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probably be operating under yet another once the project in hand is delivered. Just as main contractors have become skilled at managing subcontract procurement and reliant on subsequent delivery of projects through specialist sub-contractors, they will need to consider forming relationships with specialist companies and consultancies for the delivery of their project management functions on service level agreements. This would entail professional appointment relationships based on service level agreements, not “body shop” casual agency arrangements for unengaged individuals.


increasingly be reliant on individuals who are not bound to the company by long-term incentives, pension schemes and other package benefi ts, and main contractors will need to establish new methods to satisfy and deliver their own governance requirements. A major contracting risk is knowledge


lost through breaks in continuity and loss of key individuals from delivery teams and this needs to be addressed. Company- specifi c systems and reporting methods will need to be capable of being readily communicated, understood and complied with by people who were operating under a different regime last month and will


improvements are not forced upon properties that are not cost effective or agreed by all interested parties. The key exemptions deemed fair and reasonable under most scenarios are: ● Return on investment – any improvement initiative must be cost effective and deliver a payback of less than seven years ● Valuation – proposed improvements must not negatively impact the value of the asset by more than 5% ● Third party consent – improvements can only be carried out if agreed by all


Securing commitment Creativity in identifying the right individuals and organisations to perform these management functions, defi ning their terms of reference, incentives and securing commitment for the project duration will be vital to the future relationship between the main contractors and the nomadic construction professional for the future performance of the industry. Main contractors will need to secure


performance and commitment through incentivisation. For companies and consultancies this will mean frameworks and repeat business opportunities, and for individuals this will need to deliver experience and access to mentoring and lifelong learning. It is an imperative for their prosperity that main contractors deal with the challenge of delivering projects with staff they no longer employ and upon whom they are entirely dependent.


Jason Farnell FRICS is a director of CR Management.


relevant parties (tenants and landlords) If it can be demonstrated that a


property is exempt under any of the above conditions then it would still be necessary to formally declare this and submit supporting evidence to a central register. As such all property portfolios should be reviewed to assess the correct action plan for each asset to ensure that they are in a positive position before the 2018 deadline.


Graeme Murray is head of sustainable engineering, building consultancy at CBRE.


Reducing risk through energy management


Earlier in the year, Autodesk signed a memorandum of understanding with Schneider Electric. The aim was described in their press release as “to collaborate to enhance current practices for building lifecycle management based on building information modelling”. The mainstay of Schneider’s business is as an energy consultant. So how can BIM help with energy consumption and what contractual issues does this raise? First, there is informed decision-making. The “I” in BIM is paramount to making better long-term value-for-money choices, and the more that software can make the effect of construction choices on long-term use, the more valuable it will be. Expertise provided by energy consultants might have disproportionate cost impacts over the life of an asset. Second, a fully integrated design that has included energy consumption analysis might close the gap between output-based specifi cations and input/process specifi cations. Output specifi cations focus on the built asset, rather than the inputs and construction processes required to achieve this. Essentially, they defi ne what is to be delivered, but not how it will be delivered. A contractor’s risk in signing


up to contractual commitments to comply with output specifi cations in relation to energy consumption again


carries a high level of long- term risk. There is therefore a gap between the risk and reward of signing up to an output specifi cation in relation to energy consumption. That gap might be closed by a fully integrated BIM model lowering the risk of failing to hit output targets. But a model with information about energy consumption encourages two ways in which risk and reward can be more closely related. The BIM model should give a clear basis for a performance monitoring regime. For example, the most important elements of the model might be subject to specifi c monitoring and be directly related to a contractual mechanism for liquidated damages or payment incentivisation. A clear model should assist in ensuring these measures are suffi ciently clear to be objectively measured. Ultimately, risk and reward will most closely be aligned if the contractor (either itself or with a facilities manager) takes responsibility for the operation phase. Investment in a BIM model that assists in energy consumption judgements and monitoring will be worthwhile to a contractor that takes long- term responsibility for the asset. In that way, the BIM model is not just a tool to monitor performance but also to actively manage outputs.


Assad Maqbool is a partner at Trowers & Hamlins specialising in projects and construction.


In our regular 3D views section, BIM+ speaks to PR consultant and BIM expert Paul Wilkinson, solicitor Sarah Rock at RPC and architect Allister Lewis to canvas their views on a question of our times: which BIM events are must-attends, and which ones can be passed over? Go to bim.construction-manager. co.uk to read what they have to say.


CONSTRUCTION MANAGER | APRIL 2015 | 25


Illustration: Adam Larkum


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