Navigating the Blue Form of Contract: A Comprehensive Guide for Construction Contractors

Contracts are the cornerstone of successful projects in the construction industry. Among the various types of construction contracts, the Blue Form of Contract stands out as a popular choice for smaller projects with approximate costs between €50,000 and €1 million. Its simplicity and adaptability make it an attractive option for both clients and contractors.

What is the Blue Form of Contract?

The Blue Form of Contract is a standard form of contract developed by the Royal Institute of Architects of Ireland (RIAI). It is designed for private-sector construction contracts where quantities are not part of the contract. This means that the contract sum is based solely on the drawings and specifications provided by the employer.

Key Features of the Blue Form of Contract

The Blue Form of Contract is characterised by its flexibility and adaptability. It can be tailored to suit the specific needs of any construction project. Some of its key features include:

• Lump sum contract. The contract sum is fixed and does not vary based on the actual quantities of work completed.
• Nominated sub-contractors. The employer nominates the sub-contractors for certain work items.
• Performance bonds and retention money protect the client from financial losses due to poor workmanship or non-completion of the works.

Parties Involved in the Blue Form of Contract

The three main parties involved in the Blue Form of Contract are:

• Employer/Client → The party who commissions the construction work.
• Contractor → The party who undertakes to carry out the construction work per the contract documents.
• Architect → The professional appointed by the employer to provide design services and oversee the project.

The Role of the Contractor’s Quantity Surveyor

The Contractor’s Quantity Surveyor plays a crucial role in the Blue Form of Contract. Their responsibilities include:

• Measuring and valuing the work completed by the contractor.
• Preparing monthly valuations for payment.
• Negotiating with the employer on any variations to the contract work.
• Assisting the contractor in resolving disputes with the employer.

Procurement Process Under the Blue Form of Contract

The procurement process under the Blue Form of Contract typically involves the following steps:

1. Preparation of tender documents. The employer prepares tender documents that include drawings, specifications, and a Bill of Quantities (BOQ) (if applicable).
2. Issuance of tender. The employer invites contractors to tender for the project.
3. Tender evaluation. The employer evaluates the tenders and selects the contractor who offers the best value for money.
4. Contract negotiation. The employer negotiates the terms of the contract with the selected contractor.
5. Contract execution. Both parties sign the contract, and it becomes legally binding.

Contract Execution and Variations

Once the contract is executed, the contractor commences work in accordance with the contract documents. Variations to the contract may be required due to unforeseen circumstances or changes in the employer’s requirements. Variations are documented through variation orders issued by the architect.

Payment Terms and Dispute Resolution

Payment terms are specified in the contract and typically involve stage payments based on the progress of the work. Disputes between the parties may be resolved through negotiation, mediation, or arbitration.

Common Misconceptions about the Blue Form of Contract

There are a few common misconceptions about the Blue Form of Contract:

• The Blue Form of Contract is only suitable for small projects.
• The Blue Form of Contract is only suitable for simple projects.
• The Blue Form of Contract is inflexible and cannot be tailored to suit the specific needs of a project.

These misconceptions are simply not true. The Blue Form of Contract can be used for projects of all sizes, from small residential renovations to large commercial developments. It can also be adapted to accommodate complex project requirements through supplemental agreements or bespoke clauses.

Embracing Transparency and Collaboration with the Blue Form of Contract

The Blue Form of Contract is a valuable tool for managing construction projects effectively. Its simplicity, flexibility, and adaptability make it an attractive option for both employers and contractors. By understanding the key features of the Blue Form of Contract and adhering to its terms and conditions, all parties involved can work together to achieve a successful project outcome.

Here are some additional tips for successful project management using the Blue Form of Contract:

• Maintain open and honest communication throughout the project lifecycle. Regularly update the architect and employer on the progress of the work and promptly address any concerns or issues that arise.
• Aim for a collaborative working environment among all parties involved in the project. Encourage open dialogue and work together to resolve any disputes or challenges proactively.
• Maintain accurate and up-to-date project documentation, including drawings, specifications, variation orders, payment certificates, and other relevant documents.
• Conduct regular reviews of the project’s progress and risks. This will help identify potential issues early on and take corrective action if necessary.

By following these tips, construction contractors can leverage the Blue Form of Contract to their advantage and deliver successful projects that meet the needs of both employers and stakeholders.

Whenever you’re ready, there are 4 ways Carroll Estimating can help you:

1. Your next tender bid

2. Ongoing payment claims

3. Construction cost plans

4. Managing all your QS work from tender bid to final account