Design And Build Procurement Route Changes Construction Essay

image And shew Procurement Route Changes braid EssayThe creation and shit procural route changes the conventional grade of work. It answers the Employers wishes for a undivided- turn on of responsibility in an on the solelyeged attempt to reduce risks and eitherplace altogether lives. It is now commonly subprogramd in m either countries and forms of contracts atomic number 18 widely available. determination- advance is somemagazines compared to the master earner go about, adept of the oldest forms of pull procedure. Comparing set up- fix to the traditional regularity of procural, the authors of throw- come along Contracting Handbook historied that from a historical locating the so-called traditional approach is actually a very juvenile excogitation, only being in use approximately 150 years. In contrast, the externalize- get to concept also known as the master constructor concept as been reported as being in use for over four millennia. (Songer,1996) .The disadvantage of the traditional procurance method acting had been set in many another(prenominal) reports. According to Lathem Report (1994), it express that the traditional method has the b other of adversarial and inefficient way of doing things and separation of the roles and responsibility of team members. According to the crook Industry Review Committee Report (2001) stated that a mellowed degree of fragmentation with an adversarial husbandry and a contractual and confrontational culture would be create.The substitute procurance method would be sought for resolve those jobs.Describing rule and pattern as a viable alternative method, Songer and Molenaar (1996) reason that there are a number of advantages associated with Design and Build much(prenominal) as exist savings, improved construct magnate, time savings and claim reduction. From the Employers perspective, the unmarried point of responsibility is the most attractive benefit derived from the DB proc urement approach (Chan 2000). With the support of case studies and quantitative data, Hale et al. (2009) pointed out the Design and Build is superior to the traditional procurement musical arrangement hence recommended to use Design and Build approach in both public and unavowed sectors. Levy (2006, p.197) even suggested that the visualise-build delivery system appears to be a sinless vehicle by which to pursue sustainable or green expression plait.According to Chan and Chan (2004), the completion time as it relates to speed of a throw depended on the procurement method adopted for the final cause. They attri only ifed the slow delay find in one of the moulds to be due to the use of the traditional procurement method. However, they recognize the possibility of other factors playing a role that it was noted as the bug out who has suffered delays obtained better results in terms of subscribe to up compared those obtained through and through the method of program and buil d methodThe increasing the complexness of the witness, the Employer would be hesitated to how to reduce the time for ikon of speech and the time for construction. The Employer was get outing to seek for the alternative method to reduce the time of the fancy stage and the construction time and improve the performance of the objects. There are many alternative procurement methods study been developed in recent years much(prenominal) as Novated Design and Build and Enhanced Design and Build. The traditional procurement method is not the only choice for the Employer.Design and build is now one of the most frequently used procurement routes in construction and it is a radical departure from the traditional objective-bid-build method. The use of fancy and build is on the increase with many Employers perceiving it as providing better value for money and openhanded rise to less disputes than other procurement methods. As per the surveys of Royal intro of Chartered Surveyors,2004 , refreshful procurement trends piece of ass be identified which whitethorn be associated with the boom period in construction in the unseasonable part of the decade and it all the way shows that the Design and construction has grow the star dominant method since the previous survey in 1995, it was the traditional methodUnder a design and build contract the affirmer assumes primary responsibility for the design of the organic evolution, in accession to its traditional role to supply work and materials. The asseverator engages the design consultants, or to a greater extent ordinarily, has the appointments of the design Consultants novated to him.2.1 THE DEFINITION OF THE DESIGN AND get to PROCUREMENT METHODDesign and build is and order in which a structure declarer enters into a contract with you to design and construct your new building. It is the simplest approach, as one firm is responsible for producing the building you want quite an than this responsibility bei ng divided amongst some(prenominal) firms, as is the case with every other approach. (Sarah stay and rear end Bennett, How to use a design build approach for a construction discombobulate, CLOB, P2)Masterman(1992) state that the term Design and Build has almost been unanimously interpreted and defined as being an arrangement where one contracting placement takes sole responsibility, normally on a