Choosing construction management as a procurement strategy means the client is responsible for leading the
Choosing the most suitable procurement method for the specified construction project is a long term hard decision; it is a
The Joint Building Contracts Committee (JBCC) Principal Building Agreement is a document that is followed by building owners and industry participants to which portrays the consensus view of all the constituent members involved in terms of a fair contract. This document sets out “clear, balanced and enforceable procedures, rights and obligations which, when competently managed and administered, protect the employer, contractor and subcontractors alike” (JBCC, 2014). This essay aims to highlight the duties and responsibilities of the principle agent in the Joint Building Contracts Committee (JBCC) Principle Building Agreement, Edition 6.1. The essay will pay particular attention to the range of the principle agents duties, the pressure of the principle agent serving as both representative of the employer and as an independent professional, the nature of the
Keeping all this in mind, builders have to work alongside clients to satisfy their project needs. Projects are also being built quicker because of the demand to occupy them instantly.
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
This paper includes a description of the procurement planning process. The most valuable output of the plan procurement process will be identified. Furthermore, the various contract types will be explained. A source criterion that would be applicable to any project will be described and three criteria that would apply to most projects will be identified. An analysis of the ethical
Through tendering it should be conducted systematically and involve a score matrix with standardised to bid/or not bid questions that will assist in determining whether to advances whilst removing personal opinion from the equation. It is vital that the mandatory requirements are reviewed for the bid some of which may include contractors
Lai and Lam noted that construction projects require concise planning, and are divided between the consultant and the contractor. However, each party plays a significant part in the projects’ success. The difference between the client and the contractor; the client usually push for timely completion and would offer an incentive bonus for timely completion, however, the contractor would prefer a reasonable duration of time, therefore to avoid penalities to the contractor.
In most of the cases, when it comes to implementing a business idea into reality then hiring a construction contractor becomes an essential need. However, we also cannot hire any commercial builder for the task because this is not an investment that we make every day since it involves a lot of money where we do not want to take any risk. In that case, hiring the best construction agency is very important so that we are going to get a quality and productive result in the end.
Project management has many important components that must be integrated in order to ensure the overall success of an endeavor. One area that many businesses focus on is procurement in order to maximize the benefits for the organization. As a result, many organizations are hiring procurement specialists with the purpose of ensuring that their procurement practices are efficient and current with business practices. This paper will discuss the procurement process, some of the benefits procurement offers a business, and the attributes a procurement professional should possess to become successful in the field.
In construction projects, mostly the firms (in this case the firms become client) do not have the skills or develop skills inside the firms to undertake the projects due to amount of the projects should be conducted or the complexity of the projects (Reve and Levitt, 1984). Therefore, the economic decision to conduct the projects is to procure them to third parties. However, more commonly the client agonize the final quality of the projects will meet standard requirements. Thus, impacts to involvement of complex contracts of construction procurement.
Client and the contractor have same priorities. Basically, contractor will make the decision in turnkey approach and client will just accept in silent. In this project, the contractor and the client have the same focus and priorities therefore the relationship between the contractor and client is good and there is no overruns or communication problems between both sides.
Royal Construction is one of the consistent house construction companies. It has been in existence for the last twenty years, with an objective of meeting the requirements of their clients and satisfying them by offering the best possible results. Recently, the company was awarded a contract of constructing a house in Ohio with Mr. Smith. He decided to offer this tender to the company because he learnt that the company offers good services at a reasonable price. The project was scheduled to take one year covering the basement, ground floor and first floor. The project is estimated to cost USD 140,536. The above description is recorded in the contract signed by both parties. This paper seeks to provide a description of human resources, communications, stakeholders, procurement, planning and control of quality in this particular project.
This type of procurement strategy is a ‘fast track’ strategy. Client pays a sum of money to hire a management contractor to manage the whole construction project. Therefore, some early work can be carried out before the design is complete. The contract for the construction projects are between the management contractor and sub contractor. The final cost for the project can not be identified until the final work has been awarded.
Design and Build – The contractor is single point responsibility with the contractor, where they put across a design with a tender and if they are successful they win the tender.