BS 8534:2011

BSI Standards Publication

Construction
procurement policies,
strategies and procedures
– Code of practice
BS 8534:2011 BRITISH STANDARD

Publishing and copyright information

The BSI copyright notice displayed in this document indicates when the document
was last issued.
© BSI 2011
ISBN 978 0 580 67893 6
ICS 03.100.99
The following BSI references relate to the work on this standard:
Committee reference CB/500
Draft for comment 11/30203837 DC

Publication history
First (present) edition, August 2011

Amendments issued since publication

Date Text affected
BRITISH STANDARD BS 8534:2011

Contents
Foreword ii
0 Introduction 1
1 Scope 1
2 Normative references 2
3 Terms and definitions 3
4 Policy 4
5 Initiation 5
6 Procurement strategy 10
7 Procurement tactics 22
8 Managing performance and delivery 35
Annexes
Annex A (informative) Recommended reading 42
Annex B (informative) Construction Procurement Regulations 45
Bibliography 48
List of figures
Figure 1 – Procurement cycle 2
Figure 2 – Time, cost and performance triangle 6
Figure 3 – Planned working stages 10
Figure 4 – Identifying procurement methods 16
Figure 5 – Performance management system 36
List of tables
Table 1 – Variables in procurement 13
Table 2 – Illustrative example of selection mechanism 28
Table 3 – Illustrative example of award mechanism 33
Table 4 – Indicative ranges of quality/price ratios for various types of project 34
Table B.1 – Construction Procurement Regulations 45

Summary of pages
This document comprises a front cover, an inside front cover, pages i to iv,
pages 1 to 50, an inside back cover and a back cover.

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BS 8534:2011 BRITISH STANDARD

Foreword
Publishing information
This British Standard is published by BSI and came into effect on 31 August
2011. It was prepared by Technical Committee CB/500, Procurement. A list of
organizations represented on this committee can be obtained on request to its
secretary.

Relationship with other publications

This British Standard is complementary to BS ISO 10845-1 and BS ISO 10845-2 1),
which cover construction procurement in relation to processes, methods and
procedures, as well as the formatting and compilation of procurement
documentation.
NOTE There are other sources, see Annex A, that provide operational guidance.
The remaining parts of the ISO 10845 series (Part 3 to Part 8) have not been
adopted as British Standards. If clients wish to use them they are encouraged to
check their compliance with EU procurement law. European Standards for the
procurement of engineering consultancy services for building, infrastructure and
industrial units are in development.
BS ISO 15686-5 deals with property life cycle costing and impacts on construction
procurement, notably on major investment and Private Finance Initiative (PFI)
and Public-Private Partnership (PPP) projects. However, it also impacts on the
design of new buildings through clients’ desire to set the right budgets and
optimize their life cycle costs from a whole-life value and sustainable
development perspective.
BS 8903 gives guidance to organizations and individuals on how to consider and
implement sustainable practices within their procurement processes and ongoing
management of their respective supply chains.

Information about this document

In May 2006 a strategic workshop was held to establish what drives value in the
construction industry. It and a subsequent series of specialist workshops were
sponsored by the then Department of Trade and Industry and its successor, the
Department for Innovation, Universities and Skills, under the heading
“Rethinking Standards in Construction” and organized by BSI and Constructing
Excellence in the Built Environment. The main conclusion was that there was
definite potential for a new standard on procurement, provided it used the
Office of Government Commerce process (see Annex A) as a baseline.
Users might find it useful to cite BS 8534 in any BS EN ISO 9001 documentation
and in their contracts. In this way, adoption of BS 8534 can be promoted.
There are a number of sections in this British Standard where a distinction is
drawn between procurement by public sector bodies and other procurements
(i.e. those by non-public sector bodies). It is important to do so because
procurement by public sector bodies is governed by the Public Contracts
Regulations 2006 (the Regulations) [1], which reflect EU Directives, see Annex B.
The Regulations [1] apply to most procurements that have a value above the
thresholds set out in the Regulations [1]. In procurements to which the
Regulations [1] apply, the procuring body takes a number of mandatory steps
and the effect of the Regulations [1] is to constrain the structure of the
procurement process. Best practice for a particular procurement in the private
sector not constrained by the Regulations [1] might be reflected by adopting a
different structure.

1)
BS ISO 10845-1 and BS ISO 10845-2 are in development.

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BRITISH STANDARD BS 8534:2011

NOTE Attention is drawn to the legal and regulatory constraints of England and
devolved administrations, the rules of public procurement and any specific
regulatory regimes that apply to the sectors the procurer is engaged in (e.g. energy
or transportation).

Use of this document

As a code of practice, this British Standard takes the form of guidance and
recommendations. It should not be quoted as if it were a specification and
particular care should be taken to ensure that claims of compliance are not
misleading.
Any user claiming compliance with this British Standard is expected to be able to
justify any course of action that deviates from its recommendations.

Presentational conventions
The provisions in this standard are presented in roman (i.e. upright) type. Its
recommendations are expressed in sentences in which the principal auxiliary
verb is “should”.
Commentary, explanation and general informative material is presented in
smaller italic type, and does not constitute a normative element.

Contractual and legal considerations

This publication does not purport to include all the necessary provisions of a
contract. Users are responsible for its correct application.
Compliance with a British Standard cannot confer immunity from legal
obligations.

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BRITISH STANDARD BS 8534:2011

0 Introduction
In procurement systems such as those used by the World Bank, the United
Nations Commission on International Trade Law (UNCITRAL) and the European
Union, each category of procurement is dealt with separately with the provision
of its own implementation guidelines or regulations. ISO took the view that this
compartmentalized approach caused confusion and made procurement
unnecessarily complex. Therefore, ISO 10845 (all parts) introduced an alternative
approach of first developing a generic procurement system and then identifying
the methods and procedures best suited to particular categories.
The objective of the ISO 10845 series is to provide a generic and standard set of
processes, procedures and methods for a procurement system that is fair,
equitable, transparent, competitive and cost effective. The standards apply to
public or private sector client organizations in the development of their
procurement systems and their principles are intended to apply down the supply
chain. The main objective is the creation of a framework for the development of
procurement systems that facilitate fair competition, reduce the possibilities of
abuse, improve predictability of outcome and allow the demonstration of best
value. In particular, ISO 10845:
• establishes basic requirements for the conduct of an organization’s
procurement, including integrity and the avoidance of conflicts of interest;
• creates a framework for the development of an organization’s procurement
policy; and
• describes generic methods and procedures for procurement, including a
detailed consideration of the alternatives available, including negotiation,
competitive selection, competitive negotiation and electronic auction.
The ISO 10845 series covers operational process, whereas this standard deals
with policy in establishing a procurement strategy and setting up a system.

1 Scope
This British Standard gives recommendations and guidance on the development
within a public or private sector organization of policies, strategies and
procedures for the procurement of construction in the built environment using
the structure shown in Figure 1.
It does not cover the procurement of associated engineering services and
offshore construction works or the procurement of facilities management as a
stand alone service.

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BS 8534:2011 BRITISH STANDARD

Figure 1 Procurement cycle

Business
case, 5.2 Gate
Business
review
need, 5.1
process,
5.3
Feasibility
Managing VM study,
delivery, 8.2 6.1
Initiation,
Clause 5
Client
Managing brief,
Managing
performance 6.2
performance,
8.1 and delivery,
Clause 8
Procurement
methods,
Policy, 6.3
Notification of Clause 4
award, debriefing
and mandatory Procurement
standstill period, strategy, Work
7.5 Clause 6 packages,
6.4
Procurement
tactics,
Clause 7 Market
The award
stage, 7.4 engagment,
6.5

Appointing Supporting
the team, processes,
7.3 Terms of Outline 6.6
engagement/ business
forms of case,
contract 6.7
7.2

2 Normative references
The following referenced documents are indispensable for the application of
this document. For dated references, only the edition cited applies. For undated
references, the latest edition of the referenced document (including any
amendments) applies.
BS 6079-1, Project management – Part 1: Principles and guidelines for the
management of projects
BS 8903, Principles and framework for procuring sustainably – Guide
BS 31100, Risk management – Code of practice
BS EN 12973, Value management
BS ISO 10845-1:2010, Construction procurement – Part 1: Processes, methods and
procedures
BS ISO 10845-2, Construction procurement – Part 2: Formatting and compilation
of procurement documentation
BS EN ISO 9001, Quality management systems – Requirements
PAS 91, Construction related procurement – Prequalification questionnaires

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3 Terms and definitions

For the purposes of this British Standard, the terms and definitions given in
BS ISO 10845-1 and BS ISO 10845-2 and the following apply.

3.1 base cost

estimated cost of the element without any risk allowance included

3.2 built environment

any building, structure or external works

3.3 business case

objective of the procurement in terms of what the procuring organization seeks
to achieve
NOTE The business case is intended to be iterative and developmental. A good
business case can take maximum advantage of early involvement of designers,
contractors and suppliers.

3.4 business need

overall purpose in relation to the client’s business

3.5 client brief

formal statement of the objectives and functional and operational requirements
of the finished project
NOTE The purpose of the brief is to provide a firm foundation for the initiation of
the project.

3.6 construction procurement strategy

plan of action for funding, organization, management, selection and payment
of supply chains for the design, fabrication and which may include the operation
of constructed facilities to achieve a desired objective

3.7 contracting authority

bodies whose procurements are governed by the Regulations [1]; the application
of construction procurement regulations is set out in Annex B

3.8 initial business case

statement from the procurer that sets out the policy framework and the
purpose of the procurement

3.9 outline business case

business case that results from taking the initial business case to the design and
supply chains for advice about how best to meet the needs of the procurer

3.10 procurement policy

policy which details the overarching strategic principles and objectives for
procurement of construction projects; spanning the whole project life cycle from
identification of needs through to the end of the useful life of an asset

3.11 project insurance

consolidated policy for all insurable project risks on a project specific basis

3.12 risk allowance

sum calculated as part of a formal risk analysis to allow for identified risks

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BS 8534:2011 BRITISH STANDARD

3.13 stakeholders
groups or individuals who are directly involved in the project and/or are affected
by it
NOTE They might also include top management, operational staff, trade unions,
suppliers, business partners and members of the public as end-users.

3.14 sustainability
provision for the environmental, social and economic factors that construction
projects impact on
NOTE If the projects are managed with sustainability in mind from the outset, they
can play an important part in meeting sustainability targets. There are many
definitions of sustainability. A widely used and internationally accepted definition of
sustainable development is “development that meets the needs of the present
without compromising the ability of future generations to meet their own needs”
(see Brundtland [2]).

3.15 value for money (VFM)

optimum combination of whole-life cost and quality to meet the user’s
requirement
NOTE This means that awarding contracts on the basis of lowest price tendered for
construction works might not provide the best value for money. Long-term value
over the life of the asset is a much more reliable indicator. It is the relationship
between long-term costs and the benefit achieved that represents value for money.

3.16 value management (VM)

structured approach to the assessment and development of a project to increase
the likelihood of achieving the objectives at optimum whole-life value for
money

4 Policy
The procurer should develop and document a procurement policy which
includes, as a minimum consideration, appropriate provisions for:
a) those items listed in BS ISO 10845-1:2010, 4.3;
b) issues of bribery and anti-competitive practice;
NOTE 1 Attention is drawn to the Prevention of Corruption Act [3] and the
Bribery Act [4].
c) conflict of interest;
d) dispute resolution;
e) methods of identification and management of risk;
f) issues of payment and financial management;
g) issues of stakeholders in particular funds and their impact on procurement
and third party rights;
h) cost management to include best value, key performance indicators (KPIs)
and incentivization;
i) corporate social responsibility;
j) health and safety;
NOTE 2 Attention is drawn to the Health and Safety at Work etc. Act [5].
k) environmental sustainability; and
l) intellectual property.

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The procurer should consider the best practice available on these topics
(see Annex A) in arriving at its policies. This should be recorded and publicized
on the procurer’s website or otherwise made available to all tenderers.
In addition to these specifically identified topics where best practice is identified,
arriving at its procurement policy, the procurer should include its response and
position to:
1) public procurement rules;
2) sector based constraints;
3) Housing Grants, Construction and Regeneration Act [6];
4) tax and VAT position;
5) planning; and
6) Building Regulations [7].
NOTE 3 Further details on these topics are set out in Annex B, Table B.1.

