Beruflich Dokumente
Kultur Dokumente
Journal
Reconciling
differences
Putting managers
to the test
Understanding the
importance of data collection
PG.
PG.
12
PG.
20
February/March 2015
rics.org/journals
A DV E RTI S I N G
Scaffoldingprotection
Secantwallconstruction
Plungecolumninstallation
Pilingmat
Concreteforplungecolumnpiles
Secantwallconstruction
Facaderetainingframe
Boredholesforplungecolumns
Paintathousand words
MarsottiDigitalConstructionprovidesaprojectvisualisationservicefortheconstruction
industry.Projectvisualisationinvolvesthetechnicalillustration oflogisticallayouts,
sequenceofworks/phasing,andmethodstatements.
Marsottisrepresentationsareaprovenwaytoenhancebidsubmissions,interviews,
reports,ormethodologiesbybringingyourideastolifeandhighlightingimportantissues.
Frompreconstructionthroughtoestablishedsite,wewillhelpyoutomakeinformed
decisionswithimprovedcertainty.
Whetherthedatayousupplybetraditionaldrawingsorafullensembleofbuilding
informationmodels(BIM),wecandeliverclearandaccuratevisualstosuityourneeds.
Ouruniquededicationtotheconstructionindustryallowsusgreaterfocus
andflexibilityrequiringminimalsupervisionfromyou.
C O NTENTS
RI CS CONST RU C TIO N
JOUR NAL
Construction
Journal
Reconciling
differences
Why knowing local markets is
key to project procurement
PG.
12
Putting managers
to the test
February/March 2015
rics.org/journals
20
Front cover:
Alamy
contents
4
Chairmans column
C ON TACTS
CO N STR UCTI O N J OU R NAL
5
Update
6
Embracing innovation
16
Reaping the benefits
20
Put to the test
8
Roadmap to reliability
22
Striking a balance
10
Only the best will do
25
Resolving disputes
12
Reconciling differences
26
Legal Q&A
15
Inside information
F E B R U A R Y/ M A R C H 2 0 1 5 3
C H A I R M A N S CO L U MN
CHAIRMAN'S COLUMN
Tim Fry sets out ways in which the construction
industry can work toward supply chain sustainability
S
Supply chains are key
to all industries and projects.
If they work well, projects
deliver. But how do we
make sure that they
are sustainable?
I believe that each
component needs to take
responsibility for becoming
the supplier of choice,
whether that is an individual,
business unit or a firm. This
model is flexible because
components can align
themselves to others, and
by being flexible it can
adapt to an ever changing
marketplace.
By making sure that
the following aspects are
covered, RICS members
and their firms are giving
themselves a fighting
chance of being successful,
profitable and therefore
sustainable.
4 F E B R U A R Y/ M A R C H 2 0 1 5
Each
component
of the supply
chain needs
to take
responsibility
for becoming
the supplier
of choice
UPDATE
RI CS CONST RU C TIO N
JOUR NAL
UPDATE
Parties pick up industry ideas
as election agenda hots up
The RICS Property in Politics campaign
is having a major impact as policies are
drawn up for this years general election.
Over the past eight months, RICS
Property in Politics: Driving economic
growth and building better communities
report (http://bit.ly/1C4g8pM) has led
the conversation between property
professionals and the political parties
about building a vibrant property
marketplace in the UK.
Behind the reports 12
recommendations to the next government
was the weight of expertise drawn from
the insights of more than 500 chartered
surveyors and 273 organisations.
RICS brought together members,
firms, industry leaders, parliamentarians
and policy-makers at panel discussions
throughout the political party conference
season, supported by GVA, Barratt
Developments and Rider Levett Bucknall.
Nick Raynsford, Chair of the
All Party Parliamentary Group for
Excellence in the Built Environment
joined the Property in Politics panel
at the Labour Party conference, while
Conferences
and events
RICS Dispute Resolution Conference
28 January, London
Practical contract, risk and relationship
mechanisms for dispute avoidance or
early intervention.
n www.rics.org/disputeconference
Mediation roadshow
February, various UK locations
Following the launch of the RICS
Mediation guidance note in January,
find out your obligations to clients who
are involved in disputes and the advice
you should provide before taking matters
to court.
n www.rics.org/mediationroadshow
In brief...
