Institute for Industrial Research and Standards
PROCEDURES FOR THE CONTROL OF BUILDING CONTRACTS
The general principle to be observed in the construction of a new building is that there should be complete pre-planning before entering into a construction contract. If this is done it will significantly reduce the necessity for variations and delay claims.
2. Site Meetings
Regular site meetings between Client (IIRS) and Design Team should be held both during design and construction stages, on all building projects. At these meetings the Institute will normally be represented by the Manager, Sites and Services Department, but where matters relating to cost or variations to the contract are scheduled for discussion, the Assistant Director-General, Finance and Services Group, will attend. Minutes will be kept of all meetings.
3. Cost Reports
Cost Reports to be submitted by Design Team at two-monthly intervals. The Cost Reports should include, in addition to actual expenditure all approved and proposed variations and Design Team fees. The Sites and Services Manager will prepare a comment on each Cost Report for submission with a copy of the Report to the Assistant Director-General, Finance and Services Group, to the Management Committee and to the Board. The comment by the Sites and Services Manager should relate the cost of each building project —
(a)to the Exchequer Grant available in the year, and
(b)to the actual amount of the contract.
All proposed variations to the Contract with an estimated cost in excess of £2,000 will require the prior approval of the Assistant Director-General, Finance and Services Group.
Where the cost exceeds £5,000 the approval of the Director-General will be required. Variations in excess of £10,000 would require Board approval.
Variations of less than £2,000 may be approved by the Manager, Sites and Services Department, but should be notified by him in detail in his two-monthly report to the Assistant Director-General, Finance and Services Group.
Agreement of Estimates etc. with Design Team - written confirmation should be received from the Design Team of all estimates, cost ings, etc. received verbally.
In the case of each individual project the Design Team should be notified in writing in each financial year of the amount of Grant-in-Aid allocated to that project and should be made aware of its obligation to contain expenditure within that limit.
Adequate records must be maintained by the Manager, Sites and Services Department to ensure strict control of each contract, both within the contractual limit and the amount of Grant-in-Aid available.
In addition to expenditure incurred these records must include strict monitoring procedures for the control of fees, price variations, potential variations, contingencies, etc.