lump sum fixed price basis, for the bespoke design and build of a Employers chuck. This contains three main elements the responsibility for design and build, contractors reimbursement is generally by means of a fixed price lump sum and the project is designed and built specifically to meet the Employers hires.According to David Chappell (1997), Design and Build contracts place responsibility for both design and erection in the hand of the contractor one point of responsibility for everything. In this system contractor forget carry out two functions design and construct.In other de finition, design and build is an arrangement where one organization design and build to the firm order for the Employer to a single financial transaction. The Chartered build of Building (CIOB-1983) defines Design and Build as the process where the Employer deals forthwith with the contractor for the complete building and it is the contractor who is not only responsible for but also coordinates the separate design and build process, including engagement of the design team who are, therefore contractually linked with the contractor and not the Employer.The diagram downstairs shows the contractual relationship in the design and builds procurement method.ClientDesign Build asserterIn-house designers orexternal consultantsSpecialistContractorsSource Sarah Peace and John Bennett, How to use a design build approach for a construction project, CLOB, P2In practice, Design and Build procurement is generally structure in one of two waysThe Employers employ a apply Design and Build organi zation with its own in house design team.The Employers engage a general building contractor who employs external design consultant members of the contractors team for the duration of the project.2.2 STRENGTHS OF DESIGN AND seduce PROCUREMENT systemAs the Design and Build defined, it is therefore important to reveal the persuasiveness or advantagesof Design and Build as procurement system.One of the turgid(p) feature of Design and Build is to provide a single point responsibility. This is achieved by allocating all design responsibility and liability to the contractor alone. The proprietor whitethorn have more(prenominal) design options to choose from the respective design builders who enter the tender. Owner will tend to have variation of design ideas together with the expected cost that was proposed based on his destinys. Unlike traditional approach which only appoint a single unit of design team to come out with the design ideas, Design and Build will produce much more diff erent design ideas from the design builder who enter the tender (P. Chan et al.,1997).The possessors administrative burdens may be reduced because the procurement of design and build services is consolidated into a single excerpt process. After award of the Design and Build contract, the possessor will not be required to spend time and effort coordinating and arbitrating amidst separated design and build contracts. While the process does require the owner to provide prudent oversight of the design and build process, this responsibility is bulky less time consuming and exposes the owner to far fewer risks than the traditional approach (P. Chan et al.. 1997 Dennis Turner, 1986).Figure 2.0 (A) Single point responsibility D B Contract ,(B) Fragmentedresponsibility traditional contract (Source Bennett and Grice, 1992)In addition to the single point responsibility, cost and completion time is firm in the Design and Build procurement method. This means the Employer knows his posi tive financial perpetration in the initial stage of the project, provided he does not introduce any changes throughout the project.The Design and Build entity is responsible for quality, budget, schedule, and performance of the completed facility. With the single point of contact, Employers fuck concentrate on definition of enquires and timely decision-making rather than on coordination between designer and contractor. Besides, the Design and Build entity has total responsibility for the finished product and provokenot shift design errors of construction defects to other party.Therefore, it will likely to end up with the expected or higher(prenominal) quality of end product. Unlike Design and Build approach, traditional approach contracts rely on restrictive wording, adversarial audit and inspection requirements and the legal system to attain project quality (Jeffrey L. Beard et al., 2001).Cost has always fashion the key considerations impressing adoption of Design and Build procurement method. Whilst project time is relatively easy to interpret and potential savings clear identified, project cost is more ambiguous and therefore difficult to evaluate. A prominent consideration for the Employer, in any procurement form, is that final cost does not exceed the project budget. In this respect, Design and Build sure enough presents a better chance of the Employer obtaining his completed building within budget. Jerry Adanison (2001), explained that several financial considerations make Design and Build desirable. Private sector have implement Design and Build for financial reasons. Completing a project quickly can save Owners used to finance projects.On the headway of cost, real cost savings can also be do in Design and Build. According to Mastermann (1992), when using