1a.4 the european building market.pdf

8/10/2019 1A.4 The European Building Market.pdf

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ESDEP WG 1A:

STEEL CONSTRUCTION:

ECONOMIC &COMMERCIALFACTORS

Lecture 1A.4: The European Building

Market

OBJECTIVE/SCOPE

To explain both the need and the difficulty of harmonising construction in Europe in accordance with the Single

European Act.

PREREQUISITES

None.

RELATED LECTURES

None.

SUMMARY

Construction in Europe is a complex and important industry. At present legal, regulatory and contractual

frameworks vary significantly throughout the European Community. There are also considerable differences inprocurement methods. The framework and timetable for harmonisation is presented, highlighting theimportance of the Construction Products Directive. The role and development of the Eurocodes, European

Standards and the CE mark are summarised. The future implications and development of harmonisation are

postulated. Annex A provides a summary of current practice in some Member States.

1. INTRODUCTION

European construction is an extremely complex industry encompassing a wide range of activities andprofessions. It is also the largest employer in the European Community, employing 6,6% of the active

population and accounting for 9,1% of gross domestic product (GDP) in 1985, when the last survey wasconducted.

Major groups within the industry include public authorities such as local government or town planningauthorities, and private clients, contractors,specialistsub-contractors, design and technical service

professionals, consultants, building product manufacturers andspecialistsin the financial sector dealing with

construction and property.

The ways in which these groups operate and the controls and procedures they use vary considerably throughout

the European Community, according to a comprehensive study commissioned by the Commission of EuropeanCommunities (CEC) [1]. The study was originally instigated in response to a resolution calling for the
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standardisation of contracts and controls in the construction industry and the harmonisation of responsibility and

standards governing after-salesguarantees on housing; subsequently it was extended to encompass all buildingconstruction.

It has been widely recognised that construction presents the greatest challenge to European harmonisation. The

Commission decided to tackle this most difficult task first. Successful harmonisation of the construction

industry would be a major step towards the objectives of the Single European Act, which calls for a UnifiedEuropean Market by the end of 1992. A specialterminologyhas developed for harmonisation. Words are given

specific meanings that may have legal significance. For this reason a glossary of terms is given in Annex A.

2. CURRENT SITUATION

The report of the study examined the Construction Industry across Europe and found that most Member States

were in favour of harmonised controls and procedures [1]. Many also wished to see more precise definitions of

the responsibilities and liabilities of theparticipatingparties.

The report found that there was wide support for more measures to protect the buyer of the final productthrough aninsurancescheme. This is consistent with the objectives of the Single European Act, which are not

just confined to the establishment of a free market for the trading of goods and services, but also to improve

consumer protection,health,safety and the environment throughout the Community.

Information sheets containing details of the present methods of procurement, form of contracts, controls andresponsibilities used in the various Member States are given in Annex B. For these methods to be successfully

harmonised the report listed 14 "elements" which should beconsideredin any common Community rules [1].

These elements included:

1. Definition of the role of the client and the task of the engineer,2. Specific liability

3. Insurance (for professional liability)

4. Qualification ofcontractors,

5.

Design codes and specifications6. External inspections

7. Acceptance criteria

8. Contractual documents9. Tenders

The Community already recognises the professional qualifications of its members under the Treaty of Rome.

However, there is much diversity between Member States in the length of university courses and the amount of

practical experience required to become a professional engineer. The requirements for architects, on the other

hand, are less diverse and they may be the first profession to be fully harmonised within the ConstructionIndustry.

3. LEGISLATIVE FRAMEWORK AND TIMETABLE FOR

HARMONISATION

The European Parliament is at the top of the legislative framework. It debates all legislation and has the powerto amend or add further details to the proposed action. A typical proposal passes through the following stages:
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1. One of the 25 Directorates General of the Commission (CEC), or a sub-division of it responsible for the

particular area of policy, e.g. DG III responsible for the Internal Market and Industrial Affairs, will drawup the measures required to implement the proposed action.

2. The Council of Ministers agrees the proposal, often only by a majority vote.

3. The European Parliament debates the proposed legislation.

4. After the inclusion of any amendments or additions resulting from the debate, the Council of Ministersagrees the legislation.

5. The Commission then implements the legislation through directives, which are then adopted by each

Member State through legislation in their national parliaments and associated regulations,recommendations, guidelines or standards. This ensures that the autonomy of individual Member Statesis not threatened.

The way the Commission implements the removal of technical barriers to trade was dealt with by the European

Parliament under the New Approach or "Nouvelle Approach" Resolution. It was conceived to accelerate the

completion of the Single European Market and consists of a framework of directives that cover generalprinciples only. This approach allows each Member State the freedom to use their own design and

manufacturing traditions and skills which have often been developed from centuries of use.

The most fundamental directive affecting the Construction Industry is the Construction Products Directive. It

was conceived under the New Approach Resolution and applies to construction products for permanent use inbuilding or civil engineering works. A product is deemed fit for use and may carry the CE mark if it complies

with the Directive.

The Directive is implemented by relying on the product's conformity with harmonised standards or, in the

absence of such a standard, with European Technical Approvals (ETA) as proof of compliance with its essentialrequirements.

The harmonised standards and guidelines to establish European Technical Approvals are initiated as a mandate

to CEN from the Commission's Standing Committee on Construction (SCC). They may be accompanied by

interpretive documents to assist in the preparation of standards. It is at this stage that the first detailed technical

requirements are considered. The preparation of harmonised standards is undertaken by the EuropeanCommittee for Standardisation (CEN). It produces standards through the following structure:

Mandates for standards preparation are issued by the Commission of the European Communities (CEC) to the

European Committee for Standardisation (CEN). The CEN Technical Board (responsible for controlling the

standards programme and includes delegations from the CEN members, i.e. the natural standards organisations,establishes Technical Committees (TC's) (formed to prepare standards and includes representatives from the

CEN members with relevant technical expertise) and Technical Working Groups (TWG's) (formed to undertake

specific short term tasks for the committee and may include representatives from product manufacturers, trade

associations and standards authorities).

The timetable for the harmonisation process and the key legal steps are summarised in Table 1.

4. THE ROLE AND DEVELOPMENT OF THE EUROCODES

The Eurocodes and their associated European Standards provide a framework for the implementation of the

Construction Products Directive and the award of the CE mark. This is the reason for their urgent introduction

and their ENV status.


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They will only be given full EN status after a period of trial use in Member States and incorporation of

comments through the Technical Committee. The timetable for the issue of the Eurocodes as EN is not yetestablished but it is likely that the principal Eurocodes will achieve EN status during the period 1995-1998.

The framework of European Standards will take a similar time to implement. In the interim, Provisional Guides

are available as Annexes to the main Eurocodes, e.g. Annex T to Eurocode 3: Fabrication of Structural

Steelwork - Provisional Guide.

During the ENV phase, it is intended that the Eurocodes are implemented in Member States by NationalApplication Documents. These documents provide national values of partial safety factors and also incorporateany specific material requirements. For example:

In the UK the requirements for providing minimum ties to ensure adequate structural integrity and

resistance to accidental damage are maintained.

In France, there are certain clarifications on the detailed application of rules for calculating the semi-

rigid action of connections.

The Eurocodes present best available European design practice. They offer the opportunity of superseding and

improving upon traditional practices. They should therefore improve the overall economy of construction as

well as offering more consistent safety and reliability.

