The [Ritchie] Method of an early Negotiated Trade Contractor GMP Contract (NTC GMP C), 2016

Footnote:

At present, nearly all Main Contractors take every opportunity to exploit variation orders, as their submitted initial tender price is intended only to secure them the project (i.e. the lowest tender) and does not reflect the out-turn cost or quality. Main Contractors habitually find one area of the project in which to suggest a problem, or indeed create one through exaggerating a cost estimate, contract or buildability issue. This creates change, which allows the contractor – chosen by the Main Contractor – to justify variation and thus exploit the situation. This conflict of interest is built into the current system. The Client loses out in terms of cost and quality, and most often the architect is held responsible.

Other issues in the current marketplace include;

• Governance that makes it difficult to choose anything other than the lowest tender
• Apportioning of risk and quantifying
• OJEU procurement requirements

© 12/2016 Ian Ritchie