Contracts and procurements for reconstruction

Contractual relationships to procure construction projects are critical for smooth delivery of post-disaster reconstruction as they determines the overall framework for construction. Responsibility for payment for post-disaster reconstruction projects is a complex issue, involving national and local government, insurance companies and private organisations and individuals. Spending the money wisely is important and priorities need to be established

The particular issues being covered, under the “Contracts and Procurements for reconstruction” theme, are: how contracts are structured, the relationships formed during contracts, new contractual forms and the financing of contracts

A variety of contractual relationships to procure construction projects are used in New Zealand. New forms of procurements, such as partnering and alliancing, are proving beneficial in improving the time, cost and quality performance in project delivery during normal circumstances

1. The research team is investigating the applicability of these new forms of procurement to post-disaster reconstruction
2. The complexity of funding arrangements for any post disaster reconstruction greatly  influences the types of contracts that might be employed
3. Cost-reimbursement payment mechanisms are often used for emergency works, placing a large portion of the risk with the owner
   
4. The research team is investigating existing forms of financing and the possibility for more efficient co-ordinate financing with national and local government, insurance companies and private organisations and individuals all involved in funding parts of the reconstruction effort

In order to reach these goals the following issues have been identified and ranked as high priority for the research:  

            B1. Analysis of money flow for different subsections, e.g. fully insured, under-insured and uninsured
            B2. Suggested formats for pre-registration of contractors and for setting of rates for post-disaster work
            B3. Understand whether or not it is socially acceptable to impose controls on industries in a post-disaster situation
            B4. Review of international experience for how contractual issues have been managed

 Research objectives, outputs and estimates of the timescales