The Design and Build procurance procedure works on the footing that the Main Contractor is non merely responsible for building, but the design component of a undertaking as good. The degrees of duty and input from the position of the Contractor are far greater than that of the traditional signifier of procurement methods. From the Clients position, Design and Build is comparatively low hazard in footings of clip and cost, but if the Client does non pay peculiar attending to the readying of the papers known as the “ Employers Requirements ” , their outlook in regard of quality can be compromised xxxxxxxxxxxxx.
Design and Build is non a new phenomenon, this type of procurance method has been with us since medieval times. Harmonizing to Jeffrey L. Beard et Al ( 2001 ) , when Ictinus and Callicrates built the Parthenon, the maestro builder and maestro Mason provided both a design and build service, to supply one without the other was unknown. Design and Build Contracts have been described as an agreement between a undertaking administration and a client, where the contractor takes full duty for the design and building of a undertaking. The industrial revolution of the eighteenth Century in Europe and the nineteenth Century in the United States of America brought about the separation of these two key elements of a design and construct contract. This led to the debut of what we know today as the traditional design/bid so construct method of procurance. The design/bid so construct attack to building procurance is where the client engages an designer who in concurrence with a structural applied scientist prepares the design, drawings and specification for a undertaking. The design complete with drawings and specification are so issued to several contractors for pricing. By and large the contractor with the lowest monetary value is so selected to construct the undertaking, but sometimes this is non ever the instance.
Harmonizing to the Haskell Company ( no day of the month ) , “ Cost and clip factors initiated the revival of the maestro builder attack. Since the 1960 ‘s, the per centum of Design-Build undertakings has increased dramatically. Today, non-residential Design-Build volume represents half of all building in the United States of America. The ground for this addition is simple ; the Design-Build procedure provides a alone set of client advantages non available in any other bringing system ” . Harmonizing to a study prepared by Handscomb ( 2004 ) ; “ Design and physique has shown a steady market incursion in some states. In the United States of America and the United Kingdom, it has grown from less than 10 per centum in the early 1980 ‘s to more than 30 per centum today ” .
Prior to coming to the Middle East part in 2007, I was extensively involved in Design and Build type building undertakings, albeit utilizing the assorted different signifiers of the Design and Build Contract that are in circulation today ; for illustration the Federation Internationale Des Ingenieurs-Conseils ( normally known as “ FIDIC ” ) and the Joint Council Tribunal ( UK ) ( normally known as “ JCT ” ) have published their ain editions of this type of Contract. The general rule behind all of these contracts is that the Employer has a individual point of contact and that the Design and Build Contractor accepts entire duty for both the design and building of a undertaking. Since geting in the part and holding worked in Oman, Bahrain & A ; the United Arab Emirates, it is apparent that the traditional ( design, command so construct ) type of Construction procurance method is extensively used, with small grounds of the design and construct contract being utilised.
The part is synonymous for mega building undertakings, and could profit from other signifiers of procurance schemes such as design and physique. So why are we non utilizing this bringing method more? Similarly the employers in this part are ill-famed for puting ambitious clip graduated tables for the bringing of their undertakings. From my experience and initial research, it is by and large accepted that the design and construct procurement scheme would assist them salvage both clip and cost and full make full their demands for fast path undertakings.
If the industry and professionals within this part is to better understand the benefits of a design and construct procurement method ( either from a client and/or contractors perspective ) ; so they must acquire a better grasp of the different signifiers of design and construct contracts that are presently in being today, and where they are best used. Furthermore, both the contractor and client besides need to acquire a better grasp of the advantages and disadvantages of the different design and construct contracts if we are to utilize this procurance bringing method more within the Middle East.
Therefore, in this thesis, the author will try to reply some of the inquiries raised before in this debut, peculiarly for those in the Middle part that may be interested at looking for options. In add-on to this, the author will try to supply an penetration into the positions and perceptual experience of other building professional within the part sing the design and construct procurement method.
