist works are delayed by a Compensation Event under the Contract between the Employer and the [main] Contractor.

Notes have also been inserted into FTS1, FTS3 & FTS5 to further clarify the position to main contractors when they are preparing their tender response.