5. THE CE MARK

The CE mark may be used on products that comply with European Standards, or in the absence of suchstandards, European Technical Approvals as demonstration of compliance with the Construction Products

Directive (CPD). The objective behind this approach is to ensure compatibility between design, execution

procedures and products. In the transitional stages before the full harmonisation of standards, certain technicalspecifications which are recognised by the Community may also provide compliance. In exceptional cases,

certification of conformity by an approved body or a declaration of conformity by the manufacturer (provided

certain conditions are met involving approved bodies during the testing) is acceptable.

The use of the CE mark implies compliance with the essential requirements of the CPD which relate to:

1. mechanical resistance and stability2. safety in case of fire

3. health, hygiene and the environment

4. safety in use5. protection against noise

6. energy economy and heat retention

The use of the CE mark is not a guarantee of performance, only of minimum acceptable compliance with the

essential requirements listed above. Compared to other marks of quality it may well be a levelling down to a

lowest acceptable, safe quality. Other marks of quality, particularly those relating to performance beyond theessential requirements are therefore likely to remain in operation throughout Europe. However the situation is

intended to be sufficiently transparent for the individual purchaser to be able to weigh up quality versus price

for a particular product or structure.

6. THE FUTURE FOR CONSTRUCTION IN THE UNIFIED

EUROPEAN MARKET


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The emphasis on quality, even the lowest acceptable quality implied by the CE mark, gives greater priority to

the wishes of both the building owner and his tenant. For the designer and constructor it is likely to lead to thedevelopment of minimum guarantees and associated provisions for damages. Differential insurance premiums

may develop, favouring more reputable contractors and offering tangible benefit from quality. For the owner

there will be responsibilities for `fair play' towards both his contractors during construction and his tenants

during the service life of the building.

Harmonised standards imply larger potential markets and greater opportunities for economies of scale. Trade

should be simpler with reduced certification, documentation and administration. Minimum standards implybetter consumer protection which should lead to greater consumer confidence; this should act as a direct

stimulus to investment.

Of course the greater formality of harmonised, regulated construction is likely to create some problems,especially for small and medium enterprises. Generally, the cost of entry into steelwork construction will

increase because of the need to be conversant with the details of European legislation prior to trading. To the

benefit of the owner and tenant it will be more difficult to cut corners either in product standards or in safety in

execution.

There could be a concern that the introduction of harmonised construction may lead to a reduction in the range

and individuality of construction. In reality all the regulations are so general in nature that they are unlikely toinhibit individuality or innovation in any way. What may happen is that the establishment of a common designbase makes it easier to export and import forms of construction. Thus the only individual forms of construction

at risk are those which are inherently uneconomic and deserve to become extinct from commercial pressures.

7. CONCLUDING SUMMARY

European construction in a complex and important industry, accounting for 9% of Europe's GDP.

Harmonisation of European construction is an important but difficult part of the establishment of the

Unified European Market.

Currently there are significant differences in technical, legal, regulatory and contractual frameworks

between Member States.

The Single European Act in 1987 and the implementation of the Construction Products Directive in

1991 were important steps in the creation of the Unified European Market, notionally to be establishedby December 1992.

The Eurocodes and their associated European Standards provide the framework for the implementation

of the CPD and the award of the CE mark.

A harmonised construction market is expected to improve minimum standards of quality and assist the

transfer of best construction practice throughout Europe.

REFERENCES

[1] Mathurin, C. Controls, Contracts, Responsibilities and Insurance in Construction in the EuropeanCommunity, Commission of the European Communities, 1988.

Date Event Objective/Outcome

1957 Treaty of Rome EEC Established.

26.07.71 Public Works Directive Co-ordination of procedures for the award of

public works contract.


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07.05.85 New Approach to Technical Harmonisation

and Standards

Proposals to accelerate the completion of the

Single European Market.

10.07.85 Architects Directive Mutual recognition of qualifications.

01.07.87 Single European Act Removal of internal barriers to trade. Majority

voting introduced.

01.10.88 Resolution calling for Standardisation in theConstruction Industry

Standardisation of contracts and controls.Harmonisation of responsibility and standards

governing guarantees.

21.12.88 Construction Products Directive

(CPD)

Removal of technical barriers to trade.

Essential requirements to establish fitness foruse.

12.07.89 Safety at Work Directive Encourage improvement in health and safety at

work.

18.07.89 Public Works Directive Amendment to 1971 Directive.

21.10.89 Testing and Certification Regulations & Approved Bodies.

27.07.91 CPD in force Implemented by Member States.

31.12.92 Deadline for Unified European Market

TABLE 1 - Timetable for harmonisation

ANNEX A: QUESTIONNAIRE - BUILDING PROCUREMENT IN

EUROPE

Represented here are the following countries:

Austria

Belgium

Finland

France

Germany

Greece

Ireland

Italy


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Luxembourg

Spain

Sweden

United Kingdom

AUSTRIA

1. INTRODUCTION

Technical Standards are generally complete and coherent. Requirements for certification and quality marks

sometimes could cause expensive implications.

There is a good framework for planning and controlling the maintenance of structures during their lifetime.

2. CONTROLSTown planning regulations are tightly controlled. Obtaining planning permission can sometimes delayconstruction for a long time.

National technical building standards, e.g. ONORM and other rules and guidelines prepared by suchorganisations as OIAV, OSTV in some cases are established by federal law.

There are different building laws "Bauordnungen" in the Austrian Federal Countries and some Towns covering

administrative regulations and execution of construction. In those laws, there are additional directives forcertain types of construction such as schools, warehouses, car parks, theatres, etc. and for some actions, e.g. fire.

In addition to compulsory special rules for energy supply, environmental protection, technical and mechanical

services and installations, there are industrial guidelines which only have to be followed when contractually

agreed.

Where materials and components are not generally used, special federal country government approval or test

marks are required. In addition, formal quality assurance is necessary for some materials and components thatare incorporated into permanent works. Government approval, test marks and quality assurance have to be

executed by authorised organisations such as technical institutes, consulting engineers, etc.

3. CONTRACTS

3. General

Public sector contracts always adopt specified standard forms. In the private sector modifications to those

standard forms are usual. The principal standard form is regulated in ONORM A 2050 and consecutive

standards. Multi-storey-buildings relate to the LB-H "Leistungsbeschreibung Hochbau".

Pre-qualification is only adopted for large, complex or unusual projects in order to check the capability andcraftsmanship of contractors. It is used in conjunction with the restricted tender procedures.


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2. Forms of Contract

(a)Uni t Pri ce Contract

Unit price contracts require a description of works with detailed technical specifications and a bill of quantities.

Fixed quantities are defined for all items on the bill.

(b)Lump Sum Contract

Lump sum contracts require a general description of the works with a programme of execution. This type of

contract is used in order to find the best technical, economic and functional solution.

4. MAIN METHODS OF PROCUREMENT

Separation of Design and Construction is usual

(a)I ndividual Contracting

The client places separate contracts with the designer and several package contractors, in order to separatedesign and construction responsibilities.

(b)General Contracting

(i) Design and construction arranged separately by the client. The general contractor is responsible for theexecution of the total scope of work and undertakes the main parts of the work itself. He also places individual

packages to subcontractors. Detailed design is sometimes the responsibility of the general contractor.

(ii) 'Design and Build' construction: the general contractor takes responsibility for the complete design andconstruction. He places several individual package contracts with subcontractors and carries out the main part of

the work himself.

(c)Management Contracting

The management contractor undertakes responsibility for all design and execution works, but does not do any

work directly. The work is carried out by a series of contractors who are contractually bound to the management

contractor.

The most popular forms in Austria are (a) and (b i).

5. RESPONSIBILITIES

There are general clear divisions of responsibilities.

The client is responsible for contract award, taking over the works when they are completed and payments.