1.2 Hypothesiss
At the terminal of the research it is expected to get at the undermentioned decision:
Design and Build Contracts are non needfully suited for every building undertaking ; each and every undertaking will hold a alone demand. However with instruction ; the industry as a whole in the part could potentially profit from this procurance method.
Peoples in the building industry within the part do non like go forthing their comfort zones and are less likely to advance alteration and advanced thoughts which may include the usage of alternate methods of procurance for building undertakings such as design and physique.
1.3 Purposes
There are two chief purposes for this research undertaking. First to place what the benefits of design and construct building procurance method is to us here in the Middle East.
Second, to estimate what the overall consensus is on whether there is a hereafter for the design and physiques procurement method here in the Middle East.
1.4 Aims
To compare and contrast the traditional design/bid and so construct type of bringing method with the design and construct method.
To critically analyze the benefits of a design and construct building procurance method.
To place the assorted types of the design and construct building procurance methods and place where they are best used.
To determine the feelings and attitudes of the building professionals in the Middle East part to the design and construct procurement method and to estimate whether there is a hereafter for this procurance method.
Chapter 2: Research Methodology
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2.1 What is Research?
The Concise Oxford Dictionary defines research as “ a careful hunt or enquiry ; endeavour to detect new or collate old facts etc. by scientific survey of a topic ; class of critical probe ”
2.2 Research Strategy
Naoum ( 2007 ) has defined research scheme as “ the manner in which the research aim can be questioned ” .
Research schemes can be loosely classified into two groups ;
Quantitative research
Qualitative research
2.3 Quantitative Research
Naoum ( 2007 ) confirms that Quantitative research is “ nonsubjective ” in nature and is used to mensurate how people feel, think or act in a peculiar manner. This research focuses on garnering numerical informations across a group of people. Quantitative research can be used for the undermentioned fortunes.
To roll up factual grounds and analyze the relationship between these facts in order to prove a peculiar theory or hypothesis.
To happen facts about a construct, a inquiry or an property.
In the context of research, the aim is to prove or verify a theory instead than develop one.
2.4 Qualitative Research
Naoum ( 2007 ) besides confirms that Qualitative research is “ subjective ” in nature and can be divided into two chief subcategories ;
Exploratory Research – This research method is used when we have a limited sum of cognition about the selected subject. The interview technique is normally selected as a method of informations aggregation.
Attitudinal Research – This research method is used to measure the sentiment, position or the perceptual experience of a individual towards a peculiar topic.
This research method seeks out the ‘why ‘ and non ‘how ‘ . This type of research does n’t merely trust on statistics or Numberss, which are the sphere of quantitative research.
2.5 Methodology
The research information for this thesis was collected from primary and secondary beginnings supplying both qualitative and quantitative informations. The primary information was obtained through a questionnaire and the secondary informations through a literature reappraisal.
Literature Review
Empirical information was collected in order to compare and contrast the traditional design/bid and so construct procurement methods with the design and build methods of procurance. In add-on to this, empirical information was collected in order to critically analyze the benefits of the design and construct procurement methods and to place where they are best used.
The information for the literature reappraisal was obtained from diaries, industry web sites and academic text books. Any other relevant and/or pertinent information was obtained through the cyberspace.
Naoum ( 2007 ) confirms that for a successful literature reappraisal, consideration must be given to the followers: –
Knowing the beginnings of information: Designation of the appropriate literature which possibly from primary beginnings ( academic research diaries, theses, studies, and authorities publications ) , and/or secondary beginnings ( text books, trade diaries, newspapers ) , and/or mention ushers ( lexicons, encyclopedia ) .
Primary literature is acknowledged as being the most accurate beginning of information.