5 Initiation
5.1 Business need
5.1.1 General
Once the potential need for a project has been identified, careful strategic
planning should be undertaken to identify the key issues and delivery options in
relation to procurement. This planning should first examine whether
procurement is in fact necessary. The skills, capabilities and resources available to
the organization should then be assessed. Reference should be made to
BS 6079-1 for guidance on project management.
In particular, when determining the business need for procurement:
• roles, responsibilities and accountabilities within the organization should be
defined (see 5.1.2);
• objectives and outcomes should be clearly set out (see 5.1.3);
• the need for expert advice should be ascertained (see 5.1.4);
• the scope and purpose of the project, and its contribution to the
organization’s strategic objectives should be documented (see 5.1.5);
• all stakeholders should be identified (see 5.1.6);
• a value management (VM) study should be carried out to establish business
and stakeholder needs, in both the short- and long-term, and to set
objectives (see 5.1.7).

5.1.2 Roles, responsibilities and accountabilities

The roles, responsibilities and accountabilities for the delivery of both the
procurement programme and the proposed procurement project should be
defined and documented.
The leadership team should set a clear policy direction and demonstrate support
for, and commitment to, the management of all procurement activities by
issuing and maintaining a procurement policy. This policy should be
communicated to all relevant personnel.
Relationships with other internal client departments such as procurement,
finance and legal should be clarified and taken into account within the structure
of the procurement process.

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5.1.3 Objectives and outcomes

The business objectives and outcomes that the proposed procurement project
has to fulfil should be identified, taking into account the project’s position
within the overall business strategy.
These should be documented before the project commences and reviewed at
regular intervals, e.g. prior to significant stages of commitment, throughout the
project life cycle.
NOTE 1 Clearly stated objectives and outcomes are essential in justifying investment
and building the business case. The review process then allows the organization to
confirm that the project is continuing to meet the assumptions made in the business
case.
At this early stage, the factors of time, cost and performance (see Figure 2)
should be assessed and the project’s priorities defined in relation to the
priorities of the organization and any stakeholders. This figure illustrates the
sometimes difficult trade-offs that should be considered by clients between
these three primary variables. At the outset, clients should define the priorities
for a project in relation to these three variables, particularly in relation to their
business, customer and operational priorities and define which can remain
flexible.
NOTE 2 For example, for major event facilities, while cost and performance cannot
be flexed with ease, time is paramount. On the other hand, performance might be
of greater importance than time and cost on a research and development project.
Corporate social responsibility and/or participation goals such as training,
equality and diversity, local employment, opportunities for the unemployed,
opportunities for SMEs, etc. should be identified at this stage and should be
reflected in objectives and outcomes as appropriate. This should apply
throughout the supply chain.
Figure 2 Time, cost and performance triangle

5.1.4 Expert advice on how to meet the business need

The procuring organization might not have the skills and capabilities
recommended to deliver the best approach or might not have the resources
available at the right time to commit to the project; external expertise should be
used to assist in assessing the business need.
Depending on the extent, capability and availability of the procuring
organization’s team, professional external advice may be required from any or
all of the following:
• funding advisers;
• legal advisers;
• insurers;
• media and public relations specialists;

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• planning and environmental consultants;

• health and safety advisers;
• architectural and engineering designers; and
• project management/construction procurement specialists.

5.1.5 Scope and purpose of the project and its contribution to strategic
objectives
The scope and purpose of the proposed project should be appropriately
documented in order to demonstrate a shared understanding by the key
stakeholders of the proposed achievements and benefits. The scope and purpose
of the proposed project should contribute to the organization’s overall policies,
strategies and priorities.

5.1.6 Identify all stakeholders

It should be ensured that key stakeholders, as individuals or groups with
significant influence over the project, are identified and involved. Strategies
should be developed for dealing with all of the diversity and influence of the
stakeholders.
NOTE Protection of all relevant stakeholders’ interests through third party rights
provision may be considered with a legal adviser. Some stakeholders (in particular
funders) might require collateral warranties rather than third party right protection.

5.1.7 Carry out a value management study and set objectives

At this early stage:
a) a VM study should be carried out to identify business/stakeholder needs,
both short- and long-term, see BS EN 12973;
b) objectives should be set, including sustainability, health and safety and
design quality that match the VM study; and
c) performance indicators should be agreed against which the project can be
measured throughout its life cycle that match the objectives.
Sustainable construction should deliver enhancement of the quality of life to
those who use or are affected by the facility, see BS 8903, with particular
reference to waste, recycling, environmental issues and carbon emissions.
Health and safety matters arising in the construction, occupation, maintenance,
alteration and disposal of the facility should be understood and eliminated or
mitigated. Clients should ensure that health and safety issues are assessed and
documented at every stage of the life cycle. Clients’ accountability for the
impact a project has on health and safety should also be taken into account.
Principally, they should appoint a competent CDM coordinator and ensure
adequacy of information, management arrangements, time and resource to
allow safe delivery.
NOTE Attention is drawn to the Construction (Design and Management)
Regulations 2007 [8] (see Annex B, Table B.1).
The proposed project should have a final evaluation to confirm strategic fit with
key business objectives before proceeding to the next stage of business case
development.

5.2 Business case

A business case should justify the procurement activity and expenditure, and
establish whether the investment is worthwhile in value for money (VFM) terms.

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The business case should be continually revisited at key points in the

procurement life cycle, to ensure that the project’s original aims, objectives, user
requirements and benefits continue to be met.
A strategy for long-term maintenance of the business case should be established
early in the design stage; most of the cost of running, maintaining and repairing
a facility is fixed through design decisions made during the early part of the
design process, see BS 7000-4 2).
NOTE 1 Money spent on a good design can be saved many times over in the
construction and maintenance costs. An integrated approach to design, construction,
operation and maintenance with input from contractors and their suppliers can
improve health and safety, sustainability, design quality; increase buildability, drive
out waste, reduce maintenance requirements and subsequently reduce whole-life
costs.
A key part of any whole-life cost assessment should be to assess the
sustainability aspects of the facility.
NOTE 2 In some areas there are clear links between whole-life costs and
sustainability, such as the direct costs of energy usage.
Even if the project team does not operate and maintain the facility, it should be
designed for convenient, cost-effective and safe operation and maintenance.
Value management should be carried out at regular stages in the project. At this
stage it should be used for the following:
• establishing what value means in terms of business benefits and priorities;
• identifying and agreeing business needs;
• identifying and evaluating options for meeting business needs (a
construction project might be one such option);
• selecting and agreeing the best option to meet business needs, confirming
whether or not a project is required; and
• defining clearly and agreeing the project objectives through stakeholder
buy-in.
High-level options for meeting the business need should be explored and
assessed in principle for their affordability and achievability. A high-level
programme should be established for the project. A risk assessment should be
carried out and the risks captured in a risk register which should include the risk
of time overrun, see BS 31100.
The project programme is an important project tool and should be under
constant scrutiny. The programme should be properly developed from the outset
and some risk-based assessment for programme contingency or float should be
made.
NOTE 3 For many projects the biggest risk is adherence to the programme.
NOTE 4 Effective risk management can assist a business to achieve its objectives by:
• reducing the likelihood or consequence of negative events;
• identifying opportunities that would have a positive consequence;
• identifying and understanding complex multiple cross-organizational risks;
• supporting cost control;
• developing best value through reviewing all options;
• providing visible and auditable governance across all levels of an organization;
and

2)
Under revision.

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• protecting reputation and stakeholder confidence.

Researching previous similar projects and identifying appropriate lessons to
apply to the present project is recommended.
In setting the project budget, the initial budget estimate and all subsequent
budget estimates should allow for all costs in connection with the project:
in-house costs, consultancy costs, land costs, legal costs, operation and
maintenance costs, design and construction costs, concession payments where
applicable, and decommissioning costs. The budget should also include a risk
allowance based on a quantified risk assessment of the risks in the risk register
and a provision for VAT.
Each element of a cost estimate should comprise two components: the base cost
and the risk allowance.
The budget should to be managed throughout the course of the project within
a change control management process.
NOTE 5 Change is almost inevitable in any project and can be imposed from either
internal or external sources.
Change should be dealt with through having change control procedures in place
which may be instigated to assess and implement change as soon as it is
identified.
NOTE 6 These ensure that all implications of the change are addressed: cost,
programme and interfaces.
The high-level business case should set out the business needs as identified by
the VM study. It should describe the objectives of the project and the alternative
options to meet them. For each option it should set out the base cost, the risk
analysis and the calculated allowances for identified risks, all on a whole-life
cost basis, including treatment of the asset at the end of the contract. At this
stage, a funding strategy to cover both capital and whole-life/revenue costs is
recommended.
Estimates for cost and time to achieve the required quality should not be
over-optimistic. The business case should confirm and provide justification of:
• strategic fit;
• project objectives;
• project benefits;
• deliverability including timescales;
• affordability including the impact of project cash flow on the procuring
organization’s liquidity; and
• options.
This high-level business case should justify investment in the project and should
be taken forward for preparation of the procurement strategy.

5.3 Gate review process

Projects go through a number of phases or work stages which should be
structured to enable the viability of a project to be tested and for it to be
monitored and controlled as it progresses.
The structure should provide a “project life cycle” and help identify which key
decisions and activities are required at which stage.

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Clients should understand and record their inputs to their projects in the context
of this life cycle. In developing a procurement strategy, clients should identify
their own particular objectives and determine how they want to prioritize work
stages depending on the degree to which they have pre-established approaches
for funding and management of their projects. The amount of emphasis that
should be placed on the planning and development stages is also influenced by
the degree to which the client’s procurement strategy sets design as an up-front
client-led activity or subset of a supplier-led design-and-build approach.
NOTE 1 Experience suggests that the planning and development period is the most
valuable in achieving a successful project outcome; helping clients to define what
they really want, what they can afford and with what risk.
NOTE 2 The importance of having planned work stages through to project
completion is recognized by many leading organizations in construction, including:
• Royal Institute of British Architects (RIBA): “Plan of work stages” stages A–L
(RIBA [9]);
• Office of Government Commerce (OGC): “Gateway approvals” gates 1–5 (Office
of Government Commerce (see Annex A), Office of Government Commerce
gateway process (see Annex A));
• Network Rail (NWR): “Guide to railway investment projects (GRIP)” stages 1–8
(Network Rail [10]).
These are shown in Figure 3.
A gateway process should be used to help reduce overall project risk by
examining the project at critical stages in its life cycle to provide assurance that
it can progress successfully to the next stage.
Figure 3 Planned working stages

PLANNING DEVELOPMENT IMPLEMENTATION OPERATION

Stage A Stage B Stage C Stage D Stage E Stage F Stage G Stage H Stage J Stage K Stage L
RIBA Construction to
Appraisal Strategic Outline Detailed Final Production Tender Tender Mobilization practical After practical completion
brief proposals proposals proposals information docs action completion

Gate 1 Gate 2 Gate 3 Gate 4 Gate 5

OGC Business justification Delivery strategy Investment decision Readiness for service Operational review and
benefits realization
Grip 1 Grip 2 Grip 3 Grip 4 Grip 5 Grip 6 Grip 7 Grip 8
Network Scheme Project
Output Prefeasibility Option Single option selection Detailed design Construction test
Rail definition selection and commission hand back close out

6 Procurement strategy
6.1 Feasibility/VM study
A feasibility study should be carried out at this stage to confirm that the
high-level options identified in 5.2 still meet the objectives of the project before
they are taken forward to a more detailed VM study.
NOTE Time and effort spent on the design in these early stages might potentially
save significant amounts of money later on.
The VM study should be carried out at this stage to investigate and evaluate the
options in more detail to meet the business needs and confirm that a project is
required. The risks associated with each option including the cost of managing
them through avoidance, design/reduction, acceptance, share or transfer should
be identified.

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In developing a procurement strategy to deliver the chosen option, the strategy

should define the objectives of the project and how these are to be achieved
taking account of the risks, constraints and funding. A procurement strategy
should be used to achieve the correct balance of risk, project controls set by the
client and funding for a particular project.
The procurement route should deliver the procurement strategy and include the
contract strategy that can best meet the client’s needs. An integrated
procurement route should ensure that design, construction, operation and
maintenance are considered as a whole and that the delivery team work
together as an integrated project team with clear exit strategies, see 8.2.5.
In helping to formulate the procurement strategy, clients should:
• state clearly their objectives;
• undertake market engagement;
• know how the industry works and collect market intelligence; and
• know the main and the specialist suppliers.
The following factors should be assessed as they can influence the procurement
strategy:
• the project objectives;
• any constraints identified such as budget, funding, performance and the
programme for delivery;
• risks;
• the client’s experience and qualifications to manage the project, see 5.1.4;
and
• the length of operational service required from the facility.
The procurement strategy at this stage should include the following:
• the basis for seeking tenders, e.g. full design and then construct, design and
build;
• work packaging: the number of contracts and work breakdown between
contracts;
• publicity to attract the right level of interest from the market;
• the attitude to risk allocation and contingencies; and
• the roles and responsibilities, e.g. health and safety.

