How exactly do government construction contracts work?? this is madness!! - HotUKDeals
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How exactly do government construction contracts work?? this is madness!!

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Just been on the news that edinburghs tram route is in trouble again-the contractors demanded another 80 million in february and have done this once again. Same happened continually with the buildi… Read More
barky Avatar
7y, 10m agoPosted 7 years, 10 months ago
Just been on the news that edinburghs tram route is in trouble again-the contractors demanded another 80 million in february and have done this once again.

Same happened continually with the building of the scottish parliament,same is happening with the olympic venues in london.

I just dont get it-surely the work is put out to tender,companies cost it and put in a bid and the winning bidder is given a contract which is legally watertight and stops them going overbudget??
barky Avatar
7y, 10m agoPosted 7 years, 10 months ago
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#1
I just dont get it-surely the work is put out to tender,companies cost it and put in a bid and the winning bidder is given a contract which is legally watertight and stops them going overbudget??


Obviously not.
#2
This'll may be interesting for me. :whistling:
#3
This is across the board for the most part. A close friend of mine, who works as a contractor for the NHS, has told me numerous times how there is no accountability in the NHS. If a contract isn't delivered on time, it doesn't really matter. Even in consultation meetings, most of the attendees don't know what they want and how much they want to spend on it. It's a joke. It's a bottomless pit.
[mod]#4
tinkerbell28;6020618
It's the govt full stop I am afraid, to incompetent to read contracts, or bother to make them watertight, take the MOD for example, millions on helicopters, some numpty forgot to get rights to the software to fly them from boeing, just the tip on the iceberg of the govt's and their dept's hideous waste of money and people signing contracts who should learn how to read, nothing new for this lot I am afraid :-(
The NHS and MOD are hideous at this.......


Oi...........thought you were off partying. Beoff with you, nothing to see here. :p
#5
What happens is that a contract is drawn up between Government departments & contractors. The contractors (because it's their livelihood) have good lawyers helping them & the Government use whoever is in the office at the time.

Later, when the contract details are changed by the Government (as they always will be - nobody gets it right first time) the contractors can charge an arm and a leg for accepting the changes.

On the other hand, if the Government try and hold the contractors to the contract delivery date, the contractors will cite anything and everything that the Government have/haven't done so as to lay the blame with the Government & not the contractors.

I worked in a place where the Government were told that they could fine the contractors if they wished (as they had every right to do) for providing a poor service, but then the contractors would have to sack one of their workers to make up the shortfall in their profit, which would result in even worse service. So the Government allowed the poor service to continue.:?
[mod]#6
tinkerbell28;6021274
I am, leaving tomorrow morning for 3 days back home!!!!!! Spent all day in a salon, now packed so will clear off tomorrow:p


All Day :shock:

That must have been some major works needed doing. :p :lol:
#7
Some misunderstanding here. Construction contracts or EPC contracts have a number of risks, some taken by the Contractor, some by the Client. For example, the government would probably take ground risk on this as a full site survey would be very costly. CDM helps this but not entirely. A decent percentage would be left for this and would be similar regardless of Contractor.
The second cost is variation, which happens on all projects small or large, this also adds up. I don't expect people to know this though, I didn't before I project managed. I forgot to mention delay, which the Council would end up paying lots for too due to the difficulty of works such as trams.
#8
gaanja
This is across the board for the most part. A close friend of mine, who works as a contractor for the NHS, has told me numerous times how there is no accountability in the NHS. If a contract isn't delivered on time, it doesn't really matter. Even in consultation meetings, most of the attendees don't know what they want and how much they want to spend on it. It's a joke. It's a bottomless pit.


kinda true, until someone had some balls in the NHS recently (about 2 years ago) and told Fujitsu that they WILL NOT BE PAID IN FULL UNTIL they have delivered a working and fully implemented NCRS IT (NHS Care Records Service) System.....

Fujitsu walked away, they are big time regretting it now, since the 'credit crunch' fiasco hahaha

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