Upland Path Management

Standards for delivering path projects in Scotland's mountains

Contents

• Home
• Preface
• Section 1 - Project planning
• 1.1 Why do upland pathwork?
• 1.2 Best Value
• 1.3 Developing a path management plan
• 1.4 Planning and post-project maintenance
• Section 2 - Project and site assessment
• 2.1 Purpose and use of surveys
• 2.2 Planning your surveys
• 2.3 Green surveys and path assessments
• 2.4 Amber surveys
• 2.5 Red surveys
• 2.6 Scottish Mountain Footpath Inventory (SMiFI)
• Section 3 - Managing safety and environment
• 3.1 Safety - Statutory framework
• 3.2 Construction (Design Management) Regulations path safety systems
• 3.3 Safety assessment
• 3.4 Risk, hazard and control
• 3.5 Safety plan
• 3.6 Safety performance
• 3.7 Maintaining site safety
• Section 4 - Using contracts to build paths
• 4.1 Using contracts to build paths
• 4.2 Preparing a competetive tender
• 4.3 Selecting a tender
• 4.4 Running, monitoring and closing contracts
• Section 5 - Training and developing the project team
• 5.1 Identifying training and development needs
• 5.2 Meeting the need
• 5.3 Evaluating the development
• List of abbreviations
• Further reading

4.1 Using contracts to build paths

Managing Path Contracts

Why do I need to enter into a contract?

A contract formalises an agreement between two parties, usually organisations. In the case of pathwork, the two parties are usually ‘the contractor’ (specialist path building company, building contractor or a consultant), who agrees to build a path, and ‘the client’ (local authority, access charity or landowner), who agrees to pay for the service and supervise the project. Path management contracts are usually relatively straightforward agreements between one client and one contractor to construct a section of a route. However, some aspects of path contracts can become complex, such as competitive tendering of the contract, detail of the construction required (‘surveys and specifications’) or the long-term arrangements for maintenance. Pathwork in Scotland may involve a variety of different types of contracts, e.g. employment contracts, funding agreements, construction contracts, access agreements and equipment leases.

All contracts adhere to four essential principles:

• A contract provides agreement. Usually one party agrees to provide a service for which the other will pay. The contract contains a detailed and agreed description of what the service is and how it will be delivered. This is often contained in annexes to the contract, including site maps, surveys, maintenance schedules or job descriptions.
• A contract sets out clear procedures. A contract lays down the conditions by which all parties agree to operate and the steps to take if anything should go awry. The contract specifies the location, timing and ownership of the work, planning details and what communication will take place during the project, e.g. site visits and completion meetings.
• A contract is made between interested parties. In pathwork the interested parties are usually the client and the contractor, but there may be others. Only those named in the contract are bound by it and have the right to amend it.
• A contract is binding. Each party to the contract is bound to deliver what is agreed and to comply with the contract conditions. There is usually provision to vary the contract if this becomes necessary as work progresses, but only if all parties agree to the changes. In the case of disagreement an arbiter will be appointed to judge the fairest course of action. If one party persistently fails to comply, the other party can take legal action.

A contract ensures that both parties are clear what work is to be carried out, and how, and who is responsible to whom. To be legal and binding, a contract must satisfy all four principles and be agreed by both parties. A contract can be verbal or written; a written contract is usually essential in the case of pathwork. Do not start work without a contract: if you are the client, you may be unable to control the work; if you are the contractor you may not get paid!

Types of path construction contract

There are currently four common types of contract used for access management work in Scotland, depending on the type and scale of work to be carried out.

FIXED PRICE CONTRACT

• The contractor submits a single, fixed price to complete all the works described in the specification, and this is agreed in advance with the client. This is the most common type of contract used for pathwork, and the price includes all materials, labour and plant. It is used for larger contracts and where the job can be described with certainty, i.e. where both the physical outputs (path, survey, etc.) and the costs (payments, materials, etc.) can be predicted and agreed in advance. It requires a comprehensive written specification but is usually less time-consuming to manage on site. The example contract for Craig to Diabaig, described below, is a typical fixed price contract.

