lecture 1a.4- the european building

8/13/2019 Lecture 1A.4- The European Building

1/40

Previous| Next | Contents

ESDEP WG 1A:

STEEL CONSTRUCTION:

ECONOMIC & COMMERCIAL FACTORS

Lecture 1A.4: The European Building

Market

OBJECTIVE/SCOPE

To explain both the need and the difficulty of harmonising construction in Europe inaccordance with the Single European Act.

PREREQUISITES

None.

RELATED LECTURES

None.

SUMMARY

Construction in Europe is a complex and important industry. At present legal, regulatoryand contractual frameworks vary significantly throughout the European Community.There are also considerable differences in procurement methods. The framework andtimetable for harmonisation is presented, highlighting the importance of theConstruction Products Directive. The role and development of the Eurocodes, EuropeanStandards and the CE mark are summarised. The future implications and developmentof harmonisation are postulated. Annex A provides a summary of current practice insome Member States.

1. INTRODUCTION

European construction is an extremely complex industry encompassing a wide range ofactivities and professions. It is also the largest employer in the European Community,employing 6,6% of the active population and accounting for 9,1% of gross domesticproduct (GDP) in 1985, when the last survey was conducted.

Major groups within the industry include public authorities such as local government ortown planning authorities, and private clients, contractors, specialist sub-contractors,design and technical service professionals, consultants, building product manufacturers

EP LECTURENOTE [WG1A] http://www.haiyangshiyou.com/esdep/master/wg01a/l0400.h

0 09/08/2012
http://www.docu-track.com/buy/http://www.haiyangshiyou.com/esdep/master/wg01a/l0400.htm#sec_8http://www.docu-track.com/buy/http://www.docu-track.com/buy/http://www.docu-track.com/buy/http://www.haiyangshiyou.com/esdep/master/wg01a/l0400.htm#sec_8


2/40

and specialists in the financial sector dealing with construction and property.

The ways in which these groups operate and the controls and procedures they use varyconsiderably throughout the European Community, according to a comprehensive studycommissioned by the Commission of European Communities (CEC) [1]. The study wasoriginally instigated in response to a resolution calling for the standardisation ofcontracts and controls in the construction industry and the harmonisation ofresponsibility and standards governing after-sales guarantees on housing; subsequently

it was extended to encompass all building construction.

It has been widely recognised that construction presents the greatest challenge toEuropean harmonisation. The Commission decided to tackle this most difficult task first.Successful harmonisation of the construction industry would be a major step towardsthe objectives of the Single European Act, which calls for a Unified European Market bythe end of 1992. A special terminology has developed for harmonisation. Words aregiven specific meanings that may have legal significance. For this reason a glossary ofterms is given in Annex A.

2. CURRENT SITUATION

The report of the study examined the Construction Industry across Europe and foundthat 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 ofthe participating parties.

The report found that there was wide support for more measures to protect the buyerof the final product through an insurance scheme. This is consistent with the objectivesof the Single European Act, which are not just confined to the establishment of a freemarket 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 ofcontracts, controls and responsibilities used in the various Member States are given inAnnex B. For these methods to be successfully harmonised the report listed 14"elements" which should be considered in any common Community rules [1]. Theseelements included:

Definition of the role of the client and the task of the engineer,1.Specific liability2.

Insurance (for professional liability)3. Qualification of contractors,4.Design codes and specifications5.External inspections6.Acceptance criteria7.Contractual documents8.Tenders9.

The Community already recognises the professional qualifications of its members underthe Treaty of Rome. However, there is much diversity between Member States in thelength of university courses and the amount of practical experience required to become


0 09/08/2012
http://www.docu-track.com/buy/http://www.docu-track.com/buy/http://www.haiyangshiyou.com/esdep/master/wg01a/l0400.htm#sec_8http://www.docu-track.com/buy/http://www.docu-track.com/buy/http://www.docu-track.com/buy/http://www.haiyangshiyou.com/esdep/master/wg01a/l0400.htm#sec_8


3/40

a professional engineer. The requirements for architects, on the other hand, are lessdiverse and they may be the first profession to be fully harmonised within theConstruction Industry.

3. LEGISLATIVE FRAMEWORK AND TIMETABLE FOR

HARMONISATION

The European Parliament is at the top of the legislative framework. It debates alllegislation and has the power to amend or add further details to the proposed action. Atypical proposal passes through the following stages:

One of the 25 Directorates General of the Commission (CEC), or a sub-division ofit responsible for the particular area of policy, e.g. DG III responsible for theInternal Market and Industrial Affairs, will draw up the measures required toimplement the proposed action.

1.

The Council of Ministers agrees the proposal, often only by a majority vote.2.The European Parliament debates the proposed legislation.3.

After the inclusion of any amendments or additions resulting from the debate, theCouncil of Ministers agrees the legislation.4.

The Commission then implements the legislation through directives, which are thenadopted by each Member State through legislation in their national parliaments andassociated regulations, recommendations, guidelines or standards. This ensuresthat the autonomy of individual Member States is not threatened.

5.

The way the Commission implements the removal of technical barriers to trade wasdealt with by the European Parliament under the New Approach or "Nouvelle Approach"Resolution. It was conceived to accelerate the completion of the Single European Marketand consists of a framework of directives that cover general principles only. This

approach allows each Member State the freedom to use their own design andmanufacturing traditions and skills which have often been developed from centuries ofuse.

