Creative Contracting - What is the best form of procurement for your project?

Late last year, the Development Directive project management team put together a summary to help provide clarity on each procurement type to assist in selecting the appropriate strategy for your project.

2024 was a challenging year for the industry, particularly dealing with escalation driven by the labour supply shortages we are experiencing. Whilst there is no silver bullet, we have found that the most effective way to address this issue is through sound Contractor / Principal relationships and what we call ‘Creative Contracting’.

Gone are the days of fixed price D&C contracts, where the Contractor bears all risk. Instead, we are seeing more risk-neutral contracting arrangements including: ECI’s, cost plus and construction management contracts. Working within this new landscape comes with its own set of challenges in terms of price, programme control, project responsibilities and securing project finance. We can see that the market is adapting, however navigating through this evolution requires astute management, respect and ultimately trust between the parties.

To better understand these alternative forms of Contract, we have prepared the below memorandum for your perusal, to help inform the best procurement strategy for your project.

If you would like to discuss any of this further, please don’t hesitate to reach out to the Development Directive team.