6.2 Client brief

COMMENTARY ON 6.2
There can be different approaches in formulating the client brief. In some cases
clients might have business-related or functional performance-related objectives and
they might be open to how these can be realized. It is sometimes seen as an
advantage to leave as much as possible open to allow development of creative or
innovative solutions from those suppliers with skills or experience that clients do not
possess. In such cases a performance specification approach is useful.
In other cases clients might have a clear vision of how they see the project
manifesting. They might have completed similar projects and want many of the
features of these incorporated. Consequently it may be more appropriate for a
detailed design to be prepared.

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At this stage the client should start developing the client brief in order to define
project goals for the success and values identified by the client’s vision for the
project. The client brief should flow directly from the context, content, priorities
and parameters outlined in the business case. It should outline prioritized client
objectives and provide a clear expression of client ability to absorb risk or intent
to transfer risk.
The brief should be in sufficient detail to enable the project team to execute the
specification and detailed design of the work and is therefore an essential
reference for the team.
The project brief should:
• accurately reflect the requirements for the project;
• form a basis on which to initiate the project;
• indicate how the acceptability of the finished product might be assessed;
and
• take account of health and safety, sustainability and design quality issues.
Typically the brief should be tailored to the requirements and environment of
each project and should contain where relevant:
a) executive summary;
b) background;
c) project definition, explaining what the project should achieve, containing:
1) project objectives;
2) project scope;
3) outline project deliverables and/or desired outcomes;
4) any exclusions;
5) constraints, including budget and timescale;
6) interfaces with other projects;
7) a description of how this project supports strategic objectives; and
8) the reason for selection of the chosen option;
d) client’s quality expectations (including health and safety, sustainability and
design quality);
e) acceptance criteria;
f) any known risks;
g) key milestones; and
h) key stakeholders and other stakeholders.

6.3 Procurement methods

6.3.1 General
The procurement strategy should identify how and when suppliers are brought
onto the project by the procurement method chosen.
NOTE 1 Attention is drawn to sector specific regulations, which can influence the
method of procurement, e.g. in the power or rail industries.

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NOTE 2 The range of procurement options and the different ways of combining
them provides an array of methods for delivering the project. The decisions facing a
client in choosing which method to follow are shown in Table 1. Traditionally,
procurement methods have been based on contract types, and much of the detail
about procurement variables was decided by default. The aim of this table is to help
make the decision process more explicit.
In setting up a construction project, clients should make decisions under each of
the six categories in Table 1, discussed in more detail in the following
paragraphs.
Clients, and their advisors, should identify and understand the relevant
constraints before a procurement method selection exercise is undertaken as
decisions made can be limited and influenced by constraints, e.g. legislative
requirements, mandatory policy, the need to complete construction within
limited time periods.
For procurements within the scope of the Regulations [1], the procuring body
should ensure that it takes specialist advice as to the application of the
Regulations [1] to the particular features of the procurement at an early stage.
NOTE 3 The structure of the procurement as a whole, and the timetable for
undertaking it, is likely to be driven by the relevant procedure adopted under the
Regulations [1].

Table 1 Variables in procurement

Category Examples
Source of funding Owner-financed, public sector-financed, developer-financed,
Private Finance Initiatives (PFI), Public-Private Partnerships (PPP)
Selection method Negotiation, partnering, frameworks, selective competition,
open competition
Price basis Work and materials as defined by bills of quantity, cost
reimbursement, whole building, a fully-maintained facility,
performance
Responsibility for design Architect, engineer, contractor, in-house design teams, supplier
Responsibility for management Client, lead designer, principal contractor, joint venture,
construction manager
Supply chain integration Single source, integrated, fragmented, competitive,
collaborative
NOTE Table 1 is based on a table taken from Murdoch and Hughes, “Construction Contracts: Law and
Management” [11].

6.3.2 Source of funding

The source of funding might not be an option as it can be a matter of policy or
regulation for any given client, but it should be explicit.
NOTE In the recent past, companies from the private sector have entered into
partnership with the public sector for supporting or providing a public service
through PFI or PPP. One key aspect of these approaches is that the public sector
sought to transfer much of the development risk to the private sector partners,
involving major financial support by the banks that entered into consortia
agreements with contractors, designers and facility managers.
Certain sources of finance carry constraints that should be understood and
incorporated into the business case and procurement policy, e.g. PFI funding
carries with it a strong presumption that the main contract is design and build.
Clients should assess how the funding constrains other decisions about risk and
rewards in the procurement policy.

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BS 8534:2011 BRITISH STANDARD

6.3.3 Selection method

The methods of selection should be based on an assessment of relative value
and risk to the client.
NOTE 1 In the public sector, there are regulations about how suppliers may be
selected (see Clause 7 and Annex B, Table B.1).
The selection method should be based on the opportunities for long-term
relationships with, and/or between, key supply chain partners and should not be
based on price alone (see 7.3). Frameworks and partnering arrangements may
be used because of their potential for generating a collaborative project ethos.
NOTE 2 The selection method can impose constraints on how the price is calculated
(see 6.3.4). The business relationship can also have an impact on pricing levels.
There is a range of options between open competition and collaborative
working, e.g. at the competitive end of the spectrum, open and selective
tendering can rely on price as their only or main criterion. However, where
non-price criteria play a more significant role, a collaborative outlook favouring
negotiation is recommended.
NOTE 3 Two-stage tendering is a hybrid approach that seeks to exploit the
advantages of both negotiation and competition. It also accelerates the process by
permitting the overlap of design and procurement. The appointment of a contractor
is carried out in two stages: stage 1 is competitive, and based on costs for
preliminaries, overheads and profit; the stage 2 appointment is made after a
satisfactory open-book negotiation of the final price. The co-operation at this stage
can also help bring significant value improvements, not least through the early
involvement of specialist contractors. One means for parties to develop more
collaborative relationships is partnering; the idea of basing contracts on concepts of
trust and co-operation instead of price competition (see also 6.5 and 7.3).

6.3.4 Price basis

Clients should ensure the price basis reflects earlier decisions about risk
apportionment.
The prevailing market conditions should be taken into account when deciding
on the price basis. Abnormally low bids should not be automatically accepted.
NOTE 1 If the whole building is to be paid for, whether as a lump sum purchase or
a lease, then many of the subsequent detailed procurement decisions are taken by
the developer.
NOTE 2 The choice about how the price is calculated is a mechanism for
apportioning risk.
As the reliability of initial budgets is highly significant for most clients, how
price is calculated should be weighed against the financial benefits of accepting
some of the project risks and, with them, less certainty on price.
NOTE 3 One of the most fundamental issues in apportioning risk is the way that
prices are calculated. The issue is about who takes the risk of the actual price
differing from what was estimated. The robustness of the estimate depends on the
level of detail available when the estimate is produced. The contract is let usually as
a fixed price or as cost reimbursable, although in practice all contracts contain
elements of each. In terms of distribution of risk, under fixed price rates, the
contractor submits an estimate for the work and agrees to be bound by that
estimate. Under cost reimbursement rates, the client takes the risk of the final price
being different from the estimate.

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6.3.5 Responsibility for design

The question about the involvement of designers independent of the
contractors/suppliers should be resolved based on the extent to which the
client’s design exigencies take priority over other constraints on the
procurement. Responsibility for design should also be defined based on the
client’s decision about where the liability lies in the event that the project does
not meet expectations.
NOTE 1 The management of the design process relies on the availability of the
design information at the right time and the proper integration of trade contractors’
design.
NOTE 2 The client may decide to retain responsibility for the design either through
in-house teams or by retaining consultants to produce the design which the
contractor then takes the responsibility to build. However under design and build
type contracts, the responsibility for both design and construction is transferred to
the contractor.

6.3.6 Responsibility for management

Clients should decide whether to retain responsibility for management of the
contract through the construction process either by using in-house teams or by
retaining consultants to carry out this duty on their behalf. The responsibility for
management and co-ordination of site activities may be transferred to a general
contractor or to a construction manager.
NOTE In general contracting, design co-ordination and management of the overall
process are both carried out by the contract administrator. In design and build, they
are both carried out by the contractor. In construction management there is a clear
separation of design from management. The construction manager is also the leader
of the construction site activities.

6.3.7 Supply chain integration

In complex projects there might be many subcontracts some of which should be
selected by the client’s team in order to harness the design skills of specialist
trade contractors or to procure items with a long lead time.
NOTE 1 For further details about supply chain and work package issues, see 6.4.
NOTE 2 Multiple tiers in the supply chain are an indication of the scale of the
co-ordination and management task for a project, but are also a response to the
technical complexity of a project.
Clients should work through each of the categories and make a clear decision or
statement about the approach used in the project so that the detail of the
procurement method is made clear.
A further aid in determining which procurement method should be chosen is
the flow diagram in Figure 4, which presents the decision structure that leads to
the main commonly used forms of procurement in the construction sector.
NOTE 3 Hybrid forms of procurement, where design and price risk is partially
shared on a defined basis, may be the most appropriate.
Clients should identify and document the advantages and disadvantages in the
different options available to be able to make an informed decision. The
following factors should be assessed or amplified when deciding on the right
option:
• timing of obtaining a contractual commitment and binding price;
• need or otherwise to overlap design with construction;
• need for a single point of responsibility;

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BS 8534:2011 BRITISH STANDARD

• no ambiguity over safety and the degree to which this is delegated down
the supply chain;
• need for supplier input into complex construction sequencing;
• spend profile between the design phase and the construction phase;
• complexity of design approvals and sign-off before committing to
construction;
• how the project is funded;
• relative importance of cost, programme and quality; and
• who is in control of quality and design excellence, see BS EN ISO 9001.

Figure 4 Identifying procurement methods

Start

Does
Does the client
No ownership of the No Performance-
pay for contractor's facility transfer based contract
work in progress?
to purchaser?

Yes
Yes
DBFO/PFI

Does the
contractor have Yes
overall Design and build
responsibility for
design?

No

Is the contractor
No Construction
responsible for
managing management
assembly?

Yes

Is all of the
contractors work No General
sub-contracted to contracting
others?

Yes Management
contract

NOTE Table 1 is based on a table taken from Murdoch and Hughes, “Construction Contracts: Law and
Management” [11].

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6.4 Work packages

In most cases, complete, all-inclusive packages should be awarded. In others,
where the work has to be installed in a complex sequence of stages with
external interdependencies, it may be more flexible to split the scope into
discrete work packages. To optimize work package delivery, the procurement
strategy should:
• minimize the number of interfaces between contract packages;
• place and define required interfaces between contract packages so that they
are relatively easy to control and manage;
• introduce specific, managed interfaces where this can increase confidence in
the successful delivery of the overall project, or an improved control of the
overall final cost;
• analyse interfaces rigorously to ensure there are no gaps;
• allow early work packages to be tendered and awarded to suit the
programme and continue development of more complex packages, so as to
better define their scope and/or mitigate potential risks;
• enable use of different contract conditions to suit the different elements of
work;
• enable the selection of “construction only” for some contracts and “design
and build” for others;
• allow suppliers to be selected to match the skills and capabilities required
for different works and thus achieve improved confidence in their
performance and more competitive pricing;
• enable risks to be allocated differently between client and supplier for
different work packages, placing risks with those organizations most able to
manage them and thus control the final price and programme;
• split or subdivide work so that more suppliers have the ability to price for it,
spreading the risk of delivery and/or to enable smaller suppliers with lower
cost structures to undertake elements of the work cost-effectively;
• understand and define who is responsible for any slack in the programme
between the project packages to avoid disputes if one overruns to the
detriment of others; and
• arrange packages of work so they can be commissioned and handed over
early, either to allow follow-on contracts to proceed cleanly, or to enable
the commencement of operation.

6.5 Market engagement

Clients should communicate with potential suppliers (including key
subcontractors) well before the procurement part of the implementation stage.
Clients should provide a clear understanding of what their core business
activities and strategies are to enable suppliers, who should have carried out
their own research, to match their bids to client requirements.
Market engagement may take many forms, including
• regular supplier conferences;
• newsletters;
• bidder days; and
• the use of prior information notices in the Official Journal of the European
Union (OJEU) for public sector projects.

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BS 8534:2011 BRITISH STANDARD

Clients should conduct informed research on those suppliers they choose to

work with and the wider construction industry. During the planning and
development stages, clients should ensure that the supply market is able to
deliver their project or programme of works, as well as the requirements in
terms of resources and supplier capacity.
As a project moves into the implementation stage, clients should retain this
understanding, both of their individual suppliers and the wider market, to
identify and mitigate problems, e.g. a supplier getting into financial difficulty,
escalating costs caused by an unexpected shortage of market capacity.

