Chap 7 Flashcards
1
Q
Project Delivery Methods
A
- Design-Bid-Build
- Design & Build
- Public-Private Partnership
- Term Contracts
- Management/Maintenance Contracts
2
Q
What does DBB do?
A
- traditional method & most projects in SG use this
- owner engages consultants to design project & draft tender doc
- tenderers will bid for project
- owner employs successful tenderer to construct & complete building
- contractor carry out construction according to what consultants say
- contractor delivers project to Owner
3
Q
who do maintenance for DBB?
A
owner / whoever owner appoints
4
Q
owner pay consultant to do what? (DBB)
A
design & supervision services
5
Q
Owner pay contractor based on (DBB)
A
- lump sum contract
- bill of quantities(BQ) contract
6
Q
what do contractor do in DBB
A
- construct the work according to design
- supplies materials & labor
- completes & hands over project to owner
7
Q
examples of DBB
A
- HDB housing
- Condo
- Office
- Hotels
8
Q
Design & Build (D&B)
A
- tenderers construct AND design
- contract to develop the full design & build project
- Contractor may employ in-house
architects, engineers & other professionals - Contractor may outsource the design work to Consultants (i.e. engages external Consultants to provide the design)
- Owner provides design briefs & engages a Main Contractor to design & build the project
9
Q
Public-Private Partnership (PPP)
A
- A model where public sector to engage private sector providers in delivering non-core government services, if it is more efficient to do so
- Long-term (15 – 30 years) partnering relationships to deliver services
- Focus on acquiring services at the most cost effective basis, rather than directly owning & operating
assets - A PPP service provider provides the design, construction, operation & management of the
facility - The PPP service provider obtains his own financing
for the whole project
10
Q
Most common type of PPP
A
- Design-Build-Finance-Operate
- DBFO
11
Q
Design of DBFO
A
- Private sector design the facility according to the public’s requirements
- only sets minimal input specifications on how facility is to be built
12
Q
Build of DBFO
A
- Private partner build
13
Q
Finance of DBFO
A
- private partner raise $$$ through bank loans, bonds, and equity etc
14
Q
Operate in DBFO
A
Private Partner provide ancillary and/or core operation services
15
Q
PPP examples
A
- Large projects
- Sports facilities
- Education facilities, including student hostels
- hospitals & polyclinics
- expressways
- and more
16
Q
Term Contract
A
- Contractor appointed for a specified period/term based on a Schedule of Rates (SOR), usually about two to three years
- Contractor on standby for undertaking work when called upon via a service request or work order
- Response time to a contractor is usually specified, e.g. within a day
- Contractor bears the risk of being able to perform the
works at the agreed SOR - Term contracts are ideal for carrying out maintenance & repair work e.g. A&A, painting & redecoration, roadworks
17
Q
maintenance aspect of projects
A
- Contractor manages the building process for the Owner for a fee
- Essentially, a contract to manage rather than a contract to build
18
Q
Definition of management/maintenance contracts
A
- Formal agreement between two parties
- which states that one party will provide periodic
maintenance of a building, vehicle, equipment - belonging to another party in good conditions by
regularly checking and repairing it - when necessary
- for a fixed fee or agreed fees for a specific time period
19
Q
Characteristics of management/maintenance contracts
A
- The contractor accepts all
the risks & benefits associated with cost - It is for a fixed term at a
fixed amount - The work is recurring
- Work is carried out in a built environment to support the client’s operation
20
Q
Considerations in Management/maintenance contracts
A
Scope of work –> process –> Risk
21
Q
Scope of work in considerations
A
Comprehensive & Non - Comprehensive
22
Q
Process in considerations
A
Planned & unplanned
23
Q
Risk in considerations
A
Critical & non-critical
24
Q
Fault classifications
A
- Normal
- Urgent
- Critical
25
Normal in Fault Classifications
- Faults, breakdown or defects which are of routine nature, such as:
* UPS breakdown or fault, as the power supply will be by-passed manually
* Monitor, keyboard or mouse not functioning
26
Urgent in Fault Classifications
- Faults, breakdown or defects that are not critical but can lead to a critical situation when a second failure occurs in combination of some more conditions, such as:
* Loss of signal or communication to the server
* Restoration of software
27
Critical in Fault Classifications
* Faults, breakdown or defects directly affecting the continuity& functionally of the entire network, such as:
* Total system failure or network clashes
28
Call-out time
- period of time commencing when a fault condition has been
reported to the Contractor and
- finishing when suitably qualified maintenance personnel arrive at the site and start maintenance
29
Normal call out time
Non-peak: 90 min
