The design and construct procurement path changes the traditional sequence of work. It answers the Employers wants for a single-point of duty in an alleged effort to cut down hazards and overall costs. It is now normally used in many states and signifiers of contracts are widely available.
Design-Build is sometimes compared to the “ maestro builder ” attack, one of the oldest signifiers of building process. Comparing design-build to the traditional method of procurance, the writers of “ Design-Build Contracting Handbook ” noted that: “ from a historical position the alleged traditional attack is really a really recent construct, merely being in usage about 150 old ages. In contrast, the design-build construct — besides known as the “ maestro builder ” construct — as been reported as being in usage for over four millenary. ” ( Songer,1996 ) .
The disadvantage of the traditional procurance method had been identified in many studies. Harmonizing to Lathem Report ( 1994 ) , it stated that the traditional method has the job of adversarial and inefficient manner of making things and separation of the functions and duty of squad members. Harmonizing to the Construction Industry Review Committee Report ( 2001 ) stated that a high grade of atomization with an adversarial civilization and a contractual and confrontational civilization would be developed.
The alternate procurance method would be sought for work outing those jobs.
Describing “ Design and Build ” as a “ feasible alternate method ” , Songer and Molenaar ( 1996 ) concluded that there are a figure of advantages associated with Design and Build such as: cost nest eggs, improved constructability, clip nest eggs and claim decrease. From the Employer ‘s position, the individual point of duty is the most attractive benefit derived from the D & A ; B procurance attack ( Chan 2000 ) . With the support of instance surveies and quantitative informations, Hale et Al. ( 2009 ) pointed out the Design and Build is superior to the traditional procurance system hence recommended to utilize Design and Build attack in both public and private sectors. Levy ( 2006, p.197 ) even suggested that “ the design-build bringing system appears to be a perfect vehicle by which to prosecute sustainable or green edifice building ” .
Harmonizing to Chan and Chan ( 2004 ) , the completion clip as it relates to rush of a undertaking depended on the procurance method adopted for the undertaking. They attributed the slow hold observed in one of the undertakings to be due to the usage of the traditional procurance method. However, they recognize the possibility of other factors playing a function that it was noted as the undertaking who has suffered holds ; obtained better consequences in footings of cost compared those obtained through the method of design and construct method.
The increasing the complexness of the undertaking, the Employer would be hesitated to how to cut down the clip for design and the clip for building. The Employer was willing to seek for the alternate method to cut down the clip of the design phase and the building clip and better the public presentation of the undertakings. There are many alternate procurance methods have been developed in recent old ages such as Novated Design and Build and Enhanced Design and Build. The traditional procurance method is non the lone pick for the Employer. Design and construct is now one of the most often used procurance paths in building and it is a extremist going from the traditional design-bid-build method. The usage of design and physique is on the addition with many Employers comprehending it as supplying better value for money and giving rise to less differences than other procurement methods. As per the studies of Royal Institution of Chartered Surveyors, 2004, new procurance tendencies can be identified which may be associated with the roar period in building in the early portion of the decennary and it clearly shows that the design and physique has become the individual dominant method since the old study in 1995, it was the traditional method. Under a design and construct contract the contractor assumes primary duty for the design of the development, in add-on to its traditional function to provide work and stuffs. The contractor engages the design advisers, or more normally, has the assignments of the design Consultants novated to him.
2.2 THE DEFINITION OF THE DESIGN AND BUILD PROCUREMENT METHOD
“ Design and physique is and agreement in which a edifice contractor enters into a contract with you to plan and build your new edifice. It is the simplest attack, as one house is responsible for bring forthing the edifice you want instead than this duty being divided amongst several houses, as is the instance with every other attack. ” ( Sarah Peace and John Bennett, How to utilize a design physique attack for a building undertaking, CLOB, P2 )
Masterman ( 1992 ) province that the term Design and Build has about been nem con interpreted and defined as being an agreement where one catching organisation takes exclusive duty, usually on a ball amount fixed monetary value footing, for the bespoke design and physique of a Employer ‘s undertaking. This contains three chief elements: the duty for design and physique, contractor ‘s reimbursement is by and large by agencies of a fixed monetary value ball amount and the undertaking is designed and built specifically to run into the Employers ‘ demands.
Harmonizing to David Chappell ( 1997 ) , Design and Build contracts place duty for both design and hard-on in the custodies of the contractor one point of duty for everything. In this system contractor will transport out two maps: design and concept.
In other definition, design and physique is an agreement where one organisation design and physique to the house order for the Employer to a individual fiscal dealing. The Chartered Institute of Building ( CIOB-1983 ) defines Design and Build as the procedure where the Employer trades straight with the contractor for the complete edifice and it is the contractor who is non merely responsible for but besides coordinates the separate design and physique procedure, including battle of the design squad who are, hence contractually linked with the contractor and non the Employer.
The diagram below shows the contractual relationship in the design and physiques procurance
In-house interior decorators or
Figure 2.1: How to utilize a design physique attack for a building undertaking ( Beginning: Sarah Peace and John Bennett, CLOB, P2 )
In pattern, Design and Build procurance is by and large structured in one of two ways ;
The Employers employ a dedicated Design and Build organisation with its ain in house design squad.
The Employers prosecute a general edifice contractor who employs external design adviser members of the contractor ‘s squad for the continuance of the undertaking.
2.3 STRENGTHS OF DESIGN AND BUILD PROCUREMENT SYSTEM
As the Design and Build defined, it is hence of import to uncover the strength or advantages
of Design and Build as procurance system.
One of the outstanding characteristic of Design and Build is to supply a individual point duty. This is achieved by apportioning all design duty and liability to the contractor entirely. The proprietor may hold more design options to take from the several design builders who enter the stamp. Owner will be given to hold fluctuation of design thoughts together with the expected cost that was proposed based on his demands. Unlike traditional attack which merely appoint a individual unit of design squad to come out with the design thoughts, Design and Build will bring forth much more different design thoughts from the design builder who enter the stamp ( P. Chan et al.,1997 ) .
