Complex Projects Contract
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The CIOB Complex Projects Contract 2013 was a form of construction and engineering contract, developed by the Chartered Institute of Building (CIOB). Its formal name was the 'Contract for Use with Complex Projects, First Edition 2013'. In November 2015, the Complex Projects Contract was updated by the Chartered Institute of Building in response to feedback from the industry. Despite effectively being a second edition, it was renamed the Time and Cost Management Contract 2015 (abbreviated to TCM15) to reflect the core strengths of the contract.


Launch

Based upon extensive research carried out by the CIOB, the contract was formally launched on 23 April 2013. The contract was billed as the world's first contract specifically aimed at the management of time in complex construction and engineering projects. The authors also stated that it was the first form to follow the Society of Construction Law Delay and Disruption Protocol, and that it was also the first standard form contract to cater for
Building Information Modelling Building information modeling (BIM) is a process supported by various tools, technologies and contracts involving the generation and management of digital representations of physical and functional characteristics of places. Building informatio ...
(BIM) and the future of collaborative design.


Purpose

It is suited for works of high value or complexity, major real estate projects and engineering or infrastructure projects. It is not suited to simpler works, those of short duration or with inexperienced clients /contractors. It anticipates Special Conditions for the particular requirements of each project and if using construction management as the procurement method, it cannot be used without the appropriate terms being included in the Special Conditions. CPC2013 is designed for use by companies and public authorities in the UK and in any other country where works comprise complex building and / or engineering, which cannot reasonably be expected to be managed intuitively. It can be used where the contractor is expected to construct only that designed by or under the direction of the client with traditional drawings, specification and/or bills of quantities, or BIM, or on projects which require a contractor's design in part, or for design-build projects in which the contractor designs the whole of the works with or without an employer's reference design. The contract requires a collaborative approach to the management of design, quality, time and cost. The working schedule, planning method statement and progress records (which are to be inspected and accepted by a competent project time manager and independently audited for
quality assurance Quality assurance (QA) is the term used in both manufacturing and service industries to describe the systematic efforts taken to ensure that the product(s) delivered to customer(s) meet with the contractual and other agreed upon performance, design ...
) are at the core of management. They are the tools by which all time and time-related cost issues are to be determined and are to conform with the standards required by the conditions, appendices and the CIOB's Guide to Good Practice in the Management of Time in Complex Projects.


Collaboration

In order to promote collaboration and to ensure transparency of data, schedule and database submittals are to be made in native file format either by maintenance of the material in a common data environment or transfer by a
file transfer protocol The File Transfer Protocol (FTP) is a standard communication protocol used for the transfer of computer files from a server to a client on a computer network. FTP is built on a client–server model architecture using separate control and data ...
to all having a continuing design, administrative, or supervisory role, who are identified as Listed Persons. The contract also requires the appointment of a Contract Administrator to carry out administrative functions during the course of construction, a Project Time Manager to advise on time related matters, a Valuer to advise on cost matters, a Design Coordination Manager to manage the integration of the Contractor's design, and a Data Security Manager to supervise and maintain the integrity and security of digital communications.


Risk management

Central to the philosophy of the Complex Projects Contract is its approach to transparency in risk management. CPC2013 provides for both the owner and contractor each to identify one or more time contingency allowance, which each can use as it wishes to manage its own risks. Unusually for a standard form construction contract, it defines "float" and provides that if either party creates free float or total float as a result of its own improvement of progress, that party may keep the created float as its own contingency. Additional powers are provided in CPC2013 to enable the construction project's developer, following consultation, to instruct acceleration, recovery and changes in resources sequences and logic in order to manage its risks contemporaneously.


Time management

CPC2013 is distinctive in taking a prescriptive approach to the management of time and associated cost risk and combining critical path network techniques with resource-based planning. The time model, referred to as the Working Schedule, combines a high-density, short-term look-ahead similar in concept to that used in
agile software development In software development, agile (sometimes written Agile) practices include requirements discovery and solutions improvement through the collaborative effort of self-organizing and cross-functional teams with their customer(s)/ end user(s), ad ...
with medium and long-term lower density schedule along the lines of that used in the
waterfall model The waterfall model is a breakdown of project activities into linear sequential phases, meaning they are passed down onto each other, where each phase depends on the deliverables of the previous one and corresponds to a specialization of tasks. ...
planning technique, the whole being revised regularly on the
Rolling Wave planning Rolling-wave planning is the process of project planning in ''waves'' as the project proceeds and later details become clearer; similar to the techniques used in agile software development approaches like Scrum. Work to be done in the near term i ...
principle. In the short-term look-ahead, the logic is to be resource and location-related, instead of activity based, as it is in waterfall. The agile part of the schedule is to have its activity durations calculated by reference to the resources to be applied and their expected productivity.