Understanding how the library plants: Bell ( 1996 ) listed three of import points that you need to bear in head while carry oning a literature research ( How to happen relevant published stuff rapidly, avoid acquiring bogged down, entering information derived from reading )
Note-taking: Dunleavy ( 1988 ) remarks that, when set abouting taking a literature reappraisal, one needs to acquire off from concentrating excessively single-mindedly on what the writer is seeking to state, and alternatively concentrate on what you are seeking to acquire out of a beginning.
Systematically administration of the literature: Align the literature gathered and to register harmonizing to the chapters of the thesis for easiness of future mention.
Measuring and composing up the literature reappraisal: Upon reasoning the literature reappraisal, merely so will we be able to critically reexamine the parts of other people work to the capable country.
Both primary and secondary literature was reviewed and the appropriate notes and information was consistently kept in a literature file. Due to the geographical restraints of life in the Sultanate of Oman and the comparatively high cost of going to the United Kingdom which would hold been needed to set about a extended literature reappraisal, the bulk of the literature reappraisal was done via the cyberspace. Here a elaborate hunt of diaries, research studies, newspapers and magazines was carried out to turn up the established information needed to set about this portion of the thesis.
Questionnaire
Harmonizing to Naoum ( 2007 ) , questionnaires are ideally suited to the assemblage of mass information and sentiments at a minimum cost. Questionnaires are besides considered to be an first-class method for roll uping both Qualitative and Quantitative informations from respondents.
A bill of exchange questionnaire was piloted in order to look into that it worked successfully. The concluding questionnaire consisted of chiefly closed inquiries in order to obtain both qualitative and quantitative informations. The questionnaire was targeted at the white collar building professionals with within the Middle East. To the maximal extent possible, the questionnaire was sent to a combination of Employers, Developers, Consultants and Main Contractors in order to obtain a wide and balanced position of the job topic.
It was besides believed that the questionnaire would let the author to estimate the general perceptual experiences of the building professionals in the Middle East part as to the hereafter of the design and construct procurement method in this part.
The information provided by the respondents in the context of this thesis is considered to be dependable, because it is from a diverse array of building professionals and from different geographical countries within the Middle East.
The response rate to the questionnaire was 62 % , hence there was no demand to implement the eventuality program for supplementing the informations collected from th questionnaire with interviews, albeit these interviews would hold been structured around the questionnaire.
Interviews
As stated above, in position that the response rate to the questionnaire was comparatively high, there was no demand to supplement the informations gathered from the questionnaire with a series of face to confront interviews. Had the response been below 40 % , it was indented to carry on a series of interviews albeit structured around the questionnaire to assist supplement the informations gathered from the questionnaire. A farther eventuality program for telephone interviews was besides consider in order to supplement the informations collected from the questionnaire. The Interviews were considered to be an first-class manner of supplementing any short autumn in informations had it been necessary.
2.6 Data Analysis
The informations received from the respondents were collated and analysed utilizing the descriptive statistic method. Bar charts and/or histograms have been used to show the informations gathered from the questionnaire. Each inquiry and/or where necessary a group of inquiries are accompanied with the appropriate narrative and analysis.
2.7 Reliability of Data
Walliman ( 2005 ) wrote that informations can be deceptive because it is elusive and passing, In other words, the informations collected from a respondent at any point in clip may merely be representative of a respondents head set on a peculiar twenty-four hours, and at a peculiar minute in clip. If the respondent is once more asked the same inquiry one month subsequently, you may happen their reply different to the reply obtained earlier.
2.8 Bais
To assist get the better of the pattern of “ selective prejudice ” ( Torgerson & A ; Torgerson 2003 ) , the questionnaire was sent to a figure of nationalities ( Italian, Gallic, India, Sri Lankan, Bahraini, Omani, Filipino ) . To a big extent, this eradicated the potency for “ selective prejudice ” .
2.9 Restrictions of Survey
Due to the comparatively little Numberss of respondents, the consequences of this thesis may non be a true and accurate contemplation of the building professionals in the Middle East part as a whole. However, for the intent of reasoning this thesis, the consequences of this study are deemed to be a true representation of the ideas and perceptual experiences of the professionals who live in different geographical countries within the Middle East.
