Report on the Performance Review of the Public Works Contract

For all projects designed by the contracting authority and carried out under the PW-CF1, PW-CF3 and PW-CF5 programmes, this procedure allows specialists to award defined construction lots directly to the contracting authority and, after the completion of the evaluation of the tender by the contracting authority, the selected specialist and the contractor subcontract for a special contract amount. which will be part of the amount of the contract with the contractor. The contractor is entitled to offer in his offer a percentage supplement for each specialist who will be part of his contract with the employer. (Detailed information on this preliminary amendment can be found in GN 2.3.3 – Specialists and the Public Works Contract.) 3. (i) the establishment of an informal dispute resolution procedure at senior management level within the relevant organisations that are Contracting Parties. For all projects carried out under PW-CF1 public works contracts up to and including PW-CF4, the Parties may, without prejudice to the recourse to conciliation, initiate a dispute settlement procedure for certain disputes. The terms of the contract describe the dispute resolution procedure for resolving controversial decisions by employer representatives. The procedure consists of meetings of the project committee for the purpose of examining the disputes concerned with the intention of resolving them. (Detailed information on this preliminary amendment can be found in GN 3.1.1 – Dispute Settlement). The measures to be taken by the contracting authorities are the subject of Circular 01/16. The revised rules will be introduced with effect from 4 April 2016 for the award of public works projects using PW-CF1 – PW-CF5 public works contracts (including PW-CF5). Contracting authorities are invited to accept the amended terms of the public works contract from the date of their publication, but it is recognised that the extent to which they can be adopted depends on the scope of the design team [in the case of contracts drafted by the employer]. In recognition of this, the circular provides an exemption for projects for which the planning team was discontinued before April 4, 2016 and whose scope of services does not reflect the service required to meet the requirements of the amended forms of contract.

This derogation shall be valid for a limited period, until 8 January 2017, after which the amended forms must be used, unless the CCGA grants a written authorisation at the request of the contracting authority concerned. In 2015, the Public Procurement Office conducted extensive consultations following the publication of its proposals for the implementation of the interim recommendations. Work on the interim recommendations for amendments to public works contracts has now been completed and the terms and conditions of the PW-CF1 – PW-CF5 public works contracts, including tender documents and related guidelines, have been published. On 18 January 2016, the Ministry of Public Expenditure and Reform issued Circular 01/16 “Public Procurement – Revision of the Modalities for awarding public construction projects”. 2. Direct call for tenders from the employer for special construction lots, after which the contractor enters into a subcontract with the selected specialized bidder A review of the performance of the public works contract was carried out by the Committee on Public Procurement for Construction (GCCC) in 2014. The “Report on the Review of the Performance of Public Works Contracts” was published by the Public Procurement Office in December 2014 and contains a number of interim recommendations and a framework for the development of a medium-term strategy for the award of public works projects. 3. (ii) Introduction of a permanent conciliator for the purpose of dispute settlement For all contracts performed through the pw-CF1 public works contract up to and including PW-CF4 for which the expected amount of the contract exceeds EUR 10 million, a permanent conciliator must be appointed by the parties. If the expected amount of the contract is less than €10 million, the employer has the possibility to require the parties to appoint a permanent arbitrator. In all cases, the permanent arbitrator will assume the role of arbitrator when a dispute is submitted to arbitration in accordance with subsection 13.2. The intention behind the introduction of the permanent arbitrator is to promote appropriate engagement between the parties to help the parties avoid disputes, to help the parties avoid costly and lengthy formal dispute settlement procedures, and to help the parties reach agreement on issues before they arise in a dispute.

(Detailed information on this preliminary amendment can be found in GN 3.1.1 – Dispute Settlement). The price documentation for forms PW-CF1, PW-CF3 and PW-CF5 is a list of services according to a measurement method approved for use in public works contracts. For these forms of contract, no other document can be included in the price document. The list accompanying the contract shall specify the approved measurement method to be used to supplement the nomenclature and eliminate the possibility of transferring the risk of quantities to the contractor in accordance with Part 1K(17) of the Annex. (Detailed information on this interim change can be found in GN 1.5.3 – The Price Document) 1. The mandatory submission of a nomenclature fully measured according to an approved measurement method and inconsistencies between specifications and construction requirements for projects using forms pw-CF1, PW-CF3 and PW-CF5 for public works contracts shall constitute a compensation event. . . . .