The proprietor ‘s administrative loads may be reduced because the procurance of design and physique services is consolidated into a individual choice procedure. After award of the Design and Build contract, the proprietor will non be required to pass clip and attempt coordinating and interceding between separated design and physique contracts. While the procedure does necessitate the proprietor to supply prudent inadvertence of the design and physique procedure, this duty is considerable less clip consuming and exposes the proprietor to far fewer hazards than the traditional attack ( P. Chan et al.. 1997 ; Dennis Turner, 1986 ) .
Figure 2.2: ( A ) : Individual point duty – D & A ; B Contract, ( B ) : Fragmented
duty – traditional contract ( Beginning: Bennett and Grice, 1992 )
In add-on to the individual point duty, cost and completion clip is house in the Design and Build procurance method. This means the Employer knows his entire fiscal committedness in the initial phase of the undertaking, provided he does non present any alterations throughout the undertaking.
The Design and Build entity is responsible for quality, budget, agenda, and public presentation of the completed installation. With the individual point of contact, Employers can concentrate on definition of demands and timely decision-making instead than on coordination between interior decorator and contractor. Besides, the Design and Build entity has entire duty for the finished merchandise and can non switch design mistakes of building defects to another party.
Therefore, it will probably to stop up with the expected or higher quality of end merchandise. Unlike Design and Build attack, traditional attack contracts rely on restrictive diction, adversarial audit and review demands and the legal system to achieve project quality ( Jeffrey L. Beard et al. , 2001 ) .
Cost has ever become the cardinal considerations impacting acceptance of Design and Build procurance method. Whilst undertaking clip is comparatively easy to construe and possible nest eggs clearly identified, undertaking cost is more equivocal and hence hard to measure. A outstanding consideration for the Employer, in any procurement signifier, is that concluding cost does non transcend the undertaking budget. In this regard, Design and Build surely presents a better opportunity of the Employer obtaining his completed edifice within budget. Jerry Adanison ( 2001 ) , explained that several fiscal considerations make Design and Build desirable. Private sector have implement Design and Build for fiscal grounds. Completing a undertaking rapidly can salvage Owners used to finance undertakings.
On the inquiry of cost, existent cost nest eggs can besides be made in Design and Build. Harmonizing to Mastermann ( 1992 ) , when utilizing this system, the initial an concluding costs are lower than when utilizing other methods of procurance because of lessened design costs, the integrating of the design and build elements and in built build ability of the elaborate design. Cost nest eggs may besides ensue in timesaving. The overall effects is decrease in the Employer ‘s funding charges, lesser consequence of rising prices and faster edifice operation, which, in a commercial context, produces an earlier return on the capital, invested, ( Frank 1998 ) .
2.4 FACTORS CONSIDERED IN PROCUREMENT METHOD SELECTION CRITERIA
2.4.1 REQUIREMENTS OF THE EMPLOYER
The successful of the procurance method should carry through the demands of the employer. The aim of the Employer should be identified. Employer would necessitate the best design for their undertaking and run into his demand stated in the Employer ‘s demand. Time should be every bit fast as possible for the building period. The cost of the edifice should be every bit lower as to fulfill his demand. The Employer would prefer to minimise the contractual hazard to avoid the unneeded problem.
As clip is money, the continuance of building period of the undertaking is really of import. “ Time at big ” , the clip disbursement on the planning, building and development would impact the economic graduated table of the Employer. The Employer would seek for the shorter building period to gain for the greatest net income. The time- related cost point such as the cost of site office, human resources would increase as the continuance of the building period become longer. The early release the edifice, the greater net income for the Employer.
The quality of the craft and the quality of stuff is one of the chief concerns for the Employer in general. The quality of the edifice should run into the demand stated in the specification of the contract.
The development cost, the building cost and the operation cost are the concern of the Employer. They wholly affect the net income of the Employers. The building cost is the cost for the edifice building such as stuff cost, works cost, labour cost. The operation cost is the running cost for the edifice such as care cost, direction cost. The development cost is the land cost, building cost and other all outgo which has paid for the development.
One of the major ground for taking design and construct agreement is to profit from the good communicating that can happen between the design squad and the building squad ( Gould, 2003 ) . Many of the big design and physique companies specialize in peculiar countries and have developed a smooth flow between the design and build stages of the undertaking. This coaction allows the undertaking to be easy fast-tracked, cutting down on overall agenda for the undertaking.
Direct contact between the Employer and the contractor as provided a Design and Build system lines of communicating and enables the contractor to accommodate more quickly to the Employer ‘s demands. Integration and encouraged inherently within the system ( Griffith, 1989 ) .
The Employer and contractor will pass on closely during the procedure of the undertaking. Communication between them will get down at the get downing phase of the undertaking. Therefore, in design and construct it provides the Employer and contractor an chance to interact more frequently and more straight than traditional contract. In general, this agreement allows easier incorporation of alterations due to scope or anticipate conditions since their coordination occurs within the same contractual entity. The Employer is less to a great extent involved and sits outside the direct twenty-four hours to twenty-four hours communicating between interior decorator and builder. This keeps proprietor staffing to a lower limit and puts the full duty for good communicating and job resolution.
The Design and Build contract transportation more hazards to the contractor than any other building contract. Among a assortment of hazards, a contractor normally takes on many bad hazards. Hazards that can change in incidence between the parties as they wish.
Bad hazards can be within or out with the control of a contractor ( Turner 1990 ) . However, the suitableness of a undertaking to the Design and construct attack must be carefully undertaken by guaranting that the contractor is able, willing and has relevant experiences to command the hazard satisfactorily, otherwise they may go through these back to the Employer ( Hogg & A ; Morledge, 1995 )
Figure 2.3: Hazard allotment for each type of procurance system ( Hogg & A ; Morledge, 1995 )
2.5 THE FACTOR AFFECTING THE SUCCESS OF THE DESIGN AND BUILD
2.5.1 THE PROJECT CHARACTERISTIC
Large and complex undertakings take longer building continuances. It is hard to utilize the design and construct procurance in such undertakings. Because it is unjust for the contractor to take hazard on the stuff rising prices on the ball amount fixed monetary value contract. Therefore, the size and the complexness of the undertaking should be considered.