The architect or the master-building ("Baumeister") is responsible for pre-design, detailed design and drawings,obtaining planning permission, defining bills of quantities, tendering and site management including

architectural and technical supervision. He has the principal responsibility for quality, safety and compliance

with the law.


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Consulting engineers are responsible for the technical input in their specialised fields, such as structural design,

etc. The responsibilities cover detailed design, drawings, tendering and supervision.

The contractor is responsible to the client for carrying out the work, warranties, maintaining programme and forsome aspects of detailed design and shop drawings.

6. INSURANCE AND GUARANTEES

It is not general practice to insure against damage during execution. However, architects and consulting

engineers are constrained to carry professional insurance.

Generally, the client is offered a guarantee on the completion of the works for three to five years. Grave defects

can be asserted in thirty five years.

7. FUTURE IMPROVEMENTS

Unification of different building laws should be the main target for Austria.

BELGIUM

1. INTRODUCTION

Technical Standards are generally complete and coherent. However, requirements for certification and qualitymarks are sometimes requested. Specifications are not always updated as frequently as is desirable.

2. CONTROLS

The procedure of obtaining building permits can sometimes delay construction for a long period of time.

National building standards, e.g. NBN, EN, ENV, and guidelines prepared by such organisations as CSTC,

Technical Agreement (Union Belge pour l'Agrement technique dans la Construction) have to be respected.

For some buildings, special requirements in relation with workers safety have to be respected.

Testing by regional Authorities can be required in some cases (Charpy, welding tests ...).

3. CONTRACTS

1. Public Sector

Public sector contracts always adopt specified standard forms, e.g. "Cahier special des charges"

(Special conditions of contract).

There are 5 methods of tendering:

open tender: the contract is awarded to the contractor offering the lowest price. Any contractorcertified for the type of construction work concerned may tender.


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limited tender: same procedure as open tender, however, reserved for a limited number of

selected contractors.

general call for tender: the contract is awarded to the best bid in terms of price, technicalsolution proposed and financial soundness of the contractor.

restricted call for tender: same procedure as the general call for tender, however, reserved for a

limited number of contractors.

by mutual agreement: the contract is awarded to a contractor who is asked to submit a bid. Thisprocedure is only used in a limited number of cases and remains an exception.

2. Private Sector

In the private sector the principal standard form is the "Cahier des charges" (conditions of

contract).

3. Forms of contract


Unit price contracts require a description of works with detailed technical specifications and a bill of quantities.

Fixed prices are defined for all items on the bill. The risk on quantities is with the client.


Lump sum contracts require a general description of the works with a programme of construction. The risk on

quantities is with the contractor. This type of contract is normally used for 'turnkey' projects by generalcontractors in order to find the best technical, economic and functional solution.



The client places separate contracts with the designer and several package contractors. Design and construction

responsibilities are separate.


Usually the contracts are lump sum and fixed price.

The general contractor takes responsibility for the complete design and construction. He places several

individual package contracts with subcontractors and carries out the main part of the work himself.

(c)Project Manager Contracting

The Project Manager undertakes responsibility for all design and construction works, but does not do any work

directly. The work is carried out by a series of contractors who are contractually bound to the project manager

who is acting on behalf of the client. Sometimes, these contracts are on a percentage of global cost.

The most popular forms of contract are (a) and (b).


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5. LIABILITIES

5. Contractors

(a)L iabili ty Before Acceptance (" reception" )

All contractors are subject to the principles of contractual liability in ordinary law.

Example: completion of execution within the contractual deadline.

(b)L iabili ty After Acceptance

The contractor is liable for:

- Decennial liability

Civil code provides for a special liability of 10 years (for stability aspects only).

This liability is public policy which means that it is forbidden to attenuate it by conventional clauses.

So-called latent defects considered minor which are not discovered at the time of acceptance. The defectslisted in this category are those which do not affect the stability of a building or of a construction.

This liability if not public policy.

Conditions for liability are:

a contract referring to the "gros oeuvre" must exist.

a serious defect affecting the solidity or the stability of a building must be pointed out.

5. Architects

Architects are subject to liability under ordinary law applicable to contractors as well as to decennial liability.

They are not liable for tasks assigned to a specialised design office (design and planning which is outside their

normal qualification) except for the incorporation of these designs into the entire plan.

5. Sharing out of liabilities

The architect is the project leader, in charge of designing the building. In principle, any design defect is,therefore, the exclusive liability of the architect.

The contractor is responsible for any defects which stem from the implementation of the plans drafted by the

architect, or defects linked with the execution of the construction project.

4. Sub-contracting

Architects and contractors are solely liable to the contracting authority for any errors made by their sub-

contractors.


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Sub-contractors are only liable to the contracting authority if a contractual relationship exists between them.


Architects and contractors ordinarily subscribe to an insurance policy designed to cover their commitments in

connection with the decennial liability. Furthermore, the contractors are required to subscribe to a civil liabilityinsurance covering "company risks".

In the case of construction projects carried out on behalf of the State and for the majority of important

construction projects, the contracting authority specifies in its tender that two additional policies have to be

subscribed:

An "all risks at the work site" insurance policy covering any risks inherent in a construction site. It includes:

financial compensation for damages incurred to insured property

civil liability towards third parties

proximity disturbances, i.e. any damage incurred by adjacent buildings

This insurance takes effect at the beginning of execution and ends when the building is occupied or with the

provisional acceptance.

It is ordinarily subscribed by the general contractor on his behalf and on behalf of the sub-contractors. Howeverit may also be subscribed by the contracting authority or the developer.

So-called "liability insurance and inspections" guaranteeing compensation for damage to the building whichoccurs within the ten-year period following acceptance of the building irrespective of the subscriber of the

policy (contractor, sub-contractors, architects, engineers, contracting authorities).

The guarantee of the liability insurance and inspections may be implemented only on the condition that the

construction work which is the object of the guarantees is submitted for inspection to an independent body - theSECO Bureau - which is in charge of inspecting design and execution of works.

FINLAND

1. INTRODUCTION

Contractual methods have been long established, but their relative importance is changing. Construction

management agreements are becoming more popular and system unit procurement is being introduced as amethod of procurement.

In product approval, a change of policy is taking place. Rules that demanded an approval by one specific body

are being abolished in preparation for the European Economic Space Agreement. This is most notably the case

in electric appliances but also elsewhere.

2. CONTROLS


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Every building needs a building permit admitted by the local authorities before it can be built. The local

authorities check that the building is designed in accordance with the valid technical and city planningregulations. Hierarchically the highest level of regulation is incorporated into the Building Law and Byelaw,

which cover both the technical and city planning rules.

The technical regulations are given in the National Building Code, which the Ministry of the Environment

issues. The Building Code includes two kinds of regulations: requirements that are compulsory and guidelines,which present one approved solution to a specific problem In practice, the guidelines are semi-compulsory

because it may be difficult to persuade the local authorities to approve a solution not presented in the guidelinesalthough they have the right to do so if the solution satisfies the compulsory requirements.

Several ministries and National Boards (e.g. the National Board for Housing) have their own technical rules

governing special types of buildings (housing, hotels, etc.). These rules, however, are being abolished and alltechnical regulations will be presented in the National Building Code.

The guidelines in the Building Code do not give guidance to all problems that arise in building. In these cases it

is customary to refer to recommendations issued by various industrial organisations or to standards issued by

SFS, the Finnish Standards' Organisation.

The local authorities can also make local rules additional to the national regulations. The local rules mostlycover subjects related to city planning: the architecture of buildings, the size of building site, sewage treatment,

fire protection, etc. City plans have lagged behind in many major cities, which has been an obstacle to building

in these areas.