this system, the initial an final cost are lower than when using other methods of procurement because of diminished design costs, the integration of the design and build elements and in bui lt build ability of the detailed design. Cost savings may also result in timesaving. The boilers suit matters is reduction in the Employers financing charges, lesser effect of puffiness and faster building operation, which, in a commercial context, produces an anterior return on the capital, invested, (Frank 1998).2.3 FACTORS CONSIDERED IN PROCUREMENT METHOD SELECTION CRITERIARequirements of the EmployerThe triple-crown of the procurement method should fulfill the requirements of the employer. The objective of the Employer should be identified. Employer would require the dress hat design for their project and meet his requirement stated in the Employers requirement. snip should be as fast as possible for the construction period. The cost of the building should be as lower as to satisfy his requirement. The Employer would prefer to minimize the contractual risk to avoid the unnecessary trouble. prison termAs time is money, the duration of construction period of the project is very important. Time at large, the time spending on the planning, construction and development would affect the economic scale of the Employer. The Employer would seek for the shorter construction period to earn for the superior profit. The time- related cost item such as the cost of come out office, human resources would increase as the duration of the construction period become longer. The early release the building, the greater profit for the Employer.QualityThe quality of the workmanship and the quality of material is one of the main strikes for the Employer in general. The quality of the building should meet the requirement stated in the specification of the contract.CostThe development cost, the construction cost and the operation cost are the concern of the Employer. They entirely affect the profit of the Employers. The construction cost is the cost for the building construction such as material cost, plant cost, labour cost. The operation cost is the running cost for th e building such as maintenance cost, circumspection cost. The development cost is the land cost, construction cost and other all expenditure which has paid for the development.CommunicationOne of the major reason for choosing design and build arrangement is to benefit from the good communication that can march on between the design team and the construction team (Gould, 2003). Many of the large design and build companies specialize in particular areas and have developed a smooth flow between the design and build phases of the project. This quislingism allows the project to be easily fast-tracked, cutting down on overall schedule for the project.Direct contact between the Employer and the contractor as provided a Design and Build system lines of communication and enables the contractor to adapt more promptly to the Employers needs. Integration and encouraged inherently within the system (Griffith, 1989).The Employer and contractor will communicate closely during the process of the project. Communication between them will start at the beginning stage of the project. Therefore, in design and build it provides the Employer and contractor an opportunity to interact more often and more directly than traditional contract. In general, this arrangement allows easier incorporation of changes due to scope or foreseen conditions since their coordination occurs within the same contractual entity. The Employer is less heavily involved and sits impertinent the direct day to day communication between designer and constructor. This keeps owner staffing to a minimum and puts the full responsibility for good communication and problem solving.RisksThe Design and Build contract transfer more risks to the contractor than any other construction contract. Among a variety of risks, a contractor usually takes on many speculative risks. Risks that can vary in incidence between the parties as they wish.Speculative risks can be within or out with the harbor of a contractor (Turner 19 90). However, the suitability of a project to the Design and build approach must be carefully undertaken by ensuring that the contractor is able, voluntary and has relevant flummoxs to control the risk satisfactorily, otherwise they may pass these back to the Employer (Hogg Morledge, 1995)Figure 2.0 Risk allocation for each typesetters case of procurement system (Hogg Morledge, 1995)2.4 THE FACTOR AFFECTING THE SUCCESS OF THE DESIGN AND BUILD2.4.1 THE PROJECT CHARACTERISTICLarge and complex projects take longer construction durations. It is difficult to use the design and build procurement in such projects. Because it is unfair for the contractor to take risk on the material inflation on the lump sum fixed price contract. Therefore, the size and the complexity of the project should be considered.2.4.2 THE CONTRACTOR SELECTIONAccording to Sarah Peace and John Bennett, it is very important for the selection of the contactor to process the design and build project. From the figure shown that the design and build project in increasing because of the government is willing to use Design and Build procurement method. As the adopting design and build procurement method by the