Integrated Contracts By Dutch New Build Schools Construction Essay

The demand to make lasting and sustainable edifices becomes today more clear. To do lasting and sustainable design, it might be necessary to convey the vision of the contractor every bit near as possible to the demands of the terminal user of a edifice. This thought appears in the Living Building construct. However, in the edifice industry this can be instead difficult to set up.

In the regular procurances, the stamp is frequently realized in separate stages. But now the integrated contract is going easy more popular. The impact on the future direction of a edifice can already be included, during the design and building procedure. In this manner the contract becomes an integrated contract, and the chance of unpleasant surprises after completion of the edifice is minimum.

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The chief inquiry in this essay is:

What are the possibilities of incorporate contracts, with particular focal point on the DBMFO contract, when constructing new schools, and what are the deficiencies and advantages of this signifier of contract?

In this essay, this development in the catching and stamp of school-buildings in the Netherlands will be discussed. The thought behind this signifier of tendering is considered and will be illustrated in the position of the Montaigne Lyceum in Ypenburg, The Hague, the Netherlands. At the terminal, a personal position to this development is given.

integrated contracts

Integrated contract as possible solution

Public Private Partnership ( PPP ) is a signifier of contract in which client and contractor see each other as full spouses. Creativity is encouraged, which creates advanced thoughts. A Design-Build- Finance- Maintain -Operate ( DBFMO ) -contract is an incorporate contract for PPP. A public spouse and a private party ( pool ) sign the contract for a durable period. The basic thought behind the integrate procurance is the life rhythm attack. With the edifice of schools, this means that the municipality and the board of the school work together and unite the fiscal flows. This because by uniting the fiscal flows the municipality manages the investing budget and the school board manages the budget for development, the life rhythm of the school edifice is covered.

In a traditional edifice procedure, the assorted activities that take topographic point in these stages of investing and development are individually tendered. In rule, different parties are involved and selected and contracted by the client. In the most utmost instance the design, building, care and operation are outsourced individually. When the edifice is completed care and fix will be outsourced individually.

This disconnected organisation ensures coordination jobs and frequently unnecessarily high failure costs. When an organisation makes a contract, they will ever seek to guarantee that their monetary value / public presentation ratio is as optimum possible. This opportunism is the most of import for a company. The joint importance to implement a good undertaking is 2nd placed. This can consequences in hapless edifice quality and high failure costs.

Forms of incorporate contracts

An integrated contract will unite the assorted activities, which consequences in an integrated contract stamp. A figure of discrepancies within these stamp can be distinguished, depending on the grade of integrating of the edifice phaces. The chief discrepancies are mentioned here, but in world there are many possible fluctuations which are normally traceable to one of the chief signifiers.

Design-Build ( DB )

As the name suggests, in a Design and Build contract the design and the building is built-in outsourced to a party. This party is responsible for the design and executing of the edifice.

Design-Build-Maintain ( DBM )

Within these signifier of contract, the care of the edifice is portion of the contract excessively. The contracted party will besides plan the edifice, taking to an optimisation in design picks and materialisation.

Design-Build-Maintain-Operate ( DBMO )

This contract signifier besides covers the operation portion ; the development is besides a duty for the contractor. Because the contract besides includes non proficient services, the contractor should dwell out of a pool of several parties. This contractor is besides made responsible for the optimum operation of the edifice. The wage of the contractor is based on the in agreement public presentation.

Design-Build- Finance- Maintain -Operate ( DBFMO )

In this contract a private party, normally a pool, is responsible for the funding of the undertaking for a longer period. The client sets the desired end product and leaves every bit many undertakings around lodging, care and operation to the contractor. The contractor obtains maximal latitude to utilize his creativeness. Because the contractor is besides responsible for the funding, this contract adds importance to a punctual public presentation of the contracted service duties.

Main differences between traditional and built-in contracts

The contract signifier used in a certain state of affairs depends on the wants, demands, budget and the planning of a undertaking. The chief differences between the built-in contract and the traditional contract signifier are shown in figure 1.

Contract signifier



Type of demand

Technical demands

Functional Demands

Type of stamp

Each stage individually tendered

Multiple phases tendered at one time

Number of counterparties

Multiple counterparties

One counterparty

Type of edifice procedure

Short readying, long building clip

Long readying, short building clip

Possibilities more work

Opportunity of more work

Hazard more work limited

Exchange cognition

Small input market expertness

Exchange of expertness between planing and put to deathing parties

Figure – Comparison between traditional contract and built-in contract

Figure two shows the comparative tallness of design and building hazards for the client, in the different signifiers of contracts. Besides it visualizes the client ‘s influence. In drumhead, the graph learns us that the traditional manner of undertaking brings many hazards, but besides much possibility to act upon the undertaking. An integrated contract limits the hazards for a principal, but besides prohibits the principal ‘s influence on the undertaking.

