Contract Strategies Light Rail 2
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Transcript of Contract Strategies Light Rail 2
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7202ENG
PROJECT CONTROLAND EVALUATION
GOLD COAST LIGHT RAIL
CONTRACT STRATEGIES
ALMTHAMI, KHEDHER S2187371
MARISSA ADRAINCEM S2850497
FRIDAY 25/05/2012
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OUTLINE
DESIGN
BUILD DESIGN-BID-BUILD
DESIGN-BUILD-OPERATE-TRANSFER
CHOSEN CONTRACT STRATEGY
COMMENTS & QUESTION
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CONTRACT STRATEGIESThere are several contract strategies that could beadapted to best suit the rapid transit project, the
following three strategies will be assessed to
determine the most suitable strategy.
1) DESIGNBUILD
2) DESIGN-BID-BUILD
3) DESIGN-BUILD-OPERATE-TRANSFER
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1. DESIGN
BUILDDesign-build can be considered a two-step contract in this strategy1. The design
2. Construction of a project
Both are completed by a single company.
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1. DESIGN
BUILDTHESIGNIFICANTDIFFERENCEBETWEENDESIGNBIDBUILD
is also the one problem that can plague the project, due
to the one company designing the project then
completing construction of the project there is a greatamount of trust that is placed in the company from the
client.
ADVANTAGE
Reduced delivery time from a design bid build contract,due to the nil effects of putting the construction element
out to tender.
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2. DESIGN-BID-BUILD
DESIGN-BID-BUILDCONTRACTSAPPOINTACOMPANYTO
1. Complete the design
2. and then following a tender
3. and approval process an additional contract is
awarded to a second company to complete the
construction aspect of the project of the project.
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2. DESIGN-BID-BUILDTHISPROCESSALLOWSTHECLIENTTOHAVEa second company check the work practices of
the other and therefore this will REDUCE THE
RISK of poor workmanship and short-cuts
devaluing the final product.
DIFFERENCEBETWEEN DB & DBB
Design bid build carries a SIGNIFICANTLY LONGER
PROCESSTHANdesign build as the additional bid
step in the program. This step can be
summarised as the tender stage and has the
potential to add months to the projectspractical completion date.
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3. DESIGN-BUILD-OPERATE-TRANSFERThe Design-Build-Operate-Transfer has the ability
to reduce construction time, therefore,
maintaining the clients cash flow.
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3. DESIGN-BUILD-OPERATE-TRANSFERTHISSYSTEMISSIMILARTOTHEDESIGNBUILDSTRATEGYhowever, prior to the project being transferred to
the client it is operated by the contractor to produce
revenue as part of the contract payment.
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3. DESIGN-BUILD-OPERATE-
TRANSFERThis allows the design company to
reduce their tendered price and
attempt to make up this difference at
the completion of the project.
THIS STRATEGY CARRIES THE MOST
AMOUNTOFrisk for the contractor, as it is reducing
the number of consumers the rail
system has and reducing the incomefor the contractor.
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CHOSEN CONTRACT STRATEGYTHEMOSTAPPROPRIATECONTRACTSTRATEGYFORTHELIGHTRAILPROJECTWOULDBE
The design build operate transfer.
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CHOSEN CONTRACT STRATEGYSEVERALFACTORSINFLUENCETHISDECISION
1.The risk of loss in profits following completion is
transferred to the contractor.
2.The current global debt crisis, this also maintainsgovernment revenue as the principle construction
expenses are shared with the contractor.
3. The deliver time of the project will be a top
priority of the contractor as they seek to deliver the
project earlier to eliminate potential costs associatedlengthy loan period
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