1.2.

2 Traditional Contracts

Which In a traditional contract, the Employer includes detailed designs in the tender
traditional documentation, and prospective contractors bid for the build element of the
contract to use Contract only.
In deciding which traditional contract to use, the Employer should consider
the complexity of the project and the value threshold for minor works
contracts (contract No. 5).
If the project is ... and the works are ... Then use ...
Worth less than Civil Engineering
€5 million (including – or – Contract No 5
VAT) Building Works
Worth less than €5 Civil Engineering Contract No 1
million (including
VAT) and there are
exceptional
circumstances Building Works Contract No 3
(see note on Exceptional
Circumstances below)
Worth Civil Engineering Contract No 1
€5 million (including
VAT) or more Building Works Contract No 3
Note: The project budget should be well established at Definitive Project
Brief stage. It is at this stage that the contract value will also be known.

Exceptional Circumstances
On projects valued below €5 million, it is more usual to use the Minor Works
Contract (Contract No 5). In certain exceptional circumstances, where the
Employer deems the Contract to be sufficiently complex, a Major Works
Contract (Contract No 1 or Contract No 3) may be used. In certain exceptional
circumstances, where the Employer deems the Contract to be sufficiently
complex, a Major Works Contract (Contract No 1 or Contract No 3) may be
used for works with a value of not less than €1 million – see Appendix A:
Comparison of Minor Works Contracts and Traditional Contracts on page
175.

Allocation of In a traditional contract the Employer retains the design risk and may also
risk retain a greater degree of risk overall. The contract specifies the compensation
events that are allowed. These are events for which the Employer retains the
risk. The Contractor may seek compensation from the Employer in the event
of one of the optional risks included in the Contract that the Employer is
carrying being realised.

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