NEGOTIATED CONTRACT

• This type of contract is used when work is needed but some parts of the contract cannot be fully specified in advance. A sum for providing labour is agreed, or for building a trial section, after which a rate per metre can be set. This approach is best used for innovative work, such as developing a new technique, or when a trainee team is starting contract work and rates of work are unpredictable. The costs are tied to inputs and not directly to outputs. Negotiated contracts often involve less paperwork but more time on site to maintain high levels of productivity.

DESIGN AND BUILD CONTRACT

• In this case the contractor provides one or more specifications and the cost to build each, and the client selects both price and preferred design. This approach is useful if the client is inexperienced, and was used extensively in the 1980s, before design advice was widely available. However, the costs and outputs can be unpredictable, making it more difficult to determine Best Value. In addition, there is less opportunity to be involved in the design and agree grant aid in advance. This has been used in the past but with the evolution of recognised standards in specification it has become redundant.

MAINTENANCE CONTRACT

• Contracts for routine maintenance work usually specify the rate per kilometre of path to be maintained or the number of days per year to be spent maintaining a route, with rates for extra days if remedial repair work is needed. Rather than itemise a large number of minor tasks individually, maintenance contracts usually specify a set of maintenance standards. Maintenance jobs are usually of relatively low value, and may be renewed annually if performance is satisfactory. Maintenance contracts are a form of negotiated contract, and rely on skilful and trusted contractors, who can operate and make decisions on site themselves. It is usual to inspect a sample of sites maintained to check that they meet the standards laid down. A similar approach can be taken for individual, low-value path projects, when often a quick response is needed and full specification is not necessary (‘minor works’ or ‘small works).

It is important to select the most appropriate type of contract for the project: this will depend on a number of factors, including project size, staff time and resources, project predictability and whether the project has aims and outcomes other than low cost and high quality. The reasons for using the most common types of contract are given below, along with their use in pathwork in Scotland.

Using standard contracts

There are currently two standard forms of contract in use for managing pathwork in Scotland:

• Standard Path Contract. This was developed by The Footpath Trust specifically for pathwork and is now widely used by charities, public agencies and some local authorities. It is suitable for use if one person will be overseeing the management of a job from start to finish, and perhaps also preparing surveys and specifications, although this may be contracted out.
• Institution of Civil Engineers standard contract for works. This was developed for medium-sized construction work (especially buildings) and is widely used by local authorities. It is suitable for use where several members of staff have separate roles, e.g. ‘client officer’ (usually the access officer) and quantity surveyor, and often with a separate designer and a budget holder.

The type of standard contract used depends on the organisation managing the project but will need to be amended to fit the job by specifying the information required (maps, surveys, schedules of work, etc.) and deleting any parts that do not apply (such as completion time penalties or materials testing).

One of the main advantages of using a standard form of contract is that everyone becomes familiar with much of it that is common to all jobs (safety plans, site rules, variations procedure, insurance required, etc). Make sure that any new staff or teams understand the contract you use and how it is applied. Then, when you adjust the contract for each job, point out where the standard contract has been adapted, and what you expect this will mean for the job.

Standard contract formats are amended periodically because of changes in legislation or improvements in site management practice. Keep in touch with the organisation that produces the standard you use – for instance through UPAG.

Example contract: Craig to Diabaig, fixed price contract

The first 1100 m of the Craig to Diabaig coastal path is to be entirely rebuilt as part of the long-term management of the route by The Footpath Trust. A full specification has been drawn up, including a survey, bill of quantities and crosssectional drawings, and the work is expected to cost £17,000. The work will be let under a fixed price contract and four experienced path teams have been asked to provide bids. The TFT standard path contract has been amended to include information on the site and specification. There are additional constraints on access for machines, over croft land, and a prohibition on Sunday working. All other contract conditions are usual and need to be observed.

What the contract should cover

PRE-TENDER DOCUMENTS

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These should cover the following areas:

• The invitation to tender. Include an anti-collusion clause to prevent any possible price-fixing among the competing teams.
• Information about how tenders will be assessed, e.g. on a Best Value basis. Include an explanation of the criteria that will be taken into account and their relative weighting.
• Tender format. Include details of how the tender should be presented and what to include. This often varies between organisations and can be a simple stumbling block for an otherwise sound tender.
• Additional costs. Specify who is responsible for any changes incurring extra cost and the system for agreeing any ‘variation’. It is usual for the client to pay only for additional and unforeseen work, at a ‘day rate’ that forms part of the bid.