The most fundamental directive affecting the Construction Industry is the ConstructionProducts Directive. It was conceived under the New Approach Resolution and applies toconstruction products for permanent use in building or civil engineering works. Aproduct is deemed fit for use and may carry the CE mark if it complies with theDirective.

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 essential requirements.

The harmonised standards and guidelines to establish European Technical Approvals areinitiated as a mandate to CEN from the Commission's Standing Committee onConstruction (SCC). They may be accompanied by interpretive documents to assist inthe preparation of standards. It is at this stage that the first detailed technicalrequirements are considered. The preparation of harmonised standards is undertakenby the European Committee for Standardisation (CEN). It produces standards throughthe following structure:


0 09/08/2012
http://www.docu-track.com/buy/http://www.docu-track.com/buy/http://www.docu-track.com/buy/http://www.docu-track.com/buy/http://www.haiyangshiyou.com/esdep/master/wg01a/l0400.htm#sec_8http://www.docu-track.com/buy/http://www.docu-track.com/buy/http://www.docu-track.com/buy/http://www.haiyangshiyou.com/esdep/master/wg01a/l0400.htm#sec_8


4/40

Mandates for standards preparation are issued by the Commission of the EuropeanCommunities (CEC) to the European Committee for Standardisation (CEN). The CENTechnical Board (responsible for controlling the standards programme and includesdelegations from the CEN members, i.e. the natural standards organisations,establishes Technical Committees (TC's) (formed to prepare standards and includesrepresentatives from the CEN members with relevant technical expertise) and TechnicalWorking Groups (TWG's) (formed to undertake specific short term tasks for thecommittee and may include representatives from product manufacturers, tradeassociations and standards authorities).

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

4. THE ROLE AND DEVELOPMENT OF THE EUROCODES

The Eurocodes and their associated European Standards provide a framework for theimplementation of the Construction Products Directive and the award of the CE mark.This is the reason for their urgent introduction and their ENV status.

They will only be given full EN status after a period of trial use in Member States andincorporation of comments through the Technical Committee. The timetable for theissue of the Eurocodes as EN is not yet established but it is likely that the principalEurocodes will achieve EN status during the period 1995-1998.

The framework of European Standards will take a similar time to implement. In theinterim, Provisional Guides are available as Annexes to the main Eurocodes, e.g. AnnexT 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 National Application Documents. These documents provide national values ofpartial safety factors and also incorporate any specific material requirements. Forexample:

In the UK the requirements for providing minimum ties to ensure adequatestructural integrity and resistance to accidental damage are maintained.In France, there are certain clarifications on the detailed application of rules forcalculating the semi-rigid action of connections.

The Eurocodes present best available European design practice. They offer theopportunity of superseding and improving upon traditional practices. They shouldtherefore improve the overall economy of construction as well as offering moreconsistent safety and reliability.

5. THE CE MARK

The CE mark may be used on products that comply with European Standards, or in theabsence of such standards, European Technical Approvals as demonstration ofcompliance with the Construction Products Directive (CPD). The objective behind thisapproach is to ensure compatibility between design, execution procedures and


0 09/08/2012


5/40

products. In the transitional stages before the full harmonisation of standards, certaintechnical specifications which are recognised by the Community may also providecompliance. In exceptional cases, certification of conformity by an approved body or adeclaration of conformity by the manufacturer (provided certain conditions are metinvolving approved bodies during the testing) is acceptable.

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

mechanical resistance and stability1.safety in case of fire2.health, hygiene and the environment3.safety in use4.protection against noise5.energy economy and heat retention6.

The use of the CE mark is not a guarantee of performance, only of minimum acceptablecompliance with the essential requirements listed above. Compared to other marks ofquality it may well be a levelling down to a lowest acceptable, safe quality. Other marksof quality, particularly those relating to performance beyond the essential requirementsare therefore likely to remain in operation throughout Europe. However the situation isintended to be sufficiently transparent for the individual purchaser to be able to weighup quality versus price for a particular product or structure.

6. THE FUTURE FOR CONSTRUCTION IN THE UNIFIED

EUROPEAN MARKET

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 thedesigner and constructor it is likely to lead to the development of minimum guaranteesand associated provisions for damages. Differential insurance premiums may develop,favouring more reputable contractors and offering tangible benefit from quality. For theowner there will be responsibilities for `fair play' towards both his contractors duringconstruction and his tenants during the service life of the building.

Harmonised standards imply larger potential markets and greater opportunities foreconomies of scale. Trade should be simpler with reduced certification, documentationand administration. Minimum standards imply better consumer protection which shouldlead 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 createsome problems, especially for small and medium enterprises. Generally, the cost ofentry into steelwork construction will increase because of the need to be conversantwith the details of European legislation prior to trading. To the benefit of the owner andtenant it will be more difficult to cut corners either in product standards or in safety inexecution.

There could be a concern that the introduction of harmonised construction may lead toa reduction in the range and individuality of construction. In reality all the regulations


0 09/08/2012


6/40

are so general in nature that they are unlikely to inhibit individuality or innovation inanyway. What may happen is that the establishment of a common design base makes iteasier to export and import forms of construction. Thus the only individual forms ofconstruction at risk are those which are inherently uneconomic and deserve to becomeextinct from commercial pressures.

