| Topic : Construction bidding |
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Activity:
288 views;
last activity : 07 06 2010 20:18:09 +0000
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Design Bid Build Project
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Who will take the Float ? Contractor? Consultant? orClient?
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Contract Management Team...!!!
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Factors affecting success of design Bid system
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sunjeev sharma - Turtle
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Delay in Construction projects in India
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Construction Manager
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I think design-bid-build project delivery system is the best idea, It is the project delivery system that is most widely used today and which is still required by some states, In this system the owner contracts separately for the design and construction of the project. The owner contracts directly with a design professional for the preparation of plans and specifications and assistance in the bidding stage. The design professional may also provide oversight of the project during the construction phase. The owner enters a separate contract with the general contractor for the construction of the project.
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I agree with bhanu pratap that this is the best way to cut costs and also ensure that your client's are getting the oppurtunity to save money.
I agree with bhanu pratap that this is the best way to cut costs and also ensure that your client's are getting the oppurtunity to save money.
it is best to opt for a Design Bid Build system & appoint a Contract Management Team to oversee performance with set parameters.
EPC shall comprise Design & Technology, Procurement / materials mangement & Contracting with construction management & technology.
the process shall cover 3M's - Manpower, Machinery, Materials. the common denominator linking the 3M's is MONEY [the 4th un-acknowledged M] which is ulitmately the most important factor in everybody's mind.
u earn MONEY from optimised usage of Manpower, modern Machinery / mechanization [backed by correct technology & right methodology], right Material Management Practices.
proper usage of 3M's as per S curve path & bell curve loading of resources will guide the managemnt on stage payments & credit managment, leading to efficient & proper usage of a team
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Construction projects frequently suffer from delays and are completed later than agreed by the contracting parties. Substantial financial claims will arise with this circumstance, Contractor, Consultant and employer often argue about the cause of and liability for the delayed circumstances. Normally the float for each activity and total float are utilised by all these parties and it is doubtful that who realy owe this float? |
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contractor of course should enjoy major part of float. I agree with Mr. syed fazullah khan that consultant should also enjoy some part of the float.
The float should always be with contractor. Being the specialist agency of construction he should be abide contratually by appointing him as a "General Contractor" for the project.
Ideally, Contractor should enjoy the Float as Client is protected with LD clause in most of the cases, isn't it?
However as many Construction project are started either before completing the design process or undergo major changes due to CLIENT requirement, Consultants should also enjoy one third of the float in INDIA.
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All Projects are MADE of CONTRACTS...!!! Irrespective of the Delivery System, a Good Contract Management Team is a must to Monitor and Control if the Deliverables are in line with the Requirements set for the Project. Whether its from Client side or Contractor side, a Good Contract Management Team is a Must. It is better not to overload such contract management teams with roles and responsibilities which may dilute their effectiveness in managing the CONTRACT. Thus it is a true fact that whoever has a CONTRACT MANAGEMENT TEAM in his side has better chances of exhibiting their responsibilities and dealing with their liabilities in a Project Smoothly...!!! |
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As the limit to load any team depends on the strength of team members such as Knowledge, soft skills ,flexibility etc., how to manage the team in the absense of Roles & Resposibilities. Can you elaborate?
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The importance of Absolutely Accurate Architectural, Structural, HVAC Drawings and Integral contract document is un-questionable for the Design-Bid system, since the entire success of the Project lies in this. A small inaccuracy in drawing, misspelled specification or a missing contractual clause can cause horrendous mistakes and Deviation Work orders. The coordination of the drawings is also a must. An architectural drawing incompatible with structural or plumbing drawing is also a cause of the conflict. I conclude to state that these are the precautions to be followed while implementing Design Build system |
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Very rightly said, design bid system works efficiently nowadays but we need to ensure effective management and monitoring control on the proceedings. This monitoring body take control of all such minor uncoordinated or missing details and manages the mis spelled specifications, if any during the construction stage and this is done even without effecting the cost parameters.Here comes the "value addition" which is an integral job of this controlling agency.SETTING UP A SYSTEM DOES NOT WORK UNTILL IT IS IMPLEMENTED, CONTROLLED AND MONITORED SIMULTANEOUSELY.
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You both are touching the absolute line but having a third independent party associated directly under the Client to monitor the project from inception till the completion will certainly preserves the Clint's interest and the project parties as well which in tern motivate and contribute major in project completion. |
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It is due to various cumulative factors.
There is a peculiar concept of Force Majeure, that there is no need to plan for and overcome delays caused by Act of God. Actually with increased resources and preventive arrangements, these delays can be partly reduced. Like Diesel generators for Power, which have gradually become very common in India though earlier the failure of Power Supply was treated as Act of God and in fact elaborate records of Circulars etc were maintained. One important reason for this attitude is that no one believes in the Cost of Time or Cost of Delay, as long as the delays can be explained away. All try to find Justification rather than Cure for the Delays caused by Act of God.
Second major factor is the highly indisciplined nature of Labour in India and the anticipatory attitudes of their Users (Supervisors, Labour Contractors, Labour Officers, even the Labour Deptt. of Govt.). There is a spill over effect from the general social attitudes towards those persons who work as labour, as if thgey were inferior human beings. An attitude of mutual suspicion and even hatred between Users and Labour, makes natural communication impossible and a highly formalised Adverserial communication system evolves at every Construction Site. This inability to communicate, which is bidirectional, greatly reduces the options available for preventing delays, but the people involved are unwilling to give up these inherited attitudes.
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I could say construction manager is most useful on a large, complex project which requires a good deal of oversight and coordination. A construction manager is also helpful to an owner who does not have a sophisticated in-house construction team. A construction manager can help the owner control costs and avoid delays on complex projects.
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I agree with Mr.Nithin on the importance of Contract Administration which will compliment the success of any project. In my view, strength and expertise level of Contract Administration Team depends on the business model of the Developer / Contractor and awareness level to be increased among all stakeholders of the project.
Mr, Venkataraman what u said is right and also the owner must weigh the relative advantages and disadvantages of each construction delivery system before beginning the project and factors that the owner should consider are the complexity of the project, the relative importance of cost or schedule and the in-house expertise the owner has to manage the project
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