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    Vergabeformen Building Procurement - Contract Strategy: Judit Gyulay

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    aghorbanzadeh
    This document discusses different procurement systems for construction projects and their impact on conflicts. It begins with an overview of the participants in construction projects and how their interests can conflict. The traditional procurement system is described as having long construction periods and clear contracting relations. Alternative systems like design-build aim to reduce time but can increase cost risk if not properly understood. Management contracts involve the construction manager earlier in design but provide less cost certainty. Choosing the right procurement system and appointing an experienced manager can help reduce conflicts that often arise from misunderstanding roles and responsibilities.

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    Vergabeformen Building Procurement - Contract Strategy: Judit Gyulay

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    aghorbanzadeh
    117 views26 pages
    This document discusses different procurement systems for construction projects and their impact on conflicts. It begins with an overview of the participants in construction projects and how their interests can conflict. The traditional procurement system is described as having long construction periods and clear contracting relations. Alternative systems like design-build aim to reduce time but can increase cost risk if not properly understood. Management contracts involve the construction manager earlier in design but provide less cost certainty. Choosing the right procurement system and appointing an experienced manager can help reduce conflicts that often arise from misunderstanding roles and responsibilities.

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    This document discusses different procurement systems for construction projects and their impact on conflicts. It begins with an overview of the participants in construction projects and how their interests can conflict. The traditional procurement system is described as having long construction periods and clear contracting relations. Alternative systems like design-build aim to reduce time but can increase cost risk if not properly understood. Management contracts involve the construction manager earlier in design but provide less cost certainty. Choosing the right procurement system and appointing an experienced manager can help reduce conflicts that often arise from misunderstanding roles and responsibilities.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    117 views26 pages

    Vergabeformen Building Procurement - Contract Strategy: Judit Gyulay

    Uploaded by

    aghorbanzadeh
    This document discusses different procurement systems for construction projects and their impact on conflicts. It begins with an overview of the participants in construction projects and how their interests can conflict. The traditional procurement system is described as having long construction periods and clear contracting relations. Alternative systems like design-build aim to reduce time but can increase cost risk if not properly understood. Management contracts involve the construction manager earlier in design but provide less cost certainty. Choosing the right procurement system and appointing an experienced manager can help reduce conflicts that often arise from misunderstanding roles and responsibilities.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 26

    Judit Gyulay

    Vergabeformen Building Procurement Contract strategy


    Procurement Systems an initial overview Proper choice of delivery system can help to reduce conflicts on construction projects

    05. 06. 2007

    Building Procurement Contract strategy


    Right Building Right Time Right Place

    Successful Investment

    Budapest University of Technology and Economics Department of Construction Technology and Management

    Judit Gyulay 05.06.2007

    Building Procurement Contract strategy

    Contents

    Participants of a construction project have different interests


    Claims and litigations How to reduce conflicts/risk of construction projects One area, generate conflicts: Procurement system (project delivery system) Possibilities Consequences

    Of choice the procurement system


    Judit Gyulay 05.06.2007

    Budapest University of Technology and Economics Department of Construction Technology and Management

    Building Procurement Contract strategy


    Idea

    Investment Process

    Area Money

    Initiation

    Hand-over and use

    Civil Engineer/Architect is involved the process in different phases in different roles

    Budapest University of Technology and Economics Department of Construction Technology and Management

    Judit Gyulay 05.06.2007

    Building Procurement Contract strategy

    Common goal of participants to perform a building

    Meeting the clients requirements, ensuring completion On time Within cost To required quality standards

    Budapest University of Technology and Economics Department of Construction Technology and Management

    Judit Gyulay 05.06.2007

    Building Procurement Contract strategy

    Cost
    Cheapest Economical Adequate

    Quality
    Best

    Reasonable

    Fastest

    Time
    (The incompatibility of cost, quality and time) (Kharbanda et al. 1980.)

    In

    addition: participants individual interest


    Judit Gyulay 05.06.2007

    Budapest University of Technology and Economics Department of Construction Technology and Management

    Building Procurement Contract strategy

    Participants of a construction project

    Directly involved Indirectly involved

    client, designer, contractor advisor, project manager, supervisor bank, authority


    Judit Gyulay 05.06.2007

    External

    Budapest University of Technology and Economics Department of Construction Technology and Management

    Building Procurement Contract strategy

    Participants common goal


    But Conflicts, claims and litigation seems to be inevitable part of construction projects Areas generate conflicts One-sided contract (Client drafted contract) Procurement system (project delivery system) Site conditions Site services, etc.

    Budapest University of Technology and Economics Department of Construction Technology and Management

    Judit Gyulay 05.06.2007

    Building Procurement Contract strategy

    Analysis

    Not clear understanding peculiarities of that specific procurement and contracting system
    Responsible parties Does not recognise or Does not want to accept

    responsibility

    Lack of identification of own interest leads to one-sided contract

    Budapest University of Technology and Economics Department of Construction Technology and Management

    Judit Gyulay 05.06.2007

    Building Procurement Contract strategy

    The Client

    Shares:

    activities responsibilities risks

    with the partners

    Will choose procurement system and contract form

    Budapest University of Technology and Economics Department of Construction Technology and Management

    Judit Gyulay 05.06.2007

    Building Procurement Contract strategy

    Idea Hand-over and use

    Procurement:

    Total management process used when obtaining a building System of contracting among client, designer, and contractor

    Budapest University of Technology and Economics Department of Construction Technology and Management

    Judit Gyulay 05.06.2007

    Building Procurement Contract strategy

    To produce /create/perform
    a building a bridge a road

    Project Has to be managed

    Planning Organising Leading Commanding Controlling

    Who will manage? In which system ?