7. CONCLUDING SUMMARY

European construction in a complex and important industry, accounting for 9% ofEurope's GDP.Harmonisation of European construction is an important but difficult part of theestablishment of the Unified European Market.Currently there are significant differences in technical, legal, regulatory andcontractual frameworks between Member States.The Single European Act in 1987 and the implementation of the ConstructionProducts Directive in 1991 were important steps in the creation of the UnifiedEuropean Market, notionally to be established by December 1992.The Eurocodes and their associated European Standards provide the framework forthe implementation of the CPD and the award of the CE mark.A harmonised construction market is expected to improve minimum standards ofquality and assist the transfer of best construction practice throughout Europe.

REFERENCES

[1] Mathurin, C. Controls, Contracts, Responsibilities and Insurance in Construction inthe European Community, 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 theaward of public works contract.

07.05.85 New Approach to TechnicalHarmonisation and Standards

Proposals to accelerate thecompletion of the Single EuropeanMarket.

10.07.85 Architects Directive Mutual recognition of qualifications.

01.07.87 Single European Act Removal of internal barriers totrade. Majority voting introduced.

01.10.88 Resolution calling forStandardisation in theConstruction Industry

Standardisation of contracts andcontrols. Harmonisation ofresponsibility and standardsgoverning guarantees.


0 09/08/2012
http://www.docu-track.com/buy/http://www.docu-track.com/buy/http://www.docu-track.com/buy/http://www.docu-track.com/buy/http://www.docu-track.com/buy/http://www.haiyangshiyou.com/esdep/master/wg01a/l0400.htm#sec_8http://www.docu-track.com/buy/http://www.docu-track.com/buy/http://www.docu-track.com/buy/http://www.haiyangshiyou.com/esdep/master/wg01a/l0400.htm#sec_8


7/40

21.12.88 Construction Products Directive

(CPD)

Removal of technical barriers totrade.

Essential requirements to establishfitness for use.

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 EuropeanMarket

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

Luxembourg

Spain

Sweden

United Kingdom


0 09/08/2012


8/40

AUSTRIA

1. INTRODUCTION

Technical Standards are generally complete and coherent. Requirements for certificationand quality marks sometimes could cause expensive implications.

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

2. CONTROLS

Town planning regulations are tightly controlled. Obtaining planning permission cansometimes delay construction for a long time.

National technical building standards, e.g. ONORM and other rules and guidelinesprepared by such organisations as OIAV, OSTV in some cases are established by federallaw.

There are different building laws "Bauordnungen" in the Austrian Federal Countries andsome Towns covering administrative regulations and execution of construction. In thoselaws, there are additional directives for certain 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 whichonly have to be followed when contractually agreed.

Where materials and components are not generally used, special federal countrygovernment approval or test marks are required. In addition, formal quality assuranceis necessary for some materials and components that are incorporated into permanentworks. Government approval, test marks and quality assurance have to be executed byauthorised organisations such as technical institutes, consulting engineers, etc.

3. CONTRACTS

General3.

Public sector contracts always adopt specified standard forms. In the private sectormodifications to those standard forms are usual. The principal standard form isregulated in ONORM A 2050 and consecutive standards. Multi-storey-buildings relate tothe LB-H "Leistungsbeschreibung Hochbau".

Pre-qualification is only adopted for large, complex or unusual projects in order to checkthe capability and craftsmanship of contractors. It is used in conjunction with therestricted tender procedures.

Forms of Contract2.


0 09/08/2012


9/40

(a)Un i t P r i ce C on t r a c t

Unit price contracts require a description of works with detailed technical specificationsand a bill of quantities. Fixed quantities are defined for all items on the bill.

(b)L um p Sum Co n t r a c t

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 andfunctional solution.

4. MAIN METHODS OF PROCUREMENT

Separation of Design and Construction is usual

(a)I n d i v i d u a l Co n t r a c t i n g

The client places separate contracts with the designer and several package contractors,

in order to separate design and construction responsibilities.

(b)G e n e r a l Co n t r a c t i n g

(i) Design and construction arranged separately by the client. The general contractor isresponsible for the execution of the total scope of work and undertakes the main partsof the work itself. He also places individual packages to subcontractors. Detailed designis sometimes the responsibility of the general contractor.

(ii) 'Design and Build' construction: the general contractor takes responsibility for thecomplete design and construction. He places several individual package contracts with

subcontractors and carries out the main part of the work himself.(c)M a n a g em e n t Co n t r a c t i n g

The management contractor undertakes responsibility for all design and executionworks, but does not do any work directly. The work is carried out by a series ofcontractors 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 arecompleted 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. Hehas the principal responsibility for quality, safety and compliance with the law.


0 09/08/2012
http://www.docu-track.com/buy/http://www.docu-track.com/buy/http://www.docu-track.com/buy/http://www.haiyangshiyou.com/esdep/master/wg01a/l0400.htm#sec_8http://www.docu-track.com/buy/http://www.docu-track.com/buy/http://www.docu-track.com/buy/http://www.haiyangshiyou.com/esdep/master/wg01a/l0400.htm#sec_8


10/40

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 for some aspects of detailed design and shop drawings.

6. INSURANCE AND GUARANTEESIt 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 tofive 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 forcertification and quality marks are sometimes requested. Specifications are not alwaysupdated as frequently as is desirable.

2. CONTROLS

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

National building standards, e.g. NBN, EN, ENV, and guidelines prepared by suchorganisations as CSTC, Technical Agreement (Union Belge pour l'Agrement techniquedans 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

Public Sector1.

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


40 09/08/2012


11/40

special des charges" (Special conditions of contract).

