Procuring a construction project involves several methods and strategies. The key differences usually lay between the use of standard form contracts (often heavily amended) or bespoke contracts.
Clients may choose to retain full control over the professional team and design process, appointing an independent contractor (known as the traditional route), or opt for the design and build approach, wherein the client hands over a design to the contractor for completion and novates the architect and other professional team members.
Additionally, clients can explore construction management, where they directly employ individual subcontractors, or contract management, where they hire a contractor who then manages subcontractors. The choice of procurement method ultimately depends on the unique circumstances of the project, with no one-size-fits-all solution.
If the project is highly technical and very prototypical (e.g. a power station), or the client is a repeat client who wants to contract on the same basis for each project (e.g. a high street restaurant chain) then they may insist upon a bespoke contract and either one which is specifically designed for the project or one which they use on a regular basis.
The alternative is to use a standard form of contract, of which the most popular is the JCT suite of contracts. Alternative contracts include the NEC and specialist contracts such as those produced by the Institute of Civil Engineers (ICE), the Institute of Chemical Engineers (IChemE) and even FIDIC which tend to be used for large scale industrial projects, more often in Europe than in the UK.
The vast majority of commercial construction contracts in the UK are either the traditional route JCT or Design and Build JCT.
The traditional route offers clients greater project control but requires a higher level of design input. In contrast, Design & Build is favoured when the client doesn't provide a full design, often to expedite project commencement or when certain design aspects are less critical.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.