2.10 Ethical Consideration
In the covering electronic mail and/or missive that accompanied the questionnaire, each of the participants was advised of the nature and/or the intent of my research. Furthermore, the author asked each of participants to obtain the consent of their director to take part in the study if they have any uncertainness whatsoever. The author besides confirmed in the covering electronic mail that the information provided by the respondents would stay confidential. For the intent of this thesis, “ confidentiality ” is taken to intend that the participant will non be identifiable in any manner by a reader of this thesis. Furthermore, it was made clear to the participants that they could retreat from the study ant any clip and their response would be destroyed consequently.
Chapter 3: Literature Reappraisal
Compare and Contrast the assorted types of Traditional / Design and Build procurance methods
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3.1 Introduction
To understand the construct of a design and construct method of procurance method, this can be better explained by comparing it to a traditional building procurance method.
Shapiro Hankinson & A ; Knutson Law Corporation ( no day of the month ) describes a traditional procurance method as an agreement that involves three parties i.e. the client, the interior decorator and the contractor. The client appoints the interior decorator to fix drawings and specifications. These contract paperss inclusive of the drawings and specification when complete are issued to assorted contractors for pricing. Normally the lowest priced contractor is appointed to build the undertaking harmonizing to the design programs and specifications. The client warrants the sufficiency of the programs and assumes any liability for defects for them to the contractor. The contractor is responsible for any faulty building and craft, but is non apt for design defects. The interior decorator is responsible for any design defect, but the interior decorator is non apt for any defect in the building. A more in-depth expression at this type of building procurance method can be found latter in this chapter.
In contrast to the traditional signifiers of building procurance, Shapiro Hankinson & A ; Knutson Law Corporation ( no day of the month ) so describes a design and construct contract as an agreement where the client enters in to a individual understanding by which the design and construct contractor performs both the design and building of the undertaking. The client sets out their demands in a papers called the employers demands. This papers must clearly put out any public presentation criterions, aesthetic and functional demands for the proposed undertaking. Furthermore, this papers must besides place any specific demands in relation to the undertaking. For a simple edifice with small consideration for aesthetic, the accent of the employer ‘s demands is on the contractor presenting the undertaking at a competitory monetary value and clip. Where the client has already undertaken a significant sum of the design works, the client may wish to reassign the design duty to the contractor. In some cases, the employer ‘s demands may besides depict the procedure of presenting the undertaking. The employer ‘s demands will necessitate to be a elaborate and concise papers to avoid the possible for any misinterpretations. From clip to clip, the client may qualify in the employers demands that it is the contractors duty for geting land, and for financing the undertaking. This agreement is frequently referred to as a “ prison guard ” contract. In either a design and physique or prison guard agreement, the contractor ‘s aim is to fulfill the client ‘s public presentation specifications instead than to adhere stiffly to the design professional ‘s programs and specifications. In add-on to this, the contractor remains responsible for any defective craft in building ; the contractor is besides apt for any lacks in design under this agreement. Again, a more in-depth expression at this type of building procurance method can be found latter in this chapter.
3.2 Traditional Procurement ( Design, Bid so Build )
Normally there are three distinguishable stages in traditional procurance method which are by and large undertaken in a consecutive and systematic order. These stage are non alone to the traditional procurance method, and can be by and large found in all building procurance methods, albeit in the design and construct type of contract procurance, some of these stages are done at the same time to salvage clip.
Design stage – Here the Client retains the services of a figure of advisers and/or adviser to plan the undertaking and supply cost advise. The advisers will work with the Client to place their demands. These demands will so be developed into conceptual and conventional design and be to the full costed. If the Client so decides that the undertaking is low-cost, so the conceptual and conventional designs will be to the full developed into the concluding stamp paperss.