2.5.2 THE CONTRACTOR SELECTION
Harmonizing to Sarah Peace and John Bennett, it is really of import for the choice of the contactor to treat the design and physique undertaking. From the figure shown that the design and physique undertaking in increasing because of the authorities is willing to utilize Design and Build procurance method. As the following design and construct procurement method by the Government, there is the system for choice of the Contractor as per the “ Procurement Guide Lines ”
The choosing the Contractor is non merely concern the stamp monetary value, but besides the quality Time, Contractor ‘s fiscal position, possible contractor with good repute, manpower good record for the old undertaking as per the pre-qualification taging strategy of National procurance usher lines. Therefore, the contractor who meets the Employer ‘s demand for clip and quality at the best monetary value would be selected.
2.5.3 THE EMPLOYER ‘S REQUIREMENT
The Employer should to the full province their demand, thought and specification of the craft in the Employer ‘s demand. The more item of the Employer ‘s demand is, the fewer differences will be occurred in the ulterior phase. The design of the edifice and the criterion of the edifice is harmonizing to the Employer ‘s demand. The Employer should understand what he needs in the edifice and the thought should be to the full explained in the Employer ‘s demand.
The proposal responded from the Contractor should be carefully checked by the Employer ‘s representative. Once the Employer accepts the proposal from the Contractor, the contract will be formed between them. The design of the edifice and the building method will non be changed which stated in the contractor ‘s proposal. The alterations by the Employer would do the great sum of the fluctuation. Therefore, the recognized proposal should be to the full understand by the Employer which is suited to his thoughts.
Harmonizing to Ashley et Al. ( 1987 ) identified 4 factors lending to project success and grouped them into five countries including ( 1 ) direction, organisation and communicating ; ( 2 ) range and planning ; ( 3 ) controls ; ( 4 ) environmental, economic, political and societal ; and 5 ) proficient. The deductions of the Employer should develop a thorough undertaking program in which the range of work is clearly defined, and the contractor should understand and perpetrate to the accomplishment of undertaking aims. The contractor ‘s capableness and experience in pull offing Design and Build undertaking is critical to project success and undertaking squad members ‘ committedness toward the undertaking ends is besides of import.
Songer and Molenaar ( 1997 ) identified 15 features of successful Design and Build. They found that the top five of import undertaking features were chiseled range, shared apprehension of range, proprietor building edification, equal proprietor staffing, and set up budget.
Although the Design and Build undertakings are expected to present the undertaking faster and cheaper every bit compared to the traditional command and build undertakings, non all the Design and Build undertakings can truly carry through it. Many empirical surveies have been conducted to analyze the impact of assorted undertaking success factors such as the survey of factors for a successful public sector Design and Build undertakings by Songer and Molenaar ( 1997 ) , survey on designers ‘ and builders ‘ positions on Design and Build procurance method in Hong Kong by Mo and Ng ( 1997 ) and many others ( Albert P.C. Chan et al. , 2001 ) .
Consequently Chan et al. , ( 2001 ) has developed a series factors lending to the success of Design and Build undertakings. These factors are the responsibilities, duties and capablenesss of different undertaking participants including end-users, contractor, designer and design advisers in Design and Build undertakings.
The purpose of this chapter is to show an overview of the literature published on the topic of ‘selecting the procurance method from the current building industry ‘ ; The aim of the Employer in footings of clip, cost, quality and hazard would be found out besides. And the factor that may find the successful of the procurance method would be identified. They are the undertaking characteristic, the contractor choice and the employer ‘s demand.
In general, it can be summarized that Design and Build provides individual point duty for the whole design and physique. Contractors, who are responsible for the execution of the undertaking, have power to command all over the undertakings. This nonetheless does non discourage the engagement of the Employer. The Employer ‘s demand and demands are ever been taken into consideration, which this consequently presents singularity of the system.
In decision, it is indispensable that whoever truly want to secure Design and Build method need a thorough apprehension of the types and features of that sort of procurance. Therefore, benefits of Design and Build can be exploited. Many surveies besides showed that the feature of Design and Build that make Design and Build different from other procurance system in offering individual point duty, fixed clip and money, communicating, allotment of hazards and others. Geting success in Design and Build undertakings enables an confidence of acquiring the undertaking completed at the right clip and within allocated budget. The Design and Build procurance system has better clip public presentation and cost benefits, which are basically what the end-users are concerned about. This research can be a
key to measuring the public presentation degree of Design and Build undertakings, and the undertaking participants can larn about the of import factors for puting up an effectual direction system to turn Design and Build undertakings with first-class public presentation.
Chapter 3 DESIGN AND BUILD PROCUREMENT METHOD IN SRI LANKA AND RESEARCH PROJECT FORMULATION
In this chapter, foremost, the province of design and construct procurement method in Sri Lanka is discussed. Based on this treatment and literature reappraisal presented in chapter 2, the chief research inquiries are formulated. Then, inside informations of the research methodological analysis used to look into these inquiries are presented.
3.1 TRENDS PROCUREMENT SYSTEMS IN SRI LANKA
The allotment of hazard in a building contract is a map of the system of procurance. Traditional system has ever be the pick of procurance in Sri Lankan building industry. The traditional system has non merely be the dominant procurance system in Sri Lanka but besides other states such as United Kingdom, Malaysia, Australia, Indonesia and Singapore. There is no uncertainty that traditional system is still be the most preferable system in building industry. The advantages of this system gives a recognition for this system to go a popular pick among building participants particularly Employer. This system is already set up, more familiar and comfy to use as it has been pattern for a really long clip. It meets the cardinal demand of transparence and answerability. The Employers particularly still would wish to affect in the undertaking particularly when it involves tonss of money in the undertaking.
The drawn-out and adversarial nature of the traditional system and the addition in the undertaking complexness prompt the usage of the design and physique. Since the system is comparatively new in Sri Lanka and bulk of the design and physique contractors do non hold their ain in-house interior decorators, they employ design advisers to fix elaborate design and specifications. Merely contractors with a high degree of fiscal, proficient and direction capablenesss would be able to supply full design and construct catching services.