The Building Code specifies standards (SFS-standards) for several products that have to be met before a productcan be approved. Such materials are, for instance, heat insulation and fire protection materials. The guidelines

also specify quality control systems for steel, concrete and glued timber structures. The producer has to be

accepted and inspected by a special quality control organisation (TLT for steel structures) or the satisfactory

quality has to be proved by quality control documents in every single case.

3. CONTRACTS

The standard form used in most contracts is the Contract Agreement (RT 16-10193) prepared by theAssociation of Employers of Finland together with several other organisations. This form is used together with

General Contract Conditions (YSE 1983) prepared by the same organisations.


(a)Traditional Contracting

Design and building are separated in this form of procurement. The client has separate agreements witharchitects, engineers and contractors. The main contractor is responsible for carrying out the actual building

work, procurement of labour and materials and for co-ordinating the work of sub-contractors and materialsuppliers. The sub-contractors can have their contracts either directly with the client or with the main contractor

This form of contracting is the most widely used at the moment, but it is losing ground both to management

contracting and system unit procurement.

In traditional contracting, the contractor is payed either on a lump sum or unit price basis. Unit price contracts

are often used in industrial buildings and repair works, where the full extent of work is not exactly known whenthe contract agreement is signed.


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(b)Management Contracting

In this form of contracting, the client has an agreement with the management contactor who is responsible for

co-ordinating the design of the project and for co-ordinating the actual construction work, which is carried outby sub-contractors. The sub-contractors are contractually bound to the management contractor.

The management contractor is usually paid on a cost plus fee basis.

(c)Design and Build

The contractor is responsible both for the design and construction of the building.

The contractor may also enlarge his responsibilities to the procurement of the building site and marketing of the

building, in which case he becomes a developer. This is often the case in office buildings and housing projects.

(d)System Uni t Procurement

The disadvantage of traditional methods of procurement, where the work is carried out according to detailedplans prepared by the client and his consultants, is that they do not fully utilise the building component

producers' and sub-contractors' know-how in developing the most cost-effective solutions for a specific buildingproject. A new form of procurement called "System Unit Procurement" has been developed to overcome thisdisadvantage. In this form of procurement the client gives functional specifications for the building units to be

procured and the material supplier or sub-contractor is responsible for the design and erection of the unit.

5. RESPONSIBILITIES

See items 4 and 6.


Unless the documents state otherwise, the contractor is obliged to take out a fire insurance that covers thebuilding materials, supplies and components that can be damaged by fire.

He is also obliged to given the client a guarantee for fulfilling the contract and refunding advance payments. If

not stated otherwise, the guarantee is 10% of the contract sum during the building operations and 2% during the

guarantee period.

The guarantee period is one year if not stated otherwise in the documents. The contractor is, after the guarantee

period, still responsible for such defects, omissions, inconveniences or incomplete work that the client could not

reasonably notice during the handing-over inspection or guarantee period. This responsibility terminates 10

years after the handing-over inspection. There is a tendency for the courts of law to include an increasingamount of defects within this extended period of guarantee.

The law or the General Contract Conditions for Consultants (KSE 1983) do not require a professional insurance

for the architects and engineers. It is common practice for them to take a voluntary professional insurance.

The upper limit of the damages a consultant may have to pay for professional omissions is equal to the

consultants fee, if not stated otherwise in the contract documents. His responsibility covers the same periods oftime according to the same principles as those of the contractors.


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FRANCE

1. INTRODUCTION

All buildings are subject to standards, technical instructions, standardised technical documents, professionalrules of application, or any other statutory tests which enable all the building clauses to be defined.

2. INSPECTIONS

The construction of new buildings is subject to a building license being obtained, which is issued today by the

mayor of the district*where the project is located. The license application must contain a description of the

project (purpose, number of M2...) as well as the main architectural aspects (type of structure, architectural

concept ...).

After obtaining the licence, the main building contractor draws up a user file on the technical specifications and

the drawings of the operation. In this context the materials are chosen according to:

standards for the products, e.g. steel sections

technical instructions or standardised technical documents (DTU) for building systems, e.g. curtain wallelevations, matching sheet with trapezoidal corrugations for flat floors and ceilings

particular specifications for certain types of building (energy, buildings with public access)

regional requirements for certain products, e.g. thatched roofing, bricks, etc.

For all public-sector contracts (Government, communes, departments and regions) there is a "public-sector

contracts code" giving the statutory reference texts, for example the computational regulations.

Certification (or label adoption) is not very widespread in France, except for certain products and industries(e.g. nuclear power stations).

3. CONTRACT

1. General

(a)Publ ic-sector Contr act

All public-sector contracts are subject to a "public-sector contracts code". Furthermore, certain managements or

national enterprises (SNCF*, EDF**) have issued their own technical specifications and material inspectionprocedures (stipulation of approved suppliers, administrative documents, quality assurance procedure,

qualifying firms).

The opening up of the European market means that today foreign firms are able to tender for this type of

contract, which was often not possible before.

(b)Pri vate Contract


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There is a "private contracts code" which defines relations between customers and firms. The clauses of the

contract are drawn up by the main building contractor in agreement with the building owner. It is possible toissue only one call to tender to a limited number of firms, but it is also possible to negotiate with only one firm

(a so-called order "by private contract".

2. Form of Contract

Contracts usually include price review clauses defined by official formulae and indices. It is possible, however,

to come across contracts with firm, non-renewable prices. This is true for small, short-term sites.

4. MAIN METHODS OF OBTAINING CONTRACTS

There are mainly three types of contract entered into:

4. General Firm

A firm commits itself to the building price and deadline. It is responsible for the whole site, sub-contractscertain works to other firms and ensures co-ordination throughout.

It is an easy solution for the end customer and the architect because they only have dealings with a single

manager. In return, this gives the firm considerable power in negotiating with sub-contractors for certaintechnical and economic choices and enables him in the end to increase his margin through negotiation with sub-

contractors. This type of contract corresponds to "turnkey" contracts.

4. Contract in Separate Lots

The building owner and architect define lots of works for which they issue separate calls to tender to firms. This

formula means that the most advantageous prices can often by obtained for each lot. It requires in return great

co-ordination on the site, which the architects are not always able to ensure since there are a number ofmanagers.

There are formulae which limit the number of lots and, therefore, the number of firms.

Moreover, general building firms are increasingly involved in property development. They buy land on which

they construct a building for a customer. This formula generally gives them better margins.

5. RESPONSIBILITIES

As a rule, responsibilities are clearly defined.

The building owner, who is often the building's customer, is responsible for paying the firms and the mainbuilding contractor (architect + BBT

*). He generally calls on an inspection office (e.g. Veritas, Socotec) for the

technical aspects to check that the building complies with regulations.

There are different types of tasks for the architect, but he is generally responsible for choosing and following-up

technical solutions. He chooses a BBT* who is responsible for the calculation of the works, the technical design

(electricity, fluids, etc.).

Finally, firms are responsible for performance on the site. They are responsible for assembly in compliance with

the rules and often for implementing the site plans (a task which can be devolved to the architect in some cases).


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6. INSURANCE AND GUARANTEE

In general, the customer is insured for damage during building. In addition, the architect and the BBT*

underwrite insurance covering risks associated with the design of the work.

One specifically French detail is the existence of the "ten-year" guarantee affecting certain parts of the building.This guarantee period is the result of a law voted in 1978. The various guarantee periods are, therefore, as

follows (as from the date of acceptance of the works to the end of building):

two years for parts which come under the design and completion of the building (e.g. paper wall covering)

ten years for the entire framework and functions of use of the building (roofing, floors)

thirty years for parts which involve people's safety (balconies, structural elements)

This is a so-called "public liability" guarantee.