Cost management

The activities in the Working Schedule are also to be valued so that the Working Schedule also functions as the
pricing schedule A pricing schedule is a function that maps the quantity of a good purchased to the total price paid. Types of pricing schedules * Linear Pricing Schedule - A pricing schedule in which there is a fixed price per unit, such that where total pric ...
to predict current value for the purposes of interim payment and the ultimate out-turn cost for cost risk management purposes.


Progress records

Progress is required to be recorded in a
database In computing, a database is an organized collection of data stored and accessed electronically. Small databases can be stored on a file system, while large databases are hosted on computer clusters or cloud storage. The design of databases sp ...
identifying, at specified intervals, the resources used, productivity achieved and
earned value Earned value management (EVM), earned value project management, or earned value performance management (EVPM) is a project management technique for measuring project performance and progress in an objective manner. Overview Earned value manag ...
. Apart from being the source data for subsequent progress update of the schedule, the database also serves for
benchmarking Benchmarking is the practice of comparing business processes and performance metrics to industry bests and best practices from other companies. Dimensions typically measured are quality, time and cost. Benchmarking is used to measure performan ...
productivity achievable for quality assurance of the schedule and future planning.


Dispute resolution

The emphasis of CPC2013 is on contemporaneous Issue Resolution by an appropriate
expert An expert is somebody who has a broad and deep understanding and competence in terms of knowledge, skill and experience through practice and education in a particular field. Informally, an expert is someone widely recognized as a reliable s ...
. CPC2013 it also provides for an escalating Dispute Resolution procedure, embracing
negotiation Negotiation is a dialogue between two or more people or parties to reach the desired outcome regarding one or more issues of conflict. It is an interaction between entities who aspire to agree on matters of mutual interest. The agreement c ...
,
mediation Mediation is a structured, interactive process where an impartial third party neutral assists disputing parties in resolving conflict through the use of specialized communication and negotiation techniques. All participants in mediation are ...
,
adjudication Adjudication is the legal process by which an arbiter or judge reviews evidence and argumentation, including legal reasoning set forth by opposing parties or litigants, to come to a decision which determines rights and obligations between the ...
and
arbitration Arbitration is a form of alternative dispute resolution (ADR) that resolves disputes outside the judiciary courts. The dispute will be decided by one or more persons (the 'arbitrators', 'arbiters' or 'arbitral tribunal'), which renders the ' ...
. Where issues are required to be determined by Issue Resolution within a certain timescale, if the procedure is not invoked there are deeming provisions which determine the outcome of an issue. If Dispute Resolution is required, the expert, adjudicator or arbitrator are either those named in the contract or, in default, they are appointed by the Academy of Experts in London or the CIOB. The default adjudication rules are those of the Scheme for Construction Contracts and the default arbitration procedure is that of the
London Court of International Arbitration The London Court of International Arbitration is a British private company limited by guarantee with a head office in London. It offers dispute resolution through arbitration and mediation. History The City of London Chamber of Arbitration w ...
.


Ancillary publications

A back-to-back Consultancy Appointment and Subcontract, both of which followed the same principles of time and cost risk management, were published in November 2015 as part of the Time and Cost Management Contract 2015 suite.


Industry reception

A number of reviews and commentaries have been written on the subject of the Complex Projects Contract. Some have criticized the complexity of the contract itself . whereas others have noted the benefits of the clear language, and have commented on the incorporation of its positive features."FTI Consulting: James Myers Discusses the New CIOB Complex Projects Contract" Reviews published have consistently commented that it will be necessary for the contract to be tested on a live project before the effectiveness can be proven.


External links


CIOB Time Management's website

CIOB Time and Cost Management Contract 2015's website


References

{{Reflist Construction