1. An Introduction to the Complex
Projects Contract 2013
23 April 2013

2. Introduction
Adam Constable Q.C., Keating Chambers

3. CIOB Research, background to CPC2013 and
availability
Keith Pickavance, Executive Consultant, Hill International, Past President
CIOB

4. Project suitability and procurement
strategy
Francis Ho
Senior Associate, Olswang LLP

5. Where should CPC2013 be used?
Suitable for: Less suitable for:
Works of high value or complexity ✓ Simpler works or those of short duration ✗
Major real estate projects ✓ Construction management/EPCM without amendment ✗
Engineering and infrastructure projects ✓ Inexperienced clients/contractors ✗
www.olswang.com5

6. International Usage
Contract England and Wales International
CPC2013 ✓ ✓
JCT ✓ ✗
NEC3 ✓ ✓
FIDIC ✗ ✓
www.olswang.com6

7. Procurement Routes
✓ Turnkey/EPC ✓ Works-only
Bankable Control over quality
Time and cost certainty Time and cost certainty
Single-point responsibility Longer programme
More expensive More client involvement
Contractor design input Less contractor design input
www.olswang.com7

8. Time and Risk Management Provisions, and
Contrast with other Standard Forms
Keith Pickavance, Executive Consultant, Hill International, Past President
CIOB

9. Cost and Risk Management Provisions, and
Contrast with other Standard Forms
Roy Pickavance, Director, DAQS Ltd.

10. To Review
• The Role of the Valuer
• Contractor’s Pricing Document
• The Method of Measurement
• Pricing of Time Contingencies
• Event Pricing and Valuation of Variations
• Compensation for Delay and/or Disruption
• BIM
23/04/2013 10

11. THE ROLE of the VALUER
• Listed Person – Appendix B
• Appendix definition - The person identified as such in the Contract Agreement or,
on ceasing to be the Valuer such other person as the Employer shall appoint and
confirm to the Contractor and Contract Administrator, or, if none is appointed, the
Contract Administrator
• Clause 5.2 - …exercise its discretion independently and fairly
• User Guide – Roles and Responsibilities - The Valuer is appointed by the Employer
to advise the Employer, Contract Administrator and Listed Persons on
– the CONTENT of the CONTRACTOR’S PRICING DOCUMENT and the
VALUATION OF ACTIVITIES in the WORKING SCHEDULE (Clause 28),
– the MEASUREMENT AND VALUATION OF VARIATIONS (Clause 24),
– the PREDICTED OUT-TURN COST OF THE WORKS (Clause 53) and
– for PAYMENT PURPOSES THE CURRENT VALUE OF THE WORKS, from time to
time (Clause 54).
• Flow charts are provided- e.g.FC2 – Working Scheduled; FC7 – Extension of Time
and Compensation; FC10 - Payment
23/04/2013 11

12. CONTRACTOR’S
PRICING DOCUMENT
• Clause 28 - The document setting out the work which the
Contractor identifies as being necessary to satisfy the Conditions of
Contract, any applicable Model, Bill of Quantities, and/or
Specification and Drawings together with any conditions, resources,
materials or goods which the Contractor requires to be made
available to it, and the detailed method of pricing the financial
reward which the Contractor requires for carrying out the Works
• The importance of the Valuer’s Role – Active rather than passive
– Integration into the Working Schedule- Activity Based (Clause 28 and
Appendix D)
– Utilisation of updated Working Schedule ( Clause 33) to determine
the value of work completed (Current Value - Clause 54) and the
Predicted Cost ( Clause 53)
23/04/2013 12

13. THE METHOD OF
MEASUREMENT
• Where quantities are provided to determine the scope
of part of or the whole of the Works, or where a
schedule of descriptions is provided for pricing to be
used in the valuations of variations, it is essential to
specify the rules by which the quantities will be or have
been measured.
– Definition - Appendix A;
– Defined - Appendix B -Default NRM2; User Guide – see
MOM and BOQ
– BIM generated quantities
• Whatever form the measurement takes, if priced, it
needs to be aligned to the working Schedule
23/04/2013 13

