Pre Contract Service Agreement

The payment approach varies considerably between PCSAs, from a nominal or zero fee to a flat fee or a weekly rate, payable either in increments during the pre-construction period or deferred until the end of the period. The amount of the royalty payable is related to the security of the selection of the contractor for the main construction contract, i.e. the amount of the commitment that the promoter is prepared to commit and/or to give to the contractor as part of its economic position or, in the context of a PFI/PPP context, its offer status. While a Memorandum of Understanding may be most used when the parties know what needs to be built, it can be used in other situations. For example, to demolish an existing building while the contractor completes his project for the proposed new project. The provision by a specialist of preparatory work to a real or future employer or principal contractor on essential and/or complex projects will be an element of design input before being included in a subordist of construction or installation work in most pre-processing work lists and custom PCSAs will generally make the contractor responsible for such a design consultation. One of the peculiarities of the JCT-PCSA is that they expressly provide that the contractor is not responsible for the design, unless the contractor is in charge of a main construction contract for the project. If the proponent receives advice from the contractor, it seems illogical that the developer does not resort to defects in his board, as long as it is construction. Where the main contract for the construction of the project is a design and construction contract and another contractor is subsequently appointed, the principal contractor may be reluctant to assume all of the project responsibility, as the principal contractor would not be able to require the PCSA contractor to seek such advice. Third parties seeking rights to the project may also question their rights with respect to these early design boards. Elsewhere, there are standard obligations in terms of address and maintenance, prohibited equipment, insurance, confidentiality and collaboration with the project team. The copyright license is without means of payment. However, the PCSA does not include construction work, as they are generally project-specific and must be flexible to work either in traditional markets or in design and construction markets under different circumstances.

While the JCT-PCSAs do not have any obligation on the main construction contract by any of the parties, many forms of custom PCSA provide for this. JCT`s Pre-Acceleration Services Agreement (General Contractor) is designed to designate a contractor for preliminary work as part of a two-stage tendering process. Nevertheless, two-step bidding can be a way to understand the risks and costs of projects. The JCT has recognized this and it will be interesting to see how long it will take other publishers to follow suit. The agreement covers the period of submission of the first tender for the filing of a second final phase of the tender and the opening of a main contract for the construction phase. In a two-stage tender, the first phase is for the employer to select a preferred contractor by tender at an early stage of design development.

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