FUTURE TRENDS IN CONTRACTS AND CONTRACT PRACTICE

The ICE conditions of contract form the basis of civil engineering contracts in many countries. Any changes have very extensive repercussions. They are widely regarded as succeeding in their drafters' objectives, striking a fair balance of risk between contractor and employer, though they could be more explicit about the procedures to be followed by the employer if he wishes to exercise his rights of dispute. Target and cost reimbursable contracts, management contracts, and design and construct contracts are sound, in principle, for certain circumstances, though defective in relation to some of the fundamental assumptions on which they depend. Lane-rental contracts for motorway reconstruction have been successful in demonstrating the scope for reducing the time needed for completion; however, their actual success rating includes pavement performance criteria related to design life objectives. Without the benefit of observed performance data for many years, this has to be assessed by applying risk analysis techniques. Design and construct contracts have particular value for developing countries, but have little to offer for contractor participation in this country. They create complex issues of liability for performance output and its measurement that are only overcome with the fully commercial approach in which the concessionaire collects the bills. The way forward is greater flexibility for the application of professional skills and evolutionary change. (Author/TRRL)