Contractual models as the framework for collaboration on your project

A contract model is the contractual framework and formal structure for a construction or civil engineering project. It describes how responsibilities and roles are distributed between the client and us as the contractor. The choice of contracting model has great significance for the project’s execution, budget, and risk allocation. Here are some key points that should always be considered before choosing a contracting model:

• Distribution of responsibilities: Who is responsible for planning, executing, and managing the construction project.

• Contractual relationships: How the contracts are structured between the client and the contractor.

• Communication and coordination: How cooperation and communication between the involved parties is organised.

• Risk allocation: How risks, such as delays and budget overruns, are distributed between the parties.

The type of contract is often chosen based on the project’s complexity, the client’s own experience and competencies, as well as the desired level of control and risk management.

In a turney contract, the design-build contractor is responsible for the entire construction project from start to finish. This includes preparing project documentation, entering into contracts with subcontractors, construction management, and all construction tasks. Therefore, the client can leave most responsibilities to the turney contractor.

General contract

In a general contract, the client is responsible for the initial phase, including the preparation of project documentation and securing approvals - typically in collaboration with selected consultants. The main contractor handles finances, enters into contracts with subcontractors, and manages the project. The client still holds responsibility for site supervision and should therefore consider appointing a consultant to assist with this.

Individual trade contract 

In a individual trade contract, the client is responsible for the entire construction process, often with the assistance of appointed consultants. This includes planning, drawings, securing building permits, managing the construction process and supervision. The client designs the tender documents himself, obtains offers and create contracts with the selected contractors. Individual trade contracts requires substantial construction knowledge and experience.

Prime contract

In a prime contract, related specialist contracts are combined. For example, earthworks and concrete work, masonry, and drainage work can be grouped into one contract. This makes it easier to manage and coordinate the individual specialist trades. The client holds full responsibility for planning and coordinating the project. This requires substantial construction knowledge and experience.

Advantages of grouped specialist contracting include easier management and coordination, as well as optimized use of materials and time. Disadvantages may include increased demands on collaboration between the contractor and the client.