Tute 5 (Melany) Flashcards
List the common procurement types. (8)
- Traditional Fixed Price Lump Sum
- Design and Construct
- Design and Construct (novated)
- Early Contractor Involvement
- Project Alliancing
- Cost Plus
- Construction Management
- Fast Track
What 3 elements constitute the formation of a contract? (3)
- An offer
- Acceptance of the offer
- Consideration (payment or other such agreement)
What are the 3 ‘Risks’ that should be considered when advising on a procurement strategy? (3)
- Time
- Cost
- Quality/scope
Which of the 3 ‘Risks’ can be varied under the Traditional Fixed Price Lump Sum contract? (3)
All.
TIme, cost and Quality can all vary.
What are Melany’s favourite 3 foods? (3)
- Hot cross buns
- Koko black chocolate :)
- Peanut butter
What types of projects suit Design & Construct (pure D&C, not novated)
- Simple projects, where design (and architectural input) are not a key consideration of the client’s brief.
- Eg, a shed.
- Quick & cheap, with limited design.
Which procurement method would it be illegal to use for a residential client where the budget is for less than $1 million?
Cost Plus.
What are the advantages of using a Design & Construct (novation) contract?
- Owner dealing with one entity from inception to delivery.
- Integration of design & building expertise
- Possible shorter duration
- Fixed cost and time
What are the disadvantages of using a Design & Construct (novation) contract?
- Lack of independent or impartial professional advice by an architect or consultant having no commercial interest in the outcome of that advice.
- Potential reduction in quality of finish.
What are the advantages of using a Project/Construction Management procurement model? (2)
- projects can be fast tracked.
- potential cost saving because the client assumes all risks of the subcontractors (the head contractor would normally absorb this).
Describe how Project/Construction Management differs from TFPLS.
- The owner engages the subcontractors directly, cutting out the Head Contractor.
- The owner engages a Project/Construction Manager to manage and coordinate the trades.
- The Project/Construction Manager has no direct financial interest in the selection and performance of trades.
What is the key benefit/s of Early Contractor Involvement?
- There is an overlap of the architect and head contractor, so that the client can benefit from construction advice & knowledge during the early design phases.
- The (independent) architect can continue to be engaged throughout the course of the project.
- There can be various contract arrangements within this model.
