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  • International Workplace
  • 26 May 2005
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BPF launches new consultancy agreement in association with Workplace Law

The British Property Federation (BPF) has launched a new consultancy agreement which clients have developed in consultation with the industry. The consultancy agreement is endorsed by the Construction Confederation.

Published by the BPF in association with Workplace Law Group, the BPF Consultancy Agreement provides a document where the same terms and conditions can apply to each consultant on a traditional or design and build project, albeit with optional clauses to deal with their different roles.

The consultancy agreement adopts the same style and approach as JCT Major Project Form 2003 – it is simple, clear, short and easy to read. The consultancy agreement also contains the form of novation agreement missing from JCT MPF.
The BPF form introduces consistency to the present situation in which every firm of solicitors has its own standard form of consultancy agreement, some of incredible length and complexity, with which consultants are bombarded on a daily basis.

The BPF Consultancy Agreement includes:
  • a co-ordinated list of services in tabular form for each discipline showing how each member of the team relates to the others.
  • provisions for different procurement routes which can be used with traditional contracting but which also have lists of services for use with novated design and build.

Commenting on the consultancy agreement, BPF Chief Executive Liz Peace said:

"This is a product which will benefit both our small and large members. This standardised agreement, with its fair and transparent set of terms for the client and the consultant, will avoid the need for unnecessary lengthy negotiations between both parties, and will help to strengthen the partnership and protocols during the development process."

Roger Squire, Chairman of the BPF's Consultancy Agreement Working Party, said:

"This consultancy agreement is written by clients for the use of clients. It is written in simple language and is both easy to use and comprehensive in its cover across members of the team. I commend it to all as part of a co-ordinated set of project documentation."

 The consultancy agreement has been produced by property clients and reflects their requirements. So, instead of agreements with, as standard terms, provisions designed to transfer the risk of consultants’ default to the client, this consultancy agreement does not contain net contribution clauses, caps or limits on liability, exclusions of responsibility for particular services and so on.

The agreement also provides for funders’ requirement for a “charge” over the agreement and for rights in favour of third parties and which fully reflects the needs of a developer client without further amendment being required.

The agreement also makes provisions for a lump sum fee with a clear list of circumstances in which it adjusts. This means that instead of the consultant having an entitlement to adjustment of the fee for any reasons beyond “the consultant’s control”, the consultant is entitled to an extra fee for defined “additional services” only – where there are client changes, the occurrence of an insured event, the liquidation of the building contractor etc.

The BPF Consultancy Agreement is priced at £25 plus VAT with free packing and postage. To order your copies call 0870 777 8881 quoting ref. 2122 or buy online at: http://www.workplacelaw.net/eshop/product_info.php?product_id=400&a_id=2122