TRAINING
12 February, London
NEC3 contracts: principles
and processes
http://bit.ly/1zij9zg
24 February, London
Residential building surveys
workshop
http://bit.ly/1ytmlZZ
4 March, London
BIM implementation and
management: purpose,
benefits and challenges
http://bit.ly/15ZFnvf
F E B R U A R Y/ M A R C H 2 0 1 5 5
S U P P LY C H A I N
M A N AGE M E N T
Embracing
innovation
Vasileios Vernikos examines the importance
of the effective management of data in
achieving future supply chain sustainability
mproving efficiency in
construction has been
on the government
and industry agenda
for many years. This
process began with the
1962 Emmerson report,
which identified problems that restrained
improvements. This was closely followed
by the Banwell study in 1964, which
focused on contractual management
and promoted early contractor
involvement and increasing collaboration
across the supply chain.
The Egan report in 1998 stood out
from previous reports in focusing on
innovation and, although some of the
same issues were highlighted by Latham
in 1994, one could argue that many of
the points raised are still troubling the
construction industry today. Drastic
transformation was recommended
rather than incremental improvement.
In recent years, former UK
government Chief Construction
Adviser Paul Morrell initiated a
technologically driven transformation
of the construction industry with the
building information modelling (BIM)
initiative, which was embraced by
his successor Peter Hansford in the
Construction 2025 strategy.
Nevertheless, academics and
industry sceptics are still debating the
construction industrys ability to collect
and manage data. Construction is not,
as it stands today, a high-intensity,
data-driven sector, especially when
compared to finance, retail, marketing
and advertising.
Aiming to catch up, over the past
two years the BIM initiative has driven
zealous efforts by some construction
firms to centralise and manage data. Big
data, however, can hide as much as it
6 F E B R U A R Y/ M A R C H 2 0 1 5
Aligning strategies
The topic of procurement throughout
Europe was raised at several stages of
the workshop. There was a consensus
that there is a need for further work
to align strategies across the supply
chain. Many participants emphasised
the importance of early engagement,
particularly in enabling offsite. But there
are still issues with these approaches
under current European models. BIM
was described as the enabler for new
approach to procurement, and there
are currently several initiatives across
Europe hoping to address the issues with
EU procurement models and BIM, which
it was agreed could allow further actions
to be taken.
Another point discussed was the
governments approach to offsite, and
RI CS CONST RU C TIO N
JOUR NAL
Digitialisation
It appears that
some construction
professionals still
feel the sole aim is to
manage data in an
effective way, until
they can offload it
onto the next party
setting a minimum offsite percentage per
project. Some participants believed that
a precise percentage of offsite should
be mandated by government similar to
the BIM Level 2 mandate. Others thought
that it would be impossible to define
offsite and, therefore, to apply a precise
percentage per project. In addition,
offsite may not add value to all types of
projects, and therefore it may not be the
best option available.
Nevertheless, all agreed that offsite
should be connected with the primary
government strategy, and has great
export potential not just on offsite
solutions and products, but also on
offsite expertise.
F E B R U A R Y/ M A R C H 2 0 1 5 7
S U P P LY C H A I N
M A N AGE M E N T
Roadmap to reliability
Long-term relationships
At VVB Engineering, we have already
made the transition to collaborative
working, building a mindset on the
common characteristics of a high
reliability organisation and recently
gaining certification to BS 11000.
Therefore, the small changes we
are recommending, offer a roadmap
to better performance and deeper
client engagement.
A whole-system approach is needed
to bring together coordinated planning
and field operations. The adoption of
an industry-wide framework such as
BS 11000 has proved to be a valuable
tool for infrastructure owners
and operators seeking a dramatic
improvement in programme delivery,
management of risk and cost.
