![]() However, there is a price to pay in the loss of competitive tension at the point when the contract sum comes to be agreed. “… in a position to proceed with a well-planned… build contract with developed Contractor’s Proposals and a robust Contract Sum”. For the developer, as Jefford J noted, a properly-managed PCSA can put it: ![]() The use of PCSAs has pros and cons for both parties. So Jefford J’s recent decision in Almacantar (Centre Point) Ltd v Sir Robert McAlpine Ltd is both welcome and of particular interest. Carillion’s recent collapse has only brought the problem into sharper focus and has highlighted the dangers of bidding for work without a full appreciation of the risks involved.Īlthough widely used, there has until now been little judicial consideration of PCSAs and how they operate in practice. Main contractors continue to be risk averse and will routinely decline to bid on a single stage basis, other than for “most favoured” clients. ![]() The June 2016 referendum vote was widely expected to mark a watershed and to herald a shift back towards a single stage approach, but in our experience that simply has not happened. For several years now, two stage tendering – and with it the use of Pre-Construction Services Agreements (PCSAs) – has been the normal procurement route for major building projects, at least in the London commercial market.
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