Figure 2 – Comparison of traditional contract versus built-in contract signifiers

Montaigne secondary school


The Montaigne Lyceum in Ypenburg, The Hague is a good illustration of the development of the built-in signifier of catching. This school edifice was build three old ages ago. In that yearss, it was the first edifice in the Netherlands constructed harmonizing to the ‘public-privates-partnership ‘ -concept. It was tendered with a DBFMO-contract. This procedure of tendering and the jobs that occurred during the realisation are described in this chapter.

The edifice of the new Montaigne Lyceum was contracted to a pool called “ TalentGroep Montaigne ” . The “ Talent Group ” consisted out of Strukton, Imtech and ISS Facility Services. The Bank of Dutch Municipalities ( Bank Nederlandse Gemeenten, BNG ) toke attention of the fiscal portion of the undertaking and was involved every bit good. These interested parties were responsible for the DBFMO contract ; the contract that the Lyceum has signed with the pool for 30 old ages. An overview of the connexion between the different companies within “ the TalentGroep ” is shown in figure 3.

Figure 3 – Conventional position of build-up of the “ Talent groep ” .

Operation and care were portion of the contract, so the Montaigne Lyceum had to make up one’s mind at an early phase precisely which parts of the operation and care needed to be covered in the contract. The Lyceum decided the undermentioned points to be portion of the contract:

– Care of edifice and evidences

– Cleaning and waste disposal

– Furniture, equipment and lasting devices

– ICT substructure

– Gas, H2O and electricity

– Catering

– Reproduction Servicess


Before the undertaking started, there were some outlooks about the possibilities and effects of using a full contract and which jobs it would imply. However the contract did non stop yet.

In this paragraph the different point of positions and outlooks will be discussed and evaluated.

Expectation 1

The first outlook was that the undertaking would put an illustration and that it would be a learning possibility, to be used in future undertakings by the involved parties.

Looking back now, this outlook proved to be right for about all parties involved. However, the way of the school itself had less net income from this larning curve compared with the other histrions. Indeed the managers of the school will non construct a new school once more shortly, but for the administration it was a nice attempt out. The information gathered in this undertaking has already been used in other undertakings.

Expectation 2

Another outlook was to obtain more quality for the same sum of money, or the same sum of quality for a lower sum of money. In the instance of the new Lyceum, there was choosen to seek to maximise the quality for a certain inactive budget.

Integrated contracts offer the chance to offer more quality for the same money, because assorted subjects work on the undertaking from an built-in position. Good coordination between the direction and care subjects on the one manus and between design and building subjects on the other manus ensures that the right solutions are chosen, in comparing to the life-time of the edifice. For illustration, to take down the care costs, good quality and low-maintenance stuffs are chosen. This requires a good cooperation within the pool. In instance of the Montaigne Lyceum, this integrated attack did non go on in an optimum manner, after the contract was tendered. This happened due to a deficiency of experience with this stamp signifier, every bit good as due to the loss of external advisers after the coating of the stamp procedure.

Expectation 3

Before the start of the stamp, the outlooks were that the usage of a DBFMO contract would guarantee less clip needed to be spend on organisational affairs by the way of the school such as direction the care work and cleansing of the edifice.

However, in world this is non the instance. Due to the deficient communicating between the school and the pool the ultimate result the school had in head, was non achieved. Therefore assorted alliances and defects needed to be corrected afterwards. To finish these alterations and the treatment about who was apt for the disbursals of the defects, took a batch of clip. This shows there are major shared duties in some countries, between the different parties. For illustration: who is responsible for the cost caused by hooliganism of the pupils? Is it portion of the care or portion of the duty of the school? To guarantee that both parties cooperate, thay have to portion their duty. The unexpected fiscal net incomes, such as a low energy measure will partially be a benefit of the school. Therefore the user remains involved in the responsible usage of the edifice and to utilize it in a lasting manner.

Expectation 4

A DBGMO-contract gives small room for alterations. See besides figure 4. The graphs visualise what research has shown ; in a traditional procedure, there are for a principal more possibilities to makes alterations in the design than with an incorporate procedure. The development of the design follows a gradual, natural manner, while in an incorporate procedure the stamp minute is emphasized.

The alterations that can take topographic point are besides really expensive, as the principal is depended of one contractor merely. Therefore, at the stamp particular attending is given to the possibilities to accommodate the edifice. Future versions to the edifice have to be easy to implement.