6.6 Supporting processes

6.6.1 Programme development
The project programme should be developed to an appropriate level of detail
for the project’s present level of maturity. Clients should:
• produce a work breakdown structure, which defines the work content of
the project in terms of basic elements, work packages, generic tasks and
detailed tasks;
• show how these elements affect each other;
• define the activities, using standard lists and adding additional elements
until all the requirements have been covered;
• establish the logical relationships of the activities, showing which activities
should happen first and which should follow;
• determine the work content and duration of each activity;
• make assumptions of resource availability;
• determine the critical path; and
• optimize the plan by resource levelling (comparing the calculated
requirements with those actually available and recalculating to spread
resources more evenly).

6.6.2 Change control

Where there is a possibility of change for whatever reason, it should be treated
as a project risk and addressed in the risk management plan. A comprehensive
change control procedure incorporating value for money criteria should be used
to evaluate and manage change if it occurs.
NOTE 1 Change is handled most effectively through sound project planning and
review.
NOTE 2 Changes to design, especially after contract award, are one of the major
causes of time and cost overruns and poor value for money. Changes arise mainly as
a result of unclear or ambiguous project definition, poor communication, inadequate
time spent in project planning and risk management, and/or changing circumstances.
Prior approval of changes is not always possible or practicable where the changes
arise from external factors such as changes to legislation, or from unexpected
conditions.
The need for changes should be minimized by:
• ensuring that the project brief is comprehensive and has the stakeholders’
agreement;
• taking account of proposed legislation (where known about);
• having early discussions with key stakeholders to anticipate their
requirements;
• undertaking site investigations and condition surveys early in the project;

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• ensuring that designs are adequately developed and coordinated before

construction plans are committed (which requires clear leadership);
• proactive project management, including forward planning; and
• identifying and managing risks.
A change control procedure should include a documented assessment of all the
following factors for each proposed change before approval is given:
• the reasons for the change;
• who is responsible for requiring the change;
• the full quality, cost and time consequences of the change, including health
and safety aspects;
• the risks associated with the change and their impacts;
• properly evaluated alternatives to the proposed change;
• proposals for avoiding or mitigating time overrun;
• source of funding of any cost overrun;
• deadline by which the change should be instructed without further impact
on quality, cost or time; and
• client approval for the change, taking account of any impacts.
Approval for the change should normally be given by the client when a detailed
evaluation of the change shows that it provides value for money and that any
impacts are acceptable to the client. Where additional funding is required that
exceeds the amount allowed in the risk allowance, approval for the change
should be obtained from the client.

6.6.3 Cost management

Clients should maintain the expertise to deal competently and expeditiously
with change, which can be complex, as this is an essential part of cost control.
Cost management should ensure, throughout the project, that:
• the latest estimate is compared with the previously approved budget and
does not exceed it without it being fully justified;
• the project is affordable;
• funds are available for planned expenditure; and
• contingency is added as considered appropriate to the project’s maturity.
NOTE 1 Many clients use a quantified risk assessment in setting up the project
budget, in which levels of confidence relating to the identified risks to cost and
programme are evaluated and appropriate risk allowances may be included. This
might also identify the measures which may be taken to mitigate the risks.
Contingency allowances should be included within the client’s budget to cover
unexpected and unidentifiable occurrences, which might occur throughout the
project’s life cycle and are therefore not part of the risk allowance. The
contingency allowance should not form part of the project team’s budget, which
should comprise the base estimate and the risk allowance derived from a
quantitative risk assessment. The contingency allowance should be held by the
business separately from the project team and should be accessible by them only
after going through the project change control procedures with full justification.
Contingency allowances, in addition to the risk allowances, may be necessary to
cover the following:
• resolution of incomplete information: in developing the details there are
likely to be unforeseen elements;

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• overcoming circumstance that were not expected;

• correcting errors;
• needing to apply acceleration measures to the programme;
• covering time-dependent costs associated with programme delay;
• allowance for the introduction of recognized nominal extra requirements or
scope growth;
• currency exchange rate movements; and
• indexing for inflation.
NOTE 2 Not all of these might be relevant to a particular project, but these items
are often the causes of additional costs.
A cash flow forecast should be established by the client as early as possible and
monitored throughout the life of the project. If cost overruns are to be avoided
then the project should have:
• achievable objectives that remain unchanged during the course of the
project;
• estimates that are realistic and not optimistic;
• a project brief that is complete, clear and consistent;
• a design that meets planning and statutory requirements;
• a design that is co-ordinated and takes account of buildability,
maintainability, health and safety and sustainability;
• risk allocation that is unambiguous and clear to all parties involved;
• clear leadership and appropriate management controls, e.g. by project
update reports;
• simple payment mechanisms that incentivize all parties to achieve a
common and agreed goal; and
• adjustable contractual provisions to achieve the desired cost control model.

6.6.4 Information coordination

As construction projects involve substantial and complex documentation, issues
of its efficient creation, integration and management should be a priority. In
particular, accessibility to relevant information for the usage of the built asset
should be included.
Collaborative communication of information during procurement, in selection
and in construction, and Building Information Modelling (BIM) and Integrated
Project Delivery (IPD) may be used to coordinate information.

6.6.5 Statutory approvals

The ability to achieve planning consent and other statutory approvals in
defining the work packages is essential in developing the procurement strategy,
see Annex B, Table B.1.

6.6.6 Risk management

Risk and value management should be carried out together throughout the
project.
NOTE 1 Risk management is critically important to project success; it involves
identifying and assessing risk, assigning the right risk owners and continually
managing, monitoring and reporting on key risks. Value management checks that
the project delivers value to the business by probing the assumptions on which the
project is based and seeking opportunities to add value.

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Clients should work on understanding risks, how to handle risks (including their
impact on relationships) and their attitude to them, documenting this process,
before risk allocation, risk management and risk registers.
It is essential to insure construction projects, in particular, products designed to
cover construction project risks. In addition to standard public liability and
similar cover, construction insurance should include, for example:
• all-risks insurance for the project works considering issues of project
extensions to cover business interruption and similar losses;
NOTE 2 This type of insurance might ordinarily be taken out by the contractor,
but there might be attractions for it to be taken out by the employer or with
the employer having a clearly insured interest.
• professional indemnity insurance dealing with design and other similar
professional indemnity risk;
• project insurance;
• product liability;
• latent defects cover.
More than one level of insurance for each risk should not be maintained at
additional cost unless necessary.
NOTE 3 Clients’ insurers also have a role in this aspect of a project.
Clients should operate a “live” risk management process which, in larger
organizations, is facilitated by risk managers. Clients should include a project risk
register and risk management plan in the business case for use throughout the
life of a project. Clients should also establish a policy for management of
disputes. This should include provisions relating to identification of and
management of disputes on an early and open basis which can significantly
minimize risk.
Management of disputes should take into account the special provisions relating
to construction disputes, the normally compulsory adjudication provisions, when
adopting policy.
NOTE 4 Attention is drawn to the Housing Grant, Construction and Renovation Act
[6] which allows any party at any time to adjudicate, see Annex B, Table B.1.
NOTE 5 Effective risk management assists a business to achieve its objectives by:
• reducing the likelihood or consequence of negative events;
• identifying opportunities that should have a positive consequence;
• identifying and understanding complex multiple cross-organizational risks;
• supporting cost control;
• developing best value through reviewing all options;
• providing visible and auditable governance across all levels of an organization;
and
• protecting reputation and stakeholder confidence.
Retention funds (and/or bonds), performance bonds (and/or guarantees) and
interim payment sums unpaid as security for performance may be used for
effective risk management. Under- or over-provision should be avoided as the
costs of provision are borne by the client. Necessary security funds should be
available promptly in order to maintain project progress in the event of
insolvency or similar default.

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BS 8534:2011 BRITISH STANDARD

6.7 Outline business case

The high-level business case prepared (see 5.2) should be developed at this stage
as an outline business case to incorporate the feasibility study recommended
option, the agreed procurement strategy, the project programme and the
updated budgetary estimates.

7 Procurement tactics
7.1 General
The procurement strategy should be further developed to include the following:
• terms of engagement/forms of contract (see 7.2);
• appointing the team including prequalification and short-listing (see 7.3);
• the award stage including full business case (see 7.4);
• notification of award, debriefing and mandatory standstill period (see 7.5);
• managing performance (see 8.1); and
• construction, completion and post project evaluation (see 8.2).

7.2 Terms of engagement/forms of contract

7.2.1 General
The terms of engagement should set out what the client, consultant or
contractor is required to do under the contract. The brief or specification forms
a key part of the requirements and should be output based. Where practicable,
the requirements should include targets and milestones that are achievable and
measurable.
NOTE The use of standard forms of contract helps to reduce both tendering and
contract administration costs. Bespoke or amended standard forms require clients
and tenderers to seek legal or other specialist advice and might increase the risk of
disputes arising from unfamiliar terms.
To avoid unnecessary additional costs, such bespoke or amended standard forms
should only be used where they demonstrably provide greater value for money
(VFM). Any amendments should only be made after receiving technical and legal
advice.
Suites of contracts and standard unamended contract forms from recognized
bodies should be used where they are applicable. Where standard forms fail to
meet the need of client bodies, they should collectively revise the standard
forms in a manner which facilitates collaborative working with consultants and
contractors. The procurement strategy should set out which type of contract is
recommended for each of the work packages. The choice of contract should be
determined by the nature of the works. For best practice, a contract should be
used that is non-adversarial and encourages collaborative working.

7.2.2 Project liability caps

Consultants and contractors may raise the issue of caps on liability and/or
exclusions of certain types of loss. The agreement or otherwise of such caps
should be an issue for commercial discussion based around the key element of
potential liabilities and types of loss.
NOTE Links of caps to the limiting of professional indemnity cover and project
value are often found.

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7.2.3 Contract value

Clients should decide the nature of the terms of engagement based on the
scale, complexity and value of the work.
NOTE 1 This has an impact on issues of limitation of liability and caps as set out
in 7.2.2.
This may influence the choice of contract form or form of procurement.
NOTE 2 Generally the more high value projects require more complex contractual
arrangements and often customization/amendment of the standard forms. Lower
value projects use simpler forms and rarely involve customization or amendment
except in special circumstances.
NOTE 3 The estimated value of the appointment contract dictates whether it falls
within the EU Regulations taking account of the application of, where relevant, the
aggregation rules which require the value of individual contracts to be aggregated
in particular circumstances specified in the Regulations [1], see Annex B, Table B.1.

7.2.4 Intellectual property

Whilst there are commonly used provisions relating to intellectual property, all
likely usages through the life history of the building and the consequent
necessary provision for relevant intellectual property rights should be considered
and documented.
NOTE The client generally receives a licence to make use of the documentation for
the specific project being constructed.

7.3 Appointing the team

7.3.1 General
All procurement should be on the basis of VFM and not lowest price alone. The
selection of the most appropriate procurement strategy and the appointment of
consultants and contractors should therefore be made on this basis.
Whatever procurement route is chosen, sufficient time should be built into the
overall programme to allow for all planning stages to be fully completed (both
before construction starts and during the progress of the project). Good
planning should include getting the construction sequence right, assessing and
managing project risks and using value management to assess the contribution
of each part of the construction process.
NOTE 1 These steps can minimize the likelihood of delays, extra costs and
waste/inefficiency.
All contracts should be made in writing and, whether relating to single
appointments or joint ventures, should be in place at the outset along with any
appropriate bonds and guarantees.
NOTE 2 The appointment process has a number of stages, each of which can take
time to complete adequately. Attempts to rush might lead to inadequate
preparation by the client or insufficient time for bidders to consider, research and
refine their bid. This might result in a failure to achieve VFM.
Mechanisms specific to each contract should be developed to evaluate the
quality and price (whole-life cost) components of each bid in a fair, transparent
and accountable manner. Any mechanism of this type should be used to help
clients come to a reasoned judgement rather than provide a prescriptive
mechanistic approach for its own sake.
NOTE 3 Time and effort is required by interested parties in responding to requests
for expressions of interest and for tenders.