3.2 THE DESIGN AND BUILD PROCUREMENT METHOD IN SRI LANKA
Design and physique is the procurance system which the Employer buys the merchandise from the manufacturer who manages the facets of design and physique. In the design and construct procurement procedure, the employer should depict the demands for the undertaking and stated it in the employer ‘s demand. The contractor should react those demands in the contractor proposals including all production method and its work. Once the employer accept the contractor proposal, the contractor is responsible for all design work and building work. Therefore, the design and construct go the duty of one organisation. The contractor is responsible for the design and the building in the advancement. The Employer has merely one organisation to cover with. It is individual duty of the contractor. Since Sri Lanka is a underdeveloped state that requires high efficiency and effectivity for the building, design and physique can supply this bundle to the Employer. Design and physique is the fast path procurance method which the contractor involves in design and build procedure.
Basically there are 3 sorts of design and construct methods in Sri Lanka including Pure Design and Build, Enhanced Design and Build and Novated Design and Build. They have different characteristics which can be applied in the undertaking by the demands of the Employer.
3.2.1 PURE DESIGN AND BUILD
Pure design and physique is the procurance method which the contractor is responsible for the design and physique of a undertaking. However, Janssens ( 1991 ) differentiates pure Design and Build into two classs ; Single phase stamp and two phases tender.
Figure 3.1: Pure/Traditional Design and Build: Contractual relationships ( Mosley 1990 )
3.2.2 ENHANCED DESIGN AND BUILD
Enhanced design and physique is the procurance method that the contractor is responsible for design and physique, but the initial design is provided by the Employer and his design squad. The item design and physique of the undertaking will be produced by the contractor afterwards. The contractor is responsible for item design in the design and physique.
Turner ( 1997 ) has described how in this type, advisers design the edifice to a partial phase, frequently called ‘scope design ‘ , and competitory stamps are obtained from contractors who develop and complete the design and so build the edifice.
Figure 2.2 shows the relationship between the Employer, design and construct contractor and other professionals involved in enhanced design and physique contracts.
Figure 3.2: Develop and concept: contractual relationship ( Turner, 1990 )
3.2.3 NOVATED DESIGN AND BUILD
Novated design and physique is the procurance method which the Contractor is responsible for design development and building. The design will be provided by the Employer. Novation may be defined as a signifier design and concept understanding, in which the Employer ab initio employs the Consultant squad to transport out design and certification to the extent that the Employer ‘s demand and purpose are clearly identified and documented. Based on these paperss, stamps are called and a edifice contractor is selected. Then the design squad will reassign to the Contractor for the design development. The item design will be provided by the Contractor afterwards.
Siddiqui ( 1996 ) notes that the Employer initiates the undertaking by commissioning design adviser to develop the undertaking brief and to get down design work The footings the battle of the adviser are specified by an understanding between Employer and Consultant. The contractual agreement before novation is shown in figure 2.3.
Figure 3.3: Pre novation contractual agreement ( Siddiqui, 1996 )
Figure 3.4 shown the station novation contractual agreements where the contract between the Employer and the design advisers is novated to the contractor after the award of the edifice contract. The contractor is required to maintain the Employer informed on design affairs, while still keeping premier duty for run intoing the public presentation standard set down in the design brief ( Siddiqui, 1996 )
Figure 3.4: Post novation contractual agreements ( Siddiqui, 1996 )
3.3 THE TREND OF THE DESIGN AND BUILD PROJECT IN PUBLIC SECTOR AND PRIVATE SECTOR
Harmonizing to the research conducted by Rameezdeen and Ratnasabapathy ( 2006 ) , the traditional system dominates the Sri Lankan building industry, but lessening in certain periods opening the manner for other systems. The Majority of public plants in Sri Lanka found to be utilizing to these methods by sing answerability and transparence. The statistic from the study consequence of tendency procurance systems in Sri Lanka, the figure shows that the design and construct procurance system had a usage rate of 20 % to 35 % during the 1977 to 2003.
Figure 3.5 The study consequence of tendency procurance systems in Sri Lanka ( Rameezdeen and Ratnasabapathy,2006 )
Presently, design and construct procurance is widely employed by the building bureaus of the authorities sector. Adapters of design and construct method do so in expectancy of accomplishing higher building undertaking public presentation in 4 chief countries: clip, design, development cost, and use of engineering. The intended advantages with regard to these four factors are discussed below:
3.3.1 TIME Economy
It province that clip is the chief concern for the authorities as some estates has an pressing demand in last 2 old ages because of the station war development was extremely increasing in recent old ages. The demand for the new investing such as hotels, mix developments, lodging estate was increased and the design and construct method can supply constructing rapidly as it is fast tracking capableness. When the demand is increasing, increasing the supply must be the declaration method to decide the increased demand. That the rule of design and physique is the contractor is responsible for design and physique. The sawed-off building clip is caused by the imbrication of design and construct. Time devouring in design period is the ground for the longer completion of the edifice. The imbrication of the design phase and building phase can take the shortened the entire undertaking continuance.
3.3.2 Cost OF DEVELOPMENT
The cost of the design of the undertaking would be the factor for the choice standards. The competition between the Contractors may take to a more economical design of the edifice. The Employer can hold more pick to choose the design of the edifice from the assorted Contractors ‘ design since the Contractor has the duty to bring forth the drawing to the Employer. The Employer can choose the pulling from different Contractors to obtain the most economical design for the edifice.
3.3.3 CONTRACTOR ‘S TECHNIQUE APPLICATION
The particular accomplishment and technique of the Contractors would be the factor for the choice standards. Some particular design from the Contractor would necessitate a particular accomplishments and workss to build. The accomplishment and technique from the Contractor would ease the edifice building as fast as possible. The deep apprehension of the design of the edifice would prefer the building advancement. As the item design drawing is produced by the Contractor, the best method of the building would be adopted by the Contractors since they are to the full understanding of the design of the edifice.