There are 5 methods of tendering:

open tender: the contract is awarded to the contractor offering the lowestprice. Any contractor certified for the type of construction work concernedmay tender.

limited tender: same procedure as open tender, however, reserved for alimited number of selected contractors.

general call for tender: the contract is awarded to the best bid in terms ofprice, technical solution 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 askedto submit a bid. This procedure is only used in a limited number of cases and

remains an exception.

Private Sector2.

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

Forms of contract3.

(a)Un i t P r i c e Con t r a c t

Unit price contracts require a description of works with detailed technical specificationsand a bill of quantities. Fixed prices are defined for all items on the bill. The risk onquantities is with the client.


Lump sum contracts require a general description of the works with a programme ofconstruction. The risk on quantities is with the contractor. This type of contract isnormally used for 'turnkey' projects by general contractors in order to find the besttechnical, 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.


40 09/08/2012


12/40

The general contractor takes responsibility for the complete design and construction. Heplaces several individual package contracts with subcontractors and carries out themain part of the work himself.

(c)P r o j e c t M a n a g e r Co n t r a c t i n g

The Project Manager undertakes responsibility for all design and construction works, butdoes 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).

5. LIABILITIES

Contractors5.

(a)L i ab i l i t y B e f or e A c ce p t a n c e ( " r e ce p t i o n " )

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

Example: completion of execution within the contractual deadline.

(b)L ia b i l i t y A f t e r A c c e p t a n c e

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 byconventional clauses.

So-called latent defects considered minor which are not discovered at the time ofacceptance. The defects listed in this category are those which do not affect the stabilityof 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.

Architects5.

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

They are not liable for tasks assigned to a specialised design office (design and planning


40 09/08/2012


13/40

whichis outside their normal qualification) except for the incorporation of these designsinto the entire plan.

Sharing out of liabilities5.

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

The contractor is responsible for any defects which stem from the implementation of theplans drafted by the architect, or defects linked with the execution of the constructionproject.

Sub-contracting4.

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

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

6. INSURANCE AND GUARANTEES

Architects and contractors ordinarily subscribe to an insurance policy designed to covertheir commitments in connection with the decennial liability. Furthermore, thecontractors are required to subscribe to a civil liability insurance covering "companyrisks".

In the case of construction projects carried out on behalf of the State and for themajority 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 aconstruction 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 isoccupied or with the provisional acceptance.

It is ordinarily subscribed by the general contractor on his behalf and on behalf of thesub-contractors. However, it may also be subscribed by the contracting authority or thedeveloper.

So-called "liability insurance and inspections" guaranteeing compensation for damageto the building which occurs within the ten-year period following acceptance of thebuilding irrespective of the subscriber of the policy (contractor, sub-contractors,architects, engineers, contracting authorities).


40 09/08/2012


14/40

The guarantee of the liability insurance and inspections may be implemented only on thecondition that the construction work which is the object of the guarantees is submittedfor inspection to an independent body - the SECO Bureau - which is in charge ofinspecting design and execution of works.

FINLAND

1. INTRODUCTION

Contractual methods have been long established, but their relative importance ischanging. Construction management agreements are becoming more popular andsystem unit procurement is being introduced as a method of procurement.

In product approval, a change of policy is taking place. Rules that demanded anapproval by one specific body are being abolished in preparation for the EuropeanEconomic Space Agreement. This is most notably the case in electric appliances but alsoelsewhere.

2. CONTROLS

Every building needs a building permit admitted by the local authorities before it can bebuilt. The local authorities check that the building is designed in accordance with thevalid technical and city planning regulations. Hierarchically the highest level of regulationis incorporated into the Building Law and Byelaw, which cover both the technical andcity 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 solutionto a specific problem In practice, the guidelines are semi-compulsory because it may bedifficult to persuade the local authorities to approve a solution not presented in theguidelines although they have the right to do so if the solution satisfies the compulsoryrequirements.

Several ministries and National Boards (e.g. the National Board for Housing) have theirown technical rules governing special types of buildings (housing, hotels, etc.). Theserules, however, are being abolished and all technical regulations will be presented in theNational Building Code.

The guidelines in the Building Code do not give guidance to all problems that arise inbuilding. In these cases it is customary to refer to recommendations issued by variousindustrial organisations or to standards issued by SFS, the Finnish Standards'Organisation.

The local authorities can also make local rules additional to the national regulations. Thelocal rules mostly cover subjects related to city planning: the architecture of buildings,the size of building site, sewage treatment, fire protection, etc. City plans have laggedbehind in many major cities, which has been an obstacle to building in these areas.


40 09/08/2012


15/40

The Building Code specifies standards (SFS-standards) for several products that have tobe met before a product can be approved. Such materials are, for instance, heatinsulation and fire protection materials. The guidelines also specify quality controlsystems for steel, concrete and glued timber structures. The producer has to beaccepted and inspected by a special quality control organisation (TLT for steelstructures) or the satisfactory quality has to be proved by quality control documents inevery single case.

3. CONTRACTS

The standard form used in most contracts is the Contract Agreement (RT 16-10193)prepared by the Association of Employers of Finland together with several otherorganisations. This form is used together with General Contract Conditions (YSE 1983)prepared by the same organisations.


(a)T r a d i t i o n a l Co n t r a c t i n g

Design and building are separated in this form of procurement. The client has separateagreements with architects, engineers and contractors. The main contractor isresponsible for carrying out the actual building work, procurement of labour andmaterials and for co-ordinating the work of sub-contractors and material suppliers. Thesub-contractors can have their contracts either directly with the client or with the maincontractor.

