con3

Cards (33)

  • Integrated procurement systems integrate or combine the responsibilities of design and construction of the project
  • Both responsibilities are contracted out to a single contracting organization
  • Client only needs to deal with a single organization for both the design and construction of the proposed project
  • Example of the integrated procurement system is the Design and Build
  • Design and Build system involves a two-stage process for selecting the firm
  • First stage involves interested firms applying for prequalification
  • Prequalification document includes information on the scope of the project, project site, special features, budget, design requirements, and other relevant information
  • Design and Build and turnkey project procurement systems are known for "fast-tracking" project delivery
  • Design-free pre-tender process allows for earlier construction date
  • Detail design and construction can run almost concurrently, reducing the overall project development period considerably
  • In Design and Build, the contractor controls construction time and design time, reducing the overall contract duration
  • Contractor's design responsibility can lead to reduced construction time through rationalizing the design and construction process
  • Cost in Design and Build is fixed at the bidding and contracting stage, providing higher cost certainty compared to traditional procurement systems
  • Lack of detailed design before and during tender can lead to contractors increasing prices to allow for uncertainties
  • Reduction in the overall number of professionals required leads to significant cost savings
  • Quality of work under Design and Build cannot be guaranteed
  • Client loses control of design and supervision of work
  • Integration of design and construction allows the contractor to utilize knowledge and experience for higher workmanship quality
  • Contractors under Design and Build can be innovative to improve construction process and techniques for better work and process quality
  • Design and Build is suitable when construction commencement and completion times are required earlier than traditional systems
  • Also suitable when innovation in design is desirable and when cost certainty is required at the start of design and construction phase
  • Merits of Design and Build include client certainty about project cost, avoidance of conflicts over drawing accuracy, and faster project delivery
  • Contractors can offer suggestions for more efficient, cost-effective, and easy-to-construct designs
  • Client uses fewer technical staff on the project
  • Demerits of Design and Build include limited basis for enforcing the contract due to incomplete project details, discrimination against small contractors, and lack of control over quality of work
  • Approaches to Design and Build system include Novated design and build, Package deals, Turnkey method, and Develop and construct
  • Novated design and build involves engaging consultants to prepare design brief and tender documentation, with the contractor taking over the design team
  • Package deals use standard components which may not fully meet client's needs
  • Turnkey involves the contractor being responsible for the project from design to operational stage
  • Develop and Construct starts with the client providing a detailed brief to the design consultant for conceptual design and site layout
  • Turnkey method accelerates project delivery, provides cost certainty, reduces disputes, but may lead to client surrendering control over the project and needing to provide exact project needs upfront
  • Approaches of Turnkey method include Build Own Operate Transfer (BOOT), Build Own Operate (BOO), Design Build Operate (DBO), and Lease Own Operate (LOO)
  • Features of BOOT, BOO, DBO, and LOO methods are outlined based on responsibilities and ownership of the project