3.4 RESEARCH PROJECT FORMULATION
As discussed in the preceding subdivision, design and construct method is deriving popularity in Sri Lanka. As the building undertakings are complex and devour a important sum of clip. The building industry besides relies to a great extent on experience, cognition, and work manners of its practicians. Therefore, any alterations to the province of the art methods utilized in the industry merits probes to measure the degree of success of alternate methods. Such surveies could supply valuable penetrations that could lend the promotions of the industry.
Assorted surveies reviewed in chapter 2 have provided some penetrations into the benefits and degree of success of design and construct procurement method in different states. However, no structured survey on the degree of success of the design and construct method in Sri Lanka was found in the published literature. It is hard to the infer the degree of success based on surveies conducted in other legal powers due to the local specificities in the building industry. This survey aims to make full this spread by appraising a broad spectrum of local building industry professionals. By analysing the responses obtained, the degree of success of design and construct method in Sri Lanka is assessed.
The research methodological analysis used for this survey is described in the undermentioned subdivision. This methodological analysis consists of study questionnaire design, informations aggregation and interviews, analysis of informations, and drawing of decisions and recommendations.
The writer has carried out a qualitative research and literature reappraisal available to him in order to obtain the necessary information for the drawn-out survey.
There are different beginning of information and information available to the writer for this drawn-out survey undertaking. The chief beginnings include published stuff, private & A ; confidential stuff, normally generated within organisations, and stuff generated by the writer himself.
By using a figure of both primary and secondary research methods it was possible to obtain qualitative research to get down analysing the proposed hypothesis in item.
Secondary informations – this comprises of informations already available to the writer and in the public sphere. It will take the signifier of trade diaries, articles, published books, cyberspace web sites, and on-line papers libraries e.g. CIS or RICS.
Primary research besides takes the signifier of an interview, both phone and unstructured interviews depending on their relevancy to the survey. These can be considered extremely clip consuming and frequently huge Numberss must be undertaken in order to estimate true representations of company or industry sentiments.
Once these methods have been undertaken, the writer has analyzed and evaluated the information gained and assessed, its suitableness to the undertaking surveies.
This must be carried out in a timely manner. As this procedure can frequently be drawn-out and besides unsuccessful, significance, farther research may be required.
It is besides of import to observe, that non every signifier of research is relevant or required for this survey and should therefore merely utilised if it is indispensable for finishing the survey purposes and aims.
The writer will now discourse the methods of research that have and will be used in the readying of this drawn-out survey, giving grounds for their usage.
3.4.1 HOW TO ACHIEVE THE OBJECTIVES
In order to prove the proposed hypothesis in the right mode, it is indispensable to reply and run into the tactical aims highlighted in Part 1.2. In order to make this the right research methodological analysis must be adopted early on, to guarantee that the right information is obtained from the procedure.
The nonsubjective 1,3 and 4 will be achieved by phone interviews and questionnaire from industry professionals such as ; Architects, Quantity Surveyors, Project Managers, Claim Consultants, Design Engineer, Builders to understand the tendency for the Design and construct procurement method in Sri Lanka and advantages and disadvantages of Design and Build procurement way.
To run into the 2nd aim, an extended literature reappraisal has been carried out, supplying pre-written in depth information on the topic sing to place the factors will be considered before choice of procurement way.
3.4.2 SECONDARY RESEARCH
The research has begun with an initial literature reappraisal of public, company and university libraries, every bit good as Internet resources to set up what has been antecedently written on the topic. Further information and information has been reviewed through trade diaries and industries ‘ literature, etc.
3.4.3 PRIMARY RESEARCH
184.108.40.206 PHONE INTERVIEWS
The interview method involves oppugning and treatment of issues with people. It is considered to be a extremely insightful method of roll uping informations, and utile in obtaining information. Writer has decided to use the phone interview technique and made the witting determination to audio record the interviews.
By using questionnaire, it is possible to orient the conversation in a peculiar mode. The questionnaire will be allowed the writer to dig deeper into specific countries of the chosen subject. The consequences of the questionnaire will take to run into following chief aims of the undertaking:
To place advantages and disadvantages of D & A ; B procurance way.
To place success of D & A ; B procurance way in Sri Lanka.
To place troubles of D & A ; B procurance way in Sri Lanka.
To place cost certainty of D & A ; B procurance way
To place what are the contractual effects
Which types of D & A ; B method suitable for Sri Lankan building industry undertaking most suited for D & A ; B procurance way
It will besides let writer to obtain a greater place on their feelings with respects to plan and construct procurement way in the building industry. This will be achieved by pull stringsing the inquiries in such a mode, to analyze the topic in deeper.
3.5. SURVEY QUESTIONNAIRE DESIGN
The questionnaire used for this survey is formulated based on literature reviewed in chapters 2 and factors specific to Sri Lankan building industry. Care was taken to guarantee that local specificities are captured by the questionnaire. The full list of inquiries are presented in appendix 1.
3.6 DATA COLLECTION
There are several known manners of informations aggregation: telephone, personal or concentrate group interviews, or observation. The appropriate manners have to be utilised efficaciously to derive the expected findings. Every measure need to be plan carefully. Datas used for this survey is obtained utilizing three methods.
Literature reappraisal ( secondary informations )
In individual and over the phone interviews
Empirical informations aggregation utilizing the aforesaid questionnaire. The questionnaire was sent to 50 study participants from the building industry covering public and private consultancy houses and building houses. The participants were given 3 hebdomads to finish the questionnaire.
3.7 DATA ANALYSIS
The gathered information is so qualitatively assessed. Degree of success of design and construct method is assessed utilizing this analysis. Other factors such as procurement method choice standards and other concerns of the practicians are besides identified.
The findings of this survey may assist to place the factors of causing towards the advantages and disadvantages occurs associated with design and construct procurement method.
Traditional system is the most dominant procurance system in Sri Lanka. It is more familiar and set up to the building participant to utilize it in the building industry.
