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Putting the contracts in place
The procurement phase aims to put in place all the contracts necessary to construct your project. The type and number of contracts varies depending on the procurement strategy:
- Build only, where Locogen procures the initial design and contractors are procured to carry out the contracting works in accordance with the design;
- Design and build, where various contractors are procured to design and build their works and Locogen manage each of the contractors; or
- Turnkey engineer, procure and construct, where a single contractor designs, procures, constructs, commissions and hands over the whole project to the client.
The preferred procurement strategy depends on the client’s (and their funder’s) view of risk and the available budget. We are happy to advise you on the most suitable procurement strategy for your project.
Once we have identified your preferred strategy, Locogen will:
- Prepare the technical specification for the works
- Prepare the contract on a standard form of construction contract (i.e. FIDIC, NEC3, MF/1, IChemE, etc.) depending on the procurement strategy, type of works to be carried out and type of technology
- Prepare a tender pack to issue to potential contractors
- Review tenders received and assist with the selection and appointment of preferred contractors
Locogen will ensure that the appointed contractors are approved by you and your lender/investor, have the appropriate levels of insurances and will enter into any collateral warranties/direct agreements required by the lender.
We will also make sure that the contracts and associated agreements are in a form acceptable to your lender and that they meet the required covenants.
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