It is usual for the contractor to bear the cost of tender submission, and this should be made explicit from the start. Also included in this section may be a set of definitions of terms used throughout the contract.

DELIVERY

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This section of the contract addresses the following areas:

• The contract should confirm that the contractor shall adhere to the specification and that alterations shall only be made with the agreement, in writing, of the client.
• Pathworks are usually guaranteed for one year after completion by the contractor. The contract is likely to state that during the ‘defects liability period’ the contractor will be responsible for repairing any defects due to poor workmanship. However, normal wear and tear should be taken care of through maintenance and paid for by the client.
• Disputes can arise, so it is sensible to explain the procedure for arbitration, by identifying a person or organisation agreeable to both parties whose decision will be binding on both parties.
• The contract should set out start and finish dates for work and invoicing. Owing to the nature of outdoor work it is reasonable to allow a ‘window’ in which the work can take place that should take account of potential stoppages caused by poor weather.
• Working hours should be agreed before work gets under way – at this stage it is sufficient to describe these in broad terms such as ‘daylight only on any day of the week’. The contract should state that no additional payments will be made if time is lost because of poor weather.
• Restrictions on the use of plant and equipment, usually due to the terrain or sensitivity of the site, should be described. The contract should also specify that only named and qualified staff will operate specialised equipment.
• Site environment rules should be laid out, e.g. removal of all rubbish and debris from the site and repair of damage to vegetation or other features of interest.

DETAILS OF WORK TO BE CARRIED OUT

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Most of this information found in this section will be contained in the specification and bill of quantities, however it is a good idea to make some reference to key points in this section.

• Indicate the exact location of the site, usually by reference to an attached map.
• Provide a general description of the works, including the length of the section of route to be rebuilt and the types and levels of use it will get, once completed.
• Provide guidelines on the general design of the work, such as local design tradition, use of local materials from onsite, path width dimensions, amounts of revegetation and so on.
• Detail payment and invoicing arrangements, including how interim payments are to be made and authorised. Include dates for submission of the final invoice, including allowing ample time for grant claims to be submitted.
• It is usual to specify that contractor will resurvey the site following completion of all work. This provides a record of all work carried out as well as an up-to-date survey for use during long-term maintenance.
• Include arrangements for final payment, including how any remedial work will be carried out. A ‘retention fee’ of 5% of the total contract value is normal to cover the repair of any defects arising during the one-year guarantee period.

SAFETY

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The contract should include a section on safety specifying the following.

• All work should be carried out under the Health and Safety at Work Act (1974). Each team must submit a copy of its current health and safety policy and standard site working rules.
• All contractors require public liability insurance during the whole period of the contract, normally for a sum of not less than £2,000,000. This includes the one-year period of warranty following completion of site works.
• A safety supervisor will be the first point of contact between client and the contractor, for all safety planning and safe working on site. Good practice requires this to be someone other than the team leader who can ensure safe practice at all times.
• The contract should state whether the Construction, Design and Management Regulations (1994) apply and set out roles that each party will fulfil, the identity of the Planning Supervisor and the safety planning procedure to be followed.
• The contract should set out procedures for accident reporting, including the reporting of ‘near misses’. The client should be informed about any issues compromising safety on site and minor incidents as well as any major events and accidents to be reported to the Health and Safety Executive (HSE).

How detailed should a contract get?

• Business always involves some risk for both buyer and seller. Contracts help to reduce these risks and make business more manageable. However, putting together and managing contracts takes time and adds cost. Judging the level of detail to include and number of controls to build in to the contract requires careful thought but becomes easier with experience.
• The more time spent on details of the design and contract, the greater the likelihood of getting what you want. Look at the level of risk involved for each job: will a ‘standard’ product do or do you need a special solution? What is your experience of working with these teams? Will they perform? Good pathwork is most likely to be achieved by using a clear specification and having a positive working relationship with an experienced team of contractors, all working to a set of contract conditions that everyone is familiar with.