Given that the governments
Construction 2025 document places
great emphasis on the need for future
collaborative working across public
sector projects, it is clear that the
industry must make further progress
8 F E B R U A R Y/ M A R C H 2 0 1 5
Integrated teamwork
It was evident from industry discussions
at the first sustainable supply chain
roundtable held at CH2M Hill last
September, that there are well
documented problems facing Tier 2
and 3 SMEs as part of contemporary
culture. During the meeting, senior
Image Alamy
RI CS CONST RU C TIO N
JOUR NAL
m A one team
approach
underpinned
work on the
Blackwall
tunnel
Value creation
If Tier 2 contractors are to unlock the full
potential of supply chain partnerships,
there must be clarity of purpose and
total visibility of the clients opportunity
Key points
To achieve a sustainable supply chain:
bb Focus the culture on the hidden benefits of collaboration:
you may get more support, involvement and contribution from people
from end-to-end of the supply chain.
bb Plan effectively: engage your people with compelling information,
share common goals, KPIs and communicate shared objectives.
bb Build choices into project plans: offering alternative
proposals to clients seeking innovative solutions to long-term
programmes of work.
bb Complete transparency: choose the plan with the preferred
blend of benefits, cost and risk and share these with customers.
bb Review performance data, issues management, risk and safety
regularly: people then do the right thing more often.
bb Manage skillsets and check your ability to self-assure
delivery: do not be afraid to re-plan and make necessary changes
that reflect what is best for the project.
A new approach
Successful strategy execution relies
heavily on a one team approach,
adopting and working to and above
current industry best practice. If lean
construction principles are eventually
F E B R U A R Y/ M A R C H 2 0 1 5 9
S U P P LY C H A I N
M A N AGE M E N T
Only the
best will do
David Whysall outlines why securing
exceptional performance is vital
for clients if they are to thrive in
the increasingly competitive
global construction market
Attracting investment
The stakes are high. Governments
around the world are recognising
that infrastructure is a strong driver
of economic development, and are
committing serious proportions of GDP.
But public money alone is not enough:
RI CS CONST RU C TIO N
JOUR NAL
Unlock innovation
Create the environment for your
supply chain to innovate so that they
can be rewarded for the value they
create think 10% rather than 2% as
well as delivering better outcomes for
your customers. Innovative companies
are usually more productive; this was
demonstrated on Londons Crossrail,
using data analytics to identify a direct
link between the extent of innovation
and cost-efficient performance.
Ensure that the supply chain
understands your business and enable
them to bring in new ideas to help
you become more efficient. Some
infrastructure owners are procuring
based on innovative solutions developed
during bidding. A major metro owner, for
example, asked contractors to provide
station upgrade designs, with one
showing how higher passenger flows
could be achieved and journey times
reduced through an intelligent approach.
While a larger capital investment may
have been needed, the whole-life solution
and subsequent value generated for
the operator was far greater. The
contractor understood the clients
business, and was successful.
Clients require a commercial model
that supports innovation and enables
access to Tier 3 and Tier 4 suppliers
where innovation generally originates.
Investment in data
makes subjective
conversations
objective, allowing
time to be more
productively spent
examining ways to
improve performance
Some operators are now integrating
models with the need to think whole
life, balancing capital and operational
expenditure to help drive innovation.
Communicate
Work with your supply chain to
define exceptional performance, and
engage partners effectively to ensure
that they align their approach to
deliver your long-term objectives. This
could include enhanced customer or
end-user satisfaction, the ability to
demonstrate best value to funders
and world-class health, safety and
environmental performance.
The most visionary clients are not
only realising these benefits on their
own programmes, but are transforming
industry for the better. Their legacy is
enhancing supply chain capability and
creating a streamlined, fit for purpose,
high performance delivery environment.
Towards exceptional
Doing the same as they have always
done is not an option for clients
going forward. It will not deliver the
exceptional performance required in
todays world. Traditional supply chain
engagement will fail to secure the best
global supply chains.
Excellence requires a different mindset.
Clients must understand what drives
their supply chain, and ensure that their
partners understand their business.
Goals need to be aligned.