This form of contracting is the most widely used at the moment, but it is losing groundboth to management contracting and system unit procurement.

In traditional contracting, the contractor is payed either on a lump sum or unit pricebasis. Unit price contracts are often used in industrial buildings and repair works, wherethe full extent of work is not exactly known when the contract agreement is signed.

(b)M a n a g em e n t Co n t r a c t i n g

In this form of contracting, the client has an agreement with the management contactorwho is responsible for co-ordinating the design of the project and for co-ordinating theactual construction work, which is carried out by sub-contractors. The sub-contractorsare contractually bound to the management contractor.

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

(c)D e s ig n a n d B u i ld

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 buildingsite and marketing of the building, in which case he becomes a developer. This is oftenthe case in office buildings and housing projects.


40 09/08/2012


16/40


17/40

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 M

2

...) as wellas the main architectural aspects (type of structure, architectural concept ...).

After obtaining the licence, the main building contractor draws up a user file on thetechnical specifications and the drawings of the operation. In this context the materialsare chosen according to:

standards for the products, e.g. steel sections

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

and ceilingsparticular specifications for certain types of building (energy, buildings with publicaccess)

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, forexample the computational regulations.

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

3. CONTRACT

General1.

(a)P u b l i c- s e c t o r Co n t r a c t

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

certain managements or national enterprises (SNCF*, EDF**) have issued their owntechnical specifications and material inspection procedures (stipulation of approvedsuppliers, administrative documents, quality assurance procedure, qualifying firms).

The opening up of the European market means that today foreign firms are able totender for this type of contract, which was often not possible before.

(b)P r i v a t e C o n t r a c t

There is a "private contracts code" which defines relations between customers andfirms. The clauses of the contract are drawn up by the main building contractor in


40 09/08/2012


18/40

agreement with the building owner. It is possible to issue only one call to tender toalimited number of firms, but it is also possible to negotiate with only one firm (aso-called order "by private contract".

Form of Contract2.

Contracts usually include price review clauses defined by official formulae and indices. Itis 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:

General Firm4.

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

It is an easy solution for the end customer and the architect because they only havedealings with a single manager. In return, this gives the firm considerable power innegotiating with sub-contractors for certain technical and economic choices and enableshim in the end to increase his margin through negotiation with sub-contractors. Thistype of contract corresponds to "turnkey" contracts.

Contract in Separate Lots4.

The building owner and architect define lots of works for which they issue separate callsto 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 thearchitects are not always able to ensure since there are a number of managers.

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 generallygives 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 main building contractor (architect + BBT*). He generally calls on aninspection office (e.g. Veritas, Socotec) for the technical aspects to check that thebuilding complies with regulations.

There are different types of tasks for the architect, but he is generally responsible forchoosing and following-up technical solutions. He chooses a BBT* who is responsiblefor the calculation of the works, the technical design (electricity, fluids, etc.).


40 09/08/2012


19/40


20/40

Technical standards are generally complete and coherent. However, requirements forcertification and quality marks sometimes have expensive implications. Specificationsare not always updated as frequently as is desirable.

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

2. CONTROLSTown planning regulations are tightly controlled. Obtaining planning permission cansometimes delay construction for a long period of time.

National technical building standards, e.g. DIN, and other rules and guidelines preparedby such organisations as DASt, DAf, StB, IfBT, Argebau and STLB are established bygovernment edict.

There are also state building laws covering administrative regulations and execution ofconstruction. There are additional 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 approvalor test marks are required. In addition, formal quality assurance is necessary for somematerials and components that are incorporated into permanent works. Materials andcomponents that require test marks or quality assurance are listed in relevantgovernment regulations. Government approval, test marks and quality assurance have

to be executed by authorised organisations such as technical institutes or acknowledgedacademic experts.

3. CONTRACTS

General2.

Public sector contracts always adopt specified standard forms. In the private sectormodifications 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 thetechnical requirements for construction.

Pre-qualification procedures are only adopted for large, complex or unusual projects inorder to check the capability and craftsmanship of contractors. They are used inconjunction with tender procedures.

Forms of Contract2.



40 09/08/2012


21/40

Unit price contracts require a description of works with detailed technicalspecifications and a bill of quantities. Fixed prices are defined for all itemsonthe bill. The risk on quantities is with the client.

(b)L um p S um Co n t r a c t

Lump sum contracts require a general description of the works with aprogramme of construction. The risk on quantities is with the contractor. This

type of contract is normally used for 'turnkey' projects by general contracts inorder to find the best technical, economic and functional solution.

4. METHODS OF PROCUREMENT

(a)I n d i v id u a l Co n t r a ct i n g

Here the client places separate contracts with the designer and severalpackage 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 generalcontractor is responsible for the execution of the total scope of work andundertakes th main parts of the work. He also places individual packages tosubcontractors. Detailed design is often the responsibility of the generalcontractor.

(ii) 'Design and build' construction

Here, the general contractor takes responsibility for the complete design andconstruction. He places several individual package contracts withsubcontractors and carries out the main part of the work himself. The mainfield of application is for industrial buildings.

(c)M a n a g em e n t Co n t r a c t i n g

The management contractor undertakes responsibility for all design andconstruction works, but does not do any work directly. The work is carriedout by a series of contractors who are contractually bound to the

management contractor who is fulfilling the role of the client. Sometimesthese contracts are on a cost plus fee basis.