Furthermore, there is a one-year guarantee after acceptance of the works on the entire building called a flawless

completion guarantee. In fact, the situation is a complex one because the ten-year guarantee affects both theassembly firms and the manufacturers of the materials.

In the event of disputes, the guarantees can be transferred from the firm to the manufacturer. Manufacturers ofproducts may, therefore, be responsible for the use of their own product.

7. FUTURE CHANGES

The future enactment of the European Construction Products Directive will change guarantee and

manufacturers' liability criteria.

In this instance, it is possible that the architects may be obliged to have a more technical vision of the use ofmaterials because their responsibility will be more heavily involved.

Finally, problems of maintenance, life cycle and demolition of future buildings will have to be considered whenbuilding, which will bring about changes in building techniques.

GERMANY

1. INTRODUCTION

Technical standards are generally complete and coherent. However, requirements for certification and qualitymarks sometimes have expensive implications. Specifications are not always updated as frequently as isdesirable.

There is a good framework for planning and controlling the maintenance of structures during their life.

2. CONTROLS

Town planning regulations are tightly controlled. Obtaining planning permission can sometimes delayconstruction for a long period of time.


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National technical building standards, e.g. DIN, and other rules and guidelines prepared by such organisations

as DASt, DAf, StB, IfBT, Argebau and STLB are established by government edict.

There are also state building laws covering administrative regulations and execution of construction. There areadditional directives for certain types of construction such as schools, warehouses, garages, assembly halls, etc.

In addition to compulsory special rules for energy supply, environmental protection, technical and mechanical

services and installations, there are industrial guidelines, e.g. AGI, VDI, ISO, which only have to be followed

when contractually agreed.

Where materials and components are not generally used special government approval or test marks are required.In addition, formal quality assurance is necessary for some materials and components that are incorporated into

permanent works. Materials and components that require test marks or quality assurance are listed in relevant

government regulations. Government approval, test marks and quality assurance have to be executed byauthorised organisations such as technical institutes or acknowledged academic experts.

3. CONTRACTS

2.

General

Public sector contracts always adopt specified standard forms. In the private sector modifications to these

standard forms are possible. The principal standard form is the "Verdingungsordnung fur Bauleistungen"

(VOB). Part A defines the procedures prior to award of contract. Parts B and C provide general conditions of

contract and the technical requirements for construction.

Pre-qualification procedures are only adopted for large, complex or unusual projects in order to check thecapability and craftsmanship of contractors. They are used in conjunction with tender procedures.


(a)Unit Pr ice Contract

Unit price contracts require a description of works with detailed technical specifications and a

bill of quantities. Fixed prices are defined for all items on the bill. The risk on quantities is withthe client.


Lump sum contracts require a general description of the works with a programme of

construction. The risk on quantities is with the contractor. This type of contract is normally used

for 'turnkey' projects by general contracts in order to find the best technical, economic andfunctional solution.

4. METHODS OF PROCUREMENT


Here the client places separate contracts with the designer and several package contractors.Design and construction responsibilities are separate.


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Usually these contracts are lump sum and fixed price.

(i) Design and construction are arranged separately by the client. The general contractor is

responsible for the execution of the total scope of work and undertakes th main parts of the work.He also places individual packages to subcontractors. Detailed design is often the responsibility

of the general contractor.

(ii) 'Design and build' construction

Here, the general contractor takes responsibility for the complete design and construction. He

places several individual package contracts with subcontractors and carries out the main part ofthe work himself. The main field of application is for industrial buildings.


The management contractor undertakes responsibility for all design and construction works, but

does not do any work directly. The work is carried out by a series of contractors who are

contractually bound to the management contractor who is fulfilling the role of the client.Sometimes these contracts are on a cost plus fee basis.

The most popular forms of contract are (a) and (bi).

5. RESPONSIBILITIES


The client is responsible for contract award, taking over the works when they are completed and

payments.

The architect is responsible for pre-design, detailed design and drawings, obtaining planningpermission, defining bills of quantities, tendering and site management including architectural

and technical supervision. He has the principal responsibility for quality, safety and compliance

with the law.

Engineers are responsible for the technical input in their specialised fields, such as structuraldesign, services, etc. The responsibilities cover detailed design, drawings, tendering and

supervision.

The contractor is responsible to the client for carrying out the work, warranties, maintaining

programme and for some aspects of detailed design and shop drawings. Subcontractors have the

same responsibilities as the contractor.


It is not general practice to insure against damage during construction.

Architects are required to carry professional insurance. The contractors are required to carry

insurance for responsibilities under civil law.


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Generally, the client is offered a two year guarantee on the completion of the works. This is

regarded as being too advantageous to the contractors and offering insufficient protection to theclient.


Means are being sought to make contractors more responsible.

More emphasis will be given to providing a practical education for designers and builders.

Specifications are becoming more practical and comprehensible.

It is likely that the law will be changed imposing more responsibility on the contractor in the

case of defects after construction.

More research is intended on the behaviour of buildings during their service lives so thatshortcomings in construction that lead to subsequent malfunction of the building can be

identified. The outcome of this work will be transmitted primarily to the contractors to improve

the effective quality of construction.

GREECE

1. INTRODUCTION

National technical codes are not generally complete for all kinds of structures, leading to the use

of foreign ones, e.g. DIN, etc. Some of them are not always updated as frequently as is desirable.

2. CONTROLS

There are strict planning regulations for all kinds of areas (towns, villages, seasides, etc.).

There are also additional directives for certain types of structures such as schools, warehouses,

garages, industrial buildings, hospitals, hotels, etc.

It is always necessary for all types of construction to obtain permission from public authorities.

The whole design of structures is covered by compulsory national technical codes (or in somecases by foreign ones, e.g. DIN). In addition, there are also guidelines which only have to be

followed when contractually agreed.

Formal quality assurance is necessary for some materials that are incorporated into permanentworks. All the test marks or quality assurance required have to be executed by authorised

organisations.

3. CONTRACTS

Public sector contracts adopt specified standard forms, while in the private sector any differenttype of form is possible. The forms of contract are as follows:

(a)Unit Pr ice Contract


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Unit price contracts require a description of works with detailed technical specifications and a

bill of quantities. Fixed prices are defined for all items on the bill. The risk on quantities is withthe client.


Lump sum contracts require a general description of the works with a programme of

construction. The risk on quantities is with the contractor.

This type of contract is normally used for 'turnkey' projects by general contractors in order to

find the best technical, economic and functional solution.



Here the client places separate contracts with the designer and several package contractors.Design and construction responsibilities are separate.


Usually these contracts are lump sum and fixed price.

(i) Design and construction are arranged separately by the client. The general contractor is

responsible for the execution of the total scope of work and undertakes the main parts of thework. He also places individual packages to sub-contractors. Detailed design is often the

responsibility of the general contractor.

(ii) 'Design and build' construction

Here the general contractor takes responsibility for the complete design and construction. He

places several individual package contracts with subcontractors and carries out the main part ofthe work himself.


The management contractor undertakes responsibility for all design and construction works, but

does not do any work directly. The work is carried out by a series of contractors who are

contractually bound to the management contractor, who is fulfilling the role of the client.

The most popular forms of contract in the private or in public sector are (a) and (bi).

5. RESPONSIBILITIES


The client is responsible for contract award, taking over the works when they are completed and

payments.


