Question: Outline what is the key differences between this new contract (PSC) and the RIAI form that a quantity surveyor needs to be aware of when managing risks and controlling project costs.

Expert answer

The key difference between the Private Sector Contract (PSC) and the RIAI form is that the former does not require the use of a traditional tendering process. Instead, a PSC can be awarded through a negotiated process between the client and contractor. This means that there is more flexibility in terms of how risks and costs are managed, as well as greater transparency around project costs.

In terms of risk management, the PSC allows for a more proactive approach to identifying and mitigating risks. For example, the contract includes clauses on early warning and notification of potential problems, as well as provision for independent expert review if necessary. This allows for potential risks to be identified and dealt with before they become actual problems.

In terms of cost control, the PSC includes clauses on cost reporting and auditing. This means that there is greater transparency around project costs and that the contractor is accountable for ensuring that costs are reasonable and efficient.

Overall, the PSC provides a more flexible and transparent framework for managing risks and costs than the traditional RIAI form. This makes it an attractive option for clients looking to achieve better value for money from their construction projects.