1. CO-OPERATION IN CONSTRUCTION SECTOR CONSTRUCTION CONTRACTS Dr. Judit Gyulay – Dr. Zoltán András Vattai BUTE Department of Construction Technology & Management

2. CONSTRUCTION AFFAIRS Construction Sector Construction Industry

3. - erecting new buildings - reconstructing existing buildings - remodeling existing buildings - extending existing buildings - demolishing existing buildings TYPICAL DELIVERIES OF CONSTRUCTION INDUSTRY

4. - immovability of product - performance exposed to weather - transport of great volumes - environmental charges/effects - high exposition FEATURES OF CONSTRUCTION PERFORMANCES

5. - Client (Investor) - Manager (Engineer) - Designer(Acrhitect) - Contractor(Craftsmen) - Bank - Authorities(Community) STAKEHOLDERS OF CONSTRUCTION PROJECTS

6. Traditional PROCUREMENT POLICIES CONTRACTUAL RELATIONS (PROCUREMENT SYSTEM) Client Designer Contractor Sub.

7. Turn-key PROCUREMENT POLICIES CONTRACTUAL RELATIONS (PROCUREMENT SYSTEM) Client Designer Contractor Sub.

8. Construction Management Client Designer Contractor Sub. Engineer (Manager) PROCUREMENT POLICIES CONTRACTUAL RELATIONS (PROCUREMENT SYSTEM)

9. Management Contract Client Designer Contractor Sub. Engineer (Manager) PROCUREMENT POLICIES CONTRACTUAL RELATIONS (PROCUREMENT SYSTEM)

10. - Contract of works - Agency Contract - … TYPE OF CONTRACT

11. - Design - Management - Accomplishment - Supply - Service - … SUBJECT OF CONTRACT

12. - Main contracting - General contracting - Co (-general-) contracting - (Sub-) Contracting - Service / Supply - Representation (agency) RANGE OF CONTRACT

13. - Contractor - Client - Subject - Deadlines - Offset ESSENTIAL DATA OF CONTRACTS - - Who - Whom for - What - What time - What price

14. – Free-hand (based on trust) – Tendering (competition) = Public = Restricted (invited) = Direct negotiation FINDING CONTRACTUAL PARTNERS PROCUREMENT

15. SPECIFYING DELIVERY (DETAILS) Preparation Design Procurement (contracting) Procurement (contracting) Accomplishment TRADITIONAL Clear details: known technical, technological, time and budget specifications at contracting

16. Preparation Design Procurement (contracting) Accomplishment MANAGEMENT Change- and risk management have essential role SPECIFYING DELIVERY (DETAILS)

17. - Lump-sum (fixed price) - Unit price - Cost + fee OFFSET OF CONTRACTUAL DELIVERIES Timing of offset of deliveries is also a price-forming factor (cost of financing)

18. - Referred standard contractual schemes, sets of regulations (FIDIC, VOB, …) - Technical documentation (plans, specifications, budgeting, …) - Referred technical standards (quality- and performance expectations) APPENDICES OF CONTRACTS

19. - Written contract (e.g. by FIDIC, VOB, …) - Oral agreement (with precedents) - Implied contract (?!) ENGENDERING A CONTRACT

20. - Controlled mainly is the Client - Purchase on public funds - Strictly controlled procedures - Specific risks elements - Price raising effects (!!!) PUBLIC PROCUREMENT

21. - ~20 % of building deliveries - Periodicly changing conditions - Balanced contracts - Precise (in-time) offset - Highly exposed investments PUBLIC PROCUREMENT