Offering stage – Here the preferable contractors obtain the stamp paperss and so transport out a broad assortment of undertaking that will enable them to monetary value the plants and these undertakings include inter alia: – determination to tender, undertaking grasp, pre stamp meetings, pretender site visit, obtaining citation from subcontractor and providers, fixing Pretender method statements, fixing the Pretender programme, analyzing the stamp and deliverables, fixing pre stamp wellness & A ; safety program, fixing Pretender hazard appraisal, fixing pre stamp quality program, prepare estimation, appraisal of preliminaries, stamp adjudication.
Construction stage. The Contractor makes the clients demands a world by building the undertaking harmonizing to the drawings and specification.
Other characteristics of the traditional procurance methods include inter alia: –
Traditional contracts require the Client to name a professional adviser to administrate the contract.
Time is needed to fix the full stamp certification for the Contract to monetary value.
Design and building are non by and large done at the same time which accordingly increases the overall clip of a undertaking.
The Client to one grade or another has cost certainty because the contract amount is known at the beginning.
It has been suggested by the JCT ( 2008 ) that this signifier of procurement method should be used in the undermentioned fortunes: –
Where the design quality is critical and the client wishes to command the design procedure and be involved in choosing, prosecuting and directing the design squad
The lineation design has non been sufficiently development and alterations are likely to happen.
The interior decorator has sufficient expertness in a peculiar field and they do non necessitate the support of a design/build contractor or specializer subcontractors.
The client has sufficient clip to let the elaborate design works to be completed before ask foring contactors to tender.
Inexperienced clients
Where a client wants clip predictability
Where the undertaking is complex and were functionality of a undertaking is the premier aim
The chief types of the traditional procurance methods are briefly discussed and described below: –
3.2.1 Lump Sum Contracts – It is by and large accepted that there are two types of lumps amount contracts “ with measures ” and “ without measures ” . Lump amount contracts “ with measures ” are by and large priced on the footing of drawings, specification and Bills of Quantities ( besides known as “ BOQ ” ) albeit the Contract is non capable to re-measurement. It is the Contractors duty of ascertain whether the Bills of Measures are right and their monetary value is deemed to representative of the measure ascertained from the stamp drawings. Lump amount contracts that are “ without measure ” means that the contractor is required to determine his ain measures from the drawing and specifications without the benefit of a BOQ prepared by the Client.
3.2.2 Measurement Contracts – Normally the contractor monetary values drawings, specifications and BOQ that contains declarative measures. The BOQ is capable to measurement based on the existent measures that can be ascertained from the concluding design drawings and the Contract amount is adjusted consequently. Another discrepancy of this type of the measuring contract is where the contact is based on drawings and specifications together with a agenda of rates and/or monetary values.
3.2.3 Cost Reimbursement Contracts. This type of contract is normally known as “ Cost Plus ” . This type of contract is by and large used where it is hard to quantify and/or specify the range of plants to be executed by the contractor. This type of contract is acknowledged to be high hazard from the position of the Client because the entire cost of the undertaking is non known until completion. The Contractor is by and large reimbursed their proven cost for labor, works and stuffs plus a per centum add-on for site preliminaries, overhead and net income.
Some of the sensed disadvantages of the traditional procurance methods: –
Frequently the Contractor is non involved until the design is finalized, and they are non given an chance to take part in the treatment sing buildability, building engineerings to be utilised, options etc.
A possible adversarial contractual relationship, peculiarly between Contractor and Advisers
There is a greater hazard of clip and cost overproductions, peculiarly when the deign and or range of plants has non been to the full finalized.
Some of the sensed advantages of this the traditional procurance methods is: –
The Client retains more control over the design stage of a undertaking
The Client has more entree to the design squad.
The design squad is employed by the Client and they look out for the involvement of the Client.
The Client is better able to compare the commands of the Contractors because there is a common footing for pricing.