    Judit Gyulay 05.06.2007

    Budapest University of Technology and Economics Department of Construction Technology and Management

    Building Procurement Contract strategy


    Client Project manager Quantity surveyor

    Engineer

    Architect

    Contractor(s)

    Typical management structure with project manager


    Client

    Project co-ordinator Quantity surveyor

    Engineer

    Architect

    Contractor(s)

    Typical management structure with project coordinator


    Budapest University of Technology and Economics Department of Construction Technology and Management Judit Gyulay 05.06.2007

    (Roger Waterhouse)

    Building Procurement Contract strategy

    Clients main decisions:


    (Help: principal adviser)

    Organisation for the Management of the Project


    In-house project manager In-house and external project management team External project management Organisation for Design and Construction

    Traditional

    Design and build


    Turnkey Package deal

    Management
    Construction Management Management Contracting Others
    Judit Gyulay 05.06.2007

    Budapest University of Technology and Economics Department of Construction Technology and Management

    Building Procurement Contract strategy More complex

    Need of change in procurement methods


    Traditional
    Client Designer Client Project Management Designer

    projects Lack of time

    Project Management

    Contractor

    Contractor

    Preparation Design Tender/bidding Construction

    Preparation Design Tender/bidding Construction


    Judit Gyulay 05.06.2007

    Budapest University of Technology and Economics Department of Construction Technology and Management

    Building Procurement Contract strategy

    Procurement/project delivery system


    Improper choice or misunderstanding generate conflicts Traditional procurement system Design and build, turnkey or others Management type

    Budapest University of Technology and Economics Department of Construction Technology and Management

    Judit Gyulay 05.06.2007

    Building Procurement Contract strategy

    Traditional procurement system characteristics

    Long construction period Consecutive organisation Clear contracting relations

    Budapest University of Technology and Economics Department of Construction Technology and Management

    Judit Gyulay 05.06.2007

    Building Procurement Contract strategy

    Innovative Project delivery systems


    Construction management Management contracting Project or management service contract and other variations

    General characteristics An organisation is employed to manage the project the construction To coordinate the design with construction Overlapping between design and construction Series of tenders: work packages

    Budapest University of Technology and Economics Department of Construction Technology and Management

    Judit Gyulay 05.06.2007

    Building Procurement Contract strategy

    Client needs representation/protection by neutral expert


    Traditional delivery system
    Client
    Designer Contractor Designer Subcontractors Inspector Supervisor Q.S.

    Design and build Turnkey, Package deal


    Client

    Inspector Supervisor

    Contractor

    Budapest University of Technology and Economics Department of Construction Technology and Management

    Judit Gyulay 05.06.2007

    Building Procurement Contract strategy

    Design and build turnkey/package deal


    Preparation Design

    Tender

    Contract
    Construction

    Cost Characteristics Single point responsibility Can be overlapped Client can be sure of maximum cost before final commitment

    costs should be lower Thus shorter time on site (Savings are not passed to the client in lower prices)

    Integrated design and construction Improves buildability Fits to constructors expertise, working condition, organisation

    Budapest University of Technology and Economics Department of Construction Technology and Management

    Judit Gyulay 05.06.2007

    Building Procurement Contract strategy

    Construction Management CM
    Client Designer Inspector Supervisor Construction Manager Contractors

    Management Contracting MC
    Client
    Inspector Supervisor

    Management Contractor Designer

    Contractors

    Budapest University of Technology and Economics Department of Construction Technology and Management

    Judit Gyulay 05.06.2007

    Building Procurement Contract strategy

    Management contracts (CM, MC)


    Characteristics

    Management team is involved at early stage Design can be influenced (buildability) Claims can be solved, delays reduced Save time series of tenders, work packages Flexibility in design to suit the client to suit the budget More risk in design higher requirement in design No assured final cost at the start of construction

    Budapest University of Technology and Economics Department of Construction Technology and Management

    Judit Gyulay 05.06.2007

    Comparison of procurement systems, source of risks and conflicts

    Building Procurement Contract strategy

    Responsibility for decision


    Preparation Design
    Tender

    Cost

    Traditional system

    Construction is being started knowing the construction costs

    Construction
    Start

    Preparation

    Design Tender

    Cost

    Modern managerial typed system

    Construction
    Start

    Constriction is started without knowing the construction costs


    Judit Gyulay 05.06.2007

    Budapest University of Technology and Economics Department of Construction Technology and Management

    Building Procurement Contract strategy

    Consequences

    Use of non-traditional delivery system can create greater risk of misunderstanding Scope of work / compensation are changing continuously Innovative project delivery systems can blur the traditional roles and responsibilities of participants

    Budapest University of Technology and Economics Department of Construction Technology and Management

    Judit Gyulay 05.06.2007

    Building Procurement Contract strategy

    One step towards a successful project


    To choose appropriate procurement system and appoint the manager as early possible for maximum benefit Characteristics of the delivery system have to be understood by the participants Contract has to contain reasonable allocation of activities, responsibilities and risk

    All the participants have to recognise responsibilities, act in partnership

    Budapest University of Technology and Economics Department of Construction Technology and Management

    Judit Gyulay 05.06.2007

    Building Procurement Contract strategy

    Proper choice and fully understanding of delivery system

    Procurement
    Can help to reduce conflicts on construction projects

    Budapest University of Technology and Economics Department of Construction Technology and Management

    Judit Gyulay 05.06.2007

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