14. PRICING OF
TIME CONTINGENCIES
• Clause 27; Appendix Definitions; Included in Appendix D Working Schedule
• Where Contractor’s Time Contingency periods are on the Critical Path to a
Relevant Completion Date, and hence included in the Contract duration, the effect
of those time contingencies in the priced Working Schedule is to require the
Contractor to pre-price (by virtue of its tender or bid) the prolongation costs it is
likely to suffer as a result of those contingency periods later being absorbed by
Contractor’s risks.
• Where Employer’s Time Contingency periods are on the Critical Path to a
Relevant Completion Date, and hence included in the Contract duration, the effect
of those time contingencies in the priced Working Schedule is to require the
Contractor to pre-price (through its tender or bid) the prolongation costs it is likely
to suffer as a result of those contingency periods later being absorbed by Events. If
the Employer does not use its critical contingencies then, all other things being
equal, there will be a reduction in the duration of the Works, an earlier Substantial
Completion date and hence a reduction in the Contract price, to the Employer’s
benefit.
23/04/2013 14

15. EVENT PRICING and
VALUATION of VARIATIONS
• Event - An occurrence which is an Employer’s
Cost Risk Event or an Employer’s Time Risk Event
– Defined in Appendix F – brought into the
Working Schedule
– Calculation of the effect of Event on Time
• Dealt with by KAP
– Calculation of the effect of Event on Cost – Clause 39
• Direct Cost - Activity costed - Clause 24 Variations
• Indirect Cost – Level of Effort costed using the updated
Working Schedule (Clause 38)
• Loss and/or Expense – Clause 28
23/04/2013 15

16. COMPENSATION FOR
DELAY AND/OR DISRUPTION
23/04/2013 16

17. Compensation for
Prolongation
• Clause 28.5 - If no rate for Preliminaries and/or Overheads and
Profit is indicated in the Contractor’s Pricing Document, it shall be
deemed to be agreed that the Contractor is not entitled to recover
such Preliminaries and/or Overheads and Profit as a part of the loss
and/or expense incurred as a result of any Employer’s Cost Risk
Event.
• The Contractor is required to identify its Preliminaries (Clause
28.4.1 ) and Overheads and Profit (Clause 28.4.2) by Level of Effort
durations logically linked to the Activities to which they relate.
• Provided that the information required has been incorporated in
the Working Schedule (Clause 28.5), prolongation costs can be
estimated during the course of the Works based upon the extent by
which any Level of Effort durations are adjusted from time to time
by the impact of Employer’s Cost Risk Events on the Working
Schedule (Clauses 39.1 and 53.2.3).
23/04/2013 17

18. Compensation for
Disruption
• PROGRESS RECORDS - Although the Working Schedule cannot be accurately
updated without Progress Records(Clause 33.1) and they are thus the essential
informational resource for managing time and for determining the extent to which
an Event has caused delay or disruption, the Contract is unique amongst standard
form contracts in requiring the Contractor to maintain any Progress Records other
than those in support of a claim.(Appendix B)
• Loss and/or Expense is Quantified under Clause 39.2.4 arising from an Employer’s
Cost Risk Event, and
• The Predicted Cost is to include for any change in a Level of Effort and any other
loss and/or expense (Clause 53.2.3)
• If the Contractor fails to provide the information required to enable the Valuer to
calculate the amount of the Contractor’s entitlement to compensation for
disruption and/or prolongation, the amount shall be calculated after Substantial
Completion using
– 39.3.1 the progress records and schedules produced under Clause 25.2, or (if none)
– such records and schedules as, in its absolute discretion, the Valuer adopts for the purpose of
this Clause 39.3.
23/04/2013 18

19. BIM
• Under CPC will the QS’s roll differ in Complex
Contracts?
a) In a current procurement environment (e.g.
Traditional, Design and Build etc. )
b) In a BIM environment
23/04/2013 19

20. Nick Lane
Partner and Head of Construction, Olswang LLP
Dispute resolution provisions and
procedures

21. Questions…?
Adam Constable Q.C., Keating Chambers

22. Contact us…
Francis Ho
Senior Associate
Olswang LLP
T +44 20 7067 3505
E francis.ho@olswang.com
Nick Lane
Partner
Olswang LLP
T +44 20 7067 3548
E nick.lane@olswang.com
Adam Constable QC
Keating Chambers
T +44 20 7544 2600
E aconstable@keatingchambers.com

23. Contact us…
Roy Pickavance
Director, DAQS Ltd BSc, FRICS, FCIOB,
FCIArb
T +44 (0) 1949 829287
E arp@daqs.co.uk
Keith Pickavance
Executive Consultant Hill International
T +44 (0) 207 618 1200
E keithpickavance@hillintl.com