Popularity of ECI will boost use of Project Partnering Contract

Use of the collaboration friendly Project Partnering Contract 2000 is expected to grow 20% over the next three years, its author Professor David Mosey of King’s College London’s centre of construction law and dispute resolution is due to say today.

David Mosey

Mosey will be speaking at the Association for Engineering & Consultancy conference in London and will be formally unveiling a new joint venture between ACE and the Association of Consultant Architects to promote the PPC  and its associated Term Partnering Contract 2005.

The contracts which were originally trialled in 2000, received a huge boost by being recommended by Government in 2012 for use on central and local government construction schemes as a basis for early contractor involvement.

“Government took the advice of then chief construction adviser Paul Morrell and we have to be very grateful to him”

According to latest Royal Institution of Chartered Surveyors figures, PPC and TPC have between 5 and 6% of the market.  “But we are expecting take up to rise dramatically,” Mosey said.

“Government took the advice of then chief construction adviser Paul Morrell and we have to be very grateful to him,” he added.

Trial projects have been running. And Ministry of Justice is now a leading user of PPC on over £2.5bn of new build and refurbishment. Surrey County Council, City of London Corporation, Circle Housing Group, Hackney Homes, Homes for Haringey, the South London & Maudsley NHS Trust and Whitbread are among other users.

 “The PPC has major benefits for the early contractor involvement process which is seen to encourage collaboration and access innovation and efficient thinking from the whole supply chain,” Mosey said. “The two stage, multi party contract is suitable for any type or value of project. The contract enables the early appointment of contractors to work with consultants in developing a project in stage one before a second phase open book construction deal. Crucially all parties sign just the one document. An added bonus is that the allocation of all BIM liabilities are also resolved through use of PPC.”

The contracts were developed with Trowers & Hamlins where Mosey is a consultant and last year the firm gifted its shares of all rights to ACE to enable the new joint venture with ACA.


How the PPC  works

PPC embeds the procurement and delivery model known as ‘Two stage open book’, a client led system designed to develop cost savings and other improved value through early contributions from the main contractor and from tier 2/3 subcontractors and suppliers. It is based on:

-       early bids against an outline brief and project budget established by reference to challenging cost benchmarks

-       selection on criteria of capability including improved value plus profit/fees/overheads and other appropriate cost/quality proposals

-       conditional appointment of team members including the main contractor under agreed deadlines to develop proposals that improve designs, reduce costs and reduce risks while finalizing tier 2/3 subcontractor and supplier relationships

-       unconditional appointment of the team to build the project once the client approves an agreed price and designs within an acceptable risk profile.

Government trial project case studies have shown that these processes can produce 20% savings combined with improved warranties, more sustainable design solutions and improved employment and skills commitments.



TPC creates a procurement and delivery model known as supply chain collaboration, a set of client-led processes that examine tier 2/3 work and supply packages to establish:

-       improved mutual commitments between client, main contractor and the tier 2/3 subcontractors and suppliers that will generate savings and improved value compared to the original tender proposals

-       transparency and continuity of underlying costs irrespective of market shifts over the course of a long term contract

-       timescales for improvement processes combined with ongoing performance measures and performance-based rewards.

A governrnment trial project has shown that these processes can give rise to savings of up to 15%.


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