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The architect is responsible for pre-design, detailed design and drawings, obtaining planning

permission according to the laws, defining bills of quantities, tendering and site managementincluding architectural and technical supervision. He has the principal responsibility for quality,

safety and compliance with the law.

Engineers are responsible for the technical input in their specialised fields, such as structural

design, etc. The responsibilities cover detailed design, drawings, tendering and supervision.

The contractor is responsible to the client for carrying out the work, warranties, maintainingprogramme and for some aspects of detailed design and shop drawings. Sub-contractors have thesame responsibilities as the contractor.


There are no legal requirements, but in order to insure against damage during construction, the

client can buy a professional insurance for a two year period.

Generally, the client is offered a short period (one to five years) guarantee on the completion of

the works.


Means are being sought to make contractors generally more responsible.

IRELAND

1. INTRODUCTION

The construction industry in Ireland is effectively divided into three sectors, with contractorstending to specialise in one of these:

(a) Civil engineering construction - mostly projects funded by central government in the areas of

roads, bridges, water supply, sewerage, etc.

(b) General building construction - mostly private developments, with exceptions such as schoolsand hospitals. On local authority or government projects, there is an increasing tendency for

developers to construct and lease back.

(c) Housing construction - largely speculative. Local authority involvement has been severely

curtailed in recent years.

2. CONTROL

Planning is governed by a succession of Planning Acts and Planning Regulations issued

thereunder. These require local authorities to prepare and adopt development plans. Mostdevelopments require the formal permission of the planning authorities.

Building Regulations (1991) were issued under the Building Control Act (1990) under which the

large local authorities were invested with the power of Building Control Authorities, with powers


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of inspection and enforcement. These authorities are also Fire Authorities. Certain aspects

relating to the nature of and responsibility for, Certificates of Compliance with the BuildingRegulations are still under discussion between Building Control Authorities and the professional

bodies representing consulting engineers and architects.

Health and safety is governed by the Health, Safety and Welfare at Work Act (1989) and EC

safety directives embodied in the Safety, Health and Welfare at Work Regulations (1993). Theserequire employers to carry out an analysis of hazards in the workplace, and include for casual,

temporary as well as permanent employees. Previous legislation on health and safety related inthe main to industrial employment, the principal acts being the Factories Act (1955) and Safety

in Industry Act (1980) under which regulations such as The Construction (Safety, Health andWelfare) Regulations (1975) were enacted. These remain in force.

Design and materials are governed by standards issued by the National Standards Authority of

Ireland (NSAI). Where NSAI do not provide a standard, British Standards (BS) or International

Standards (ISO) are frequently substituted. NSAI have responsibility for the issue of Eurocodes

and associated National Application Documents in Ireland.

3. CONTRACTS(a) RIAI Contract conditions 1989 - with quantities/

- without quantities

Used in conjunction with:

Subcontract conditions issued by the Construction Industry Federation for use in conjunctionwith the RIAI conditions of contract

Quantities measured in accordance with SMM6 (1976), SMM7 (1988) and PCMI.

(b) GDLA Contract conditions 1982 - with quantities/

- without quantities


Subcontract conditions issued by the Construction Industry Federation for use in conjunction

with the GDLA conditions of contract

Quantities measured in accordance with SMM6, SMM7 and POMI.

(c) IEI Conditions of contract 1980


ICE subcontract conditions

Quantities measured in accordance with CESMM2 or CESMM3.

also


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RISI Short Form Contract - for minor works.

Abbreviations

RIAI - Royal Institution of Architects of Ireland.

GDLA - Government department and local authorities.

IEI - Institution of Engineers of Ireland.

ICE - Institution of Civil Engineers (UK).

SMM6 - Standard Method of measurement of Building Works, Sixth Edition (1979)

SMM7 - Standard Method of Measurement of Building Works, Seventh Edition (1988).

Royal Institution of Chartered Surveyors and Building Employers Federation (UK).

CESMM2 - Civil Engineering Standard Method of Measurement, Third Edition (1985)

CESMM3 - Civil Engineering Standard Method of Measurement, Third Edition (1992).

Institution of Civil Engineers and Federation of Civil Engineering Contractors (UK).

POMI - Principles of Measurement (International).

Royal Institute of Chartered Surveyors (UK).


(a) Negotiated tendering

(b) Open tendering

(c) Selective list

The IEI form of contract nearly always entails open tendering. Selected tendering is frequentlyadopted with RIAI and GDLA contract conditions. The selected list typically extends to 6 to 8

firms, and sometimes entails pre-qualification.

5. RESPONSIBILITIES

The various forms of contract are broadly similar in regard to responsibilities placed on the

parties to the tender - with the exception of 'Design and Build'.

In building contracts, the architect is generally responsible for development of the design brief,

for obtaining permissions, for managing the design through its stages, for site supervision and

budgetary control. To assist in the discharge of these responsibilities the architect will usuallyrecommend to the client the appointment of civil or structural engineers, service engineers and

quantity surveyors, reporting to the architect.


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In civil engineering contracts, the engineer has primary responsibility for all aspects of design,

site supervision and budgetary control.

In both types of contract, the main responsibility for safety during execution lies with thecontractor.

6. INSURANCES AND GUARANTEES

(a) Employees liability insurance

(b) Public liability insurance

(c) All-risk insurance

(d) Non-negligence insurance

(e) Contract guarantee bonds

7. FUTURE DEVELOPMENTS

(a) Introduction of Eurocodes into design practice.

(b) Implementation of EC safety legislation, e.g. the Construction Sites Directive 1992, placing

responsibilities for Health and Safety on engineering and architectural consultants as well as on

the contractor.

(c) Resolution of outstanding issues relating to Certificates of Compliance with the BuildingRegulations.

(d) Greater prevalence of 'Design and Build'.

ITALY

1. INTRODUCTION

Technical standards are generally complete and coherent. There are problems about qualitymarks of many products: this depends on the fact that in Italy CE marks are not yet adopted and

there is no law about the "Quality Mark".

Frameworks for controlling and planning the maintenance of structures are adopted for some ofthe largest companies only, such as State Railways and State Highways.

2. CONTROLS

Town planning regulations are not often tightly controlled especially in the south of Italy.

Quality marks are not yet defined by law but many products have a proper quality mark.

Obtaining planning permission is difficult.


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National building standards, e.g. UNI, and other rules and guidelines prepared by different

organisations such as CAR, are established by government edict.

There are some other building laws covering administrative regulations and execution ofconstruction. There are additional directives for certain types of construction such as schools,

hospitals, garages, etc.

Where materials and components are not generally used, special government approval is

required. In addition, formal quality assurance is necessary for some materials and componentsthat are incorporated into permanent works.

Government approval, test marks and quality assurance have to be executed by authorised

organisations such as technical institutes.

3. General

Public sector contracts always adopt specified standard forms. In the private sector modifications are frequent.

The principal standard form is the "Capitolato generale e speciale per l'appalto dei Lavori pubblici". The firstpart defines procedures prior to the award of the contract. The second and third parts provide general conditions

of contract and technical requirements for construction.

The weak point of many contracts concerns the requirements for drawings and the description of the scope of

work which are often imprecise. This lack of precision causes claims, delays, etc.

Pre-qualification procedures are widely adopted. In Italy there is a specific "Builders List" - "Albo Nazionaledei Costruttori" - where the companies are included in relation to their capability to undertake in different

works, such as reinforced concrete, earth movements, buildings, etc. and in relation to their financial means.



Unit price contracts require a description of works with detailed technical specifications and a rough bill of

quantities. The risk on quantities is with the client. Programme of execution is required.


