construction project delivery

8/9/2019 Construction Project Delivery

http://slidepdf.com/reader/full/construction-project-delivery 1/31



What leads to the need to undertakea construction project?• A problem has to be solved using a

constructed facility;• An opportunity for added value has been

identied and a constructed facility isnecessary; Real value can be added – eg generate income; !ntrinsic value added – a prestigious project –

eg monument; or

• A decision made by higher authorities



Project delivery processes:Project conception; Project inception;Project implementation: processes

include feasibility studies, tendering,contract execution, other projectactivities;

Need of standard professionaldocuments and codes of practice,

codes of practice in use (emphasis tobe made per discipline), conformity to

professional documents and codes.



Financing of projects: Selfnancing, nancing by publicfunds; grant and credit nancing

facilities (!orld "an#, $%", etc.),. Project Procurement Aspects

Pulic Procurement Act

!e"uirements: procurements ofconsultancies, procurement of&or#s, procurement of goods.



Contract management:'ntroduction to la& of contract,arties to the contract, standard

conditions of contract,appreciation of contractmanagement issues, fraud and

corruption, conict resolution(including conict of interest).



• ,f t#e $nance needs to e raised ororro&ed - necessary arrangementmust e put in place* &#ic# may mean

negotiating &it# a an/ orinternational funding agency.

• %#en $nance is orro&ed - t#e lendingagency &ill proaly impose

restrictions on t#e project and t#emet#od of procurement; e. g. %orld0an/ * Local an/s



1treme alternative &ays for organi3ingdelivery of projects:

4&o essentials:

• A sound contractual relationship bet"een the

o"ner and each of his#her consultants andcontractors

• $ooperation and trust bet"een the people fromdi%erent organi&ations and professions

involved

Doing everything in-

house using expertise

within the ownersorganisation

Total responsibility

to a contractor -

finance, design,execute, operate

the project



'efore an engineering facility isreali&ed t"o essential functions haveto be performed(

)esign; *rection

• +o" much "ork in,house; and

• +o" much to consultants and contractors

DESIGNIdea

Feasibility

Preliminary design

Detailed design

ERECTION

and

COMMISSIONING



-he "ords Construction*

,nstallation; and 1rection

shall be usedinterchangeable



-he range of options includes(• All "ork in,house;

• )esign in,house and erection by a

contractor• !nitial design brief in,house. designby a consultant and erection bymain contractors "ho "ill usesubcontractors as necessary



•All design and management by aproject manager. using severaltrade contractors "hom "ork

directly for the o"ner /includesdesign and build approach0;

•Raising the nance. design. erectionand operation by a singlecontractor. "ho employsconsultants and subcontractors asnecessary



-he choice "ill depend partly on(

•the 1"ners policy;

•facilities "hich the 1"ner has availablein,house;

•the si&e and type of the project

-here are advantages and

disadvantages of each



2or any system of procurement. the1"ner must decide "hat s#he "ants , A'rief

Avoid fre3uent changes of mind , itcosts more and delays4

-he e5tent to "hich the 1"ner "ishesto in6uence the detailed design and the"ay in "hich s#he sees the design

developing "ill in6uence the choice ofmethod of procurement Adhere to legal and regulatory

re3uirements



-he 1"ner does the feasibility study;

-his is follo"ed by preliminary designsand estimates done by the o"ner;

1"ner then uses o"n e5pertise to

prepare detailed design; 7#he uses an established contractor tocarry out the construction#erection;

Method 2: Design in-house and erection by a contractor



1"ner supervises "ork performed bythe contractor

$ontractor hands over constructed

facility "hen construction is completedto the satisfaction of the o"ner

9ain disadvantage(

• :ack of accountability for design;• :ack of 3uality control mechanism for design



9ain disadvantage – may be timeconsuming

-his is the method that is kno"nas the traditional method "hich isused very often – main attention

in the course "ill be centered onthis method



-he 1"ner prepares the project brief

/or can be assisted by a consultant0; $lient prepares preliminary estimate

based on prelim designs; /or

appoints a $onsultant to preparedprelim )esigns0;

$ontractor is appointed on for

detailed design and erection;



$lient supervises the erection toensure that performance

re3uirements are met; /or mayappoint a $onsultant to do so0; 2inal project accepted on the basis

of performance tests by $onsultantor $lient;



9ain )isadvantage(• !f the 9 is not good the project can failvery easily

•$osts may increase beyond budget Advantage( 7peed



Advantage(•$lient does not use his#her o"nfunds for the project;

)isadvantage(•$lient has little control unless bymeans of legislation or special

agreements;



-he ublic rocurement Act >@ /A>@0 is based mainly on thetraditional method – appointment of

consultant and then appointment ofcontractor

+o"ever. it allo"s for other methodsof delivery "ithin the ublic rivateartnership /0 $oncept

Regulations and standard documentsfor the same are "idely available



$overs supply of goods. construction.professional /consultant services0.and non,consultant services

Applies for all public institutions; ot follo"ing the A >@ is

breaking the la"; !t is necessary for both public and

private sector to understand as itgoverns the procedures that must beused in procurement



PPA 2556

Guidelines

Standard Documents

Regulations for Procurement

of Consultant Serices

Regulations for Procurement of Goods!

"or#s! Non Consultant Serices



We shall e5amine the A in somedetail in the ne5t lecture