Attracting the best Tier 1 suppliers
is not enough. Clients must measure
performance and outputs and use that
data intelligently. Only then can they
establish where value is added, and how
the whole supply chains performance
can be progressively enhanced. b
F E B R U A R Y/ M A R C H 2 0 1 5 1 1
S U P P LY C H A I N
M A N AGE M E N T
Reconciling
differences
In procuring infrastructure projects around
the world, understanding local market
conditions is key, suggest Richard Graham,
Shy Jackson and Norman Kerfoot
uppliers operating in
a single jurisdiction
often assume that the
procurement norms
they are used to apply
universally. They are
often surprised when
they attempt to operate in another market
and discover that different rules apply.
In reality, there are common themes
that apply everywhere, such as cost
pressures and the desire to achieve a
good outcome. Conversely, even within
the same jurisdiction there will often
be different procurement methods, and
they will have different results depending
on the specific circumstances of each
project as well as external factors such
as the strength of the economy.
In looking at how supply chains operate
both in the UK and internationally, while
it is not possible to identify a universal
solution to ensuring these work efficiently
and perform well, there are a number
of common themes that are worth
considering in greater detail.
1 2 F E B R U A R Y/ M A R C H 2 0 1 5
What is success?
Anyone studying comparative
procurement methods must first face
the question as to whether this is in
fact possible. Whether a project is
successful and, for example, has
delivered good value for money will not
be easily quantifiable.
Indeed, even defining what constitutes
a successful project based on delivery
on-time and on-budget becomes
dependent on how the two are managed.
The London 2012 Olympic Games were
hailed as a public success and while the
timing was fixed, the approved budget
certainly changed over the projects life.
The vision statement was defined more
widely as: To deliver the Olympic Park
and all the venues on time, within agreed
budget and to specification, minimising
the call on public funds and providing
a sustainable legacy. In their book,
Programme procurement in construction:
learning from London 2012, John
Mead and Stephen Gruneberg discuss
how this vision was developed into a
Image Shutterstock
RI CS CONST RU C TIO N
JOUR NAL
In jurisdictions where
legal processes are
expensive and slow,
parties have to place
more reliance on
their relationships
seen as an adversarial process, while in
a collaborative contract it is a common
problem to be solved for the benefit
of all parties.
S U P P LY C H A I N
M A N AGE M E N T
Conclusions
It is not possible to identify a universal
procurement model that is the secret
to effective and successful supply
chains. Unsurprisingly local knowledge
is a key ingredient for both the bid/no
bid decision.
There is, however, widespread support
for the proposal that relational contracts
and collaborative behaviours produce
better results overall. For example, the
UK government has recently published
guidance in support of two-stage open
book, and supply chain collaboration
during bids as advantageous to all parties
within a complex bidding process
(http://bit.ly/1tdPwbt). Its involvement
reflects the fact that collaboration
requires a genuine commitment from
clients, and not another burden to put on
the supply chain with no clear benefit.
Suppliers should consider how the
local market context contrasts with their
own established norms. The general
Supported by:
Sponsors:
Endorsed by:
BIM4FM
1 4 F E B R U A R Y/ M A R C H 2 0 1 5
rics.org/bimconference
21/10/2014 17:34
RI CS CONST RU C TIO N
JOUR NAL
Inside information
Getting the right data is the first step in making better decisions about the
delivery and operation of infrastructure assets, says Dave Monswhite
Beyond traditional
Clients generally request and
receive design information in
A better solution
Many buildings are still
designed using a traditional,
architectural-led approach.
Such designs make use of
floor plans and elevations,
but clients often struggle to
understand the implications
of the design choices at an
early stage. Finding out late
that a concept is flawed will
impact on schedules and
costs and probably mean a
compromise solution.