Lump sum contracts require a description of works with detailed technical specifications. A programme of

execution is also required. The risk on quantities is with the contractor.

(c) A variant of the second type is the lump sum contract related to a bill of quantities with unit prices.

Variations required by the client are regulated in conformity to unit fixed prices: otherwise the risk on quantitiesis with the contractor.



The client places separate contacts with the designers and several package contractors. Design and construction

responsibilities are separated


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There are unit prices and lump sum contracts, depending on the scope of works.

(i) Design and Construction Arranged Separately by the Client

The general contractor is responsible for the execution of the total scope of work and undertakes the main partsof the works himself. He also places individual packages to subcontractors. Workshop design is often the

responsibility of the contractor.

(ii) 'Design and Build' Construction

The general contractor takes responsibility for the complete design and construction. He places several

individual package contracts with sub-contractors and carries out the main part of the work himself. This is themain field of application of industrial buildings.

(iii) Management Contracting

Rarely used in Italy

The most popular forms of contract are (a) and (bi)

4. RESPONSIBILITIES

Italian laws and regulations give a clear division of responsibilities. Problems arise with the instructions for a

complete, finished work. Often, in fact, drawings and specifications are incomplete and not detailed enough;

this causes, as mentioned before, controversies among the parties and delays.

The client is responsible for the contract award, tendering, taking over the works when they are completed, and

payments.

The architect is responsible for pre-design, detailed design and architectural drawings, obtaining planning

permission, architectural and technical supervision, quality, compliance with the law relating to his role

(architectural).

The clerk of works, often an engineer, has the responsibility for the site management and the erection of thebuilding according to the approved drawings, the control of the bill of quantities, the control of the programme,

safety and compliance with the law relating to his role.

The engineers are responsible for the technical inputs in their specialised fields, such as structural design,

services, etc.

The contractor is responsible to the client for carrying out the work, warranties, maintaining the programme,

and for shop drawings. The contractor is responsible to the client for the subcontractors.


Contractors are required to be insured against damage during the construction and for responsibilities undercivil law.


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Architects and engineers are not required to carry professional insurance (if not carried by the contractor).

The contractor must offer a guarantee valid for ten years as far as serious defects of the construction are

concerned.

6. FUTURE DEVELOPMENTS

Many changes are foreseen and requested in the future, as outlined below:

Drawings and specifications must be ready " for construction" at the time of the award, in order to avoid

claims and disputes during execution and further delays and damages.

Architects and engineers must be insured against damages.

For public works, an independent surveyor dedicated to the control of quality and the bill of quantities isstrongly required.

LUXEMBOURG

1. CONTROLS

Apart from building permits, administrative approvals for building products are not required in Luxembourg. As

Luxembourg has no building standards, reference is normally made to Euronorms (EN) and Eurocodes or to thestandards of neighbouring countries. Quality certificates from an acknowledged foreign testing institute are

often requested.

2. CONTRACTS

Pubic sector contracts always adopt specific standard forms. In the private sector modifications to thesestandard forms are possible. The German standard form "Verdingungsordnung fur Bauleistungen" is commonly

used as a basis for contracts.

Usually contracts are awarded in the form of unit price contracts. Lump sum contracts are rather an exception.


In public works, individual contracting is the rule. The private sector may use general contacting as a method of

procurement.

4. RESPONSIBILITIES

The architect and the engineer are responsible for the design and the bill of quantities.

The contractor is responsible for the executed work or the delivered equipment according to specifications,

drawings and bill of quantities.



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In addition to the insurance for responsibility under civil law, major contracts are executed under an all-risks

insurance, covering damage during construction.

Guarantees are at two levels, a two-year guarantee for secondary work and a ten-year guarantee for thestructural part of buildings.

SPAIN

1. Controls

1. Planning and Approvals

The seventeen autonomous communities (comunidad autonoma) or regional governments, not the State, have

ultimate responsibility for planning and control of construction. The powers are exercised by the localauthorities (ayuntamientos), of which there are some 8000 grouped into fifty-two provinces. The responsibilities

were set out in Law 19 of 2 May 1975.

All local authorities of over 50,000 inhabitants have to produce a structure plan (plan general), which is

approved by the planning commission of the autonomous communities. All urban areas each have a more

detailed town plan (plan parcial), which is approved by the local authority as and when new areas aredeveloped.

Each local authority grants building permits but does not exercise direct technical control. Control of building

regulations and initial control in the light of the structure plan and town plan are exercised entirely by the

architect via the local college of architects.

The building permit (licencia de construccion) is a legal requirement before construction can begin, and isrequired before gas, water and electricity connection can be made. It is only given when the developer or client

presents the project documents together with a permit (visado) issued by the college of architects.

As well as checking from the point of view of urban planning, the local authority also verifies whereappropriate that fire regulations, health regulations, or other specific local regulations are satisfied, particularly

for public buildings.

At the end of construction, the architect signs the acceptance certificate, which must be stamped by the college

of architects after the client has paid the architect's fees in full to the college. The certificate is then submitted to

the local authority for the occupation licence (licencia de apertura).

1. Standards and Regulations

Building regulations in Spain are passed principally by the national government, but since 1980 the autonomouscommunities also have the power to do so.

The legislation has been divided since 1977 explicitly into two classes:

The basic norms (normas basicas de la edificacion) (NBEs) which are the only obligatory standards.

The technical norms (normas technologicas de la edificacion) (NTEs) which are advisory but not obligatory.

An index to the legislation on building, theIndice de Disposiciones Relacionadas con la Edificacion(latest

edition 1987), is published by MOPU.


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The Directorate-General of Architecture and Building Technology of MOPU produces or approves codes of

practice (Soluciones Homologadas de Edificacion) (SHEs) whose use guarantees meeting the minimumrequirements of the NBEs.

Product standards in Spain, for all industries, are set by the Spanish Association for the Normalisation of

Certification (Asociacion Espanol de Normalisacion y Certificacion) (AENOR).

There is, in general, no legal requirement to use approved products, and no import restriction on products which

do not meet or are not approved to UNE standards.

Testing for certification of suppliers and product approval is carried out by approved laboratories. In 1986 anew accreditation system for laboratories was set up asRed Espanola de Laboratorios de Ensayo(RELE).

1. Contract Forms

In the private sector there are no regulated procurement practices or standard contract forms. The public

sector, on the other hand, is regulated tightly, as in other Napoleonic Code countries.

Basic principles of contracts are laid down in the Civil Code and the Commercial Code. The drafting of

each contract is a matter for the parties involved. There are no standard forms.

Fixed price lump sum contract (por ajuste alzado global y precio cerrado). This formula is used rarely

except for single family housing.

Unitary quantities contract (por precio determinado en funcion de la unidad y cantidad). This is the

most common form of contract.

Management contract (por administracion). This is used rarely.

Public contracts are regulated by:

The Law of State Contracts (Ley de Contratos del Estado).

The General Regulations for State Contracts (Regulacion General de Contratos del Estado).

The General Administrative Clauses (Pliego de Clausulas Administrativas Generales) (PCAG)

The autonomous communities have the power to pass their own public procurement legislation, but have

followed the State legislation.

Public contracts are normally based on a fixed price, subject to cost escalation formulae which are laid

down in considerable detail in the regulations.

2. PROCUREMENT PROCEDURES

2. Private Sector Procurement

The selection of a contractor by a private developer may often by influenced by the complex inter-relationships

of Spanish business.

2. Public Procurement


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Further new legislation will need to be introduced to adopt the new EC directives on public procurement. The

existing EC directives were incorporated in decree 2528/1986. Existing procedures are set out in the legislationon State contracts described in the previous section.

