Module 9 Flashcards
What does Procurement mean?
The act of securing materials
or services to complete a project.
What does Project Procurement mean?
Encompasses how an architectural project
is secured, what services are required, and what
contract administers the contractual relationships.
Why is it important to understand project procurement? (Four Reasons)
- Deciding on the best procurement method is an opportunity to discuss what is best for the project.
- It influences what architectural services you provide.
- Defines the contractual relationships between client and
architect, architect and others. Who pays who? - It determines the “type” of contract/agreements for the job.
What are 3 common project procurement ‘methods’ / contracts?
- Novation
- Design and Build
- Traditional Lump Sum Contract
What are some additional contracts for architects or designers?
- Project Management Contracts (Subcontractors to engineers or larger firms)
- Partial Services
- “Going Beyond just Traditional Architectural Services”
What are some services which are considered “Beyond Traditional Architectural Services?
Urban Design… Advising… Cultural Mapping… Team Assembly… etc??? (Perhaps add to this slide lol)
Describe the Procurement Method: Traditional Lump Sum Contract
Form of project management where the architect manages
the design and completion of the project on behalf of the
client – “full architectural services.”
Client and architect have a service agreement and architect
is responsible for design, documentation, tendering, setting
up the building contract (between owner and contractor)
and administering the building contract. See AAS 2018.
What are some advantages of Traditional Lump Sum Contract?
- Construction price is established in advance and based on competitive market conditions (tendering)
- Completion of full documentation before tendering should limit future claims by contractor for omissions, errors and ambiguities;
- Building contractor responsible for all sub-contractors.
What are some disadvantages of Traditional Lump Sum Contract?
- Client outlay approx. 70% of consultants’ fees prior to construction starting.
- No building contractor’s input and only rely on consultant team’s knowledge of construction and buildability.
Describe the Procurement Method: Design and Build Contracts
- Design and construct contract includes the provision of design as well as the building itself.
- Architect has a service agreement with the party doing the construction and no formal contract with the client.
What are some advantages of Design and Build Contracts
Client has total commitment for cost and time for the project at an early date.
Also, client benefits from improved buildability with the earlier involvement of the building contractor during design phases and construction can start earlier on site.
What are some disadvantages of Design and Build Contracts
Client distanced from design consultants. Architect therefore has no control over cost, time or quality. These matters are settled directly between client and contractor.
Describe the Procurement Method: Novation
Design consultants initially employed by client to undertake design and documentation to a varying extent as agreed with the client.
Client then novates the employment contracts with architects and other design consultants to the building contractor who employs them through to the end of the project. Architect is bound by the two separate contracts - one with the owner and the with the building contractor.
What are some advantages of Novation Contracts?
Client has control over the early design phases. Once novated the Client is no longer responsible for design or documentation errors. Client can accept lump sum bid for the completed project, subject to client initiated changes. All other variations, including errors from design team, are at the building contractor’s cost.
What are some disadvantages of Novation Contracts?
Client is locked into the outcome defined by preliminary tender documents. Client can only rely on architect to carry out their vision, although they are now employed by contractor.
Describe the Procurement Method: Partial Services
Form of project management where the architect manages
only SOME of the design and documentation services that
are typically completed by an architect.
What are some advantages of Partial Service?
Client gets certainty about certain stages before committing more money to the project
i.e, concept design only then a cost estimate. For some architectural consultants this is what they prefer to do the “fun” parts of the project and leave documentation to
someone else to do
What are some disadvantages of Partial Services?
Architect’s knowledge and experience then removed from important stages of a project.
i.e., during construction phase, means that the design quality could drop. Also the construction phase can be drawn out and more costly especially when a client manages it themselves.
NZRAB Architects Code of Ethics - clause 58a, requires architectures to have agreed terms of appointment which include what?
- Scope of work
- Allocation of responsibilities
- Any limitation of responsibilities
- Fee or method of calculation
- How billing will occur
What are the 4 Parts in NZIA AAS 2018?
Part A: Contract
Part B: Scope of Services
Part C: Fees
Part D: General Conditions
Who does the architect exchange money with in the Traditional Lump Sum Procurement Method?
Architect Receives from Client
Client Pays Sub-Consultants
(Note: Contract Administration engagement with Builder/Contractor, but only on behalf of the Client)
Who does the client exchange money with in the Traditional Lump Sum Procurement Method?
Client Pays Architect, Separate Consultants, and Builder/Main Contractor
Who does the architect exchange money with in the Design and Construct Procurement Method?
Architect Receives from the Builder/Main Contractor
(Note: Architect generally a sub-contractor of the main contractor)
Who does the client exchange money with in the Design and Construct Procurement Method?
Client pays Main Contractor.
