CIVL202 Construction Engineering I Tutorial 6 T1Mon11:00 – 11:50 T2Wed09:00 – 09:50
Tutorial Outline Project Delivery Methods Design-Build Contract Design-Build in a Consortium Format Construction Management Contracts Comparing Project Delivery Methods Legal Structure Proprietorship Partnership
Project Delivery Methods It reduces the time required to construct a facility The comprehensive process of assigning the contractual responsibilities for designing and constructing a project Design/Build and Construction Management Contract
Design-Build Contracts Design and build are carried out by a single contractor Advantage: Easy to settle disputes between different entities, designer and builder Disadvantage: Some technology may not be available for a single company
Design-Build in a Consortium Format Builders do not have in-house design capability form consortium The consortium give the owner a final lump-sum price at the end of the preliminary design phase
Construction Management Contracts Construction manager coordinates the selection of design and construction firms and supervises and controls the pre-design, design, pre-construction, and construction activities related to the project on behalf of the owner Agency Construction Management: only responsible to provide management service Construction Management at risk: will sign all contracts related to construction phase of work
Comparing Project Delivery Methods Competitive Bid Contracts - usually DBB Negotiated Contracts - also allows compression of design and construction Design-Build Contracts - owner enters into contract with single entity Construction Management Contracts -owner holds multiple contracts
Chapter 5 – Legal Structure Proprietorship: A single person owns and operates a business activity and makes all of the major decisions regarding the company’s activity Partnership: Two or more persons own and operate a business activity Corporation: a small number of persons hold all the stock in the firm; or it allows its stock to be sold and bought freely
Proprietorship All revenue to the firm is personal cash revenue to the proprietor The credit that the firm can obtain and its ability to generate new capital are limited by the personal assets of the proprietor Loss must be recovered by the proprietor; liability incurred is owner’s liability The proprietorship cease once the owner dies
Partnership Partners share the profit or losses of the firm according to their degree of ownership If one of the partners does not have enough money to pay for the loss, the remaining partners are responsible to share the loss according to their degree of ownership There is no limit for the liability of each individual partner
Partnership Limited partner - has no voice in the management of the firm - his level of loss has been limited to the amount he invested Partnership terminates when one of the partner dies; but appropriate arrangement can be made