lecture 6 and 7 Flashcards
two types of public law
criminal law,
taxation law/revenue
private law
contract law
law of tort
other laws
international, national laws
sources of law
statutory -written by a body of legislators
(health and saftey, builidng act etc)
common law- is law developed by judges, courts,
Regulations-
By laws
Building act consists of (2004)
people must be able to use it saftely
can excape in fire
attributes that enhance peoples living
promote sustainable environment
health and saftey 1992
The Department of Labour administers and
enforces the HSE Act in most workplaces.
to promote the prevention of harm to all people at
work, and others in, or in the vicinity of, places of
work.
systematic
Chartered Professional Engineers of
New Zealand Act 2002
- acts a registration
- code of ethics
- has professional body to make sure that happens
Construction Contracts Act 2002
timely payments
provide speedy resolutions for disputes
provide remedy for recovery of payments
Resource management act 1991
to promote the sustainable management of natural and physical resources, while sustaining natural resources mitigating negative effects safeguarding air water etc
what is a contract
promise between able parties, that create an obligation that is enforable by law
privity of a contract
the relation between the parties in a contract which entitles them to sue each other but prevents a third party from doing so.
elements of a contract
offer acceptance consideration intention to be bound capacity reality of consent legality
3 forms of contract
contract
deed
covenant -covenantor makes promise to do or not do somthing
Offer
time dependant can be revoked comunicated intending to lead to a binding contract needs to be promissory
revocation of offer
can revoke before accepted
-scheduled revocation’good until’
offer revoked by counter offer -offeree asking for somthing else
so whats the order of things
invitation to treat
offer
acceptance
contract
a quote is an offer but must
state what work to be done
how long
rates
how must accept
formal notification
by placing an order
by implication (tacit)
by reliance (offer used in subsequent tender offer)
reaility of consent
mistake-wrong calcullation
missrepresentation -as an engineer you may give wrong information which leads contractor going into contract
duress-3rd party pressure to contract
Procurement
the framework within which
construction is brought about, acquired, or
obtained.
What is the difference between purchasing and procuring
procuring deals with the negotioation, and strategic selection of services and goods whereas purchasing is just odrering
What is a procurement contract?
a contract where a buyer agrees to buy goods from a seller in exchange for consideration
Rules of Contract Administration
- Read the contract!
- Do what the contract tells you to do!
- Do not do what the contract tells you not to
do!
list the delivery methods
-negotiated
-Design big build (traditional)-DBB
Design build (DB)
Project Manager Agent (CMA)
PPP
Alliances
Early contractor involvement
DEsign BID BUILD
owner has contracts with engineer, and contractor seperatly. 3 players. 2 contracts.
3 phases, design bid build
selection process for DBB
designer-qualifications based
contractor-lowest bid
DBB advantages for owner and contractor
owner-historically accepted -price fixed before construction. owner involvment is low -contractor takes risk for construction CONTRACTOR -contractor sets price owner involvement is low innobvation=opportunity
DBB disadvantages
OWNER -long delivery time no adive during design lead to change in scope low bid not always low final cost. COntractor low margins high risk for unforeseen conditions
Project Manager Agent (CMA)
4 players, 3 contracts, owner to architect, manager and consultant
3 phases, desgin bid build
Project manager agent selection process
PM-qual
A/e qual
QC low bid
CMA advantages
OWNER
-increased representation
flexibility
increased value engineering
project manager disadvantages
OWner
PM assumes no risk-owner holds contracts still
PM licensing not avaliable
higjh owner/PM invovlement
Design and Build
4 players, owner A/E, GC and desing builder. 2 phases, design build
1 contract
selection process
DB-qual and low bid
DB advantages
OWNER -reduced duration high constructability -claims reduction DB get both design and construction fees good relationship with AE and GC react quick to scope changes
DB disadvantages
OWNER reduced involvement difficulty of selection DB large staff more risk scope changes difficult to track
whats the trend with these delivery processes
DB going up DBB going down CMA staying low
comparison for cost
DB costs 4.5% less than DBB
DB cost 1.5%less than CMA
why this difference in cost
DBB expensive bc phases dont overlap, timely, change in scope=big cost,.
CMA next as expensive bc price settled before design, less competion.
DB cheapest. fastest
ALLIance
costly to start selection on qualification better quality major contractors are now stakeholders -group environment, creative open book risk sharing is major difference
PPP
public private partnership
has to be larger than 50 mill
25-35 years
large projects
PPP more characteristecs
output clearly measurable
delivers an asset not an avctivity
more PPP
costed on whole life basis
high maintenance requirements-transfer maint
shift risk to private sector
what was the result of the leighton works JV and what does it mean
the main contractor did not have to act fairly in choosing the subcontractors tender by law. this mean anyone tendering where the docunents fo not fully comply with the hoigh corurt criteria can have no expectatio that their tender will be treatred fair. or that late tenders willl not be sought.
list the order of how tenders go down
contractor makes invitation to treat which includes conditions.
tenderer makes an offer, if it is non capable of acceptance it is a non conforming tender.
this is either accepted or negotiated
first lot of steps in southern road project preperation
designation(land designated to be built on)
concept design
specimen design
PRINCIPAL REQUIREMENTS
consents (need specific details, no room for change after)
appeals
Tender steps In Souther road project
interactive meetings
then supply quality premium
then tangible cost adjustment
then price evaluation with these two factors. lowest adjusted tender is used
what is SQP
supply quality premium-track record, scale for risk
what is TCA
tangible cost adjustment
adjust price for using different parts of other tenders
what occurs during construction to assure no suprises
certification
why do Consenting procedures work against DB
practice
because to get a consent for the project you need all specifications which leaves no room for changes which would normally be done in db. DBB is allg with consenting proceudres
advantages and dis of the southern road project
- increased competition throguh interavtive meetings
- reduced competition through reduced numbers of bidders