Research methodological analysis is indispensable in supplying the valuable consequences of the survey. Methodology used in this survey was literature reappraisal, informations aggregation, informations analysis and decision and recommendation of the survey. The literature reappraisal is used to designation of the issues ; questionnaire is used to roll up the informations while interviews are conducted to roll up informations related to the instance survey. Statistical and analysis and qualitative interviewing method were used to analyse informations. Finally, the decision and recommendation with mention to the aims are created, subsequent to the analysis from the interviews and questionnaires.
Chapter 4 ANALYSIS AND DISCUSSION
4.1 THE RESULT OF THE QUESTIONNAIRE
As the statistic show that the design and physique undertaking has been extremely increased. The ground for utilizing the design and construct procurement method should be investigated by utilizing the questionnaire.
The 50 questionnaires were delivered to the respondents who work in building houses and Consultant houses. They were given 3 hebdomads to finish the questionnaire and return the questionnaires within 2 hebdomad. There are 46 questionnaires were received, the questionnaire were divided into 2 groups, Consultant and Contractor.
There are 28 Numberss of questionnaires were from Advisers and 18 Numberss of questionnaires from the Contractors. Harmonizing to these 46 questionnaires, the consequence is illustrated as follows:
Question 1 – The most common procurance method the interviewees used.
It was found that the most common procurance used is the traditional procurance method in Sri Lanka.
There are 70 % interviewees are largely involved in the traditional method and 23 % are involved in the design and construct method.
DISTRIBUTION OF PROCUREMENT METHODS IN SRI LANKA
Question 2 – Involved in the Design and Build undertaking.
It was found that all interviewees have been involved in the Design and Build undertaking.
Question 3 – The Design and Build procurance method has been used by which sectors.
It was found that 85 % of the design and physique undertaking is initiated by the populace sector.
Question 4 – The building period of the Design and Build project the interviews involved.
It was found that 52 % is between 1 – 2 old ages and 48 % is between 2-3 old ages.
Question 5 – The contract amount of the Design and Build project the interviewees involved.
It was found that 8 % are between 2000 Million 3000 Million, 61 % are between 1000 Million- 2000 Million, 31 % is between 500 Million – 1000 Million
Question 6 – The benefit of utilizing Design and Build procurance method.
All interviewees think that the clip economy is the most good utilizing design and construct procurement method.
Question 7 – The critical factor for the Design and Build project the interviews involved.
It was found that all interviewees from advisers stated that clip is the critical factor for the undertakings, while the interviewees from contractors stated that the cost is the major factor for the undertaking.
Question 8 – The hazard is transferred to the contractor when utilizing Design and Build procurance method.
It was found that 91 % interviewees think that bulk of hazard is transferred to contractor when using the design and construct procurement method. Merely 9 % interviewees think the hazard is non wholly transferred to the Contractor.
Question 9 – The success of the Design and Build procurance method would be determined by the employer ‘s demand.
All interviewees think that the item of the employer ‘s demand would find the success of the design and physique undertaking.
Question 10- The quality would be improved when utilizing Design and Build procurance method.
It was found that 71 % of the undertakings gave the same quality criterion, and 29 % gave a decreased in choice criterion in utilizing design and construct procurement method.
Question 11- Time would be saved when utilizing Design and Build procurance method.
All interviewees gave 100 % on the clip salvaging when using design and construct procurement method.
Question 12 – The cost would be saved when utilizing Design and Build procurance method.
90 % of the undertakings gave the same, and 10 % gave increased in the cost salvaging using the design and construct procurement method.
Question 13 – The flexibleness would be enhanced when utilizing Design and Build procurance method.
All interviewees from adviser think neither addition nor lessening in the flexibleness of the undertaking. All interviewees from contractor gave addition in flexibleness in the undertaking.
Question 14 – The figure of differences would be reduced when utilizing Design and Build procurance method.
All interviewees think that the differences is reduced when utilizing design and construct procurance method
Question 15 – The Design and Build procurance method is successful in Sri Lanka.
96 % of interviewees think that the design and construct method is successful in Sri Lanka and 4 % think it is unsuccessful in Sri Lanka
Question 16 – The recommendation for utilizing the Design and Build procurance method.
All interviewees recommend the novated design and construct procurement method to be used in the hereafter development undertaking.
It was found that 90 % interviewees think that Novated Design and Build procurance method should be used in future development undertaking and 10 % recommended pure design and Build system
4.2 SUMMARY OF FINDINGS OF QUESTIONNAIRE
In the questionnaire, it was found that the traditional method is the chief procurance in Sri Lanka since this procurance has been used from the early of the building industry. It is indicated that all of the interviewees has been involved in the design and physique undertaking which is initiated by the populace sector.
From the questionnaire, the interviewees involved in the design and physique undertaking is largely more than 1 billion in contract amount with the 1-2 twelvemonth building period.
From the questionnaire, it was found that the design and physique can better the cost economy or within the budget and the clip decrease for the undertaking. The interviewees think that the quality standard footing has no betterment or decreased. Most of the interviewees think that hazard was transferred to the contractors in the Design and Build procurance method.
Majority of the interviewees think that the Design and Build procurance method is successful in Sri Lanka and urge the novated design and construct procurement method in the hereafter undertaking.
4.3 ANALYSIS AND DISCUSSION OF THE QUESTIONNAIRE
4.3.1 THE REASON FOR SELECTING THE DESIGN AND BUILD PROCUREMENT METHOD
Harmonizing to the questionnaire, most of the interviews see the clip is the most of import advantage for utilizing the design and construct procurement method. As clip is money, every Employer is concerned about money returned for investing. For the clip footing, the individual point of duty enable the contractor produce the both design and physique for the undertaking. In the design and construct procurance method, the contractor should supply a “ bundle ” to the employer which is the design and the building stated in the employer ‘s demand. The imbrication of the design phase and the building phase would cut down the clip to run into the mark completion day of the month. It is because the readying for tendering is shortened by bring forthing the design item at the ulterior phase. The early start the building on site would shorter the building period of clip. The entire building clip would be shortened by transporting out the design and physique in parallel procedure. The early completion of the undertaking would give an advantage to the Employer for release the force per unit area on the involvement of the capital which borrowed from bank
Due to the both design and physique are carried out by one organisation. The communicating between the interior decorator and the contractor would be enhanced. The better communicating between the interior decorator and the contractor would better the undertaking public presentation and the efficiency. The contractor is responsible to bring forth the design and physique in the design and construct procurement method. They employ the in-house interior decorator to bring forth the design which can pass on with the contractor to better the item design with their familiar building manner. The interior decorator can to the full understand the demands and the hard of the contractor which would avoid the unneeded error in contraction method by use the most suited building method.
