Construction Contracts_delivery Methods
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Transcript of Construction Contracts_delivery Methods
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ConstructionContracts(CN-323)Dr. Nida Azhar
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Design-Bid-Build (DBB)-Project Delivery ethod
Design-Bid-Build (!raditional) Process
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!y"ical #rganization o$DBB
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%alient &eatures o$ DBB 'ole o$ each "arty clearly de ned 'igid and $or al "rocedures are usually $ollo*ed in
$or ing contract !his is the only ethod in *hich o*ner has r idea o$
the nal cost o$ the "roject "rior to construction "hase. Bro+erage is *hen general contracts all the *or+ on
"roject DBB o$ten e,tends the "roject duration #*ner doesn t have agent or $riendly "arty involved in
the contractual agree ent. ess e "hasis on /uality to aintain lo* cost Adversarial relationshi" 0et*een di1erent "arties. ,"oses o*ner to a greater "ro0a0ility o$ clai s
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%alient &eatures o$ DBB As design is develo"ed *ith contractor s in"ut there
are $e*er changes due to design error. Dis"utes arising 0et*een design and construction
r s are essentially eli inated 4t is "ossi0le to start construction to 0egin 0e$ore
co "letion o$ design 4t is acco "lished 0y designing the $oundation rst and
then develo"ing the design as construction co ences !here are $e*er chec+s and 0alances 0uilt into this
"rocess #*ner has lesser control a*s and regulations ay "lace serious restrictions
on the "rocess.
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%el$-Per$or ance ethod
#*ner
5or+er 5or+er 5or+er 5or+er 5or+er
Architect
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Design-Build (DB) Deliveryethod
%ingle r designs and constructs the 0uilding(design- constructor or turn+ey construction
cost "lus lu " su
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%alient &eatures DB 6tilizes the construction r s e,"erience in the
design "hase 7igher degree o$ constructa0ility Contract can 0e a*arded through co "etitive
a""roach (i$ sco"e is *ell de ned). Contract is generally esta0lished as a target cost
or guaranteed a,i u "rice (8 P). 4t is co on to 0e *ritten as a cost "lus $ee *ith
a 8 P. 4n "u0lic sector9 o*ners "re$er to +ee" all the
savings *hen the cost is 0elo* 8 P. #n a "rivate "roject9 di1erent echanis s $or
sharing the savings ight 0e e,"lored
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Construction anager as the#*ner s Agent : C AA
ethod Also +no*n as Pro$essional Construction
anage ent ethod
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%alient &eatures C AA #*ner hires a r *ith construction e,"ertise to
"er$or construction anage ent During design "hase9 C "eriodically revie*s the
design to see ho* the cost and ti e o$ the "roject
can 0e reduced. ;alue ngineering is ost cost e1ective during
design "hase 0e$ore any onetary co it entshave 0een ade to construction.
C "ay ent ay 0e 0ased on
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Construction anager at 'is+ : C A' ethod
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%alient &eatures- C AA C is an inde"endent contractor C is at ris+ and res"onsi0le to o*ner to
co "lete the "roject 0y the esta0lishedsu0stantial co "letion date and *ithin the agree
0udget. C e,"ertise can 0e utilized during early "hases
o$ construction. ;alue ngineering can 0e e1ective.
Contract is generally esta0lished as a cost "lus$ee *ith a 8 P.
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&ast-!rac+ Project%cheduling
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4n an 4PD ethod9all sta+eholders inthe "roject9 such as
the o*ner9 architect9architect sconsultants9 generalcontractor9 and
su0contractorscontri0ute inconstructing thevirtual odel.
!echnology $or 4PD : Building 4n$or ation odeling(B4 )
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Conventional vs. 4PD