Government, there is the system for selection of the Contractor as per the Procurement Guide LinesThe selecting the Contractor is not only concern the tender price, but also the quality Time, Contractors financial status, potential contractor with good reputation, manpower good record for the previous project as per the pre-qualification marking scheme of National procurement guide lines. Therefore, the contractor who meets the Employers requirement for time and quality at the best price would be selected.2.4.3 THE EMPLOYERS indispensablenessThe Employer should fully state their requirement, idea and specification of the workmanship in the Employers requirement. The more detail of the Employers requirement is, the fewer disputes will be occurred in the later(prenominal) stage. The design o f the building and the standard of the building is according to the Employers requirement. The Employer should understand what he needs in the building and the idea should be fully explained in the Employers requirement.The object responded from the Contractor should be carefully checked by the Employers representative. one time the Employer accepts the proposal from the Contractor, the contract will be formed between them. The design of the building and the construction method will not be changed which stated in the contractors proposal. The changes by the Employer would cause the great amount of the variation. Therefore, the accepted proposal should be fully understand by the Employer which is suitable to his ideas.According to Ashley et al. (1987) identified 4 factors contributing to project supremacy and grouped them into five areas including (1) management, organization and communication (2) scope and planning (3) controls (4) environmental, economic, political and social a nd 5) technical. The implications of the Employer should develop a thorough project plan in which the scope of work is clearly defined, and the contractor should understand and commit to the achievement of project objectives. The contractors capability and experience in managing Design and Build project is critical to project success and project team members commitment toward the project goals is also important.Songer and Molenaar (1997) identified 15 characteristics of successful Design and Build. They represent that the top five important project characteristics were well-defined scope, shared understanding of scope, owner construction sophistication, adequate owner staffing, and establish budget.Although the Design and Build projects are expected to deliver the project faster and cheaper as compared to the traditional bid and build projects, not all the Design and Build projects can really accomplished it. Many empirical studies have been conducted to examine the impact of vario us project success factors such as the study of factors for a successful public sector Design and Build projects by Songer and Molenaar (1997), study on architects and builders views on Design and Build procurement method in Hong Kong by Mo and Ng (1997) and many others (Albert P.C. Chan et al., 2001).Accordingly Chan et al., (2001) has developed a series factors contributing to the success of Design and Build projects. These factors are the duties, responsibilities and capabilities of different project participants including end-users, contractor, architect and design consultants in Design and Build projects.CONCLUSIONThe intention of this chapter is to present an overview of the literature publish on the subject of selecting the procurement method from the current construction exertion The objective of the Employer in terms of time, cost, quality and risk would be found out also. And the factor that may determine the successful of the procurement method would be identified. They are the project characteristic, the contractor selection and the employers requirement.In general, it can be summarized that Design and Build provides single point responsibility for the whole design and build. Contractors, who are responsible for the implementation of the project, have power to control all over the projects. This nonetheless does not deter the involvement of the Employer. The Employers need and requirements are always been taken into consideration, which this consequently presents uniqueness of the system.In conclusion, it is subjective that whoever really want to procure Design and Build method need a thorough understanding of the types and characteristics of that kind of procurement. Therefore, benefits of Design and Build can be exploited. Many studies also showed that the characteristic of Design and Build that make Design and Build different from other procurement system in offering single point responsibility, fixed time and money, communication, allocation of risks and others. getting success in Design and Build projects enables an assurance of getting the project completed at the right time and within allocated budget. The Design and Build procurement system has better time performance and cost benefits, which are essentially what the end-users are concerned about. This research can be akey to assessing the performance level of Design and Build projects, and the project participants can learn about the important factors for setting up an effective management system to turn Design and Build projects with excellent performance.