The contractors can do usage of their resource and specializer accomplishment to build the edifice in their ain building manner that the item design is provided by them. It would shorten the clip to happen out the suited building method. As the item design is produced by the contractor, they can do a better determination on the building agreement such as the sequence of the building works. It would cut down the entire building clip ensuing from the better agreement of the building works.
The completion day of the month is fixed because of the fewer claims the extension of clip. As stated before, the contractor is responsible for bring forthing the item design, the extension of clip ever claimed for the design alterations. The less extension of clip would be claimed in design and construct procurance method which could run into the mark completion day of the month.
Harmonizing to the questionnaire, less than half of the interviewees think that the quality is decreased and more than the half of the interviewees think that the quality is every bit same as the demand sated in the specification.
As the quality of work is depended on the specification stated in the employer ‘s demand, the brief description of plants may be resulted to hapless quality of plants. The misconstruing the thought between the Employer and the contractor would do the hapless quality of the undertaking besides. The specification stated in the employer ‘s demand should be stated clearly for the craft demand. The contractor has the duty to carry through the demand stated in the employer ‘s demand. The contractor should bring forth the best design for the success tendering ; hence, the quality would hold the warrant.
From the questionnaire, the interviewees recommend the novated design and construct procurement method will be used more in the hereafter development. The novated design and physique allows the interior decorators and the contractors have the better communicating as the design squad would reassign to the contractor for the item design development.
From the questionnaire 90 % of the interviewees reported that the cost for the undertaking is every bit same as the budget of the undertakings. It means the cost for the design and construct procurement method can let go of the force per unit area on over-budget. As the clip related point is affected by the continuance of the building, the longer the building period is, the higher the cost for the building. As the Employer would borrow money for the undertaking via the bank, the involvement charges would be higher when the completion day of the month is delayed. As the contractor is responsible for both design and physique, the hold of the completion day of the month beyond the control of the employer would be the hazard of the contractor. Furthermore, the design and physique undertaking guarantee the completion day of the month is met as the Employer would maintain supervising their advancement by subjecting the measures for work completed by the contractor.
The optimal design for the undertaking would be selected by the Employer which must be the most suited design at the economical monetary value. Furthermore, the cost economy can be achieved by the better usage of the stuff and the specializer accomplishment as the design produced by the contractor. They can do a good usage of their accomplishment to take down the cost of the building. Therefore, the stamp monetary value would be lower bided by the contractor.
The claim of extension of clip and fluctuation are reduced as the drawing is provided by the contractor side. Fewer claim of extension of clip would be resulted to the fewer claim on loss and disbursal. So the cost for the edifice is certainty to take down the opportunity for the over-budget for the undertaking. As the Employer is concern about the budget of the undertaking, the concluding contract amount would non transcend the sum stated before by utilizing the design and construct procurement method.
From the questionnaire, the 91 % interviewees think that the hazard is transferred to the contractor and the 9 % interviewees think that the hazard is non transferred to the contractor.
Hazard can non be evitable in every procurance method. The possible hazard should be identified to extinguish the consequence of effect. In the Design and construct procurance method, the Employer should guarantee his thought is understood by his design squad as the bill of exchange design is the cardinal intent for the contractor to supply the item design. The concluding drawing and the thought should run into the demand of the Employer. The hazard occurred in design and physique undertaking is normally the edifice non met with the Employer ‘s aim. The assignment for the experient designer on the contractor ‘s proposal can extinguish the hazard of the misinterpretation between the Employer and the Contractor.
In the design and construct procurance method, the hazard about transportation to the contractor as the characteristic of the individual point of duty of the contractor. The contractor should take hazard on both design and build procedure. The contractor should vouch the design is fulfill the demand of the employer and the craft complies in the specification stated in the employer ‘s demand. Furthermore, the contractor should take hazard on the public presentation of their sub-contractor. The public presentation of the sub-contractor or provider is the duty of the contractor.
The contractor should take attention of their craft that meet the demand of the specification stated in the employer ‘s demand. The over-budget hazard would non happen in the design and construct procurement method as the design and construct contract is the ball amount fixed monetary value contract. The monetary value of the undertaking would be fixed after award of the stamp. The over-budget merely occur when the Employer demand to alter the design of the plants. The inordinate claim on fluctuation would be caused the over-budget of the undertaking. That the lone hazard occurs between the Employer and the contractor is misconstruing in the thought between the Employer and the contractor. The hazard would be transferred to the Employer when their thought do non to the full depict in the employer ‘s demand.
The hazard for hold completion day of the month would non happen in this method since the individual of the contractor enable the undertaking finish on clip. The hold of the undertaking would be the mistake of the contractor which is the hazard of the contractor given that the hold is non the control of the Employer.
From the questionnaire, all the interviewees from the adviser think that the flexibleness does non hold important alteration in the flexibleness, but all the interviewees from the contractor think that the flexibleness for the undertaking is increased.
As the contractor develops the item design, the Employer merely has the pick to take the suited design in the pre-contract phase. In the pre-contract phase, the design of the edifice may be the concern for the Employer. The Employer has the pick for the different design produced by the contractor in the pre-contract phase. The Employer may happen the most suited design from the assorted design submitted by the contractor. The Employer can follow the optimal design for their undertaking with the most economical monetary value which is more suited to his thought. It is an advantage when the Employer does non hold much design for the edifice chosen.
On the contractor side, the item design provided by them would be the most suited manner to build. Therefore, it would maximise the resource and take an advantage on their accomplishment which can cut down the cost for the building and velocity up the clip for the building.
Furthermore, the contractor has the pick for choosing the suited building method and the stuff utilizing. It would heighten the quality of the edifice and the better stuff to be used in the undertaking.
