matters affecting choices of contract2

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Matters affecting choices of contract Traditional contract Design & Built CM/MC Involvement of client in the construction process Demand the least from the clients because it involves delegating most of the management functions to an architect. -Does not involve a contract administrator -this places extra demand on the employer -removes the role of main contractor completely -client takes on the most active role Separation of design from management -unites management with design by virtue position of the architect in the process -architect is in control of most of the major decisions in a project -displays the LEAST separation of design from management -exhibit NO SEPARATION of design from management since both lie within the same organization. -where design issues come, issues are resolved within the DB firm -this excludes the involvement of the client from such debates -a CLEAR SEPARATION of design from management. -design consultant has the role in coordinating the design work -CM/MC must ensure that design information is available at the right time and that the trade contractors’ design is properly intergrated Reserving the clients’ right to change the specification -typically contain detailed clauses defining what would be permitted as a variation -usually lack of detailed contractual machinery and bills of quantity for valuing variations -as a lump sum contract for an integrated package, variations are best avoided. -involves a series of separate packages -each can be finally specified quite late in relation to the project’s overall start date but before the individual package is put to tender. -has highest flexibility

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Matters affecting choices of contractTraditional contractDesign & BuiltCM/MC

Involvement of client in the construction processDemand the least from the clients because it involves delegating most of the management functions to an architect.-Does not involve a contract administrator-this places extra demand on the employer-removes the role of main contractor completely-client takes on the most active role

Separation of design from management-unites management with design by virtue position of the architect in the process-architect is in control of most of the major decisions in a project-displays the LEAST separation of design from management-exhibit NO SEPARATION of design from management since both lie within the same organization.-where design issues come, issues are resolved within the DB firm-this excludes the involvement of the client from such debates-a CLEAR SEPARATION of design from management.-design consultant has the role in coordinating the design work-CM/MC must ensure that design information is available at the right time and that the trade contractors design is properly intergrated

Reserving the clients right to change the specification-typically contain detailed clauses defining what would be permitted as a variation-usually lack of detailed contractual machinery and bills of quantity for valuing variations-as a lump sum contract for an integrated package, variations are best avoided.-involves a series of separate packages-each can be finally specified quite late in relation to the projects overall start date but before the individual package is put to tender.-has highest flexibility

Complexity of the project (organizational complexity)-involves an organizational structure that is too complex for simple projects-the idea of fully designing all works before a contractor bids for it assumes that the design is beyond the contractors skill-in simple projects this is not so and would be better to rely on the skill and judgement of a contractor

-complex projects may require NSC because of the need to incorporate the design skills of the specialist trade contractors-ideal for simple jobs due to its single point of responsibility and control-but this does not preclude is use for more sophisticated work

-if I is complex project, DB contracts may lack the experience and skill needed for high levels of coordination and integration required-suitable for very complex project-CM/MC tends to be more experienced-they should hv no vested interest in conflict between design and fabrication exisgencies or between trade contractors.-this independence + professional management role, renders CM/MC ideal for dealing with organizational complexity

Speed of completion-SLOWEST METHOD as the drawings have to be completed before inviting tenders-cannot start the site early-DB contractor will undertake the design, so early assumptions are fairly safe-can be very quick because the relationships are conducive to quick working and overlapping of design and construction

Certainty of price-can be a fully measured bill or a bill of approximate rates-even with a schedule of rates, contractors are paid according to their own pre-priced -a lump sum contract -although contractor may add contingencies in to the price to deal with the unexpected, they remain the responsibility of the contractor-this may result in a higher price,but the benefit is that the final price is agreed at the outset-most of the time the drawings are incomplete when the contractor is appointed.-thus no certainty of price until the last work package is signed