Contracts | Risk Management Briefings
CIC’s work in the area of contracts, insurance and legal liability issues is undertaken by the Liability Panel, one of CIC’s longest running committees. The panel has some 40 members consisting of representatives from CIC’s membership, the legal professions and specialist insurers. The Panel is chaired by Sarah Lupton.
The terms of reference of the panel are as follows.
- Consider liability, legal and insurance issues that affect CIC’s members.
- Keep CIC’s members informed about such issues and publish guidance.
- Draft and publish standard form contract documentation for consultants.
- Campaign for changes in proposed or existing law.
- Work with other construction industry bodies to achieve these ends.
Members of the main Liability Panel meet five times a year. Meetings in 2013 are scheduled for: 15 February, 19 April, 21 June, 4 October and 29 November. In addition to the main committee, there are also smaller sub-groups which are set up to enable the Liability Panel to provide a rapid response to a fast moving area. An example of such a sub-group, is the BIM sub-group of the Liability Panel which was set up to consider the liability implications of Building Information Modelling (BIM) for the Liability Panel.
Major current projects of the Liability Panel include:
- Input into the CIC BIM Protocol which will govern all construction contacts that use Building Information Modelling.
- The review of current CIC contracts and the publication of new contracts.
- Publication of guidance in the form of Risk Management Briefings, which examine current areas of concern in relation to liability.
CIC BIM Protocol
BIS has funded two initiatives which are being overseen by the CIC Liability Panel. One is in relation to insurance and Building Information Modelling (BIM) while the second involves the creation of a CIC BIM Protocol.
The CIC BIM Protocol is an over-arching document which can be attached to existing contractual arrangements in respect to construction projects. It is flexible and suitable for use on all projects but crucially it will take precedence over existing agreements.
This Protocol ensures that there is an obligation on parties to provide their works/services in the form of a model. It is being produced in tandem with other documents such as a unified Plan of Work document and PAS 1192-2, a document from the British Standards Institute (BSI) which seeks to provide some common standards in relation to BIM implementation.
Most of the work in relation to the CIC BIM Protocol has been done by the BIM Liability Panel sub-group which provides input into consultations on BIM. It is also directly represented on the main Cabinet Office BIM Task Group chaired by Simon Rawlinson in respect to the legal documentation relating to BIM.
Current CIC Contracts
CIC produces three main types of contract:
- A Consultants Contract comprising three main elements
- Novation agreements
- Collateral warranties
At present the Scope of Services portion of the Consultants Contract is being updated to bring it into line with the new CIC BIM Protocol and the new unified Plan of Work. After these documents are published in spring 2013, the CIC Novation Agreements and Collateral Warranties will be reviewed and updated.
Risk Management Briefings
Currently there are twenty one Risk Management Briefings which cover aspects of liability pertinent to those in the construction professions and allied bodies. These publications are continually reviewed and updated. Research is currently being carried out to find out if there is scope for a new Risk Management Briefing on the subject of reliance letters.
As part of a long campaign in support of standardised contracts the Liability Panel sent a submission in the form of a letter to Lord Sasoon. On page 12 of the Government Construction Strategy, published in 2011, it was stated that the Government would: “ move towards using only standard forms of contract with minimal amendment for all new central government procurement activity”.