I’m sure Greg told us not to start without a contract?
With an 80,000m3 hole in the ground, the Client has shown significant commitment to the ‘DUO – Central Park’ project, albeit with a different contractor! Brookfield Multiplex are now lined up to continue the project, but are yet to secure a contract. Although a contract is yet to be agreed, a site office has been established and considerable effort has been spent, along with $1 million, in preparing for the project. Before my arrival the anticipated start date slipped two months. Since my arrival it has slipped again, an unrelated matter I’m sure. Multiplex now expect to establish site in April and commence works on 2nd May. Confident that a contract will be reached, we are using this time to prepare for the task, refining the design on a daily basis. With such a rare opportunity to conduct such in depth preparations – nothing should go wrong once the work starts… right?
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Andrew, do you know anything about the circumstances that lead to the contractor change? Was the previous contract just to make a big hole or was it supposed to go further?
Presumably negotiations are ongoing but it would be interesting if the contract ended up not being awarded; possibly frustrating for you though! Damo had a similar issue that was sorted out in a gentlemanly fashion on the golf course I believe…
From what I can gather the original contractor was only ever going to be responsible for the bulk excavtion. I think exclusivity has been awarded to Multiplex, its now just a case of agreeing the scope and $.
Andrew,
Ray O’Rourke seemed to favour expensive meals and handshakes over contract niff naf, but not sure that is recommended! It did take a year to agree on a contract but we had an enabling works contract to keep us going.
Presumably all the work you are doing now is at risk? What assurance does multiplex have that it will start?
What are the plans for the project?
How were the ground anchors (I think that is what they are) tested?
Expensive meals and rounds of golf might be going on behind the scenes – I’ve certainly not been invited though!
Correct, all works thus far have been at some degree of risk, although there has been an initial payment received by Multiplex to assist with site set-up. I don’t have any info on the anchors at this stage as they were placed by a third party, but I will learn more as we de-stress some of them in May / June.
In an nut-shell, the project (Duo – Central park) is part of a larger development which is at varying levels of completeness. ‘Duo’ is split into two separate 18 storey towers which share a 4 storey basement. It is complicated somewhat by a heritage building which must be protected. There is therefore a complex cantilever structure which will allow one of the two towers to envelop the heritage building without impact, the design for this part of the structure is still being worked through, more to follow…
Andrew,
If the contract isn’t awarded you could just get the hole waterproof lined and turn it into a swimming pool…
In all seriousness though, have your project team been planning for no contract being awarded and other possible negotiations?
Fran.
Greg did indeed say not to start without a contract! it would appear you may have entered the murky world of letters of intent. Try googling: Ampleforth Abbey Trust vs Turner & Townsend Project Management Limited (2012) for a piece of case law which details what can go very wrong when a contact is not signed before works proceed on site. Regards Greg
Andy,
Interesting start. Why will you be destressing the ground anchors? What are the proposed works?
Not my area of expertise but I was interedsted to discuss similar pre-contract actions with Rich McClure. On Battersea Phase 3 there appears to be no contraect beteween the developer and Bouygues….all sorts of pre-contract instruments are being used; Letters of Limited Authority ( which are like letters of intent and as far as I know are barely worth the ink- an MoU has more contraual heft), and Pre-Construction Service Agreement, which is an instrutment in JCT but largley permits preparatory but not on site ( as far as I know)
So it’s ask McClure