Lecture 8 Flashcards
1
Q
PSMC
A
Performance-Specified Maintenance Contracting
2
Q
PBMC
A
Performance Based Maintenance Contracting
- provides incentives and disincentives to achieve desired outcomes or results from the maintenance contractor
3
Q
Why do PBC?
A
- ‘do more with less’
- minimise life-cycle costs
- innovation
- increase level of service
- reduce agency costs
- shifting risk to contractors
4
Q
Why NOT do PBC?
A
- change in culture
- incomplete asset inventory data
- privatisation fears
- insufficient competition
5
Q
Value in PBMC
A
- ## increased value if Level of Service (LOS) improves or remains while const remains constant or declines respectively
6
Q
LOS
A
Level of Service
7
Q
Advantages to PBMC
A
- reduction in costs
- improve level of service
- risk transfer to contractor
- innovation
- integrated services
- enhanced asset management
- achieving economies of sale
- partnering potential
8
Q
Disadvantages to PBMC
A
- costly tendering
- longer tendering period
- uncertainty with long-term contracting relationships
- loss of agency flexibility
- reduction in competition
9
Q
ECI
A
Early Contractor Involvement
10
Q
Background to ECI
A
- hybrid of both traditional and relational delivery methods (DB and alliance)
- support alignment of goals and trust between parties
- contractor and owner develop design and detailed project plan cooperatively
- risk adjusted price, agreed upon when all the risks can be assessed.
11
Q
Contractor in ECI
A
- selected on non-price attributes
- can form a consortium with a consultant
- negotiates price(s) for works
12
Q
Benefits of ECI
A
- work collaboratively with agency
- decisions made on “best for project” basis
- innovative and value engineered options recognised and realised earlier in the project
- improved risk management
- resulting in: lower costs, greater cost certainty, shorter completion time
13
Q
Time Issues ECI
A
- design phase progresses faster (contractors and owner)
- time savings insignificant (consultant) (because of additional consultation involving contractor and lengthy price negotiation process)
14
Q
Cost Issues ECI
A
- agreement on ability to save money for owner
- mixed views on ability to increase profitability for consultants
15
Q
Quality Issues ECI
A
- ECI encourages work above expectations due to project ‘ownership’
- ECI does not include delivery of improved environmental outcomes
