Stubbington Bypass: Removing subjectivity from the weather clause with Smart Contracts

“Agile and fresh partners such as EHAB can objectively examine the way we do things in the industry and work on how to overcome the embedded behaviours and practices that are stifling productivity growth.”

< 0 weeks
Decisions in seconds rather than 8 weeks
0 days
Saved 16.5 person days per year
£6- 0 k
Equivalent of £6-9k savings per year
Colin Evison

Colin Evison,
Head of Innovation, BAM Nuttall

Summary:

Pilot happened between October 2020 and March 2021. Hampshire County Council were the client and bam nuttall the contractor.

The challenge:

Stubbington bypass was a greenfield road project, with plenty of earthworks planned. The plan had been to carry out the excavation and moving of materials in the dryer periods of the year. Ensuring this part of the works could happen before the winter had been a concern for those on the project since the outset.

Then of course, Covid struck. Although construction was eventually allowed to continue the client kept the team stood down. This pushed the whole schedule back by 7 weeks. With a portion of the earthworks now happening in winter.

BAM, like every other contractor before, had used standard forms of contract on construction projects. They are paper based, and require a team of people tracking and administering the contract, often with disputes or inefficiencies along the way.

How EHAB helped

EHAB’s smart contract was deployed because BAM wanted to trial a new way to automate contracts. They wanted to provide a better experience to their client, maximise the value of their staff and create an efficient mechanism to share the growing threat of weather risk. The tool triggered decisions in seconds rather than waiting up to 8 weeks for the data to illustrate that a compensation event had occurred.

This process ran for 6 months and helped save 30 minutes per day in time spent finding data to compile reports. When scaled up this is equivalent to 16.5 days person day per year, saving the equivalent of £6-9k per year of time from a subagent.

Results

  • Smart Contracts encourage better working relationships
  • Saving time, energy and effort, which can be better spent elsewhere
  • Clients and contractors both benefit from cost certainty
  • They offer a fairer smoother risk sharing approach

 

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