However, using BIM from
the start, showing simple
floors and walls, primary
cores, orientation and the
relationship with other
buildings, for instance, allows
an objective appraisal on
whether the concept is worth
progressing. If so, the model
Related competencies
include Project process
and procedures,
Teamworking
F E B R U A R Y/ M A R C H 2 0 1 5 1 5
BIM
lthough a technically
aware client,
Manchester City
Council (MCC) had
little experience of
building information
modelling (BIM) at
the start of its refurbishment of the citys
town hall complex. At the heart of the city,
the town hall extension and central library
are grade II* listed buildings of national
significance, among the best examples of
the architecture of their period; innovative,
sophisticated and constructed to high
standards. The public spaces of Albert
Square and St Peters Square provide the
setting for these important civic buildings,
1 6 F E B R U A R Y/ M A R C H 2 0 1 5
Introducing BIM
MCC had considered using BIM as far
back as 2006 on the Building Schools
for the Future projects, and BIM has been
used on a number of capital projects to
improve stakeholder engagement and
design development. But although BIM
RI CS CONST RU C TIO N
JOUR NAL
BIM implementation
Collaborative working
The project team established a
collocated office to promote a One Team
ethos. This gave the MCC team
day-to-day access to BIM expertise from
Ryder, NG Bailey and Laing ORourke
colleagues with whom they could share
knowledge, ideas and aspirations.
Strong links were also formed with
the University of Salford, the University
of Liverpool and the BIM Academy at
Northumbria University, which offered
guidance and supported the project team
in making informed decisions.
Emphasising the extent to which
the project has served to highlight
BIMs value to the public sector, Arto
Kiviniemi, Professor of Architecture
at the University of Liverpool notes:
Manchester Town Hall complex
is a flagship project in the UK, and
even internationally, highlighting the
importance of BIM protocols and
Image Manchester City Council
BIM
Forum
Handover
steering group
Attendees
Full project
team
Controlled approach to
handover
Confirm roles and
responsibilities
Define boundaries
Prepare FM team
Confirm status of handover
Review progress and manage
risks
Soft Landings
Controlled approach
to handover
Objective of group
Familiarisation and
commissioning
Core
operational
team
Laing ORourke
engineers
NG Bailey
MCC FM team
Training
and aftercare
Focus on operational
outcomes
Set performance
objectives
(Environmental performance
Metering strategy
Energy assessment (POE))
1 8 F E B R U A R Y/ M A R C H 2 0 1 5
Post occupancy
evaluation
Laing ORourke
M&E
commissioning
manager
MCC FM team
Development
of metering
strategy
(Environmental/Energy
Performance
Visitor targets
Customer/staff satisfaction )
Fire safety,
security and
operational
team
Laing ORourke
M&E
BDP design
engineers
MCC Building
Energy
Systems
Programming
The model also helped to develop
the sequencing and programming,
which gave key stakeholders confidence
that the Grade II* buildings were being
respected, and works were being
appropriately considered and planned.
MCC planning conservation manager
Paul Mason believes that: BIM gave
us the confidence in our decisions and
agreements on design.
The design and installation of the
central librarys ground floor sculptured
troughed ceiling required a supplier
that could use BIM data to manufacture
the product. A local SME gained a
commercial advantage over competitors
because of access to BIM technologies
and expertise in coordinating the
very complex services, structure and
ceiling finishes.
Asset management
The MCC operational team has been
actively involved at all stages of the
development of BIM for asset information
management (AIM), focusing on the
mechanical and electrical (M&E) data.
Peter Harvey, the projects building
services engineer, highlights the great
value of BIM technology in achieving real
cost savings across the entire scope of
the project. As he puts it: To have the
ability to interrogate isolated services,
such as a chilled water system or a
combined network such as the ventilation
layout, all from the relative comfort of a
RI CS CONST RU C TIO N
JOUR NAL
Related competencies
include Project process and
procedures, Teamworking
F E B R U A R Y/ M A R C H 2 0 1 5 1 9
H E A LTH A N D S A F E TY
hen compared
with others, the
construction section
is characterised
by a reluctance to
report stress. This
may be due to a
macho culture and a false perception that
admitting to stress, depression or anxiety
is a sign of weakness (Construction Journal
November/December 2014).
