Procurement And Contract Advice For Clients Construction Essay

Procurement And Contract Advice For Clients Construction EssayThis section of the theme insinuates both tralatitious and physique and build forms of procurement to aid leaf nodes in chthonianstanding and selecting the appropriate method.Traditional ProcurementThe most well known and widely accepted form of procurement in the aspect industry. Traditional procurement caters for all types of client from individuals constructing a see for the first clipping too spacious complex projects where the function of the building is paramount.Traditional OrganisationClient / EmployerContractorSub diluteorsEmployers AgentQuantity SurveyorArchitectCivil / structural Engineer some other public figureerscontractual LinkThe traditional organisation diagram highlights how contractual links are formed within traditional procurement. As the client you are contractually bound to the origination team. This is important and should be considered seriously as the contractor is at no direct cont ractual link to the architect.The primary procurement method in traditional procurement is the two stages complaisant. Initially the client must produce a brief which outlines what your requirements. This must include relevant figures such as budget and succession constraints. Now a team of consultants needs to be ap spirit leveled, this will comprise primarily of an architect who will guide you through the design and construction processes. Other members will need to be appointed based on the scope of the project. These include a amount of money, structural engineer and a clients representative on large projects.(Stage one) Design and tender documents bum now be produced. A select number of contractors will be invited to tender on the partially completed tender documents. This will include a build up of the hurt of the project via a document called the bill of quantities.(Stage Two) A contractor is now selected based upon the price and having the relevant resources required t o complete the project. The contractor now has involvement with the design team to negotiate a finalised price for completing the construction works. Also he can seduce involvement in finalising the design.This form of procurement is considered low guess as the risks to overspending, delays and failures in the design are reduced. This can only be achieved however, if the design has been thoroughly produced by the architect and completion date targets specified are unreasonable.Design and institute procurementThis procurement method differs from traditional procurement as the contractor is largely responsible for the design work. This relieves some of the contractual pressure on the client. With the contractor being involved in the project from the design stage it allows their expertise to be incorporated into the design phases. One of the largest advantages to design and build is the reduced time scale that projects can run to. Design instruction can be still being produced whil e construction work commences. This doesnt come without its risks however.Client / EmployerContractorSubcontractorsEmployers AgentQuantity SurveyorArchitectCivil / Structural EngineerOther DesignersDesign and ground OrganisationTendering for design and build projects is more costly than traditional projects therefore the number of contractors tendering is reduced. This is due to the time and resources it takes for a contractor to produce the relevant design and pricing information. Cash flow within a design and build project can be more substantial in the beginning than traditional as the contractor requires money for the design as well as construction. This is also due to larger risk being imposed on the progeny of an issue in the design being raised by the client as the contractor is the first point of fall into place. This will then cover the costs of having to transfer this information. This is not required in traditional forms of procurement as the client is in direct conta ct with the architect.Types of Contract(The information for types of contract has been cited from deciding on the appropriate JCT contract 2008 available from the CIS published by Sweet Maxwell limited)TraditionalLump make sense contracts The agreed sum of construction is agreed based on a design and specification. A bill of quantities is produced for the contractors to price the works.Measurement contracts The end price of the construction works is not agreed until the end of the construction project.Cost reimbursement contracts Price of labour, plant and materials is calculated at the end of the project. Overheads and profit is then added onto this.Design and BuildPackage deal or turnkey contract A package is selected usually from a set standard of specification from a contractor.Design and Build contracts This form of contract will cover the contractors obligations to the design and build of the project.JCTStandard building contract with quantitiesThis form of contract is suitable for the traditional procurement method. The client must appoint an architect, contract administrator and quantity surveyor to administer the work. Contractors will tender the works based on the drawings and a set of bill of quantities.Design and build contractStandard form of contract for design and build works. Contractor is principally responsible for the design and construction of the project.PartneringJCT contract also provides an outline for setting up a partnering agreement between select members of a construction project. Everyone throughout the supply chain is bound to the agreement to work collaboratively and to have everyone best interests in mind. This should be considered as a form of contract that Hotels R Us should look into in the future when they have sufficient convey in the industry.ICEThis form of contract is suitable for civil engineering works such as bridges, roads and dams. The project will be intentional by a team of engineers and qualified contrac tors will tender for the work. The engineer is the principal administrator acting on behalf of the client.NEC 3 pay and event clausesThe NEC 3 contract was derived from Ice form of contract. The principle goals of the NEC contract are to provide a contract that is flexible, simple and clear to understand. in that location are many different types of NEC contract which cover traditional and design and build types of procurement. This section is going to cover early warning procedures, compensation and event clauses.Early warning clauses can be found in section 16 of the NEC contract. These are basically a set of rules that the project manager and contractor must adhere to when they are aware of a cost or time issue on the project. It is there duty under contract to notify one and other and request an Early warning meeting which relevant members should be invited such as the client, architect or quantity surveyor. During these meeting the issue will be discussed and the relevant act ions that need to be taken should be appointed. The advantages to this system of traditional methods of the contractor submitting a formal bankers bill is that issues can be resolved in the most economically viable method, this offers clients more safety in terms of cash flow.Compensation events are cover in section 60 of the contract. These are claims made by the contractor requesting either more time or money for the project. The project manager can also notify the contractor if he is aware of such an issue. NEC3 outlines the methodology behind compensation events, the contract has eight weeks to notify being aware of a compensation event and must make a claim within this period.As a client entering into the construction industry for the first time it is often difficult to understand how and why construction projects can run over budget and cost more money. The compensation events detailed in the NEC3 contract try to justify how such events can occur.