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

5. RESPONSIBILITIES

There are general clear divisions of responsibilities.

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


40 09/08/2012


22/40

are completed and payments.

The architect is responsible for pre-design, detailed design and drawings,obtaining planning permission, defining bills of quantities, tendering and sitemanagement including architectural and technical supervision. He has theprincipal responsibility for quality, safety and compliance with the law.

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

such as structural design, services, etc. The responsibilities cover detaileddesign, 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 designand shop drawings. Subcontractors have the same responsibilities as thecontractor.


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

Architects are required to carry professional insurance. The contractors arerequired to carry insurance for responsibilities under civil law.

Generally, the client is offered a two year guarantee on the completion of theworks. This is regarded as being too advantageous to the contractors andoffering insufficient protection to the client.


Means are being sought to make contractors more responsible.

More emphasis will be given to providing a practical education for designersand builders. Specifications are becoming more practical and comprehensible.

It is likely that the law will be changed imposing more responsibility on thecontractor in the case of defects after construction.

More research is intended on the behaviour of buildings during their servicelives so that shortcomings in construction that lead to subsequent malfunction

of the building can be identified. The outcome of this work will be transmittedprimarily 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


40 09/08/2012


23/40

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 asschools, warehouses, garages, industrial buildings, hospitals, hotels, etc.

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

The whole design of structures is covered by compulsory national technicalcodes (or in some cases by foreign ones, e.g. DIN). In addition, there arealso guidelines which only have to be followed when contractually agreed.

Formal quality assurance is necessary for some materials that are

incorporated into permanent works. All the test marks or quality assurancerequired have to be executed by authorised organisations.

3. CONTRACTS

Public sector contracts adopt specified standard forms, while in the privatesector any different type of form is possible. The forms of contract are asfollows:


Unit price contracts require a description of works with detailed technicalspecifications and a bill of quantities. Fixed prices are defined for all items onthe bill. The risk on quantities is with the client.

(b)L um p S um Co n t r a c t

Lump sum contracts require a general description of the works with aprogramme 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 functionalsolution.


(a)I n d i v id u a l Co n t r a ct i n g

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


40 09/08/2012


24/40


25/40

There are no legal requirements, but in order to insure against damage duringconstruction, the client can buy a professional insurance for a two yearperiod.

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

7. FUTURE IMPROVEMENTSMeans are being sought to make contractors generally more responsible.

IRELAND

1. INTRODUCTION

The construction industry in Ireland is effectively divided into three sectors,

with contractors tending to specialise in one of these:

(a) Civil engineering construction - mostly projects funded by centralgovernment in the areas of roads, bridges, water supply, sewerage, etc.

(b) General building construction - mostly private developments, withexceptions such as schools and hospitals. On local authority or governmentprojects, there is an increasing tendency for developers to construct andlease 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 PlanningRegulations issued thereunder. These require local authorities to prepare andadopt development plans. Most developments require the formal permissionof 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 ofBuilding Control Authorities, with powers of inspection and enforcement.These authorities are also Fire Authorities. Certain aspects relating to thenature of and responsibility for, Certificates of Compliance with the BuildingRegulations are still under discussion between Building Control Authorities andthe 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 atWork Regulations (1993). These require employers to carry out an analysis ofhazards in the workplace, and include for casual, temporary as well as


40 09/08/2012


26/40

permanent employees. Previous legislation on health and safety related inthemain to industrial employment, the principal acts being the Factories Act(1955) and Safety in Industry Act (1980) under which regulations such as TheConstruction (Safety, Health and Welfare) Regulations (1975) were enacted.These remain in force.

Design and materials are governed by standards issued by the NationalStandards Authority of Ireland (NSAI). Where NSAI do not provide a

standard, British Standards (BS) or International Standards (ISO) arefrequently substituted. NSAI have responsibility for the issue of Eurocodesand 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 foruse in conjunction with the RIAI conditions of contract

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

(b) GDLA Contract conditions 1982 - with quantities/

- without quantities


Subcontract conditions issued by the Construction Industry Federation foruse 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

RISI Short Form Contract - for minor works.

Abbreviations

RIAI - Royal Institution of Architects of Ireland.


40 09/08/2012


27/40


28/40

client the appointment of civil or structural engineers, service engineers andquantity surveyors, reporting to the architect.

In civil engineering contracts, the engineer has primary responsibility for allaspects of design, site supervision and budgetary control.

In both types of contract, the main responsibility for safety during executionlies with the contractor.

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 SitesDirective 1992, placing responsibilities for Health and Safety on engineeringand architectural consultants as well as on the contractor.

(c) Resolution of outstanding issues relating to Certificates of Compliance withthe Building Regulations.

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

ITALY

1. INTRODUCTION

Technical standards are generally complete and coherent. There are problemsabout quality marks of many products: this depends on the fact that in ItalyCE marks are not yet adopted and there is no law about the "Quality Mark".

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

2. CONTROLS


40 09/08/2012


29/40

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

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

Obtaining planning permission is difficult.

National building standards, e.g. UNI, and other rules and guidelines preparedby different organisations such as CAR, are established by government edict.

There are some other building laws covering administrative regulations andexecution of construction. There are additional directives for certain types ofconstruction such as schools, hospitals, garages, etc.

Where materials and components are not generally used, special governmentapproval is required. In addition, formal quality assurance is necessary forsome materials and components that are incorporated into permanent works.

Government approval, test marks and quality assurance have to be executedby authorised organisations such as technical institutes.

