Civil Engineering for 1,300 Kilometres of Underground Cable Route: GvW Develops Progressive Partnership Agreement Together with Amprion and RiskConsult

Amprion has now awarded civil engineering contracts for over 1,300 kilometres of underground cable routes to three joint ventures for the Korridor B and Rhein-Main-Link direct current projects. The tender was based on the model of the progressive partnership agreement developed by the transmission system operator together with the lawyers of the law firm GvW Graf von Westphalen, under the direction of Dr Robert Theissen, Jacqueline Dekkers and Alena Wutz (all specialising in private construction law, Hamburg) and the management consultancy RiskConsult.

The particular challenge was to conclude a binding construction contract based solely on   a  functionally defined construction objective (road connection A ➔ B) and before any planning had been drawn up, in order to secure capacities at an early stage. Similarly, only rough estimates were available for the remuneration of the contractors when the contract was concluded.

The Progressive Partnership Agreement offers a new opportunity for all parties envolved to successfully complete large and complex construction projects, even when the construction task is initially undefined. Once the contract has been concluded and the planning completed, the project is divided into construction phases in cooperation with the parties. Each phase is assigned individual remuneration models (based on cost plus fee) agreed upon with the contracting parties. Risks for each section are recorded in advance using probabilistic simulation and priced accordingly with a corresponding surcharge.

‘The model of the Progressive Partnership Agreement takes into account the interests of both the owner and the contractor equally, making it  therefore the ideal basis for a long-term partnership,’ explains Dr Robert Theissen, a GvW partner specialising in private construction law and co-initiator of the new contract model. ’Defining the construction target after the contract has been signed creates planning security for all parties involved and reduces disputes over supplements and delays by ensuring fair compensation.’

GvW developed and negotiated the progressive partnership agreement together with Amprion and RiskConsult. The new agreement model recently received the ‘Excellence in Construction Project Management Award’ from the International Construction Project Management Association (ICPMA) in New York (more here).