But are certain personalities types more
prone to stress and is there a link between
stress and performance? Psychological
personality testing distinguishes between
a Type A personality intense, driven,
competitive, and a Type B personality no
Finding 1: Assessment of
personality type
Finding 2: Assessment of
current stress levels
Assessment findings
Table 1
Sample group
Construction
project managers
Construction site
managers
Site operatives
Type A+ personality
33%
43%
12%
Type A personality
52%
43%
53%
Type B personality
15%
14%
35%
Type B+ personality
0%
0%
0%
Table 2
Sample group
Construction
project managers
Construction site
managers
Site operatives
High
6%
14%
0%
Medium
27%
14%
12%
Low
67%
71%
88%
Table 3
Sample group
Construction
project managers
Construction site
managers
Site operatives
Positive feelings
most selected
Engaged (57%)
Decisive (56%)
Composed (29%)
Decisive (62%)
Interested (48%)
Engaged (38%)
Decisive (24%)
Interested (24%)
Engaged (18%)
Negative feelings
most selected
Rushed (72%)
Irritable (58%)
Annoyed (50%)
Irritable (62%)
Annoyed (62%)
Rushed (62%)
Rushed (76%)
Irritable (64%)
Annoyed (59%)
Positive feelings
least selected
Relaxed (3%)
Calm (5%)
Relaxed (0%)
Satisfied (0%)
Negative feelings
least selected
Nauseous (7%)
Nauseous (5%)
Nauseous (0%)
2 0 F E B R U A R Y/ M A R C H 2 0 1 5
RI CS CONST RU C TIO N
JOUR NAL
Performance scoring
(1-10)
Project
manager
Site
manager
Site
operative
2
Work slows/Thrive on stress/Work suffers
F E B R U A R Y/ M A R C H 2 0 1 5 2 1
LEGAL
Striking a balance
Changes to the employment tribunal process has shifted
the focus to avoiding claims, explains Helen Crossland
Early conciliation
Before April 2014, an individual could
complete a claim form online and on
clicking submit, launch a claim in an
employment tribunal. At that point, and
provided the claim was not rejected for
any reason, the parties were off and
running and the employer would have
28 days to file a response (defence).
New fees
Since July 2013, any claimant wishing to
pursue a claim, must pay up to 1,200.
Most complaints, including unfair/
constructive dismissal, discrimination and
whistleblowing, now carry an issue fee of
250 per claim form and a further fee of
950 on a final hearing being listed.
Lower fees apply to money claims
such as unlawful deduction of wages,
2 2 F E B R U A R Y/ M A R C H 2 0 1 5
It is strongly advisable
for employers to
nominate an individual
as the chosen
point of contact
RI CS CONST RU C TIO N
JOUR NAL
A new approach
Fees and early conciliation have
introduced a new dimension to the
tribunal system and have proven highly
beneficial to employers wishing to
avoid the costs and risks of litigation. A
claimants resolve can be tested upfront
if the employer considers the individual
unlikely to invest 1,200 to pursue a
claim, and claimants generally may be
more agreeable to accepting a lower
settlement package.
EC in particular can be useful in
encouraging a would-be claimant to walk
away from a potential claim or as the
case may be, to experience a taste of the
Fewer claims
in the system is
making for speedier
proceedings,
focusing the minds of
the parties to resolve
disputes before they
find themselves in
front of an omniscient
employment judge
battle they may face if they opt to litigate.
Since EC is a confidential process,
employers are safe in the knowledge
that the content of any discussions is
excluded from any legal proceedings
that follow.
Where a claim is issued, normal service
resumes with the employer having 28
days to file a response and directions
being listed thereafter, including for the
exchange of relevant documents and
Image iStock
F E B R U A R Y/ M A R C H 2 0 1 5 2 3
A DV E RTI S I N G
ADVERTISING PROMOTION
Career-building
Career-building
qualifications from
qualifications
Career-building
the
Universityfrom
the
Universityfrom
qualifications
of Salford
of
Salford
the
University
Complete
your MSc in the UKs premier
School
of
the
to enjoy
Complete
yourBuilt
MScEnvironment
in the UKs premier
of
Salford
world-class
research
and development
School of the
Built Environment
to enjoy
facilities,
lectures
from
industry
world-class
research
development
Completewith
your
MSc inand
the
UKs
premierexperts.
facilities,
lectures
from industry
experts.