General3.

Public sector contracts always adopt specified standard forms. In the private sectormodifications are frequent. The principal standard form is the "Capitolato generale especiale per l'appalto dei Lavori pubblici". The first part defines procedures prior to theaward of the contract. The second and third parts provide general conditions of contractand technical requirements for construction.

The weak point of many contracts concerns the requirements for drawings and thedescription of the scope of work which are often imprecise. This lack of precision causesclaims, delays, etc.

Pre-qualification procedures are widely adopted. In Italy there is a specific "BuildersList" - "Albo Nazionale dei Costruttori" - where the companies are included in relation totheir capability to undertake in different works, such as reinforced concrete, earthmovements, buildings, etc. and in relation to their financial means.

Forms of Contract2.


Unit price contracts require a description of works with detailed technical specificationsand a rough bill of quantities. The risk on quantities is with the client. Programme ofexecution is required.


Lump sum contracts require a description of works with detailed technicalspecifications. A programme of execution is also required. The risk on quantities is withthe contractor.


40 09/08/2012


30/40

(c) A variant of the second type is the lump sum contract related to a bill of quantitieswith unit prices. Variations required by the client are regulated in conformity to unitfixed prices: otherwise the risk on quantities is with the contractor.



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


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 parts of the works himself. He also places individual packages tosubcontractors. 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. Heplaces several individual package contracts with sub-contractors and carries out themain part of the work himself. This is the main 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 withthe instructions for a complete, finished work. Often, in fact, drawings andspecifications are incomplete and not detailed enough; this causes, as mentionedbefore, controversies among the parties and delays.

The client is responsible for the contract award, tendering, taking over the works whenthey 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 managementand the erection of the building according to the approved drawings, the control of thebill of quantities, the control of the programme, safety and compliance with the law


40 09/08/2012


31/40

relating to his role.

The engineers are responsible for the technical inputs in their specialised fields, such asstructural 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 theclient for the subcontractors.


Contractors are required to be insured against damage during the construction and forresponsibilities under civil law.

Architects and engineers are not required to carry professional insurance (if not carriedby 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 theaward, in order to avoid claims and disputes during execution and further delays anddamages.

Architects and engineers must be insured against damages.

For public works, an independent surveyor dedicated to the control of quality and thebill of quantities is strongly required.

LUXEMBOURG

1. CONTROLS

Apart from building permits, administrative approvals for building products are notrequired in Luxembourg. As Luxembourg has no building standards, reference isnormally made to Euronorms (EN) and Eurocodes or to the standards of neighbouringcountries. Quality certificates from an acknowledged foreign testing institute are oftenrequested.

2. CONTRACTS

Pubic sector contracts always adopt specific standard forms. In the private sectormodifications to these standard forms are possible. The German standard form


40 09/08/2012


32/40

"Verdingungsordnung fur Bauleistungen" is commonly used as a basis for contracts.

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


In public works, individual contracting is the rule. The private sector may use generalcontacting 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 equipmentaccording to specifications, drawings and bill of quantities.


In addition to the insurance for responsibility under civil law, major contracts areexecuted under an all-risks insurance, covering damage during construction.

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

SPAIN

Controls1.Planning and Approvals1.

The seventeen autonomous communities (comunidad autonoma) or regionalgovernments, not the State, have ultimate responsibility for planning and control ofconstruction. The powers are exercised by the local authorities (ayuntamientos), ofwhich there are some 8000 grouped into fifty-two provinces. The responsibilities wereset 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 autonomouscommunities. All urban areas each have a more detailed town plan (plan parcial), whichis approved by the local authority as and when new areas are developed.

Each local authority grants building permits but does not exercise direct technicalcontrol. Control of building regulations and initial control in the light of the structureplan and town plan are exercised entirely by the architect via the local college ofarchitects.

The building permit (licencia de construccion) is a legal requirement before constructioncan begin, and is required before gas, water and electricity connection can be made. It


40 09/08/2012


33/40

is only given when the developer or client presents the project documents togetherwitha permit (visado) issued by the college of architects.

As well as checking from the point of view of urban planning, the local authority alsoverifies where appropriate that fire regulations, health regulations, or other specific localregulations 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 fullto the college. The certificate is then submitted to the local authority for the occupationlicence (licencia de apertura).

Standards and Regulations1.

Building regulations in Spain are passed principally by the national government, butsince 1980 the autonomous communities 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 onlyobligatory standards.

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

An index to the legislation on building, the Indice de Disposiciones Relacionadas con laEdificacion(latest edition 1987), is published by MOPU.

The Directorate-General of Architecture and Building Technology of MOPU produces orapproves codes of practice (Soluciones Homologadas de Edificacion) (SHEs) whose use

guarantees meeting the minimum requirements of the NBEs.

Product standards in Spain, for all industries, are set by the Spanish Association for theNormalisation of Certification (Asociacion Espanol de Normalisacion y Certificacion)(AENOR).

There is, in general, no legal requirement to use approved products, and no importrestriction 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 approvedlaboratories. In 1986 a new accreditation system for laboratories was set up as Red

Espanola de Laboratorios de Ensayo(RELE).

Contract Forms1.

In the private sector there are no regulated procurement practices or standardcontract forms. The public sector, on the other hand, is regulated tightly, as inother Napoleonic Code countries.

Basic principles of contracts are laid down in the Civil Code and the CommercialCode. The drafting of each contract is a matter for the parties involved. There areno standard forms.


