7-Project Delivery Systems
7-Project Delivery Systems
7-Project Delivery Systems
Design-Bid-Build
Design-Build
Construction management
Build operate transfer
Design bid build
OWNER
Disadvantages:
Potential for conflict
Time consumption
DESIGN/BUILDER
DESIGN/BUILD SUBCONTRACTORS
ARCHITECT
OWNER
PROJECT MANAGER
Basic elements:
Treaty and legislation:
Concession:
Lease
Project finance
Construction
Operation
Build operate transfer
Disadvantages
Preparing a consortium to tender for a BOT project is a
difficult task, and the number of construction contractors of
financial standing sufficient to attempt this task is limited.
Transferal of ownership in infrastructure from the public to
private sector detracts from the government’s ability to deal
flexibly with the facility.
The commercial outcome of a BOT structure is unstable, and
depends fundamentally on accurate cost benefit analysis. Such
analysis is difficult and complex and has been found on several
occasions to result in a lower rate of profit anticipated.
Choice of project delivery systems
Factors
The need for strict cost control
Schedule requirements
Financing considerations
Contract
Definition of parties
Identification of applicable law
Addenda issued before bid submittal
Constructor’s bid
Notice of award
Effective date of contract
Definition of uncommon terms
Scope of work
Plans and specifications for facilities to be
constructed
Construction contract documents
Unit price
Turnkey
Negotiated
Cost plus
Unit price
K = (A x a) + (B x b) + (C x c)
Unit price contracts are desirable when plans and specifications are not
completed at the time of bidding, although there is obligation to start
construction.
Furthermore, it is a steady and guaranteed system for the contractor
who is covered against any fluctuations in the market.
Lump sum
The sooner the job is completed, the sooner the contractor gets
money.
However, in this system, plans and specifications must be
elaborate, precise, detailed and complete.
A complete control must be kept on the job site since the
contractor may use the poor material and unqualified labor.
Turnkey
To contractor
Flexibility for the contractor in accommodating changes made by the owner
Minimum financial risk for the contractor.
Cost plus