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BS 8534:2011 BRITISH STANDARD

The amount and type of information requested for return by clients should be
appropriate and not overly elaborate, see PAS 91.
NOTE 4 This can assist clients in the assessment process.
Organizations should be carefully evaluated during the selection and award
processes as this typically pays dividends during the contract. Evaluation may
include interviews during either process. The possibility of information being
released that could give an unfair advantage to a particular organization should
be carefully safeguarded during interviews.
NOTE 5 Under the EU rules, each of the award criteria relates directly to the
economic advantage that the client expects to gain as a result of placing the specific
contract. Value management workshop techniques, involving key stakeholders,
provide a useful means of establishing the selection and award criteria and their
respective weightings. This may also be used to evaluate how well each bid meets
the criteria.
Whole-life costs should be taken into account during the appointment process,
particularly when comparing the tenders submitted by main contractors for
works projects procured under design and build contracts.
NOTE 6 Attention is drawn to the Housing Grants, Construction and Regeneration
Act [6], which provides a framework for fairer contracts and better working
relationships within the construction industry, see Annex B, Table B.1. It specifies that
construction contracts (including those with consultants) contain certain provisions
relating to adjudication and payment.
NOTE 7 The quality of the brief provided to designers is fundamental to achieving
quality in a built facility.
Clients should ensure that they have access to professional advice due to the
complexity of the design task. Clients should define key design objectives in
terms of operational requirements, service provision and quality standards. It is
also important that the dynamics of functions that the facility can accommodate
are identified early and that any consequent needs for flexibility should be
conveyed to the designer.

7.3.2 Consultancy appointments

Clients should ensure that adequate time and resources are allowed for the
design stage. Significant benefits can be accrued from early dialogue with the
design team during the development of the brief when alternative solutions
may be explored.
NOTE 1 Layout decisions made even in the very early stages of building design can
impact significantly on the long-term operational costs of a facility.
The appointment of suitable consultants is an essential part of achieving VFM in
construction procurement; consultants and client advisers provide the
“foundation” on which a project is constructed. Clients should ensure that VFM
is achieved for each consultancy service.
NOTE 2 The cost of professional services can account for less than 2% of the
whole-life cost of a project. Yet the quality of these services has a direct impact on
the remaining 98%. Even quite large variations in the cost of professional services
can become insignificant in relation to the beneficial effect on the whole-life cost.
A decision should be made on the specific project as to whether single point
responsibility or multiple appointments might provide best overall VFM.
NOTE 3 The optimum team involves the minimum number necessary to achieve the
objectives. The more parties involved, the greater the administration, costs, time and
opportunities for misunderstanding.

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Any contracts for appointments made in the early planning stages of a project
should allow for all procurement options to be considered and pursued,
unencumbered by earlier appointments.

7.3.3 Teamworking
When problems or difficulties are encountered, all parties should work together
as a team to overcome those problems.
This concept is the starting point on which relationships with other parties
should be based and applies just as much to the internal relationships between
the members of the client’s in-house project team as to the working
relationships between members of the client organization and those of the
supply side.
It should not replace formal contracts of engagement or proper and appropriate
management structures and procedures, but is a pragmatic manner of working
together to find ways of delivering the project to the required quality within
budget and within programme. It should be used to promote greater openness
and encourage earlier involvement by the supply side.
NOTE The benefits of teamworking include:
• understanding each other’s objectives;
• the use of collective knowledge and experience to find solutions;
• reduced numbers of personnel required to monitor progress and prepare or
counteract claims;
• reduction in correspondence and thereby unnecessary cost;
• reduction in duplication of effort;
• elimination of “man-to-man” marking (only one person to do each task on
behalf of all parties);
• improved working environment where the focus is on co-operation rather than
conflict;
• enhanced reputation of individuals, clients and supply side organizations when
associated with successful projects; and
• reduction in litigation, arbitration and dispute resolution and thereby
unnecessary cost.

7.3.4 Pre-qualification and short-listing

7.3.4.1 General
COMMENTARY ON 7.3.4.1
The types of appointment procedure available under the EU rules for the
appointment of consultants and contractors are:
• Open procedure: all interested organizations may submit tenders in response to
the Official Journal to the European Union (OJEU) notice.
• Restricted procedure: allows the number of organizations that might submit
tenders to be restricted by using a selection process in advance of tender
invitation.
• Negotiated procedure: this takes two forms:
• competitive: enables the client to negotiate the terms of the contract with
selected bidders and might include a formal tender stage prior to
negotiation (available in the limited circumstances provided for in the
Regulations [1]);
• without a call for competition: available only in the most exceptional
circumstances provided for in the Regulations [1].

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• Competitive dialogue procedure: under the competitive dialogue procedure

contractors are allowed to provide input during the tender process. This
procedure is used for complex contracts where the client does not believe that
the open or the restricted procedures are suitable. During this procedure, when
the client has invited contractors following submissions of Expression of Interest
(EOI), the client engages with individual bidders to discuss the solutions that the
client is looking to achieve. Once the desired solution has been identified, the
dialogue phase ends and the invitations for tenders sent out to interested
parties.
The open procedure is not recommended for the appointment of consultants or
contractors for works projects due to the excessive number of tenders that can
be expected. The restricted procedure or the competitive negotiated procedure
are recommended except in exceptional circumstances.
PAS 91, Construction related procurement – Prequalification questionnaires,
provides sets of questions to test compliance with the core criteria which should
be observed by construction tenderers. Additional project-specific questions
should be included.
NOTE Whilst particularly focussed on the public sector, it can be of significant
assistance to the private sector.
Non-collusion clauses and/or certificates of independent bids and reciprocal
anti-bribery agreements may also be used.

7.3.4.2 The selection stage

7.3.4.2.1 General
The selection stage of the process should be objective, fair, accountable and
transparent. The criteria for selection should be established before inviting
expressions of interest or placing advertisements, including those in OJEU. If the
criteria and any related weightings, e.g. scoring system, have been established
before the OJEU notice is despatched to the Official Journal Office, they should
be set out in the OJEU notice. If they have not been established before the
notice is despatched they should be forwarded to all candidates at the earliest
possible opportunity and prior to the sift being conducted.
The selection process should consist of the following steps:
• establish:
• selection criteria (see 7.3.4.2.2);
• weightings for selection criteria (see 7.3.4.2.3); and
• quality threshold (see 7.3.4.2.4);
• invite expressions of interest (see 7.3.4.3); and
• reduce longlist to shortlist (see 7.3.4.3.1).
NOTE The selection stage under restricted and competitive negotiated procedures
produces a shortlist of the most suitable organizations from all those that expressed
an interest in carrying out the contract.

7.3.4.2.2 Selection criteria

Health and safety matters should be assessed and documented at the selection
stage as an essential part of the candidate’s appropriate skills, experience and
resources.

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Other selection criteria should be based on information concerning the

attributes of an organization that fall under the headings “personal position”,
“economic and financial standing” and “technical capacity (and for consultants,
‘ability’)”. They should be aimed at selecting the most suitable organizations
capable of carrying out the required work whilst taking account of the need to
achieve VFM. They should not discriminate against or be in favour of service
providers in other member states. Where the Regulations [1] apply, it should be
ensured that the selection criteria are consistent with what is permitted under
the Regulations [1]. The criteria and their relative importance, e.g. any
weightings or scoring system to be applied, should be made available to
candidates prior to the sift being conducted.
Appropriate selection criteria for individual projects should be set to ensure that
they genuinely reflect the candidates’ ability to perform the contract.
The selection criteria should be capable of being scored and audited. Client
bodies should assess how each criterion may be scored and whether such scores
are fair and accountable.

7.3.4.2.3 Weightings for selection criteria

The relative importance of each criterion listed under the “technical capacity
(and ability)” heading should be established by giving it a percentage weighting
such that the sum of all the weightings equals 100% (see Table 2).
NOTE Table 2 is provided for illustration only and is likely to require modification
for specific contracts.

7.3.4.2.4 Quality threshold

For each criterion, clients should determine their minimum requirements for
acceptability. Failure to meet such standards should preclude an organization
being considered further. Minimum standards for participation should not be set
any higher than is necessary, so as not to unfairly disadvantage small and
medium sized enterprises (SMEs). An overall quality threshold (Table 2) for the
criteria under the “technical capacity (and ability)” heading is recommended.
When setting quality thresholds, the levels should be representative of the
minimum acceptable standards.
NOTE If they are set unnecessarily high, there is a risk of excluding capable
organizations that could offer better VFM and a risk of unfairly disadvantaging
SMEs.

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Table 2 Illustrative example of selection mechanism

Project title: Assessors:

Assessor A
Assessor B
Organization Overall quality threshold
50
Personal position
Selection criteria Quality threshold QT reached?
(QT)
Bankruptcy, convictions, misconduct, taxes, etc Minimum standards of Yes
client
Economic standing
Selection criteria Quality threshold QT reached?
(QT)
Profit and loss for last three years ? Yes
Public liability insurance £? Yes
Professional indemnity insurance (where £? Yes
appropriate)
Technical capacity (and for consultants, ability)
Selection criteria Criteria weighting Score awarded Weighted score
(a%) (b) (a x b)
Technical suitability for 25 80 20.0
project
Past performance on 10 50 5.0
risk/value management
Past performance on 10 35 3.5
teamworking/
partnering
Resources relevant to 15 60 9.0
project
Design experience 25 80 20.0
relevant to project
Quality assurance 15 40 6.0
Total weighting 100 Total: 63.5
Is the total score greater than the overall quality threshold? Yes
Comments
Signed by assessors: Date:
Assessor A
Assessor B

7.3.4.3 Invite expressions of interest

7.3.4.3.1 General
Where the contract value lies above the appropriate EU threshold, expressions
of interest should be invited by placing a notice in OJEU.
Invitations for expressions of interest or advertisements, including those in OJEU,
should include the following information:
• details of the information required from bidders to enable their evaluation,
i.e. the selection criteria when available and the information required to
demonstrate how each is met;

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• whether variant bids might be accepted; and

• other information:
• intention to enter into teamworking or partnering arrangements; and
• details of incentives to be included in the contract.
For contracts that are not subject to the Regulations [1], invitations for
expressions of interest should be advertised locally.
NOTE 1 Attention is drawn to the Equality Act [12] on anti-discrimination with
regards to organizations being discriminated against on the grounds of nationality
or the member state in which they are based. For example, requiring that a bidder is
based in, or within a certain distance of, a particular locality would be open to legal
challenge as being in breach of EU law.
For contracts not subject to the Regulations [1], the longlist may be drawn up in
a number of ways, for example by:
• use of appropriate registers of organizations [e.g. “Constructionline 3)”];
• directly approaching organizations;
• placing advertisements in appropriate publications; and/or
• approaching appropriate professional bodies and trade associations
(preferably used in conjunction with another option because some suitable
organizations might not be members of such bodies or associations and to
ensure that particular organizations are not favoured unjustifiably).
For contracts that are subject to the Regulations [1], those organizations that
respond to the OJEU notice should be included in the longlist. Client bodies may
advertise elsewhere or prompt organizations to respond to the OJEU notice.
These advertisements should not be published in advance of despatching the
OJEU notice and should not contain any information additional to, or different
from, that contained in the OJEU notice.
Similarly, whatever form of notice generates the expression of interest; the rules
for doing so should be the same.
NOTE 2 For example, a local advertisement would have to set the same deadline
and the same requirements on form and content as are contained in the OJEU
notice.
Where there is a lack of response to the invitation for expressions of interest,
the process should be reviewed to indicate potential shortcomings in the
selection process.

7.3.4.3.2 Reduce longlist to shortlist

NOTE Over-long tender lists can result in unnecessary abortive costs for clients and
tendering organizations; tenderers might put less effort into their tender submission
if they are one of many. A short tender list ensures that tenders are only received
from the most suitable organizations.
The selection mechanism should identify those organizations in the longlist in
order of how well each appears to meet the selection criteria. Selection should
be based on information provided in response to a pre-qualification
questionnaire and, if necessary, a pre-qualification interview using
pre-determined selection criteria and weightings. The shortlist should be limited
in number to the best of these organizations from whom it is anticipated that
tenders might be invited. The number of organizations invited to tender should
be sufficient to ensure genuine competition.

3)
http://www.constructionline.co.uk/static/

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A selection mechanism should be reviewed where it results in a shortlist that

does not include that part of an organization that has previously carried out
work for the client on a similar type of project and performed well resulting in a
successful project outcome. Following a review of a mechanism for a contract
where the Regulations [1] apply, the published selection criteria should be
retained unless the client is prepared to re-advertise in OJEU.
All bidders should be given a debriefing on request.

7.4 The award stage

NOTE The award stage is distinct and separate from the selection stage.

7.4.1 General
The tenders should be evaluated on the basis of VFM and not lowest cost alone.
The award stage of the process should involve a fair, transparent and
accountable method of evaluating tender submissions. It should also involve an
appropriate (to the contract in question) balance of quality with price
(whole-life cost). A typical award process may be to:
• confirm list of candidates (see 7.4.2);
• establish:
• award criteria (see 7.4.3);
• weightings for award criteria (see 7.4.4);
• quality/price ratio (see 7.4.5);
• award mechanism (see 7.4.6);
• quality scoring (see 7.4.7); and
• price scoring (see 7.4.8);
• prepare instructions to tenderers and invite tenders;
• evaluate “quality” element of tenders;
• evaluate “price” element of tenders; and
• balance quality and price; and to
• notify award, debriefing and mandatory standstill period (see 7.5).

