When to Engage the Contractor for Pre-Construction Services in New Zealand

Abstract

Large and complex projects have become commonplace, increasing the need to engage contractors in pre-construction services (PCS). Clients now have a range of procurement options that can involve a contractor in any phase of the pre-construction process. This research investigated what factors are important when deciding how soon to engage the contractor. Furthermore, it investigated the issues of engaging the contractor too early or too late. This study collected results through structured explorative interviews with senior staff from client, consultant, and contractor organizations in New Zealand. The results are presented, compared, and discussed for each respective viewpoint. The results show that cost (scale) and complexity of the project, the reputation of the involved parties, and the nature of the relationships are the most crucial factors. However, the parties differ on the best timing for PCS. The contractor argued that PCS should occur in the concept design phase. The client opined that for some projects they would prefer involvement by the contractor in the project definition phase, while for others this should occur later, in the detailed design phase. Consultants recommended that the contractor should be included in the later phases before construction commences. It is interesting to note that the contractor does not always want to be involved early. Generally, the contractor does not want to be involved when the award of the project is still uncertain. Finally, it became apparent that a significant number of issues stem from the contractual arrangements of PCS, which poorly dictates who controls the design process.