To support its members, FIS has produced a simple contract built for use by members. This work very much aligns to our Responsible No Campaign and our wider work on improving contractual practice and procurement in the sector.
The underlying principle is simplification works – when you streamline contracts and work of clear and simple terms you’ll save time, improve relationships, and avoid conflict.
The simplified contract has been developed by Sarah Fox, a renowned, and self-proclaimed recovering lawyer through consultation with FIS members. It can be used as an upper or lower contract and incorporates options to accomodate design where appropriate.
The contract has removed and clarified areas of contracts that are often weaponised in the legal process. It also includes clauses to help avoid conflict by using the Conflict Avoidance Process. This is part of FIS commitment to the Conflict Avoidance Pledge (in fact the need to challege the system with simpler contracts came out of a Round Table that FIS organised for the Conflict Avoidance Coalition (see the full write-up of the session here).
Matt Hallam, Divisional Director at Telling Finishings who was part of the contract development group that supported this work said:
“For years construction contracts have increased in both content and terms, often adding minor changes and clauses which continue to confuse, conflict and often compromise those required to sign them.
The need for a shorter, and ultimately more simplified contract has never been greater, and we at Telling Finishings look forward to rolling out the ‘500 word Contract’, both upstream and downstream to hopefully give both the comfort and clarity these contracts were originally built to achieve.”
FIS CEO, Iain McIlwee commented:
There are many reasons for doing this. Firstly, we know a lot of our members start on a soft start with a letter of intent. This is a good set of working terms. Secondly, the contracts provide clauses that can be used as part of any contractual negotiation. Thirdly by deconstructing the existing standard form contracts, we’ve had a good chance to get into discussion of how specific sections are abused and weaponised and we can feed this into future discussions on the evolution of standard form contracts. And finally and perhaps most importantly, we need to highlight that there is a better way.
Despite all logic and every report into construction transformation arguing to the contrary,
we operate in a world where the industry is happy to accept the pantomime of pretence that we have Standard form JCTs or NECs. The reality is that we routinely amend them and waste valuable time and money, distort and destroy relationships, confuse responsibilities and undermine insurability.
Across the sector if we half our legal fees and we double our profits and that is before we think about the benefit of generally collaborative relationships helps create positive transformation – simplification is critical.
FIS is encouraging members to download and use these contracts to help simplify the way they work and improve relationships.
FIS has produced a short training course to support implementation, in the course Sarah boths introduces the contracts, answers questions from members and gives insight into some of the discussions that took place in the drafting process.
E-learning course: Adopting Simplified Contracts is available here
The Template Construction Contract can be downloaded by FIS Members here
A simplified contract for use with labour only subcontractors and labour suppliers is available here
Members can access more resources via the FIS Legal and Contractual Toolkit via the link below