7.4.2 Confirm list of candidates

Each organization on the shortlist should be advised in writing of the details of
the contract and asked to confirm that they are willing to attend an interview
and submit a tender. If any are unwilling or unable to tender, the next suitable
organization should be added to the shortlist. Interviews should not be held
until after the date set for the submission of tenders.

7.4.3 Award criteria

NOTE 1 The award stage focuses on the tenderers’ proposals for a specific contract
whereas the selection stage looks back at tenderers’ status and previous
performance.

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The award criteria should be appropriate, specific to the particular project and
relevant to assessing whether tenders represent VFM. They should be
established, at the latest, before tenders are invited as they should either be
notified in the initial advertisement or subsequently in the instructions to
tenderers and associated tender documents. Where possible, they should be
listed in descending order of importance. Where the Regulations [1] apply, each
criterion should be relevant to “economic advantage” to the contracting
authority. Relative weightings and any methodology (e.g. quality price ratio,
scoring system) as described (see 7.4.5 and 7.4.7) to be used as part of the
evaluation should be made available either in the OJEU notice or with the
tender documents.
Award criteria may include:
NOTE 2 Where the award criteria refer to ability or experience, this means of the
staff assigned to the project rather than to that of the tenderer as a whole.
• teamworking arrangements:
• partnering with client; and
• partnering with subcontractors and suppliers;
• aesthetic and functional characteristics:
• design;
• operating costs;
• ease of use;
• adaptability for changes in use;
• demonstration of innovation in proposals; and
• maintainability;
• proposals for managing the contract:
• procedures for planning, programming and management;
• programme for completing contract, including milestones for achieving
objectives;
• identified risks and proposals for their management;
• communication arrangements; and
• quality plan;
• project team organization:
• qualifications and experience of team members, relevant to the project;
• appropriately experienced senior managers;
• qualifications;
• length of service;
• directly relevant experience;
• quality of other senior personnel:
• qualifications;
• position within the organization;
• amount of time devoted to the project; and
• resources including equality and diversity;
• technical merit:
• appropriate to the client’s needs and constraints;

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• degree of flexibility in carrying out the contract;

• method of carrying out the contract;
• approach to Construction Design and Management Regulations [8]: how
health and safety issues may be identified, assessed and managed
during the design and construction stages;
• approach to sustainability;
• quality of documentation;
• method of presenting information; and
• standards of materials, checks and independent inspections; and
• services provided from external sources:
• joint venture arrangements proposed;
• responsibilities of the joint venture parties should be clear; and
• arrangements made for subcontracting:
• proposals for managing the delivery of any subcontracted services
successfully;
• ability to verify subcontractors’ compliance with applicable tax,
social security, National Insurance and health and safety legislation;
and
• ability to assess and verify levels of skills/qualifications and health
and safety training amongst subcontractors’ workforces and other
workers/workforces in the supply chain.

7.4.4 Weightings for award criteria

Candidates should be assessed on how well they satisfy the award criteria
including any mandatory components. The relative importance of each award
criterion should be established by giving it a weighting.
NOTE The example in Table 3 is intended to illustrate the principles involved and is
likely to require modification for specific contracts/commissions. Items shown in
italics vary according to the project and client.
A mechanism for each contract should be drawn up and tested with dummy
data to ensure it works as anticipated.

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Table 3 Illustrative example of award mechanism

Project title: Assessors:

Quality weighting: 60 Assessor 1
Price weighting: 40 Assessor 2
Quality scores
Quality criteria Criteria Firm A Firm B Firm C
weight
Score Wtd. score Score Wtd. score Score Wtd. score
%
Proposals for, 30 60 18.00 65 19.50 75 22.50
and
understanding
of, project
Experience and 20 55 11.00 65 13.00 70 14.00
resources of
proposed project
team
Project 10 65 6.50 60 6.00 60 6.00
management/
teamworking
skills
Risk 10 60 6.00 70 7.00 65 6.50
management
skills and
experience
Aesthetic 15 70 10.50 75 11.25 70 10.50
character of
proposals
Maintainability 15 50 7.50 65 9.75 75 11.25
Totals 100 59.50 66.50 70.75
Price scores
Tender price £550,702 £740,217 £640,360
Price score 64.50 35.00 50.50
(mean £643,760)
Overall scores
Quality weighting × 60% × 59.50 = 35.70 60% × 66.50 = 39.90 60% × 70.75 = 42.45
quality score
Price weighting × price 40% × 64.50 = 25.80 40% × 35.00 = 14.00 40% × 50.50 = 20.20
score
Overall score 62 54 63
Order of tenders 2 3 1
Comments:
Signed by assessors: Date:
Assessor 1 Assessor 2

7.4.5 Quality/price ratio

The quality/price ratio appropriate to the type and stage of the project should
be established. Clients should ensure that the optimum combination of
whole-life cost and quality is obtained.
NOTE Indicative ranges of quality/price ratios for various types of project are given
in Table 4.

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Table 4 Indicative ranges of quality/price ratios for various types of project

Type of project Indicative quality/price ratio

For consultants For contractors
Feasibility studies 80/20 to 90/10 Not applicable
Innovative projects 70/30 to 85/15 20/80 to 40/60
Complex projects 60/40 to 80/20 15/85 to 35/65
Straightforward projects 30/70 to 60/40 10/90 to 25/75
Repeat projects 10/90 to 30/70 5/95 to 10/90

7.4.6 Award mechanism

The award mechanism should provide a structured approach to evaluating bids.
NOTE The example in Table 3 uses the award criteria, the weightings applied to
them, the quality/price ratio and the price scoring mechanism to allow the quality
and price elements of each bid to be evaluated.
The award mechanism should be established before drawing up the longlist,
inviting expressions of interest or placing advertisements.

7.4.7 Quality scoring

The quality scoring system should indicate how well each organization’s quality
bid meets each of the award criteria.
NOTE The example in Table 3 is based on the following scoring system:

Score How well the organization’s bid meets each criterion

100 meets criterion exceptionally well (difficult to improve);
50 meets criterion at an acceptable level; and
0 does not address criterion at all.

7.4.8 Price scoring

The price scoring and quality scoring systems should be compatible with each
other for which there are a number of options. The relative sensitivity of price
and quality should be compatible with the weighting, which should be reflected
in the balance. This balance should be taken into account when determining the
objectives of the selection process.
NOTE 1 In the example in Table 3, the price scoring is quite sensitive: a price 10%
above the mean, scores 10 points less than the mean price tendered. If the effect of
the quality scoring is that all of the potentially successful tenderers score similarly,
quality does not play a significant role in distinguishing between the leading
tenderers. Alternatively, if the quality scoring is widely different between the
tenderers whose quality submissions are relatively similar, price does not play a
significant role in distinguishing between the leading tenderers even if the
quality/price weighting is nominally 50/50.
NOTE 2 The example of a price scoring system used in the illustrative example of
award mechanism in Table 3 is:
• the mean price of the acceptable tenders received is given 50 points; and
• one point is deducted from the score of each tenderer for each percentage
point above the mean; and one point is added to the score of each tenderer for
each percentage point below the mean.

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7.4.9 Full business case

The full business case should be completed based on the tender assessment and
comparison of proposed contract value with approved budget and pre-tender
estimate.

7.5 Notification of award, debriefing and mandatory standstill

period
The tenderer offering the best overall VFM, taking account of the optimum
combination of whole-life costs and quality, should be judged as the
competition winner. The successful tenderer should be informed and the start
date agreed with them. At the same time, unsuccessful tenderers should be
notified in writing. A contract award notice, where appropriate, should be sent
to OJEU.
NOTE 1 Attention is drawn to the Public Contract Regulations [1], which provide a
time limit to send notice to the OJEU by.
As a general rule, all tenderers and bidders unsuccessful at selection stage
should be given the option of a debriefing.
NOTE 2 There are specific requirements for debriefing where contracts are covered
by the EU Procurement Directives (Directive 2004/17/EC [13] and Directive 2004/18/EC
[14]). For public sector and utilities contracts covered by the full regime of the
EU Procurement Directives, a mandatory standstill period is required to elapse
between the written communication of the award decision to all tenderers and
contract commencement. Although the minimum mandatory standstill period
is ten calendar days, in many cases it may be necessary for the period to exceed this
minimum duration to take account of requirements for contract award notification
and debriefing, and to ensure that the period ends on a working day.
Records should be kept of the selection and award process for audit purposes or
in the event of a challenge to any decision made. These records should be
retained for at least five years or the duration of the contract if longer.
Legal challenges to the awards made and/or seeking compensation (which have
to be submitted promptly) are becoming more commonplace, particularly where
legal and technical aspects overlap; consequently specialist advice should be
taken.
NOTE 3 The interrelationship between the legal and technical aspects in public
sector procurements is constantly evolving. This particularly applies where
technological choice might inadvertently restrict competitive choice.

8 Managing performance and delivery

8.1 Managing performance
NOTE 1 Performance management is a systematic approach to help manage and
lead the delivery of projects, linking business goals developed in the planning and
development stages to overall project outcomes in the implementation, operation
and decommissioning stages. The approach ensures that project success is clearly
defined, is measurable and is ultimately achieved.
Leaders in client organizations should be personally involved in establishing the
performance management system, typically during the development stage, and
remain actively involved throughout all subsequent stages of a project’s life
cycle.
To be effective, a performance management system should be used to fulfil two
critical roles (see Figure 5).

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First, it should assist clients communicate the strategy to everyone involved in a

project by translating the strategic intent into clear and meaningful terms (this
could be said to be making sure everyone is “doing the right things”). While it is
crucial during the development stage of a project to achieve wide
understanding, commitment and motivation, performance management should
be continued throughout all subsequent stages to keep everyone familiar with
changes that emerge from ongoing strategic and operational reviews.
Second, it should provide feedback about progress being achieved towards the
business goals. This feedback should be used by the client decision-makers to
continually develop the project programme, based on facts and data, to ensure
its success. It should also be used to test and adjust the original strategic
assumptions within the business case in the light of emerging issues (this could
be said to be making sure everyone is “doing things right”).
Figure 5 Performance management system

DOING THE RIGHT THINGS STRATEGY DOING THINGS RIGHT

The performance management system should set out accountabilities for results
that should be clearly assigned and well-understood. To be effective,
accountabilities should be agreed formally and signed off by all parties involved
in their development to avoid misunderstandings and disappointment. To have
effective meaning, accountabilities should be associated with both positive and
negative consequences, but should not be punitive.
For example, appropriate levels of liquidated damages and an appropriate
process for extensions of time to preserve the recovery of liquidated damages
should be established. Incentivization is essential throughout, i.e. win-win
solutions as well as liquidated damages.
NOTE 2 To achieve time objectives, use is commonly made of liquidated damage
provisions providing for agreed compensation for delay or, less commonly, for
incentives to be completed on time.
Performance management should be positive and proactive and not be the basis
to apportion blame. Individual culpability is only considered as part of a
systems-wide analysis and even then the focus should remain on learning and
development. Clients should focus performance management on improving the
organization and its systems using targets and rewards to motivate people,
teams and organizations involved in the programme.
The reason why clients should develop a fair, balanced and motivational
environment in terms of compensation, rewards and recognition is because
peoples’ behaviours are driven by the consequences of their actions.
NOTE 3 This can have a huge effect on overall performance.
Clients should define key performance indicators (KPIs) up front and include
them within supply contracts in a consistent manner so that progress can be
similarly reviewed across different packages.

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NOTE 4 KPIs are commonly used on successful projects.

