Awarding Criterion for late tender: the lowest bid- why? Because: when the project goes to Detail Design, the Client has the 100% influence on the design of the project (i.e. the project´s quality and quantity has been stated), so the only criterion left to compete on is the price!!

Design & Build Contracting (Turnkey) – used for ”early tender”, in this case on the basis of the best Schematic Design Proposal (Outline Proposal) from each contractor-group Client Note: Designing is costly, so the client pays each contractor 120,000 kr for the outline proposal, who then pays their architect group 100,000 kr for the design proposal Client´s Brief Client´s Consultant The Client seeks the economically most advantageous bid on the basis of a Schematic Design Proposal: Criteria for choosing the best proposal: Architectural design and layout (40%); Price (30%); total economy (sustainable solutions)(20%); execution time(10%) 120.000 kr TURNKEY CONT. A (Company A) Architect Group A TURNKEY CONT. B (Company B) Architect Group B 100.000 kr The winning contractor gets to do the rest of the design and execute the project

FORM OF PROCUREMENT: DESIGN & BUILD (TURNKEY) Client´s Consultant (Formulates Design Brief) CLIENT Design & Build/Turnkey Contractor (Project Manager) Own Production Conc.Works Ground Works Subcontractors Subcont. 1 Subcont.2 Design Team Arch /Engineers Site Management FORM OF PROCUREMENT: DESIGN & BUILD (TURNKEY) ABT 93 (General Conditions for Design & Build Contracts (Turnkey) ABR 89 GC 92 (General Conditions for Contract) – between Design & Build contractor and subcontractors Your Group Works for Contractor ABR 89

Notice the ”fast-track” nature of the design and build, where design is only slightly ahead of execution At tender, each contractor group will be competing on: Architectural expression/layout Price Execution time Sustainable solutions, Etc., etc. - In other words, the Economically Most Advantageous Bid

Evaluating what´s the best bid when proposals are tendered The criteria and weight must be given in the design brief for the project Points are given by the Client after the tender of the proposals to evaluate the Economically Most Advantageous Bid (best bid for him/her) See the spreadsheet for the above

Dwellings for the Elderly Maximum Project Costs for Multi-storey Public-Supported Housing Ground and Plot Cost Total: approx. 19% Plot purchase sum Foundation & Piling Building basis Estab. Recreational areas Sewer contrib. Connection costs Estab.roads/pavements, etc Surcharges, taxes, interest costs Construction Costs Total: approx. 66% Primary Building Components Completions Surfaces Water, Heat and Sanitary Sysms. El & Mech.systems Fixed Furniture Other construction costs Miscellaneous costs Other Costs : approx. 15% Tech.consultation Other consultation Building case fee/interest costs. Board expenses Building Loan interest costs Drying out building Costs for providing guarantee State promille surcharge Surcharge to local council Insurance certs. and surcharges Costs for renting building. Contribution for Byggeskadefonden Front-end Fees Family Dwellings Max.sum incl.VAT per m2 Dwellings for the Elderly Youth Dwellings http://uibm.dk/arbejdsomrader/bolig/almene-boliger/etablering-og-renovering-af-almene-boliger/etablering-af-almene-boliger/maksimumbelob-for-stottet-boligbyggeri

Additional for Energy saving provisions incl. VAT per m2 Energy-addendum for Multi-storey Public-Supported Housing: Additional for Energy saving provisions incl. VAT per m2

THE WBS (Work Breakdown Structure ) is the prerequisite for CALCULATING THE COST OF THE DESIGN & BUILD PROPOSAL AT SCHEMATIC DESIGN (OUTLINE PHSE) The Client will pay each bidding contractor 120,000 Dkr. for the a Schematic Design proposal, but the other phases have to be paid by the contractor himself – so remember to include them in the bids

The Economic Frame for the project: Family Dwellings (for projects starting in 2017): 19,520 kr/m2 Energy-addendum´(2017): 1,150 kr/m2 Total (incl. VAT): 20,670 “ First of all, let´s find the economic frame exclusive VAT: (20,670/125) * 100 = 16,536 kr/m2 – for the whole project costs! 16,536 kr/m2 must cover: The construction costs for the project = 11,575.2 kr/m2, exl. VAT (this includes energy-conservation provisions!!) Ground and Plot Cost Total: approx. 19% = 3,141.84 kr/m2 Construction Costs Total: approx. (66%) ~ 70% = 11,575.2 kr/m2 Other Costs : approx. (15%)~11% = 1,818.96 kr/m2 4% moved to construction costs because of design costs for Design Development and Detail Design phases done by contractor

Use Successive Estimation to calculate the price of the Schematic Design proposal, and Sigma for the other phases – export the WBS to Excel and copy to the given Successive spreadsheet If the total here is < the frame for the project, the project will receive public support!!

PERSON PLANNING