ECI contracting and D&C contract models – instead of using a ‘traditional’ construction contract where the contractor builds the works from 100% complete design, consider using a contract model that allows work to ‘start’ before the design is completely finished such as:

• ‘Early Contractor Involvement’ (ECI) contracts - these involve the contractor working with the consultant team and Government/Council to work up the design and provide buildability advice for a fixed fee or monthly service payment. You can also ask the contractor to do early works in this phase. Later, the contractor can be engaged under construct only or, more typically, a design and construct contract.
• Design and construct (D&C) contracts - these involve the contractor taking on responsibility for completing design which has been partially completed by consultants, in addition to doing the construction work for a lump sum price. The model typically involves novation to the contractor of the consultant team who have started the design.

• increase the ability for smaller contractors to participate in the project;
• ease the procurement process given the lower spend of each package; and
• increase the risk of claims if contractors will concurrently be on site together and a high level of interface is required between them or their works.

• ‘Cost plus’ - which involves payment of actual costs incurred by the contractor with a fixed allowance for profit and overhead; or
• ‘Cost plus’ with guaranteed maximum price (GMP) – which is based on the above model but has an overall cap on the costs payable, which cap is only increased in certain limited cases.

These pricing models can be used with most types of contract models but are often used in a ‘managing contractor’ contracts or ‘construction management’ contracts where the main contractor is engaged to manage subcontractors performing packages of discrete works. As these models involve less price risk for the main contractor, they can often involve a shorter procurement process.

• using providers from any existing panel of approved contractors or service providers would be suitable for new activities or works. A properly established panel will mean that terms and conditions are already agreed and you save time on getting individual works/services packages started; or
• it is worth establishing a new panel if you have a number of tasks or activities to work through. There is sometimes a higher up-front investment of time and money to establish a panel but a reduced cost and time saving down the track through ease of procuring individual packages of works/services.