NOTE 5 KPIs that are normalized are particularly powerful in providing a quick
overview for both the client and supply teams. Examples include:
• CPI (cost performance indicator) = budgeted cost of work performed/actual cost
of work performed.
• SPI (schedule performance indicator) = budgeted cost of work
performed/budgeted cost of work scheduled.
In each case a value greater than one is good news and a value less than one means
that some attention is necessary.
Clients may use a balanced set of performance measures, commonly referred to
as a balanced scorecard approach. Clients should focus on prime project
outcomes as well as on what influences these outcomes, e.g. operational
effectiveness and development, and learning, to build a more comprehensive
view of their programmes, which in turn helps them act in the best long-term
interests of all parties. Performance measurement can provide actionable
information to decision-makers who should be presented with the results of
comprehensive analysis carried out by appropriate subject experts. The analysis
should look for deviations from expectations and try to account for these, assess
opportunities and risks, forecast future performance, and make informed
recommendations for change. The system should allow for control to be
cascaded and managed at the lowest effective level.
NOTE 6 Measurement becomes counter-productive if used to assign blame or
simply to accumulate data and adhere with reporting requirements.
In particular, clients should ensure that supplier organizations are capable of
collecting and providing reliable data for measurement.
Benchmarking should be used to establish performance targets as part of a
continuous improvement process to ensure that a project remains at the
forefront of best practice, continually raising performance expectations. By
systematically comparing key features of the project against leading
organizations, both internally and externally from across the sector and
wherever best practice is found, clients may exploit opportunities for
improvement and innovation for the overall benefit of the project.
Clients should use targets to set challenging, but achievable objectives
throughout a project. These should be developed and continuously reviewed on
an informed basis taking account of factors such as:
• past performance: baseline data;
• competitive and best-practice benchmarks within the industry sector and
beyond;
• stakeholder expectations;
• programme strategic and operational needs including future expectations;
and
• senior management and leadership ambitions for the project.
NOTE 7 It is considered that hard-to-achieve goals, objectives and targets are
strongly associated with increases in performance.
Clients should systematically review programme performance at strategic and
operational levels on a regular, planned basis.
NOTE 8 This is considered to be the most important routine activity that project
managers and leaders undertake to secure the ongoing capability of their project
throughout its various life cycle stages.

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To ensure the performance management system continues to provide relevant

and timely information, clients should continually assess whether their current
measures are sufficient or excessive, whether they are proving to be useful in
leading and managing a project, and whether they are driving towards the
desired results.
Targets should be reviewed regularly, although too-frequent changes in both
measures and targets can cause confusion and affect accountabilities and
motivation. Changes should be introduced systematically, progressively and with
wide communication about the reasons for change.

8.2 Managing delivery

8.2.1 Construction contract management
This should include:
• management of the project during the contract period to control costs and
avoid disputes;
NOTE This necessitates the clear defining of responsibilities and
encouragement of a teamworking approach.
• regular monitoring and reporting to analyse all aspects of the project as
construction progresses; and
• taking corrective action if required following the gateway reviews, carried
out at key stages of the project.
Clients should adopt fair payment practices. It should be ensured that suppliers
receive full payment within the due date. Intentional withholding of certified
payments or late payments are ethically unacceptable and should not be
contemplated. Clients should ensure that the whole supply chain adopts these
principles.
The certification and payment procedures should be detailed within the contract
including time scales for receipt of payment after acceptance of invoices. These
procedures should not be overly bureaucratic and should be transparent down
the supply chain. Payment times within the contract should be chosen to
minimize finance charges throughout the supply chain.
If payments or part payments are withheld by the client, this should be fully
justified and in accordance with the contract.
The processes should provide protection to the client and the supply chain in the
event of any part of the supply chain going into liquidation.

8.2.2 Completion
This should include:
• oversight of testing and commissioning procedures;
• coordination of the reporting and remedying of defects;
• receipt of the health and safety file from the CDM coordinator;
• operation and maintenance manual;
• as-built records; and
• the agreement of final accounts in line with contractual requirements.

8.2.3 Aftercare
NOTE 1 The completeness and effectiveness of a project is as much about its
performance in operation as it is about its performance in the implementation stage.

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It is essential that clients consider and define what is expected for the post
construction activities of commissioning, operation and maintenance.
Approaches to legacy and decommissioning should also be considered and
defined.
Clients should consider:
• continuity between a project’s life cycle stages of implementation, operation
and eventual decommissioning;
• specifications for safe operation and maintenance;
• allocation between capital expenditure and operational expenditure in the
context of design life and allocation of responsibilities;
• future proofing such as designing for in-service upgrades or future
expansion;
• objectives for legacy value, design life and sustainability; and
• planning for decommissioning.
Clients should plan ahead for performance in use and for clarity in the
objectives for legacy value. For example, if the project adopts technologies and
operating criteria that are a step-change from the experience and expertise of
existing operations and maintenance teams, they may need retraining and
involvement throughout the project. Operating and maintenance instructions,
together with acceptance records, as-built records and lists of defects, should be
provided in the construction contracts.
NOTE 2 The best time competitively to buy maintenance agreements is when
suppliers are bidding for installation work. A supplier who has already been
committed to a maintenance contract (or at least the client holding the option of
one) is likely to put more care and attention into getting the quality of the original
installation work right. There is a vested interest in achieving good quality and high
performance if it reduces future maintenance costs.
The time required to commission and hand-over a complex project can be
considerable, and should be fully integrated within the project programme from
the outset. Equally, the consequences of phased handovers or the need for
separate client or concessionaire fit-out activities should be planned for.
Although difficult in a sustainable environment, projects should have no
long-term detrimental impact; clients have prime responsibility for this, see
BS 8903. The business case and client brief for projects should include the cost of
building and operating the project, and also the objective of safe and
environmentally responsible decommissioning. Materials should be specified and
designed to satisfy these whole-project objectives.
NOTE 3 It is the ability to sort and separate materials effectively that most affects
decommissioning.
If practicable, designs should use recycled materials from previous
decommissioned projects and in turn facilitate future recycling.
Clients should consider measuring the legacy and sustainability outcomes of
their projects and position them relative to other projects.
NOTE 4 There are national and international recognized standards for registering
and gaining certification for aspects of sustainability performance. It may be
advisable to seek certification early and to establish the standard sought at the
outset together with the level of attainment. Similar to quality and environmental
standards, independent audit and monitoring associated with sustainability
certification may be useful. Appointing specialists at an early stage to advise on this
helps to set up sustainability objectives and monitoring.

© BSI 2011 • 39
BS 8534:2011 BRITISH STANDARD

8.2.4 Post project evaluation and post occupancy evaluation

This should include:
• completion of a formal post project evaluation in order to review the
project performance, its delivery of objectives and VFM, and its
identification of lessons to be learned from the procurement process. These
lessons should be used to influence the approach to the procurement of
future schemes; and
• completion of a post occupancy evaluation which focuses on whether the
building is meeting user needs and identifying lessons to be learned.

8.2.5 Exit strategies

The final disengagement from a project should guide the management of each
participant’s involvement so that they may steer the project in the direction that
their successful disengagement demands. When setting up a construction project
or programme it is essential to think about how each participant’s involvement
ends.
NOTE 1 Construction activity is generally established for a finite and defined
purpose, and a specific period of time. Since it is generally a means to an end, the
success of construction activity can usually only be judged after those who were
involved have disengaged.
NOTE 2 The articles of agreement in a contract set out the basic terms of the
contract. An exit strategy is built around the achievement of the basic objectives
that were set out in the articles of agreement.
To complete involvement with the project, obligations should have been fulfilled
and rights exercised in accordance with the contract. Alternatively if one or
more parties seek to waive contractual rights, waivers should be agreed in
writing by the relevant parties.
Partnerships and framework agreements should be drafted so that it is clear
what happens if one of the partners wishes to withdraw from the arrangement
for whatever reason.
NOTE 3 Premature exit from contractual obligations may be possible through
negotiation and agreement, potentially coupled with novation of contractual
obligations and rights, to enable other parties to complete a project in the place of
those originally involved.
To effect smooth transitions of responsibilities at the close of a contract, good
record-keeping and clarity of rights (such as ownership of materials, insurance
policies) should be implemented to help make the process more straightforward
and give confidence to those who are taking over responsibilities.
In disengaging from a project to which you are making supplies, there are
consequential disengagements from those who are making supplies to you that
should be taken into account. These should be managed carefully to maintain
good business relationships throughout the supply chain so that future
engagements with the same people are not jeopardized.
NOTE 4 In the case of framework or partnering arrangements, participants may
seek to maintain continuing business relations into the next project. This requires
specific action to capture lessons learned and to develop an approach that allows for
continuous improvement to the processes of design and construction.
The following checklist of issues should be used to conclude a project.
• Does what is being delivered achieve the aims set out in the contract?
• Have all contractual obligations been discharged and all payments certified,
made and received?
• Have bonds been returned?

40 • © BSI 2011
BRITISH STANDARD BS 8534:2011

• Have insurance policies for the construction stage been terminated?

• Have all parties to the project been involved in evaluating the extent to
which objectives have been achieved and the extent to which they would
do things differently in the future?
• Are there further projects that follow on from this one for which detailed
information and records should be prepared?
• Has the transition of the project to the final owners been managed
successfully, such as transfer of insurance obligations and any necessary
training?
• Has documentation, such as the health and safety file, operation and
maintenance manuals, been handed over?
• Are there formal handover stages so that everyone is clear about the
effective dates of the transition of responsibilities?
• If this project involved framework or partnering arrangements, have
suitable arrangements been put in place to take advantage of opportunities
for continuous improvement?

© BSI 2011 • 41
BS 8534:2011 BRITISH STANDARD

Annex A Recommended reading

(informative)
ASSOCIATION OF CONSULTING ENGINEERS. Avoiding procurement pitfalls: an
ACE guide. London: ACE, 2009. ISBN 251771.
BS 6079-1, Project management – Part 1: Principles and guidelines for the
management of projects
BS 7000-1, Design management systems – Part 1: Guide to managing innovation
BS 7000-2, Design management systems – Part 2: Guide to managing the design
of manufactured products
BS 7000-4, Design management systems – Part 4: Guide to managing the design
in construction
BS 7000-6, Design management systems – Part 6: Managing inclusive design –
Guide
BS 7832, Performance standards in building – Checklist for briefing – Contents of
brief for building design
BS 8536, Facility management briefing – Code of practice
BS 8903, Principles and framework for procuring sustainably – Guide
BS 31100, Risk management – Code of practice
BS EN 12973, Value management
BS EN 13269, Maintenance – Guideline on preparation of maintenance contracts
BS EN 15221-2, Facility Management – Part 2: Guidance on how to prepare
Facility Management agreements
BS EN 62402, Obsolescence management – Application guide
BS EN ISO 9001, Quality management systems – Requirements
BS ISO 10845-1, Construction procurement – Part 1: Processes, methods and
procedures
BS ISO 10845-2, Construction procurement – Part 2: Formatting and compilation
of procurement documentation
BS ISO 15686-5, Buildings and constructed assets – Service-life planning – Part 5:
Life cycle costing
PAS 55-1, Asset management – Part 1: Specification for the optimized
management of physical assets
PAS 91, Construction related procurement – Prequalification questionnaires
PD 156865, Standardized method of life cycle costing for construction
procurement
PD CEN/TR 13833, Qualification of construction enterprises
CONSTRUCTING EXCELLENCE. Collaborative risk management guidance. London:
Constructing Excellence, 2005.
CONSTRUCTING EXCELLENCE. Never waste a good crisis. London:
Constructing Excellence, 2009.
CONSTRUCTION CLIENTS’ GROUP. Clients’ commitments best practice guide.
London: Constructing Excellence, 2008.
CONSTRUCTION INDUSTRY BOARD. Constructing success: A code of practice for
clients of the construction industry. London: Thomas Telford Ltd, 1997.
CONSTRUCTION INDUSTRY COUNCIL. Selecting the team. London: Construction
Industry Council, 2005.

42 • © BSI 2011
BRITISH STANDARD BS 8534:2011

EGAN, J. Rethinking construction: the report of the Construction Task Force to

the Deputy Prime Minister. London: Department of the Environment, Transport
and the Regions, 1998.
HOLTI R, NICOLINI D and SMALLEY M. The handbook of supply chain
management. London: CIRIA, 2000. ISBN 0860175464.
HUGHES, W and LARYEA, S. Standardization of procurement: national or
international? Dubrovnik, Croatia: CIB Joint International Symposium:
Construction facing worldwide challenges, 2009.
HUGHES, W, HILLEBRANDT, P, GREENWOOD, D and KWAWU, W. Procurement in
the construction industry: the impact and cost of alternative market and supply
processes. London: Taylor & Francis, 2006. ISBN 9780415395601.
INSTITUTION OF CIVIL ENGINEERS. Client Best Practice Guide. London:
Thomas Telford Ltd, 2009.
LATHAM, M. Constructing the team. London: HMSO, 1994.
NATIONAL AUDIT OFFICE. Modernising Construction. London: National Audit
Office, 2001.
NATIONAL AUDIT OFFICE. Improving Public Services through better construction.
London: National Audit Office, 2005.
NATIONAL AUDIT OFFICE and OFFICE OF GOVERNMENT COMMERCE. Good
practice contract management framework. London: National Audit Office, 2008.
NETWORK RAIL. Guide to railway investment projects (GRIP) stages 1-8. London:
Network Rail, 2007. http://www.networkrail.co.uk/aspx/4171.aspx
OFFICE OF GOVERNMENT COMMERCE. A formula for success: procurement
effectiveness in major project delivery. London: Office of Government
Commerce, 2009.
OFFICE OF GOVERNMENT COMMERCE. Achieving excellence in construction
procurement guides: 1 – 11. London: Office of Government Commerce, 2007.
OFFICE OF GOVERNMENT COMMERCE. An introduction to public procurement.
London: Office of Government Commerce, 2008.
OFFICE OF GOVERNMENT COMMERCE. Contract management checklist. London:
Office of Government Commerce.
OFFICE OF GOVERNMENT COMMERCE. Contract management in complex
projects. London: Office of Government Commerce, 2008.
OFFICE OF GOVERNMENT COMMERCE. Disclosure of budgets in the course of
procurement. London: Office of Government Commerce, 2005.
OFFICE OF GOVERNMENT COMMERCE. FOI (civil procurement) policy and
guidance. London: Office of Government Commerce, 2008.
OFFICE OF GOVERNMENT COMMERCE. Framework agreements: OGC guidance
on framework agreements in the procurement regulations. London: Office of
Government Commerce, 2008.
OFFICE OF GOVERNMENT COMMERCE. Gateway review pack. London:
Office of Government Commerce, 2007.
OFFICE OF GOVERNMENT COMMERCE. Guide to best “fair payment” practices:
Construction procurement. London: Office of Government Commerce, 2009.
OFFICE OF GOVERNMENT COMMERCE. Improving procurement: pre-qualification
tool. London: Office of Government Commerce, 2009.