Figure 4 – Influence of the principal on the design in both traditional contracts ( left ) and integrated contracts ( right )

In pattern, many alterations were necessary couple to the bad description of the wants from the school ‘s point of position and the non optimum of the design. The fact that the client is dependent on one contractor is by and large non a pleasant experience. But at the terminal of the undertaking of the Montaigne Lyceum it turns out to be sometimes a good thing. An extra instructional infinite was needed. At a sensible cost and really rapidly it was implemented by the pool. If there would hold been no pool, this was likely non so rapidly achieved because all sorts of connexions ( such as the airing flow ) must suit good into the remainder of the system.

Expectation 5

When an built-in contract like the DBFMO contract is used, a bank dramas and active function in the procedure. The bank monitors the hazards and the quality over clip. The bank will seek to restrict these hazards. Because the bank is portion of the pool, there is a fiscal inducement to present the undertaking on clip and to do certain that the quality is all right. A deficiency of quality will hold impact on the direction stage and on care stage. This advancement in those different stages is besides the duty of the pool. Therefore it will make an optimum balance between quality, monetary value, and hazards.

It is clear that the intercession of Bankss leads to on clip finalisation of a undertaking within budget. During the operation stage, the value of engagement by Bankss is non easy proofed. Small ( ? ) jobs in this stage will do no immediate big hazards for Bankss. Therefore they will merely get down interacting with aˆ¦ when many errors are made. To keep a high quality, the school should take over portion of the control undertaking of the bank and communicate frequently with the pool. This apprehension is of import for the school in order to gauge to what extent they should command themselves and to what extent the Bankss will command it.

So it turns out the pool does do certain the undertaking finishes on clip, because the school will merely the sum ( money? Of waar gaat het om? ) if the edifice is completed. So the pool depends on a speedy bringing. To make more quality, the schools should take over portion of the control undertaking of the Bankss and communicate with the pool.

Advantages and disadvantages

Main advantages and disadvantages of incorporate contracts are summarized in figure 5. Not every advantage or disadvantage is in pattern for 100 % true. As mentioned in paragraph 3.2 some theoretical outlooks about the usage of incorporate contracts turn out to be non wholly valid in pattern.

Main Advantage

Main Disadvantage


Early on in the undertaking certainty about the monetary value

Fees have to be paid to several suppliers that signed in for the occupation, to run into them for the cost they made in their work in the stamp stage.


The client has one party to pass on with

The preliminary procedure requires much cognition and accomplishments of the client

Traditional managing work for the principal is taken over by the contractor

There are fewer disciplinary chances during the realisation procedure


There is clip salvaging in the building, because the design is specifically fitted to the execution

The preliminary procedure takes much clip.


The client has one cardinal commination spouse ( the pool )

After the preliminary procedure, the principal has small influence


High qualityand connexions between different parts of constructions are good made.

The principal has small influence on ( ? ) the quality when realisation has started.

Figure 5 – Advantages and disadvantages of the integrated contract.

Personal vision

Personally I think this new manner of covering with contracts and tendering procedures might give a good chance to make more lasting and sustainable edifices. Of class it is no entire solution for all jobs that occur during a edifice procedure. By utilizing this built-in contract signifiers, it must be ensured that the jobs are non merely moved from the user to the deformation. With traditional contract signifiers jobs frequently occurred when a contractor did non present good quality. When the contractor is responsible for the care and operation of a edifice it can go on the user does non care really much duty for the edifice. If this is the instance the job is merely moved from the user to the contractor.

If this sort of contract signifiers are used more frequently in the hereafter, more clip will be spend on design. This gives a nice chance for future applied scientists. But one must recognize non every uncertainness can be known from the beginning. Changes in thought will happen during the undertaking and alterations in the edifice undertaking might be necessary. By depending on one pool, the monetary value for the alterations might be comparative high.


In the regular procurances, the stamp is frequently realized in separate stages. But now, the integrated contract is going easy more popular. During the design and building procedure the impact on the future direction of a edifice can already be included. In this manner the contract becomes an integrated contract, whereby the chance that a edifice outputs unpleasant surprises after completion is minimum.

Integrated contracts offer the chance to offer more quality for the same sum of money, because assorted subjects work on the undertaking from an built-in position. Good coordination between the direction and care subjects and between design and building subjects ensures that the life-time of the right solutions are chosen.

When we look to the Montaigne school as an ultimate illustration of the application of the integrated contract construct we see that good communicating is still really of import. Particularly after the preliminary stage, it is really difficult to do alterations in the design of the edifice. The traditional manner of undertaking brings many hazards, but besides much possibilities to act upon the undertaking. An integrated contract does restrict the hazards for a principal, but besides prohibit the influence the principal has on the undertaking during the edifice pahse.

Integrated contracts can be really utile to make a sustainable and lasting building. The undermentioned statement forms a nice sum-up of what can be reached with incorporate contracts: “ Sustainability does non be any excess money when is looked at the longer term. By working together and understanding what the other ‘needs ‘ infinite will be created and highly ambitious constructs will originate ”


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