Advantages And Disadvantages Of Turnkey Contract

Choosing the most suitable procurement method for the specified construction project is a long term hard decision; it is a

In this method, the design and the construction roles are combined into a single responsibility and the team is referred to as the Design Build Contractor. The architect is under contract to the contractor and not the owner. The advantages of this method are that the owner is dealing with one contract for the design and construction and does not get involved in the details of the design and construction. The design can be accomplished according to the budget and easily be changed if necessary. Since the maximum price is set in an early stage, this method is faster than the design-bid-build and the construction manager method. However, there are drawbacks to this approach. Since the architect and contractor report to the design/build firm, a conflict is created between the owner and the design/build firm. Also, as the design and construction roles are part of the same team, this can lead to a disadvantage. As the owner is no longer dependent on the architect, the architect’s judgement is no longer provided to the owner and this leads to quality control problems. (what I think if this is the best method or

Acceptance. The proposal is based on the bid documents, which consist of the project drawings, specifications and/or instructions of the client only modified by written agreement or Elite’s objections. Significant deviations between the actual conditions and circumstances of the work and those specified in the bid documents shall be cause for an adjustment in work scope, price and time allowed for performance. This document shall be valid for no more than thirty (30) days from the date of issue, unless specifically stated otherwise. Client may accept the quotation by signing and returning a copy to Elite or by returning client’s own written instrument or order expressly acknowledging the quotation and terms set forth herein, provided, however, Elite hereby

Ethical issues can occur between a contractor and customer that if they do not perform proper integrity during the contracting process. Contractor and customer contracts are legally binding documents that are only effective within an ethical framework that assumes both parties will follow their contractual obligations. A customer that obtain and satisfy contracts ethically during the contract process is performing the basis for an efficient ethical contracting process. If a project manager engages in unethical behavior, then that project manager may lose contracts and embarrass their organization. The organization will waste valuable resources in legal entanglements if they get caught performing unethical behaviors. Below are some healthy and ethical ways organizations can keep a professional contractor-customer relationship (Markgraf, 2016).

It is imperative that the architect convince the client that he or she has the necessary experience and capability to undertake the project and to complete it satisfactorily. S/M has found with its large projects that the amount of time spent meeting with the client

My company proposed approach is comprehensive, and innovate and will integrate all your needs by reducing the risk and make project successful keeping all the budget constrains in mind. My company develops the effective software

It usually done through bidding process that participated by many contractors. And most of the project done by the company is just a softscape services.

In order to assess the the contractual/ legal issues involved due to the problem, it is necessary to understand the procurement approach undertaken for the project. The project endorses traditional procurement approach where Architect is acting as the client’s Superintendent. According to CRC (2004) traditional approach involves consultant that are appointed for designing and cost control by the client, while the contractor is responsible for carrying out the works.

In this stage the project contract including all details about cost, quality, and timing is presented and usually several contractors make an offer. Then a contractor (or more than a contractor based on project requirements) is selected to accomplish the site construction. Usually the cheapest offer wins; of course there might be considerations of quality.

Clients have the freedom to change requirements for the project and also have access to the final products quicker.

The procedure of construction industry is more complicate and always takes longer time than manufacturing sector that is because we have to make an early preparation before construct any houses or the building due to the time, quality and cost. Also for the location, the developer need to find a stable, good and correct location and needs to make a research and analysis the land value so that no risk will be taken. As for the tendering, the appointed consultant is taking a lot of time to finish the tendering which is to hire a contractor for the project.

Outsourcing is contracting out with third party for a product or service. Sometimes, outsourcing employees from one firm to another is also possible, when an organization lacks in skilled persons and technologies. Outsourcing tools are used by owners to run a better facility and by facility managers to build a better career. The most common areas of facility management that are used to outsource are custodial, landscaping, system maintenance, construction, engineering and management of property. Outsourcing has become one of the most important knowledge areas of project management, which is increasing with pace. Outsourcing facilities first began at banks and expanded for manufacturing, utilities and healthcare. As the outsourcing brought into light over time, risks began to arise. Common risks involved in outsourcing are improper communication between client and vendor, imperfection in project scope and improper specification of requirements. Although risks lead to outsource disasters, it depends on how well the strategies for managing them are carried out. Outsourcing buyers look for meeting triple constraints neglecting triple constraints. Automation could resist organizations from outsourcing but, trends in outsourcing bring the market value for outsourcing.

The change orders in developing country like Oman, the change orders were mainly due to the political reasons, errors in designs (Alnuaimi et al. 2010). The authors figured out that clients were the number 1 cause of the change orders in the public projects. The delay in completion date was the main effect of the change order and the second most noticed effect was the ‘the variation would result in claims and disputes’. The survey showed that most benefiting party was the contractor. But the authors believed that the most benefiting party was consultant because of the reason that it would get paid for any kind of time extension or design modification. The authors found a) 'Registration of the consultant company should be reviewed to reflect its technical capability ' b) 'A standard document should be developed to establish the stages/steps from the start of the project until completion and close out ' and c) 'A common learning database system should be shared among all governmental units ' as the most important remedy steps adopted by the parties.

The most commonly used system within the construction industry, is for the client to appoint a company to carry out the work on their behalf. A contractor is selected to carry out this work either directly or through an Architect. The procurement process can adhere to a number of different systems that will determine, evaluate and appoint a contractor for a process, and the choice will be made, considering these factors along with the constraints that are pertinent to the contract itself.

There are different ways of invitation to tender. Once the client chooses to take the project in mind further, either directly approaches the contractor or through an architect. Client directly approaches the builder for the simple or low value work such as house decoration or house extension. The builder comes to the premises where the job will carry out, client explains the job and awaits for the offer. Then builder’s estimator measures the work, price it and makes the offer according to builder’s own terms and conditions.