PROCUREMENT AND CONTRACTS Flashcards
Procurement methods
Traditional lump sum (construct only) ABIC suite.
Design + construct + possible notation
Project management - not alternative but changes role
ECI Early contractor involvement inc CM, MC, GMP
BOOT and PPP
Alliancing models
Negotiated contracts
Cost plus
Schedule of rate
Plus new stuff
Traditional lump sum
- Architect engaged fully by client
- successful builder engaged by client for construction
- contract administered by architect.
PROS
High quality, tried and tested, easy variations
CONS
Longer duration, contractor not available for cost during design stage, cost overruns
Project managers in traditional lump sam
Not an alternative but the PM takes over the architects role as superintendent and becomes a middle man of communication between architect and client and/or builder.
Design and construct
- Architect engaged to complete partial documentation between 20% to 30%
- builder completes documentation as well as construction
- Architect may be contracted to builder (novation) or new design team
PROS
Reduced time, more cost certainly, better constructability
CONS
Scope change expensive, tenders can be different, liability remains
Early contractor involvement (ECI)
Construction Management
Client engages all subcontractors directly, with a construction manager potentially managing but not certifying work. Architect usually only engaged for documentation for the trades.
PROS
Buildability, streamlined, fewer variations, less adversarial
CONS
Client no longer gets independent advices, owner unlikely get second tender so less competitive,
Early contractor involvement (ECI)
Managing contractor
Like the other ECI but the contractor also manages the subcontractors
Can be open book (% on top of subbies), lump sum like d+c), or GMP.
PPP and BOOT
Public Private partnerships
transfers risk off public books and usually a consortium funds builds owns and operates a project with an agreed lease until it transfers to a client
build own operate transfer
PROS
Reduces risk and public debt, minimises public cost, innovative
CONS
Not low cost overall, only large projects
Project alliancing
Very uncommon- where a group comes together client (finances, architect (design) and builder to share risk and reward.
Cost plus
Similar to usual lump sum arrangement contract fee is a percentage on top of costs usually
PROS
High quality, better cash flow for builder. Risky
CONS
Can be expensive, scope creep, lots of admin for the builder.
Contract types
ABIC (SW, MW, Commercial cost plus and BW) SW H up to $3 million MW H over $3m MH Comm all non-housing projects BW under $500k EW for preliminaries.
AS 2124-1992 traditional lump sum -common
AS 4000-1997 successor to the above simpler language
AS 4902-2000 Design and construct
Contract selection
- procurement methods affect contract choice
- Architects should be familiar but not necessarily knowledgeable of contracts
- Consider size complexity timing etc
Clauses to avoid
Ensure clauses Indemnities Warranties Fit for purpose Set-off clauses Standard of care Waiver of rights Limitation of liability Intellectual Property Notation