The existing legislation (as modified in 1986) specifies three types of tendering procedure as follows:

Subasta(auction) in which the tender documents include a fully priced bill of quantities.

Concurso(competition) in which the bill of quantities is unpriced or not included, and the contract is awardedto the 'most advantageous offer'.

Contratacion directa(negotiation) in which the price is negotiated directly with a candidate selected on

general technical criteria.

1. Responsibilities

4. Architects Responsibilities

The architect is totally responsible for ground investigations, design and site supervision and advises on the

appointment of a contractor.

4. Technical Architects Responsibilities

A technical architect is normally responsible for the bills of quantities, cost estimates, detailed budgets and

control of payments in the architect's service.

1. Insurance and Guarantees

The Spanish Civil Code adopted a simple approach to construction liability, similar to the Napoleonic Code.

The code is based on the following two basic principles.

Ten-year strict liability for serious defects.

Responsibility shared between the main contractor and two independent professionals acting in a personal

capacity - the architect and the technical architect, or aparejador.

Both architects and technical architects have public liability insurance arranged through their colleges.

There is no obligation to carry insurance cover, and some professionals who are not in independent practice or

have low workloads do not bother to insure.

SWEDEN

1. INTRODUCTION

The Swedish contractual situation within the building sector is standardised and well established between thevarious parties. In 1992 a new general regulation, called AB 92, was established (the former was AB 72).

There is a good framework for planning and maintenance of buildings during their lifetime.


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2. CONTROLS

Planning regulations are tightly controlled by state and municipalities. Obtaining planning permission can

sometimes delay construction for a very long period of time.

Examples of various Swedish building-regulations and codes are "Boverkets nybyggnadsregler" (regulationsand general recommendations), BBK (concrete structures), BSK (steel structures), etc.

There are also state building laws covering administrative regulations and execution of construction. There are

also additional laws and directives for certain types of constructions and installations.

There is a strong movement in Sweden to give the industry a higher degree of responsibility for its products and

works.

In addition to compulsory special regulations for energy supply, environmental protection and mechanicalservices and installations, there are also industrial guidelines.

Where materials and components are not generally tested and used special government approval or test marks

are required. In addition, formal quality assurance is necessary for some materials and components that areincorporated into permanent construction. Materials and components that require test marks or quality assuranceare listed in relevant government regulations. Testing and approvals have to be executed by authorised bodies.

3. CONTRACTS

2. General

Public sector contracts always adopt specified standard forms according to the new "AB 92" (generalregulations for contractual works). The principal standard form is the "AB 92".

Pre-qualification procedures are seldom used for projects in order to check capability and craftsmanship ofcontractors. They are now used in conjunction with restricted tender procedures and their use will increase in

the next few years.


(a)Lump Sum Contract

The parties agree on a fixed lump sum for the contractual work. If the extent of the work does

not change, the price is fixed. The fixed price can be subjected to price adjustment.

This type of contract is normally used in turn-key and general contracting.

(b)Uni t Pri ce Contract

Unit price contracts require a description of the works with technical specifications and a bill of

quantities. Fixed prices are given by the contractor for all items on the bill. The quantities given

by the client are estimates. The final cost is determined when the work is completed. This is anormal contract form in road projects.

(c)Cost-plus Contr act


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The contractor is paid in accordance with his actual costs.

3. Methods of Procurement

(a)Divided Contract

Here the client places separate contracts with the designer and several package contractors. Design andconstruction responsibilities are separate.


Contracts are lump sum and fixed price with or without price adjustment.

(i) Design and construction is arranged separately by the client. The general contractor is responsible for the

execution of the total scope of work and undertakes the main parts of the work himself. He also places

individual packages to subcontractors. Detailed design is often the responsibility of the general contractor.

(ii) 'Design and Build' Construction

Here, the general contractor takes total responsibility for the complete design and construction. He placesseveral individual package contracts with subcontractors and carries out the main part of the work himself.

(iii) 'Design, Build and Operate' Construction

This is an extension of 'Design and Build' Construction where the contractor is also responsible for the

management of the finished building.


The contractor takes responsibility for all design and construction works, but does not do any work directly. The

work is carried out by a series of contractors who are contractually bound to the main contractor, who fulfils therole of the client. Sometimes these contracts are on a cost plus fee basis.

4. RESPONSIBILITIES

There are generally clear divisions of responsibilities. The client is responsible for contract award, taking over

as the works are completed, and payments.

Engineers are responsible for the technical input in their specialised fields such as structural design. Theresponsibilities cover detailed design, drawings, tendering and supervision by the rule of "YOKEL 72".

The contractor is responsible to the client for carrying out the work, warranties, maintaining programme and

some aspects of detailed design and shop drawings. Sub-contractors have equal responsibilities.


Sometimes contractors insure against damage during construction, e.g. "Contractors all risk".


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Generally, the client is offered a two-year guarantee on completion of the work. It is under discussion to

establish an eight-year responsibility assurance for contracts, which is expected to increase contract costs by 1-2%.


Means are being sought to make contractors more responsible, see above.

More emphasis will be given to providing a practical education for designers and builders.

UNITED KINGDOM

1. INTRODUCTION

The market is well developed with suitable technical standards available. There are various routes used for

building procurement depending on the size and type of building and the client preference. In the particular caseof steel frames, responsibility for frame design and the detail design of connections is often split between

different organisations. A Consulting Engineer is often employed for the frame design, including selection ofsections, while the Fabricator will normally detail design the connections to resist the loads provided by theDesigner. There are, therefore, separate contracts involved for the different operations. An increasing number of

jobs are carried out through the "Design & Build" method where responsibility for the whole rests with one

organisation. Some sub-contracting is normal.

2. CONTROLS

In addition to the overall requirement to obtain planning permission for the whole works, it is necessary to

satisfy the Building Regulations. These regulations are administered by the local authority where the building is

to be built. For structural frames, this work will involve a check of the calculations to ensure the regulations

have been satisfied. This is normally achieved by conforming to the appropriate European or national standardbut exceptionally, the Building Control Officer can accept alternatives.

For products for which the codes are not appropriate, test results verified by the British Board of Agreement or

other reputable independent bodies, such as Universities, will usually be accepted.

3. CONTRACTS

Most structural steelwork is carried out as a subcontract to the main or management contractor. The form of

contract is usually JCT 80, although many variants are used. Where the steelwork is measured, as opposed to alump sum arrangement, then the measurement will usually be to SMM7 (RICS Standard Method of

Measurement 7th edition).

One of the problems in the industry is the lack of a standard approach and contract. Care must be taken tounderstand the legal and technical requirements of each contract. The publication of the "National Structural

Steelwork Specification" assists this process.


The three main procurement routes are:


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4. Traditional

In this method, the building is designed by the client's professional team who then select a main contractor who

organises the work and appoints his

Sub-contractors. The sub-contractors may be pre-selected and nominated by the Design Team.

4. Management Contracting

In this arrangement, a Management Contractor is appointed by the client in the early phases of the work. He

works alongside the Design Team and advises on the practical aspects of the design as well as ensuring this

work proceeds to programme. He also appoints and manages the work of the various Sub-contractors.

The specialist Sub-contractors, of which the Steelwork Supplier is one, are responsible for the detail design,fabrication and erection of the various work packages.

The steel sub-contract includes the frame and secondary members and, depending on the type of work, the

cladding, floors, hand railing, etc.

3. On Site Design and Build

The client provides, with professional assistance, an outline scheme and a performance specification. The

remainder of the design and its construction are then put out to competitive tender.

It is the job of each tendering contractor to manage the work. The structural steel frame