6.6  The links between ESI and contracts

The housing sector has successfully implemented ESI over the last 20 years using contract forms such as PPC2000, creating persuasive evidence of improved value and reduced risks in case studies such as those quoted in this guidance. JCT 2016 also provides a contractual basis for ESI using a 'Pre-Construction Services Agreement' or 'PCSA' and NEC4 provides a basis for ESI in its 'Option X22'. Both these contract forms are used by housing sector clients and their teams.

The Construction Playbook is neutral as regards the contract forms that enable ESI, recommending the use of unamended JCT2016, NEC3, NEC4 and PPC2000/TAC-1 forms but noting also that the 'procurement process, evaluation approach and contract should generally be structured to cover both the ESI and the construction phase. While it is possible to follow ESI with a further competitive procurement process, this can undermine the benefits of using ESI'. The lack of integration between a JCT PCSA and a separate JCT 2016 construction phase building contract would be vulnerable to this criticism.

A collaborative contract should be a handbook for the performance, management and integration of agreed ESI activities but this guidance does not recommend specific contract forms. The collaborative contract relationships, processes and systems that underpin ESI can be incorporated in any published standard form contract and also in bespoke appointments and development agreements.

ESI contracts should be created at a time when they can best support the early planning of projects and programmes of work and when they can help to reduce the risk of unforeseen events by fully integrating the work of team members. To coordinate and motivate the work of team members, ESI contracts should govern not only actions and payments but also rules and procedures for planning and mutual expectations as to the team members' behaviour.

Other features of collaborative contracts are considered in Sections 7.6, 8.6, 10.2 and 10.3.