Pre-construction activities

The traditional method of procuring a construction project where the employer and its design team finalise their requirements first and then send the documents out to contractors for them to submit tenders is being used less frequently. The rise in different forms of procurement and the need to reduce pre-construction timetables, combined with a realisation that early contractor involvement can be very useful, has resulted in the increasing use of forms of pre-construction agreements and two stage tendering. Two regularly used forms of agreement utilised before a building contract is entered into are letters of intent and 'Pre-Construction Services Agreements' (PCSAs).

Other issues of significance during the pre-construction stages of a project include demolition and ground conditions.

Letters of intent

A letter of intent is essentially a written expression of a party's intention to enter into a contract at a later stage. Traditionally, the advice given to employers has been not to enter into letters of intent if possible, ie to avoid entering into contractual relations, until all of the proposed contract terms are agreed. As letters of intent are by their nature very brief, litigation frequently arises

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Construction News

Grenfell Tower Inquiry announces closure plans for early 2025

The Grenfell Tower Inquiry has announced details of its closure plans, set for January 2025. The Chairman is expected to formally conclude the Inquiry by writing to the Prime Minister, Sir Keir Starmer, confirming the completion of the Inquiry's Terms of Reference once all administrative tasks are finalised. The Inquiry's extensive record, including evidence provided to core participants, will be made available on the National Archives Discovery Platform in Q1 2025. The Inquiry's website will remain accessible until the end of February 2025, after which it will also be transferred to the National Archives. Final costs will be published upon closure, and the Inquiry has advised that its contact and press channels wil no longer be monitored regularly.

Welsh Government publishes guidance on KPIs under Procurement Act 2023

The Welsh Government has published technical guidance on key performance indicators (KPIs) as mandated by the Procurement Act 2023 and the Procurement (Wales) Regulations 2024, SI 2024/782. This guidance outlines the new legal requirements for Welsh contracting authorities to set, publish, and assess at least three KPIs for public contracts valued over £5m. It defines KPIs, provides an overview of the legal framework governing their use, and specifies the requirement to assess supplier performance against these indicators annually. The guidance also introduces a standardised rating system for performance assessment, clarifies the publication requirements for KPI-related information in various procurement notices, and highlights the potential consequences of poor performance, including new discretionary exclusion grounds.

GCF introduces new Procurement Specific Questionnaire

The Government Commercial Function (GCF) has unveiled a new Procurement Specific Questionnaire as part of its Procurement Pathway service. This questionnaire is designed to replace the Standard Selection Questionnaire previously used under the Public Contracts Regulations 2015 (PCR). The new tool aims to streamline the procurement process by enabling contracting authorities to obtain core supplier information from a central digital platform, along with additional exclusions, debarment information, and details relating to conditions of participation. The questionnaire is applicable across various stages of the procurement process, including business need definition, finalising and publishing procurement packs, supplier engagement, selection and clarification and due diligence. This development represents a significant update to the UK's procurement procedures, potentially simplifying and enhancing the efficiency of the supplier selection process.

CIC responds to publication of revised NPPF

The Construction Industry Council (CIC) has welcomed the publication of the government's revised National Planning Policy Framework (NPPF), announced by Deputy Prime Minister, Angela Rayner, on 12 December 2024. The CIC expressed support for the new immediate mandatory housing targets, requirements for councils to review greenbelt boundaries, and the introduction of 'golden rules' for new developments. CIC Policy and Public Affairs Manager, Matt Mahony, acknowledged the government's efforts to address the housing crisis but emphasised that these measures are only part of a broader solution. He highlighted ongoing challenges in affordability, quality, safety, and sustainability, and called for the government to capitalise on opportunities for improved spatial planning and ambitious standards for future homes and buildings to enhance quality of life.