School of with
the Built
Environment
to enjoy
world-class research and development
facilities, with lectures from industry experts.
Our RICS accredited courses are enrolling now for January and
September 2015:
Our RICS accredited courses are enrolling now for January and
September 2015:
MSc BIM and Integrated Design*
Our
RICS accredited
courses
are enrolling now for January and
MSc/LLM
Construction
Law
MSc BIM and Integrated Design*
2015:
September
MSc Construction
Management
MSc/LLM Construction Law
MSc Project Management in Construction
MSc Construction Management
MSc BIM
and Integrated
Quantity
SurveyingDesign*
MSc Project Management in Construction
MSc/LLM
Construction
MSc
Quantity
SurveyingLaw
(Mechanical & Electrical)
MSc Quantity Surveying
Construction
Management
MSc Real
Estate and
Property Management
MSc Quantity Surveying (Mechanical & Electrical)
MSc Project Management in Construction
MSc Real Estate and Property Management
MScwhile
Quantity
Learn
youSurveying
work with our full-time, part-time
MSc
Quantity
Surveying
(Mechanical
& Electrical)
and
flexible
distance
learning
study options.
Learn while you work with our full-time, part-time
MSc Real
Estateoptions
and Property
Management
PgCert
and PgDip
also available.
and flexible distance learning study options.
PgCert and PgDip options also available.
Learn
while you
work with ourcall
full-time,
For
further
information
0161part-time
295 4545
and
flexibleenquiries@salford.ac.uk
distance learning study options.
or
email
For further information call 0161 295 4545
PgCert and PgDip options also available.
or email enquiries@salford.ac.uk
*This course does not have RICS accreditation
For further information
call
0161
295
4545
*This
course
does not
have RICS
accreditation
or email enquiries@salford.ac.uk
*This course does not have RICS accreditation
13/11/2014 10:28
13/11/2014 10:28
halfrtise
page.indd
1 t a c t C h a r l o t te Tu r n e r +4 4( 0 )2 0 7 8 7 1 5 7 3 4 or c harlot te@su nday pu blishing. c o m 13/11/2014
ToModus
ad ve
con
2 4 F E B R U A R Y/ M A R C H 2 0 1 5
10:28
MEDIATIO N
RI CS CONST RU C TIO N
JOUR NAL
Resolving disputes
Jacqui Joyce discusses why RICS has published new guidance on mediation
f a client walks into a
surveyors office with
a potential dispute,
normally the surveyor
will advise on the
technical matter at hand
and whether they think
the client has a case on the merits.
Occasionally, they may get involved
in advising on tactics on how to deal
with the matter and maybe even have a
meeting with their opposite number on
the other side. If the matter becomes
protracted, surveyors will usually pass
the matter to lawyers to deal with any
legal issues and issue proceedings
when necessary. The next stage for
the surveyor would then be giving expert
evidence by report and at trial.
However, increasingly matters are not
reaching court rooms and a growing part
of a surveyors remit is how to advise
when cases are dealt with by a form of
Alternative Dispute Resolution, the most
common of which is mediation.
Surveyors need to know about the
process of mediation whether they are
attending as an expert as part of a team
or advising their clients at the initial
stages of any dispute on possible ways
it might be dealt with.
Recognising the increasing involvement
of surveyors in this area, RICS carried
out a survey about their knowledge of
mediation. Most thought they had a fair,
good or very good understanding of
mediation as a method for resolving
disputes. However, almost 90% said they
would like to improve their knowledge.
As a result, RICS put together a
working party to produce a mediation
guidance note for its members. The
Property cases
Surveyors are involved in a wide variety
of property disputes from large
commercial property and construction
disputes to lower value disputes, e.g.
boundary or other neighbour disputes.
All of these are ideally suited for
mediation, particularly where the cost of
proceedings can quickly outweigh any
financial benefit of the claim. A significant
benefit is that the parties can choose a
mediator who is an expert in the area of
the dispute, which cannot be guaranteed
of a judge. They are therefore fully able
to understand the issues, robustly test
the parties view of their cases, and also
suggest practical solutions.