© BSI 2011 • 43
BS 8534:2011 BRITISH STANDARD

OFFICE OF GOVERNMENT COMMERCE. Liability in Government Contracts.

London: Office of Government Commerce, 2009.
http://www.ogc.gov.uk/
other_key_procurement_policy_issues_liability_in_government_contracts.asp
OFFICE OF GOVERNMENT COMMERCE. Procurement policy note: distinguishing
between “selection” and “award”, Action Note April 2009. London: Office of
Government Commerce, 2009.
OFFICE OF GOVERNMENT COMMERCE. Supply chain management in public
sector procurement: a guide. London: Office of Government Commerce, 2006.
OFFICE OF GOVERNMENT COMMERCE. The government procurement code of
good practice for customers and suppliers. London: Office of Government
Commerce.
OFFICE OF GOVERNMENT COMMERCE and HM TREASURY. Competitive dialogue
in 2008: OGC/HMT joint guidance on using the procedure. London: Office of
Government Commerce, 2008.
OFFICE OF GOVERNMENT COMMERCE and SMALL BUSINESS SERVICE. Small
supplier – better value? The value for money that small firms can offer. London:
Office of Government Commerce, 2005.
PRICEWATERHOUSECOOPERS LLP, Office of Fair Trading and Office of
Government Commerce. Making competition work for you. London: Office of
Government Commerce, 2006.
SAXON, RG. Be valuable. London: Constructing Excellence, 2005.

44 • © BSI 2011
BRITISH STANDARD BS 8534:2011

Annex B Construction Procurement Regulations

(informative)

Table B.1 Construction Procurement Regulations (1 of 3)

Public Local Private

government

Public Procurement Regulations

For procurements by public sector clients, attention ✓ ✓
is drawn to the Public Contracts Regulations [1] (or
Utilities Contracts [Amendment] Regulations [15]),
general Treaty of Rome derived obligations of
fairness, etc. and equalities legislation.
For local government, attention is drawn to the
Local Government Act [16], Local Authorities (Goods
and Services) Act [17], Prevention of Corruption Act
[3] and Bribery Act [4].
Other regulatory requirements for public bodies
The procurement is intra vires the client. ✓ ✓
Internal regulations such as Standing Orders of the
relevant public body apply.
NOTE 1 This might affect the way in which the
procurement is structured, e.g. minimum tender
requirements for contractors.
Other legislation might apply in particular to public
bodies, e.g. the obligation to promote equality.
NOTE 2 Particular funding bodies might have particular
requirements, e.g. the Homes and Communities Agency’s
requirements with regard to construction skills.
Procurements by private organizations
Refer to internal procedures, e.g. internal ✓
authorizations and vires (although this is much less
likely to be an issue), and possibly requirements of
third parties such as commercial funders.
Tax
In considering the structure of procurements it ✓ ✓ ✓
might also be necessary to take into account
relevant tax points, e.g. Construction Industry
Scheme, VAT and Landfill Tax. These might cut
across other issues, e.g. for public or private bodies
which cannot recover VAT.

© BSI 2011 • 45
BS 8534:2011 BRITISH STANDARD

Table B.1 Construction Procurement Regulations (2 of 3)

Public Local Private

government

Non-construction related legislation

The structure of a procurement might also be ✓ ✓ ✓
affected by laws that are not specifically related to
procurement or construction, e.g. Transfer of
Undertakings and Service Provision Change
(Protection of Employment) (Amendment)
Regulations [18], section 20/leaseholder recovery.
These might affect public or private sector
procurements in specific circumstances.
For all organizations, attention is drawn to general
law, e.g. Data Protection Act [19].
For public sector procurements attention is drawn
to the Freedom of Information Act [20] also.
Environmental law
For all procurements, attention is drawn to ✓ ✓ ✓
environmental law, e.g. Environmental Protection
Act [21], Site Waste Management Plans Regulations
[22], Waste Electrical and Electronic Equipment
(Amendment) Regulations [23] and Waste
Management Licensing (Amendment)
Regulations [24].
NOTE 1 For public bodies, consideration of the extent to
which they wish to promote environmental benefits
through undertaking the procurement is essential.
NOTE 2 Private sector bodies might also consider the
extent to which they wish to take such issues into
account.
Town and Country Planning Act [25]
Attention is drawn to planning requirements. Refer ✓ ✓ ✓
to guidance on which stages to take this into
account.
Law relating to the way in which works
are undertaken
All construction operations are potentially subject ✓ ✓ ✓
to legislation concerning the inter-relationship of
the works with structures in the surrounding area,
e.g. Highways (Amendment) Act [26],
Traffic Management Act [27], New Roads and Street
Works Act [28].
Coordination with utilities undertakings (e.g. water,
gas, electricity, telecoms) is also important.
NOTE The construction process might be subject to
private rights that require consents, e.g. rights of light,
party walls, restrictive covenants etc.
All of these might be relevant to the way in which
the procurement is structured and particularly to
allocation of risk issues and timescale issues.

46 • © BSI 2011
BRITISH STANDARD BS 8534:2011

Table B.1 Construction Procurement Regulations (3 of 3)

Public Local Private

government

Health and safety

All construction operations are subject to ✓ ✓ ✓
health and safety legislation especially under the
Health and Safety at Work etc. Act [5] and in
particular the Construction (Design and
Management) Regulations [8].
NOTE 1 These place statutory obligations on the client
(i.e. the body procuring the construction operation) as
well as those providing the construction services.
NOTE 2 Public bodies generally take into account a
constructor’s health and safety record in assessing
tenderers; private sector bodies may do so also.
Regulations as to the quality of the works
The Building Regulations [7] apply to all ✓ ✓ ✓
construction operations.
NOTE There are also separate regulations for certain
bodies, e.g. local authorities and highways authorities.
Legislation governing construction contracts
For the drafting of all construction contracts, ✓ ✓ ✓
attention is drawn to legislation that governs
construction contracts, in particular the Housing
Grants, Construction and Regeneration Act [6] and
the relevant regulations made thereunder (in
particular the Scheme for Construction Contracts
Regulations [29] and the Regulations [1] excluding
certain contracts).
These insert certain terms whatever the contract
says.
National legislation
Legislation might vary between England, Scotland, ✓ ✓ ✓
Northern Ireland and Wales

© BSI 2011 • 47
BS 8534:2011 BRITISH STANDARD

Bibliography
Standards publications
For dated references, only the edition cited applies. For undated references, the
latest edition of the referenced document (including any amendments) applies.
BS 7000-4, Design management systems – Part 4: Guide to managing design in
construction 4)
BS 8903, Principles and framework for procuring sustainability – Guide
BS ISO 15686-5, Buildings & constructed assets – Service life planning – Part 5:
Life cycle costing
BS EN ISO 9001, Quality management systems – Requirements
ISO 10845-3, Construction procurement – Part 3: Standard conditions of tender
ISO 10845-4, Construction procurement – Part 4: Standard conditions for the
calling for expressions of interest
ISO 10845-5, Construction procurement – Part 5: Participation of targeted
enterprises in contracts
ISO 10845-6, Construction procurement – Part 6: Participation of targeted
partners in joint ventures in contracts
ISO 10845-7, Construction procurement – Part 7: Participation of local enterprises
and labour in contracts
ISO 10845-8, Construction procurement – Part 8: Participation of targeted labour
in contracts
Other publications
[1] GREAT BRITAIN. Public Contracts Regulations 2006. London: The Stationary
Office.
[2] BRUNDTLAND. Report of the World Commission on Environment and
Development: Our Common Future. Oxford: Oxford University Press, 1987.
ISBN 0-19-282080-X.
[3] GREAT BRITAIN. Prevention of Corruption Act 1916. London: The Stationary
Office.
[4] GREAT BRITAIN. Bribery Act 2010. London: The Stationary Office.
[5] GREAT BRITAIN. Health and Safety at Work etc. Act 1974. London: The
Stationary Office.
[6] GREAT BRITAIN. Housing Grants, Construction and Regeneration Act 1996.
London: The Stationary Office.
[7] GREAT BRITAIN. The Building Regulations 2000. London: The Stationery
Office. [SI 2000, No. 2531, as amended].
[8] GREAT BRITAIN. Construction (Design and Management) Regulations 2007.
London: The Stationary Office.
[9] ROYAL INSTITUTE OF BRITISH ARCHITECTS. “Plan of work stages”.
http://www.gsa.ac.uk/campusredevelopment/content/mediaassets/doc/
RIBA%20Plan%20of%20Work%20Stages.pdf
[10] NETWORK RAIL. “Guide to railway investment projects”.
http://www.networkrail.co.uk/aspx/4171.aspx

4)
Under revision.

48 • © BSI 2011
BRITISH STANDARD BS 8534:2011

[11] MURDOCH, J. and HUGHES, W. Construction Contracts: Law and

Management (4th ed). London: Taylor & Francis, 2006. ISBN 9780415393690.
[12] GREAT BRITAIN. Equality Act 2010. London: The Stationary Office.
[13] EUROPEAN COMMUNITIES. 2004/17/EC. Directive coordinating the
procurement procedures of entities operating in the water, energy,
transport and postal services sectors. Luxembourg: Office for Official
Publications of the European Communities, 2004.
[14] EUROPEAN COMMUNITIES. 2004/18/EC. Directive on the coordination of
procedures for the award of public works contracts, public supply contracts
and public service contracts. Luxembourg: Office for Official Publications of
the European Communities, 2004.
[15] GREAT BRITAIN. Utilities Contracts (Amendment) Regulations 2009. London:
The Stationary Office.
[16] GREAT BRITAIN. Local Government Act 2010. London: The Stationary Office.
[17] GREAT BRITAIN. Local Authorities (Goods and Services) Act 1970. London:
The Stationary Office.
[18] GREAT BRITAIN. Transfer of Undertakings and Service Provision Change
(Protection of Employment) (Amendment) Regulations 2011. London:
The Stationary Office.
[19] GREAT BRITAIN. Data Protection Act 1998. London: The Stationary Office.
[20] GREAT BRITAIN. Freedom of Information Act 2000. London: The Stationary
Office.
[21] GREAT BRITAIN. Environmental Protection Act 1990. London: The Stationary
Office.
[22] GREAT BRITAIN. Site Waste Management Plans Regulations 2008. London:
The Stationary Office.
[23] GREAT BRITAIN. Waste Electrical and Electronic Equipment (Amendment)
Regulations 2010. London: The Stationary Office.
[24] GREAT BRITAIN. Waste Electrical and Electronic (Waste Management
Licensing) (Amendment) Regulations 2007. London: The Stationary Office.
[25] GREAT BRITAIN. Town and Country Planning Act 1990. London:
The Stationary Office.
[26] GREAT BRITAIN. Highways (Amendment) Act 1986. London: The Stationary
Office.
[27] GREAT BRITAIN. Traffic Management Act 2004. London: The Stationary
Office.
[28] GREAT BRITAIN. New Roads and Street Works Act 1991. London:
The Stationary Office.
[29] GREAT BRITAIN. Scheme for Construction Contracts Regulations 1998.
London: The Stationary Office.

© BSI 2011 • 49
BS 8534:2011 BRITISH STANDARD

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