Strengths And Disadvantages Of Contracting

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INTRODUCTION Background: In considering which contracting method to use the employer will need to assess his own particular institutional and technical strengths and weaknesses (including access to financing). Each method of contracting affects in its own way the allocation of responsibility and the demands on the employer for co-ordination of the project. Through the proper allocation of responsibility for the project to reflect these strengths and weaknesses, the employer can rationalise the price of the contract against his exposure to project risks. The employer's first consideration will be to identify the design source, i.e. the person who will develop the employer's requirements for the project into a practicable design. This design…show more content…
Two party approaches: The FIDIC contract does not provide for the institutional position of an independent engineer with the right to approve works and the potential to affect the legal relations of the parties. The developer interacts directly with the contractor under the contract on issues such as claims for extra cost and/or extension of time. However, the FIDIC contract does allow the project company to appoint a representative who can act on project company’s behalf. Therefore, the project company’s engineer may be appointed as the project company’s representative and can be authorized to interact with the…show more content…
interdependence of activities, phase evedaPs- work fragmentatioti, complex organisational sitneture and uncertainty in accurate predictton of desired outcomes. In the engineering and construction industry, larger usually use matrix Organization for the management of projects. Matrix organilation iemains-a complex structure. project activities an= highly inter-dependent as they are intricately connected and have a complex process relationship. For example, it is not only upstream activities, which affect the downstream activities, but the reverse is also true. Thousands of These interdependent activities make up an intricately linked human activity system. in the case of a large engineering project. Information transfer is essential and iterations typical. De la Can (1994) considers work fragmentation involving multiple organizations, 4 major challenge:Owner, design firms, construction firms. equipment, agencies, end users, facility operators, maintenance teams and demolition firms are some of the participants involved in the life cycle of any constructed facility. The large number of participants in the project causes the problems of fragmentation. Project participants exchange infommtion back-and-forth at all times. Adversarial relationships between organizations may also arise due to work fragmentation. The duration of some activities is unpredictable, especially in negotiation, obtaining
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