Do parties typically engage consultants? What forms are used?
Construction (2nd edition)
Consultants are regularly engaged across the planning, design and construction phases of a project, depending on the project size and complexity. Consultants may be engaged by the principal, or by the contractor under a D&C model. Standards Australia and other professional bodies issue standard forms for engagement of consultants, although bespoke contracts are also used.
In some circumstances – mainly for new constructions and renovations requiring a building permit (although some exceptions do exist) – it is obligatory to work with an architect. The latter shall, in compliance with the Act of 20 February 1939 on the protection of the title and the profession of architect, establish the necessary drawings and supervise the execution of the works.
According to applicable laws and regulations, for projects that require supervision in accordance with law, employers must engage a supervisor to manage the quality and safety of the project. Apart from the supervisor, employers will also engage cost consultants to provide services regarding the project cost. Moreover, for employers lacking real estate development experience, employers may further engage a project manager to provide management service and consulting for, among other things, the term, cost, quality and safety of the project.
In the meantime, the government is promoting full-service project consulting, where a consulting firm provides consulting services for all aspects of the project encompassing survey, design, construction period, costs, quality, safety, so on and so forth, in which case employers will not need to recruit any surveyor, designer, supervisor, cost consultant or other consultants separately.
The parties to construction projects engage consultants, engineers and lawyers. For the services of the supervising engineer or the employer's representative, the FIDIC Client/Consultant Model Service Agreement is often used.
In Germany parties usually engage law firms that are highly specialized in public procurement law.
Significant construction projects are typically supervised by independent engineers, directly engaged by the employer through a separate contract. Such technical consultants are assigned with the monitoring of the the compliance of the construction process with the contractual terms and technical specifications, as well as the applicable legislation. When it comes to project finance, lenders typically engage their own financial, technical and legal advisors. On the other hand, the supervision of the public works is assigned by law to the Supervising Authority (Article 136 of Public Procurement Law).
Parties generally engage consultants. In particular for larger construction projects, it is common that the principal appoints a third party as project manager, to assist with respect to the construction works (as a decision support), to follow and supervise the progress of the construction milestones and to represent the principal during the works towards the contractor(s) and other parties involved (architect, engineers). The principal concludes a so-called “principal’s assistant” agreement or “principal’s representative” agreement with a so-called “assistant to the contracting authority”, which is typically qualified as a mandate within the meaning of articles 394 to 406 CO.
Consultants are routinely engaged by parties to a construction project to perform a variety of roles, often in a specialized capacity. Owners typically hire construction managers to provide advice on defining the programmatic requirements for the Project, including coordinating the design, administering the contracts, ensuring proper documentation and inspection of the work being performed. The Owner may retain other consultants including architects, engineers, and cost consultants.
Construction Managers are either “at risk” or not at risk. The Construction Manager at Risk method involves both preconstruction and construction phases. The owner retains the architect to prepare design drawings and specifications. The owner also retains a construction manager to consult with the architect and manage the construction. As the architect is developing the design, the construction manager is reviewing it and putting out to bid those portions of the design that are complete. The construction manager enters into contracts with those subcontractors. This method allows construction to begin before the design is complete. The Construction Manger Not at Risk method is nearly identical to the “at Risk” method, with the key exception being that the owner, not the construction manager, enters into contracts with the trade subcontractors to construct the project.
Parties will usually engage advisors. One should distinguish here between legal advisors, tax advisors and technical consultants. The range of technical consultants encompasses architects, civil engineers, construction supervisors and project managers.
Yes. The role and responsibilities of the Consultants in a project have direct relationships between themselves and depending on the procurement method of the project and the conventional structure which is selected during the early stage of the procurement.
On most occasions, the consultant acts as the Contract Administrator. The appointment of the consultant as a Contract Administrator can be done by a standard agreement or by a non-standard agreement.
