PROPOSED IMPROVEMENTS TO THE REDAS DESIGN AND BUILD FORM: A STUDY OF HOW THE FORM MAY BE UNNECESSARILY BURDENSOME TO CONTRACTORS

Abstract

This dissertation aims to propose recommendations to the REDAS (Real Estate Developer’s Association of Singapore) Design and Build Contract Form to resolve specific clauses which may prove to be unnecessarily burdensome to Contractors. The areas which recommendations were proposed for are regarding clauses on Extension of Time, Force Majeure, Site data and Emergency Compliance to the Law. Recommendations proposed were through the study of common issues identified from preliminary interview sources with industry professionals who have had experience working with the REDAS form, along with a comparative study of Contract Forms used in Singapore, Malaysia and the UK. The REDAS form was introduced to meet the growing demand of Design and Build Projects in Singapore’s private sector. Before it was introduced, Singapore’s private sector used mainly the SIA (Singapore Institute of Architects) form. However, the SIA did not have a form catering to the demand of Design and Build Projects until 2017 and it has still not garnered sufficient popularity in the industry. Therefore, the REDAS form would still be the most prevalent form in the private sector for Design and Build Projects. The initial comparative analysis between clauses of different Contract Forms used locally, in Malaysia and the UK yielded aspects which suggested that the REDAS form is unnecessarily burdensome to Contractors. Relevant clauses include Definition of Force Majeure, Extension of Time, Loss and Expense, Site Data, Risk of Adverse Physical Conditions, Valuation of Variation and Compliance to the law. In the comparison, the REDAS form, overall, stood out as the one with limited grounds provided for the Contractor to make claims and also contained more clauses which allowed for the least time for the Contractor to submit a written notice of intent for claims. Another example iii would be how the REDAS form absolves the Employer of all responsibility regarding any discrepancies or inaccuracies in the Site Data. Following the comparison of the various contract forms, preliminary interviews with industry personnel were conducted. These included Quantity Surveyors, Engineers, Project Managers, Consultants and Employer’s Representatives. This would provide a more, well rounded feedback as it would constitute comments from both the Employer’s as well as the Contractor’s side. The common issues identified between the comparative analysis as well as the preliminary interviews would then form the grounds of the hypotheses which attempted to resolve these issues. These solutions then went through another round of validation from industry professionals such as Lawyers and Adjudicators. Results were analysed qualitatively. Finally, the dissertation concludes with the final recommendations proposed to the REDAS form via the 4 hypotheses which were validated. They would be regarding: (1) Expansion of the sub-clauses defining Force Majeure (2) Re-distributing the risk of the Contractor regarding errors and discrepancies in site data (3) Reducing the burden on the Contractor for Extension of Time Procedure when it is due to a Variation Order and (4) The Contractor should not have to bear full responsibility to emergency compliance to statutory law and order. The aforementioned solutions would not merely benefit the Contractor, but the Employer as well by virtue of man hours spent in dispute resolution. The recommendations also attempt to foster communication and make the risks more apparent to both the Employer and the Contractor.