40 09/08/2012


34/40

Fixed price lump sum contract (por ajuste alzado global y precio cerrado). Thisformula is used rarely except for single family housing.

Unitary quantities contract (por precio determinado en funcion de la unidad ycantidad). 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 Contratosdel Estado).

The General Administrative Clauses (Pliego de Clausulas AdministrativasGenerales) (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 escalationformulae which are laid down in considerable detail in the regulations.

PROCUREMENT PROCEDURES2.

Private Sector Procurement2.

The selection of a contractor by a private developer may often by influenced by thecomplex inter-relationships of Spanish business.

Public Procurement2.

Further new legislation will need to be introduced to adopt the new EC directives onpublic procurement. The existing EC directives were incorporated in decree 2528/1986.Existing procedures are set out in the legislation on State contracts described in theprevious section.

The existing legislation (as modified in 1986) specifies three types of tenderingprocedure 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, andthe contract is awarded to the 'most advantageous offer'.

Contratacion directa(negotiation) in which the price is negotiated directly with acandidate selected on general technical criteria.

Responsibilities1.


40 09/08/2012


35/40


36/40

Thereis a strong movement in Sweden to give the industry a higher degree ofresponsibility for its products and works.

In addition to compulsory special regulations for energy supply, environmentalprotection and mechanical services and installations, there are also industrial guidelines.

Where materials and components are not generally tested and used special governmentapproval or test marks are required. In addition, formal quality assurance is necessary

for some materials and components that are incorporated into permanent construction.Materials and components that require test marks or quality assurance are listed inrelevant government regulations. Testing and approvals have to be executed byauthorised bodies.

3. CONTRACTS

General2.

Public sector contracts always adopt specified standard forms according to the new "AB

92" (general regulations for contractual works). The principal standard form is the "AB92".

Pre-qualification procedures are seldom used for projects in order to check capabilityand craftsmanship of contractors. They are now used in conjunction with restrictedtender procedures and their use will increase in the next few years.

Forms of Contract2.

(a)L um p S um Co n t r a c t

The parties agree on a fixed lump sum for the contractual work. If the extentof the work does not change, the price is fixed. The fixed price can besubjected to price adjustment.

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

(b)Un i t P r i c e Con t r a c t

Unit price contracts require a description of the works with technicalspecifications and a bill of quantities. Fixed prices are given by the contractorfor 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 a normal contractform in road projects.

(c)Co s t - p l u s Con t r a c t

The contractor is paid in accordance with his actual costs.

Methods of Procurement3.

(a)D i v i d e d Co n t r a c t


40 09/08/2012


37/40

Here the client places separate contracts with the designer and several packagecontractors. Design and construction 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 mainparts 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 andconstruction. He places several individual package contracts with subcontractors andcarries 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 alsoresponsible for the management of the finished building.

(c)M a n a g em e n t Co n t r a c t i n g

The contractor takes responsibility for all design and construction works, but does notdo any work directly. The work is carried out by a series of contractors who arecontractually bound to the main contractor, who fulfils the role of the client. Sometimesthese contracts are on a cost plus fee basis.

4. RESPONSIBILITIES

There are generally clear divisions of responsibilities. The client is responsible forcontract award, taking over as the works are completed, and payments.

Engineers are responsible for the technical input in their specialised fields such asstructural design. The responsibilities cover detailed design, drawings, tendering andsupervision 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 allrisk".

Generally, the client is offered a two-year guarantee on completion of the work. It isunder discussion to establish an eight-year responsibility assurance for contracts, which


40 09/08/2012


38/40

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 arevarious routes used for building procurement depending on the size and type of buildingand the client preference. In the particular case of steel frames, responsibility for frame

design and the detail design of connections is often split between differentorganisations. A Consulting Engineer is often employed for the frame design, includingselection of sections, while the Fabricator will normally detail design the connections toresist the loads provided by the Designer. There are, therefore, separate contractsinvolved for the different operations. An increasing number of jobs are carried outthrough the "Design & Build" method where responsibility for the whole rests with oneorganisation. Some sub-contracting is normal.

2. CONTROLS

In addition to the overall requirement to obtain planning permission for the wholeworks, it is necessary to satisfy the Building Regulations. These regulations areadministered by the local authority where the building is to be built. For structuralframes, this work will involve a check of the calculations to ensure the regulations havebeen satisfied. This is normally achieved by conforming to the appropriate European ornational standard but exceptionally, the Building Control Officer can accept alternatives.

For products for which the codes are not appropriate, test results verified by the BritishBoard of Agreement or other reputable independent bodies, such as Universities, willusually be accepted.

3. CONTRACTS

Most structural steelwork is carried out as a subcontract to the main or managementcontractor. The form of contract is usually JCT 80, although many variants are used.Where the steelwork is measured, as opposed to a lump sum arrangement, then themeasurement will usually be to SMM7 (RICS Standard Method of Measurement 7thedition).

One of the problems in the industry is the lack of a standard approach and contract.Care must be taken to understand the legal and technical requirements of each


40 09/08/2012


39/40

contract. The publication of the "National Structural Steelwork Specification" assiststhisprocess.


The three main procurement routes are:

Traditional4.

In this method, the building is designed by the client's professional team who thenselect a main contractor who organises the work and appoints his

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

Management Contracting4.

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 practicalaspects of the design as well as ensuring this work proceeds to programme. He alsoappoints and manages the work of the various Sub-contractors.

The specialist Sub-contractors, of whic