Usually, consultants are widely hired during the development and implementation of a Construction Project. It will vary depending on the type and the size of the entrepreneurship. Regularly engineers, architects, legal and financial advisors are engaged. Other experts may be required, such as geologists and environmentalists. Also, it is common to require assistance of import and export of goods and equipment, customs clearance and fiscal services.
Yes, parties typically engage a range of consultants. There standard form appointments for construction professionals developed by the representative bodies for construction consultants (the RIAI, IEI and the Society of Chartered Surveyors (SCS)). The GCCC has also developed standard conditions of engagement for construction professionals in public works.
It is also very common for parties to appoint consultant on bespoke terms and conditions of appointment.
It is common for contractors to engage consultants in order to be advised on legal, financial and/or technical matters. Mexico counts with a Chamber of Consultant that has strong presence on the engineering and construction sector.
The employer often engages an external project manager to manage the project and administer the contract (though sometimes the latter role is taken on by the architect) and a firm of cost consultants (known as “quantity surveyors”) to value the works.
A project will also typically have a design team, likely consisting of an architect, various engineers (e.g. structural, mechanical, electrical, process) and, if relevant, an interior designer. On larger projects, specialist consultants may also feature, with expertise in environmental, geotechnical, IT, or other matters.
The contractor will have people in equivalent roles, though typically in-house.
Standard forms of professional appointment are produced by ACE, RIBA and RICS. However, for major projects, most clients use bespoke appointments.
The promoter can hire a "project manager", that is, a consultant who assists both in the project phase and in the construction phase. This figure is not regulated in the Law of Building Regulation, not being an agent of the building.
The form of contracting is a civil contract for the leasing of services, between the promoter of the work and the consulting firm.
In projects of an average or large size, if the employer has no sufficient technical resources project management companies and/or engineers are typically engaged. In case project finance is involved, engaging with an engineering company is a typical requirement of the Banks.
Consultancy agreements are common in South Africa across the planning, design and construction phases of a project, depending on the size and complexity of the project. The FIDIC Client/Consultant Model Services Contract (“White Book”), NEC3: Professional Services Contract (“PSC”) and the Professional Consultants Services Agreement (“PROCSA”) are often used contracts to appoint professional consultants while the professional bodies for architects, engineers and quantity surveyors generally put forward and support standard engagement terms for their members.
Yes, in France, several consultants will be engaged for a construction project, including the project managers (if any), the members of the design team, the health and safety coordinator, the technical controller, etc. (see answer to question 6 above).
Some forms of consultants contracts exist (for instance the French order of the architect issued several forms of architect contracts), but their use is not systematic.
With respect to the health and safety coordinator and the technical controller, their contracts are generally standard form provided by the consultant, with little room for amendments.
It is market practice for parties to engage technical consultants as well as management consultants. The General Conditions ABK 09 is normally used in those cases.
The parties usually engage consultants, such as architects and engineers, to do design work, supervisory control of the work and sometimes project management. The majority of consultancy contracts are for the time being based on ABR 89 and will most likely be based on ABR 18 in the future, as the updated AB Standards are expected to be used in new projects.
- Parties typically engage consultants in regard to construction execution, inspection and supervision. In many cases, parties may be obligated by law to hire such consultants.
- The main types of consultants that are typically engaged in construction projects in Korea are (1) construction management consultants, who provide comprehensive supervisory services to employers in relation to all aspects of a project; (2) engineering consultants, who provide expertise in science and engineering to advise employers or contractors; and (3) architects, licensed under Article 2 of the Certified Architects Act, who provide consulting services for the design and planning of projects.
- The Ministry of Land, Infrastructure and Transport provides a standard contract form for engaging consultants for construction supervision/inspection.
- In addition, various industries or projects may require project sponsors or contractors to engage specific types of consultants for the purpose of certifying compliance with government regulations. For example, construction projects that undertake extensive excavation may wish to engage consultants to ensure compliance with Korean laws on the preservation of cultural or historical artifacts.