3.3 Design and Build
The chief types of the design and construct procurement methods are briefly discussed and described below: –
Akintoye ( 1994 ) identifies the undermentioned six signifiers of the design and construct procurement method ;
traditional design and construct
develop and concept
design and manage
design, manage and concept
novation design and construct
bundle trade ( including prison guard )
Whereas Rowlinson ( 1987 ) identifies three broader types therefore ;
pure design and construct
integrated design and construct
fragmented design and physique.
3.3.1 Pure Design Build / Traditional Design and Build
As described antecedently, the pure design and physique ( besides normally known as the traditional design and construct method ) is an agreement where the client enters in to a individual understanding by which the design/build contractor performs both the design and building of the undertaking. The client sets out their demands in a papers called the Employers Requirements. This papers must clearly put out any public presentation criterions, aesthetic and functional demands for the proposed undertaking. Furthermore, this papers must besides place any specific demand in relation to the undertaking. In a design/build, the contractor ‘s aim is to fulfill the client ‘s public presentation specifications instead than to adhere stiffly to the design professional ‘s programs and specifications. In add-on to this, the contractor remains responsible for any defective craft in building ; the contractor is besides apt for any lacks in design under this agreement.
It has been suggested by the New South Wales Government of Australia ( 2008 ) and/or the JCT ( 2008 ) that this signifier of procurement method should be used in the undermentioned fortunes: –
the client wishes to find the construct design ;
the demands for the developed design can be clearly described, for illustration through established criterions for merchandises and stuffs, inside informations and coatings ;
a to the full developed design would present hazards associated with buildability or the coordination of design and building ;
there are proprietary designs or building processes that may offer advantages over particular one-off designs ; or
the Client does non hold sufficient clip to pull off the design to completion.
The pure design and construct direction procedure can be illustrated as follows
Client
Contractor
Construction
Interior designer
Figure 1 – Mosley ( 1990 )
3.3.2 Integrated design and construct
With incorporate design and physique which includes “ Design and Manage ” and “ Develop and Construct ” , similar to direction catching, the chief contractor is paid a fee to presume the duty and to pull off the subcontractors every bit good as the interior decorators.
Design and manage
With this signifier, the contractor assumes more of a direction function, although design is still the duty of the contractor. The contractor does the design and so manages all other facets of the undertaking.
It has been suggested by the New South Wales Government of Australia ( 2008 ) that this signifier of procurement method should be used in the undermentioned fortunes: –
there are many or important unknown factors, such as vague range, unpredictable hazards and mutable undertaking aims, that can non be resolved before it is necessary to allow a contract in order to run into the undertaking plan ;
undertaking menaces and chances are complex and require direction jointly by the catching parties and other participants ;
there are many complex or hard stakeholder interfaces and relationships ;
the involvements of cardinal participants need to be brought together early in the undertaking ;
industry input and invention during the design phase are desirable, for illustration to take advantage of emerging engineering, specialist building expertness or other chances ;
completion times are tight and fixed ;
undertaking support is fixed.
Develop and concept
With this signifier, the chief contractor inherits a partly designed construction to which he has to finish in conformity with the demands of the undertaking. The Contractor is free to develop this design either utilizing his ain in-house design squad or he can name a interior decorator of his ain. The contractor is non forced to utilize the interior decorator who prepared the construct design and this is where this type of agreement differs from the Novation type of agreement.
It has been suggested by the New South Wales Government ( 2008 ) of Australia that this signifier of procurement method should be used in the undermentioned fortunes: –
the client wishes to find the construct design ;
there is a important hazard of holds or alterations to the undertaking range as issues are resolved with stakeholders or probes are completed, and the client is best placed to pull off these activities ;
the demands for the developed design can be clearly described, for illustration through established criterions for merchandises and stuffs, inside informations and coatings ;
a to the full developed design would present hazards associated with buildability or the coordination of design and building ;
there are proprietary designs or building processes that may offer advantages over particular one-off designs ;
The client does non hold sufficient clip to pull off the design to completion.
