Contract Relationships (9 Marks) Flashcards
Name the four Contractual Organisation Methods
- Traditional (Design, bid, build)
- Project Management
- Design and Build
- Management Contracts
Who is the client in contact with in Traditional Contractual Organisation?
- Architect, to take a brief, produce design and
construction information, invite tenders and administer
the project during the construction period and settle the
final account. - Contractor to construct the building
- Other Separate Consultants to deal with specialist items,
i.e. structure, costs, landscape design
Name the Contractural Relationship Type in which:
Client is in contact with:
- Architect, to take a brief, produce design and
construction information, invite tenders and administer
the project during the construction period and settle the
final account. - Contractor to construct building
- Other Separate Consultants to deal with specialist items,
i.e. structure, costs, landscape design
Traditional (design, bid, build)
Characteristics of Traditional Contractual Organisation
- Sequential process – generally longer time-frame
- Reasonably price certain (subject to design changes and flexibility)
- Design-led process. Design process is separated from the
Construction process - Architect/LA is the design team leader (and manager)
- Client issues all instructions to consultants and contractor through
design team leader - Relatively low-risk procurement option for the principal
- Changes easy to arrange (‘Variations’)
Who is the client in contact with in Project Management Contractural Organisation?
Type One: Client Representative
- PM is the Client’s Representative and takes over the dayto-day roles of the client but is not the person directly responsible for the appointment contracts with the design team members.
- Architect/LA is the design team leader (and manager)
- Same contractual arrangements as with traditional
method
Type Two: Project Manager (PM) is Design Team Manager
- This is the more standard understanding of the PM role
- The PM as Design Team Manager takes over the contract
administration roles from the Design Team Leader - Architect/LA still Design Team Leader (still carries design risk)
but now only responsible for the design and observation of
the contract, not the contract administration - PM could be an architect / LA but usually a dedicated PM
Name the Contractural Relationship Type in which:
- A Project Manager is the Client’s Representative and takes over the dayto-day roles of the client but is not the person directly responsible for the appointment contracts with the design team members.
- Architect/LA is the design team leader (and manager)
- Same contractual arrangements as with traditional
method
Project Management - Client Representative
Name the Contractural Relationship Type in which:
- The PM as Design Team Manager takes over the contract
administration roles from the Design Team Leader - Architect/LA still Design Team Leader (still carries design risk)
but now only responsible for the design and observation of
the contract, not the contract administration - PM could be an architect / LA but usually a dedicated PM
Project Manager - PM is Design Team Manager
Characteristics of Design and Build Contractural Organisation?
- Client is in contract with D&B contractor only – single
point of responsibility - Contractor takes responsibility to provide both design and
construction of the work for an agreed price - Helps achieve buildability and innovation
- Relatively low-risk procurement option for the client as
price known at start
Who is the client in contact with in Standard Design and Build Contractural Organisation?
- Client is in contract with D&B contractor only – single
point of responsibility - Contractor takes responsibility to provide both design and
construction of the work for an agreed price - Helps achieve buildability and innovation
- Relatively low-risk procurement option for the client as
price known at start
Name the Contractural Relationship Type in which:
- Client is in contract with D&B contractor only – single
point of responsibility - Contractor takes responsibility to provide both design and
construction of the work for an agreed price - Helps achieve buildability and innovation
- Relatively low-risk procurement option for the client as
price known at start
Standard Design and Build Contractural Organisation
Who is the client in contact with in Design and Build with Novation Contractural Organisation?
At the early design stages, Client is in contract with:
- the Architect/LA to provide concept design, outline
specification, detailed schedule of finishes and detailed brief. - the Contractor takes the concept design and outline
specification, costs it, then is engaged by Client to fully detail
and then build it.
At the developed design and construction stages the Client is
in contract with:
- The Contractor to provide both design and construction
services – now a single point of responsibility - the Architect/LA ceases to be in a contractual relationship
with the client and is ‘novated’ to the contractor i.e. the
Contractor now employs the Architect/LA– the
architect/LA provides design services directly to the
contractor
Name the Contractural Relationship Type in which:
At the early design stages, Client is in contract with:
- the Architect/LA to provide concept design, outline
specification, detailed schedule of finishes and detailed brief. - the Contractor takes the concept design and outline
specification, costs it, then is engaged by Client to fully detail
and then build it.
At the developed design and construction stages the Client is
in contract with:
- The Contractor to provide both design and construction
services – now a single point of responsibility - the Architect/LA ceases to be in a contractual relationship
with the client and is ‘novated’ to the contractor i.e. the
Contractor now employs the Architect/LA– the
architect/LA provides design services directly to the
contractor
Design and Build with Novation Contractural Organisation
Characteristics of Design and Build with Novation?
- Client has price certainty provided the scope of work does
not change - Client can lose control of design
- Architect/LA in extremely difficult role as direct access to
Client may disappear. - Contractor may try to downgrade earlier design decisions
to save money
What is the Design and Build Turnkey Procurement Model?
- This is a design and build model but the contractor is now
responsible for everything, including furniture and fit-out - Often used in industrial buildings
- Could be used in office buildings
- Client just walks in to completed project, including all fitout items
Characteristics of Management Procurement Models?
- Contractor responsible for managing the works through
separate trade contracts - No cost certainty at the outset (need contract cost plan)
- Final costs only known after last trade package is tendered
- Relatively low-risk for principal (in design and quality)
- High risk for principal (in cost and time)
- Principal appoints the consultants who prepare project
drawings, specifications and cost plan