Peak: 120 min
30
Urgent call out time
Non-peak: 60 min
Peak: 120 min
31
Critical call out plan
Non-peak: 30 min
Peak: 120 min
32
Down time
- commence from the time a fault, breakdown, defect or request for work is - reported by employer/user to contractor
- An item found not in a condition to perform its intended function
- period of time employer is deprived of use of item/facility from when the issue occurs to when function is restored
33
Normal in down time
24 hours
34
Urgent in down time
8 hours
35
Critical down time
1 hour
36
People on a contractual Arrangement
- managing agent
- total/integrated FM contractor
37
Managing Agent
Manages the client’s
organization’s own employees
38
Total/Integrated FM Contractor
Manages all maintenance
offering as a single point of
responsibility
39
Contractual Arrangement for Managing agent
* Client organisation does not wish to hand over control of its services
* Client organisation does not have the skill or expertise to manage services efficiently & effectively
* Appointing a client representative
* Contracts with service providers under the client organisation
40
Scope of services of managing agents
1. Operational Management
2. Accounting & Financial Management
3. Administrative & Secretarial Services
4. Corporate Communication
5. Community Management Services
6. Car Parking Management
7. Tenancies & Lease Management
8. Procurement & QS Services
9. Project Management
10. Fire Safety Management
11. Environment & Safety Management
41
Total facilities management contractor
* Client organisation passes the full responsibility to a single total/integrated
FM contractor for a fixed price
* Total/Integrated FM contractor can actually subcontracts all or most of the work
* Offers a more complete & competitive solution to the client organisation’s
42
Scope of services of Total facilities management contractor
1. Operational Management
2. Quality & Performance Management
3. Resource Management
4. Risk Management
5. Security & Fire Management
6. Space Management
7. Catering Services
8. Project Management
43
Different types of contracts means
different payment methods
44
method of payment will determine
- risks faced by contractor
- incentive of contractor to provide quality work at an economical price
45
Lump Sum
* Contractors execute contract work for a stated total sum of
money
* It gives the Owner some certainty about the likely cost of the
works
* Used for small contracts where the tenderers produce their own quantities & submit a lump sum for the works based on completed working drawings & details together with a full specification
* Lump sum contracts might be less appropriate where speed is important, or where the nature of the works is not well defined
* Not intended for projects where extensive variations are anticipated
46
Bills of Approximate Quantities
* Used in urgency where less time for firm design & quantities
* Approximate quantities are used at pre-contract phase & complete re-measurement is done at the final account stage
47
Prime Cost
* Various terms have been used to describe ‘prime
cost’ arrangements e.g. cost plus, cost reimbursement, target cost
* There is great uncertainty not only to what is to be built, but also the financial commitment
* Contractor paid for what he spends, namely, prime cost (actual cost of labour, plant & materials) plus a fee to cover overheads & profit
48
Schedule of Rates
(SOR)
* Contractor agrees to execute work at a value
determined at end of contract by a complete
measurement & valuation of work in accordance with
agreed rates
* Owner may supply a SOR covering each item of work
which the contractor will state a percentage above or
below the rates given or the contractor may be required to enter rates against each item of work
49
What are variations?
Variations are changes to the original contracted works, materials or method
of working during the project period
50
Interim payments and final accounts
* Interim payments are periodic amounts disbursed to the contractor during the progress of a project for the work done
* Contract conditions require interim certificates to be issued at prescribed intervals, usually one month
* Interim certificates are not precise accounting but an approximation only, being payment on account to aid cash flow with no finality & commitment to or by either of the contracting party
* The final account represents a detailed statement of the overall cost of the project
51
Liquidated damages
* Completion of project in building work is usually referred to as practical completion or substantial completion
* Contractor is required to complete the works such that it has achieved a state of readiness for use or occupation by the Owner
* In the event of delay or when the contractor fails to meet the date of completion, Liquidate Damages (LD) will be
imposed
* LD is a contractually agreed sum in the event of default by the contractor, and there is no need to prove actual damage
* Amount of LD must not be a penalty, i.e. it is a genuine
pre-estimate of the loss that building owner is likely to
suffer if works are delayed
