CICV Issues Best Practice Guide on Contracts

THE CONSTRUCTION INDUSTRY COLLECTIVE VOICE has issued a new Best Practice Guide to help (sub)contractors improve cashflow and prevent disputes.

Compiled by industry experts, the Construction Industry Collective Voice (CICV) Best Practice Guide demonstrates how to take control and deal with a range of issues to enhance the entire contractual chain.

The guide is being supported by a webinar on Friday 3 March where CICV experts will discuss recommendations and offer help on preventing financial disagreements.

Both resources were produced in response to the CICV survey on payment and cashflow issues in the industry in Scotland. This revealed that businesses are still suffering the scourge of late payments, outstanding retentions and unexpected charges.

Len Bunton, Chair of the CICV Pipeline and Commercial sub-group

Industry consultant Len Bunton, who is Chair of the CICV Pipeline and Commercial sub-group, said: “Following the recent CICV survey, we concluded that the contracting supply chain needed some guidance on improving the commercial management of projects.

“Our highly-experienced contributors have walked through the construction process, giving their best recommendations on how to do things better day-to-day. A lot of the problems we deal with are self-inflicted, so we have gone back to the basics of improving the way in which commercial activities are carried out.

“This is not rocket science, but it’s clear the whole process needs a massive shake-up. Following publication of the guide and our webinar to take the supply chain through it, I am confident we can get change into the UK industry.”

Best Practice Guide 

The Best Practice Guide is free to download from the CICV website and looks at a number of areas, including:

• Tender qualifications
• Contract amendments
• Payment schedules
• Payment applications
• Payments received and value
• Variations
• Retentions
• Fluctuations
• Notices
• Record keeping
• Quality/defects
• Conflict Avoidance Process (CAP).

The guide was drawn up by experts from a range of industry bodies, including Scottish Building Federation Commercial Director Ian Honeyman. He said: “Agreeing a mutually beneficial and collaboratively agreed contract is the first, vital stage in any construction project, and an area in which can lead to costly and damaging disputes.

“The CICV has therefore looked at the most common reasons for payments being delayed and changed, and has prepared this guide to help companies and individuals understand how to avoid them.”

The Best Practice Guide and webinar are the latest in a string of practical and constructive initiatives launched by the CICV since its creation as the Construction Industry Coronavirus (CICV) Forum in March 2020.

Made up of 28 trade associations, professional services bodies and companies, it has maintained a steady supply of information and practical advice to the sector since.

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