This integrated design and construct direction procedure can be illustrated as follows: –
Client
Other Advisers
Design Build Firm
Construction
Design
Figure 2 – Integrated Design & A ; Build – Mohamed ( 2005 )
3.3.3 Fragmented design and construct
Package trade
The RICS COBRA ( 2004 ) confirms that this procurance method is suited to repetitive range of work i.e. where the contractor will supply standard edifices and/or systems that are adapted to accommodate a client ‘s demands.
This signifier of procurement method should be used in the undermentioned fortunes: –
The range of work from one undertaking to the following is insistent i.e. supermarkets, film etc.
Design, Manage and Construct
This signifier is closely resembles the design and manage agreement. The cardinal difference is that the Contractor undertakes some of the building and non the whole procedure. He basically co-ordinates all the maps even those that are non his duty.
This disconnected design and construct direction procedure can be illustrated as follows: –
Client
Contractor
Builder
Subcontractors
Interior designer
Figure 3 – Fragmented Design and Build – Mohamed ( 2005 )
3.3.4 Novation design and construct
The client engages the services of a interior decorator to plan the undertaking to the extent set out in the design service understanding. The client so enters into a design and construct agreement with a contractor. When the building contract is let, the client novates the design service understanding to the contractor. The Contractor so assumes the duty for the completion of the design every bit good as building.
It has been suggested by the New South Wales Government ( 2008 ) of Australia that this signifier of procurement method should be used in the undermentioned fortunes: –
the bureau wishes to command the construct design ;
the undertaking has particular design demands ;
there is important excess benefit in doing the contractor responsible for all design and certification, and giving the contractor full entree to the original interior decorator and its cognition of the design issues ;
the specifications for the developed design can be clearly described, for illustration through established criterions for merchandises and stuffs, inside informations and coatings.
The novated design and construct direction procedure can be illustrated as follows: –
Client
Builder
Interior designer
Fig 4: Novation design and physique system Wadani ( 2004 )
3.4 Other signifiers of Construction Procurement Methods
In order for any would be Client to make up one’s mind which is the right building procurance method for them, foremost of all they need to hold a basic apprehension of all the different types of the contracts and/or procurance methods that are available to them today other than the traditional and/or design and build methods of procurance.
Therefore, we will take this chance to briefly discourse the assorted other options available to the Client.
3.4.1 Two Phase Tender Procurement
Simon Rawlinson ( 2006 ) confirms that the purpose of the two phase tendering procedure is to competitively name a Contractor in the early phases of a undertaking even though the design is non complete and there is a limited sum of design information available. The first phase tendering procedure is typically split into two parts i.e. a proficient proposal dwelling of outline programme, method statement and any other deliverable identified by the client ; and a fiscal proposal for design fees, contractor preliminaries and mark-up for the initial design phase. The first phase of this procurance method is by and large concluded when a preferable contractor is appointed and both the client and the contractor enters into a preconstruction services understanding.
Simon Rawlinson ( 2006 ) besides confirms that the 2nd phase is by and large managed by both the client and contractor. The client relies on competition between the preferable contractor and other contractors who are invited to tender for the assorted building bundles that arise during the class of the undertaking. Typically the preferable contractor has an advantage over their competition and they are awarded upto 80 % of the value of work bundles.
It has been suggested by the New South Wales Government of Australia ( 2008 ) that this signifier of procurement method should be used in the undermentioned fortunes: –
When the clients wants to name a chief contractor in front of the completion of design, and they require a quicker start on site ;
Procuring the engagement of a contractor for pre-contract services on a competitory footing, to obtain input on build ability, sequencing and subcontractor choice ;
Retaining greater client engagement in the pre-selection and assignment of contractors ;
Motivating the interior decorator and contractor to utilize invention to minimise cost.
Transfering a greater grade of design and other building hazard to the contractor.
