procurement & contract strategy · the procurement cycle iii. objectives iv. different types of...

Procurement & Contract Strategy

Paul Prescott

Gabriel Olufemi

20 January 2020

00 Month 2013

"Dentons are a team of really switched-on lawyers who

understand the needs of the client. They look at the

advantages of a long-term relationship, so clients get

value for time and value for money."

Chambers Global, 2019

Dentons in Qatar

20/01/2020

• Our Doha office opened in October 2007 when the firm was granted a licence by

the Qatar Financial Centre Authority. It is headed by managing partner Safwan

Moubaydeen, who has 30 years of experience practising law in the region and

possesses a comprehensive understanding of Qatar laws, customs and practices.

• Leading the firm's Construction team in Qatar, Andrew Jones joined our Doha

office in 2014. He has over 20 years of experience in construction, projects and

engineering law, having acted for clients in all sectors of the construction

industry.

• Our Doha office provides advice and opinions on Qatari, QFC and English law.

Furthering our key sector strategy, we have a number of specialist lawyers

among our full suite of capabilities, including:

• Construction & Engineering

• Energy

• Transport and infrastructure

• Arbitration

• Dispute Resolution

• Project finance

• Collaboration is key to our partnership with you. In addition to our wide-ranging

experience, you also benefit from our professional associations. We work closely

with major Qatar decision-makers and institutions to ensure you can move your

business forward in Doha.

• Public procurement

• Real Estate

• Labor & Employment

• Corporate/M&A

• Banking & Finance

• Technology, media and telecommunications

Agenda

4

I. Introduction

II. The Procurement Cycle

III. Objectives

IV. Different types of procurement routes

V. Cost models

VI. Standard form construction contracts

VII. Case study

5

The Procurement Cycle

6

Objectives

7

Procurement Routes

I. Traditional

II. Design and Build

III. Construction Management

IV. Management Contracting

V. Early Contractor Involvement

VI. Partnering

VII. Alliancing

8

Procurement Routes – Traditional

Employer

Architect QSStructural engineer

M&EMain

contractor

Sub-contractor

9

Procurement Routes – Design and Build

Employer

Employer’s Agent

QS/Project Management

Design & Build Contractor

M&E

ArchitectStructural Engineer

Sub-contractor

10

Procurement Routes – Construction Management

Employer

Architect QSStructural engineer

M&EConstruction

managerTrade

contractors

11

Procurement Routes – Management Contracting

Employer

Architect / designers

QS Structural engineer

M&EManagement

contractor

Works contractor

Works contractor

12

Procurement Routes Compared

EMPLOYER’S RELATIVE LEVEL OF INVOLVEMENT

Least

involvedMost

involved

13

Procurement Routes Compared

SEPARATION OF DESIGN FROM MANAGEMENT

Least

separationMost

separation

20/01/202014

Procurement Routes Compared

CAPACITY FOR VARIATIONS

Least

capacity

Most

capacity

20/01/202015

Procurement Routes Compared

CLARITY OF EMPLOYER’S CONTRACTUAL REMEDIES

Least

clarity

Most

clarity

20/01/202016

Procurement Routes Compared

COMPLEXITY OF PROJECTS

Least

complexity

Most

complexity

20/01/202017

Procurement Routes Compared

SPEED FROM INCEPTION TO COMPLETION

Slowest Quickest

20/01/202018

Procurement Routes Compared

CERTAINTY OF CONSTRUCTION PERIOD

Least

certainMost

certain

19

Procurement Routes Compared

CERTAINTY OF PRICE

Least

certain

Most

certain

20

Procurement Routes – Early Contractor Involvement

Employer

Architect

QS

Structural engineer

M&E

Pre-construction

services

Stage 1

Main Contractor

Building Contract

Stage 2

Main Contractor

21

Framework Contracting

1. Employer

defines the

Scope of the

Works

Package

2. Employer

issues

Request for

Proposal (RfP)

to Supplier

3. Supplier

responds to

RfP

4. Employer

evaluates

proposals

received

from Supplier

7. Execution of

Works Package

contract and

commencement of

the Works

6. Employer notifies

the Supplier, and

awards Works

Package

5. Employer

identifies proposal

to be accepted

22

Procurement Routes – Partnering/Alliancing

Employer

Partnering Contract

Architect QS

Structural Engineer

M&E

Works Contractor

Target Cost

23

Cost Models

I. Lump sum

II. Remeasurement

III. Cost plus/Cost reimbursement

IV. Target cost contract

24

Target cost contract

25

Target cost - published contracts

26

Standard form construction contracts1. The Joint Contracts Tribunal (JCT)

27

Standard form construction contracts2. New Engineering Contract (NEC)

28

Standard form construction contracts3. NEC4 PPC2000 (Alliancing and Partnering)

29

Standard form construction contracts4. Institute of Chemical Engineering (IChemE)

30

Standard form construction contracts5. Model Form 1 (MF/1)

31

Standard form construction contracts6. FIDIC 1999

7. FIDIC 2017

32

Case Study – London 2012 Olympics

33

Olympics site 2006

34

Delivery Partner – PSC Option G with Task Orders

Olympic Delivery Authority

Delivery Partner

35

PLUG project – IChemE Burgundy Book

36

Olympics Stadium – NEC3 Option C

37

Velodrome – NEC3 Option C

38

IBC/MPC – NEC3 Option C

39

Handball – NEC3 Option A

40

Aquatics Centre – NEC3 Option C

41

Landscaping South Park – NEC3 Option C

42

Landscaping North Park – NEC3 Option F

43

Basketball venue – NEC3 Option A

44

Water Polo venue – NEC3 Option A

45

Offsite training venues – JCT D&B

46

Eton Dorney (Rowing) – NEC3 Option A

47

Olympic Village – Management Contact & JCT D&B

48

Legacy conversion works – NEC3 Option C

Dentons Sans Light

49

Q&A

© 2019 Dentons. Dentons is a global legal practice providing client services worldwide through its member firms and affiliates. This publication is not designed to provide legal or other advice and you should not take, or

refrain from taking, action based on its content. Please see dentons.com for Legal Notices.

Dentons is a global legal practice providing client services worldwide through its member firms and affiliates. Dentons & Co is a partnership comprising Dentons Middle East Partners LLP and Dentons Middle East

Limited. It is registered with the DFSA and authorised and regulated by the Solicitors Regulation Authority. Any reference to a "partner" means a person who is a partner, member, consultant or employee with equivalent

standing and qualifications in one of Dentons' affiliates.

Floor 15, Al Fardan Office Tower

61 Al Funduq Street

West Bay, PO Box 64057

Doha,

Qatar

D +974 4459 8960

F +974 4459 8961

Dentons is the world's largest law firm, delivering quality and value to clients around the globe. Dentons is a leader on the Acritas Global Elite

Brand Index, a BTI Client Service 30 Award winner and recognized by prominent business and legal publications for its innovations in client

service, including founding Nextlaw Labs and the Nextlaw Global Referral Network. Dentons' polycentric approach and world-class talent

challenge the status quo to advance client interests in the communities in which we live and work. www.dentons.com

Doc. DUB 18307663