Recent statistics show that just over
75% of mediations settle on the day, with
another 11% shortly thereafter. Surveyors
clearly need to be confident that they can
advise their clients on this very effective
tool for settling their disputes. b
Jacqui Joyce is a co-author of the RICS
Mediation guidance note, Chair of the RICS
Mediation guidance note working party and
a mediator at The Property Mediators
jacqui@thepropertymediators.co.uk
F E B R U A R Y/ M A R C H 2 0 1 5 2 5
LEGAL HELPLINE
Legal
Q&A
Q
+info
+info
Shy
Jeremy
Jackson
Ferris
is
is aSenior
Partner
Associate
at Pinsent
at
and
Furley
Masons
Page LLP
shy.jackson@
jcf@furleypage.co.uk
pinsentmasons.com
then you may still have a right to claim interest under the Act.
The Act seeks to deter late payment by imposing a statutory
rate of interest, compensation and for contracts entered into
on or after 16 March 2013, a right to recover the reasonable
costs incurred in collecting the debt. The Act applies to all
business-to-business contracts for the supply of goods or
services, and will therefore apply to construction contracts.
The Act implies a simple fixed rate of interest (currently
8% above base rate) on any qualifying debt. This is deemed
to be when there is an obligation under the subcontract
to pay the whole or part of the contract price, and that payment
is outstanding.
Where the subcontract provides a due date for the payment,
interest will be calculated from the next day until payment is
made. However, if the subcontract is silent on payment dates,
interest will be calculated depending on when the contract was
entered into:
bb contracts made before 16 March 2013: 30 days after the
later of delivery and invoice
bb contracts made on or after 16 March 2013: 30 days
after the later of the subcontractor achieving its contractual
obligations, the subcontractor invoicing and the contractor
accepting the works.
It is possible to agree to extend the payment date from 30 to 60
days (provided the contractor is not a public authority), and even
longer if the extended payment period beyond 60 days is both
expressly agreed and not grossly unfair. Consideration will be
given to:
bb the nature of the goods and services in question
bb any objective reasons to extend the payment date
bb whether an extension is likely to be a gross deviation from
good commercial practice and contrary to good faith.
If interest is being claimed under the Act, you will also be able
to claim a fixed sum as compensation. This will range from
40-100 depending on the value of the outstanding qualifying
debt. If your contract was made on or after 16 March 2013, and
the costs you have incurred in recovering the late payment
exceed the level of compensation, you may also be entitled to
claim those excess costs provided that they are reasonable.
It is yet to be determined what those reasonable costs will
amount to, and to what extent they will cover the costs of court
proceedings, arbitration or adjudication. b
A DV ERTISING
RI CS CONST RU C TIO N
JOUR NAL
Certificate in Construction
Project Management
Gain technical expertise for the practical implementation
of project management.
Learning outcomes:
Book your place on the next course: e training@rics.org t 020 7686 8584 w rics.org/distance
Com
me
rci
al
Pr
o
pe
ction
stru
Con
Susta
inab
ility
rty
Bu
Valuation
g
yin
rve
Su
g
in
ild
isurv
l
Rura
Professi
o
n
a
l
Con
du
ct
Work smarter
not harder
What is isurv?
Watch the video at goo.gl/jbtJ5G
RICS isurv has over 40,000 pages of knowledge on
all built environment areas including hundreds of RICS
templates and checklists making it a cost effective
resource to support your business.
Re
s
ide
nt
ial
g
nin
an
Pl
Legal
Discover how isurv can help you work smarter not harder
Visit rics.org/isurvhub or call 0247 686 8433 to buy now or request a free demo.
To ad ve rtise con t a c t C h a r l o t te Tu r n e r +4 4( 0 )2 0 7 8 7 1 5 7 3 4 or c harlot te@su nday pu blishing. c o m
F E B R U A R Y/ M A R C H 2 0 1 5 2 7