3.4.2 Public Private Partnerships ( normally known as PPP )
Balfour Beatty PLC ( no day of the month ) describes the PPP agreement as the conveying together of the public organic structure and a private company for the benefit of the populace, in a long-run relationship for the bringing of public substructure, community installations and related services that was originally provided for by the populace sector. Pulling on the best of the public and private sectors, PPPs provide extra resources for investing in public sectors and the efficient direction of the investing.
A study commissioned by the European Commission ( 2003 ) identified four chief functions for the private sector in PPP strategies: –
aˆ? To supply extra capital ;
aˆ? To supply alternate direction and execution accomplishments ;
aˆ? To supply value added to the consumer and the populace at big ;
aˆ? To supply better designation of demands and optimum usage of resources.
3.4.3 Management Contracting
Longworth Consulting ( no day of the month ) describes the Management Contract agreement as a two phase “ fast-track ” procurance method. The client appoints the interior decorator and direction contractor individually in the early phase of the undertaking so that they can work aboard each other. The direction contractor will besides assist to develop a building programme and contribute to the design and costing of the plants. The direction contractor obtains competitory monetary values from subcontractors and specializer for each of the proposed work bundle. The direction contractor basically manages the procedure. The payment to the direction contractor is the cost of the bundle plus a fee.
It has been suggested that this signifier of procurement method should be used in the undermentioned fortunes: –
Procuring the engagement of a contractor early in the design phase, to obtain input on build ability, sequencing and contractor choice ;
The client wants an early start with building whilst the brief is to the full developed ;
Complex undertakings.
3.4.4 Construction Management
Teacherweb.com describes building direction as a professional service that applies effectual direction techniques to the planning, design, and building of a undertaking signifier origin to completion for the intent of commanding clip, cost and quality.
The construct of Construction Management is similar to Management Contracting, the Client appoints the Construction Manager to pull off the undertaking on their behalf.
It has been suggested by the New South Wales Government of Australia ( 2008 ) that this signifier of procurement method should be used in the undermentioned fortunes: –
there are many or important unknown factors, such as vague range, unpredictable hazards and mutable undertaking aims, that can non be resolved before it is necessary to allow a contract in order to run into the undertaking plan ;
undertaking menaces and chances are complex and necessitate pull offing jointly by the catching parties and other participants ;
there are many complex or hard stakeholder interfaces and relationships ;
the involvements of cardinal participants need to be brought together early in the undertaking ;
industry input and invention during the design phase are desirable, for illustration to take advantage of emerging engineering, specialist building expertness or other chances ;
completion times are tight and fixed ;
undertaking support is fixed.
3.4.5 Framework Agreements
The Regional Improvement Efficiency Committee of the United Kingdom describes the model agreement as a long term understanding with a provider and/or contractor, which establishes the term regulating contracts that are to be awarded in the hereafter during an in agreement term ( continuance ) . The purpose of the model understanding is to convey together providers and contractors with the relevant expertness and experience which can ensue in nest eggs to both parties where a figure of undertakings are involved.
It has been suggested that this signifier of procurement method should be used in the undermentioned fortunes: –
Where there are insistent plants and/or call offs that will happen over a defined continuance.
Where there is a demand for collaborative procurance and a demand for early contractor ‘s providers.
3.5 Result
As stated in 1.4, the aim of this chapter was to compare and contrast the traditional design/bid and so construct type of procurance method with the design and construct method. In add-on to this, a farther aim of this chapter was to place the assorted types of the design and construct building procurance methods ; and place where they are best used.
Having looked at assorted beginnings of literature from books, cyberspace web sites and diaries sing the design and construct and/or traditional procurance methods, it was so see of import to place other signifiers of building procurance methods in order to give any possible reader a brief penetration into all procurement methods available to us today.
In drumhead this Chapter has achieved what was intended and has established a good apprehension of the capable country.
The following chapter of the study will critically analyze the benefits of the design and construct procurement methods utilizing the literature reappraisal methodological analysis.