Furthermore, the co-ordination of the building works can be arranged in more effectual manner. As the design and construct procurement method allow the contractor arrange the building work in their ain manner, the better co-ordination of the plants would ease the building flexibleness to accomplish the most effectual manner for the building.
From the questionnaire, all of the interviewees reported that the figure of differences is reduced in their involved undertaking. The contractor is responsible for the both design and build procedure. It would cut down the opportunity for the disputing of the design item. The design and physique is the ball amount fixed contract, the budget difference would be evitable. The fluctuation order would be less issued because of the item drawing produced by the contractor. It resulted from less extension of clip would be claimed and less loss and disbursal claims. It would rush up the building procedure to run into the mark completion day of the month.
There is less public presentation difference between the Employer and the contractor as the demand for the undertaking is stated in the employer ‘s demand. The contractor must carry through the demand in the specification to accomplish the criterion of the undertaking.
Less negligence difference is occurred in the Design and Build procurance method as the contractor is responsible for both design and build stage. As they act a professional, they have the expertness and accomplishment and workss to construct the edifice resulted from make up one’s minding the building method by themselves.
220.127.116.11 CONTRACTUAL ARRANGEMENT
There is the lone contractual agreement between the Employer and the contractor. It is merely the duty of the contractor if there is any default on design or building because of the individual point of duty of the contractor. The contractor has the whole duty on both design and physique. They should take attention of any job arising in the design and physique.
The Employer would non hold any contractual relationship between the Employer and the sub-contractor. Therefore, the contractor should take attention of their sub-contractor to run into the demand of the undertaking. The default of the sub-contractor or provider would be the duty of the contractor excessively. It will avoid the Employer involve in the contractual relationship between the sub-contractor and the provider.
From the questionnaire, that the design and physique undertaking involved by the interviewees are initiated by the authorities. It means the design and construct procurement method is popular in the public sector instead than utilizing in the private sector. It is because the design for the edifice is the most concern factor in the private sector for their undertaking.
They are willing to pay the cost on using the professional design squad to plan the edifice. Therefore, the less the design and construct undertaking exist in the private sector.
18.104.22.168 THE PROJECT SIZE
The consequence from the questionnaire indicates that most design and physique has the feature of medium undertaking size with shorter building period. The standard repetitive plants with less specification can vouch the clip salvaging and better quality public presentation. It is because most of the design and physique is initiated by Government, which chiefly initiated the lodging strategies that has the criterion program, and without much specification
4.4 THE ADVANTAGES AND DISADVANTAGES OF DESIGN AND BUILD PROCUREMENT METHOD
From the questionnaire, the advantages and disadvantages can be illustrated as follows:
4.4.1 THE Advantage OF USING DESIGN AND BUILD PROCUREMENT METHOD
The Employer does non hold much experience in the building industry, they need to name the skilled and experient adviser and designer to manage the job. Due to their inexperienced in the building field, they are non willing to travel into the building procedure. The Design and Build procurance method provide the individual point of duty of the contractor. The Employer do non involved in the building procedure as the contractor is responsible to both design and physique.
On the other manus, the contractor can name the in-house interior decorators for the undertaking design instead than the other interior decorator who ne’er worked with them. It can heighten the better communicating between the contractor and the interior decorator to accomplish the efficient manner for building. The imbrication of the design and construct would take to shorter the entire building clip. Although the pre-contract phase is longer, the building clip would be reduced by the imbrication of the design and build phase. It will avoid the hold of the completion day of the month of the undertaking.
Harmonizing to Somers ( 1993 ) stated that the cost certainty is the benefit of utilizing Design and Builds procurance method either the stamp monetary value is higher or lower than the traditional method. The fewer claims on extension of clip or loss and/or disbursal claim due to less fluctuation order. Since the item deign is developed by the contractor, the less fluctuation order would cut down the opportunity for claims. The cost for the building procedure would be reflected on the stamp monetary value bided by the contractor.
The fast return on the capital would be the benefit of the Employer as the involvement charge is high which would cut down the net income of the undertaking. The completion on clip would let go of the force per unit area on paying farther involvement charge.
On the contractor side, that the factor which is really of import to impact the success of the undertaking is the buildability. As the contractor produces the item design, the best building method would be provided. It ensures the edifice built in the appropriate manner. They can use their resource and works to co-operate with the building method. The best method applied in the building is non merely the clip economy, but besides cost economy as no inordinate stuff would be wasted.
The contractor enter the design phase may help the design development for the undertaking as the contractor is act as a builder who to the full understand the trouble of the building procedure. The early engagement in the design phase would cut down the differences between the Employer and the contractor at the ulterior phase.
4.4.2 THE Disadvantage OF USING DESIGN AND BUILD PROCUREMENT METHOD
The chief concern factor of the Employer is the cost footing in the building procedure. In the design and construct procurance method, the Employer can non hold design alterations one time the award of the stamp. The flexibleness of the Employer would be limit since the design alterations would do immense sum of fluctuation. The budget would transcend the lump amount fixed monetary value of the undertaking. Therefore, the flexibleness for the design and construct procurance undertaking would non season to the Employer. The Employer can non alter the design without paying any extra charges. Harmonizing to Pain ( 1993 ) stated that the design can non alter in the post-contract period and the most suited design should be found at the pre-contract phase.
The quality of work is the other job in the Design and Build procurance method. The hapless quality of plants would be resulted from the brief specification stated in the employer ‘s demand. It is the mistake of the Employer who does non supply the item specification stated in the employer ‘s demand to the contractor. The duty of the contractor is to follow with the specification stated in the employer ‘s demand. Therefore, the hapless quality of plants may do the extra money for mending. It will increase the cost of the undertaking when the employer ‘s demand do non to the full explained the criterion of the plants.
The thought of the design may happen difference between the Employer and the Contractor. The contractor will develop the item design after the blessing of the design drawing by the Employer. Once the Employer approves the design, the item design would be developed for building. The item design can non alter after the blessing by the Employer. If the Employer discover the job on the drawing subsequently, he can non alter the design any longer. The fluctuation would be