2. Contract strategy Traditional ApproachIncreasing Traditional ApproachIncreasing Accelerated Traditionalintegration Accelerated Traditionalintegration Management Contractingof design Management Contractingof design Construction Managementand Construction Managementand Project Managementconstruction Project Managementconstruction Design and Build/Turnkey Design and Build/Turnkey Build Operate Transfer Build Operate Transfer

3. CONSULTANTS THE CLIENT’S CONSULTANTS THE CLIENT’S and/or MINISTRY CONSTRUCTION OWN and/or MINISTRY CONSTRUCTION OWN of WORKS PROJECT RESOURCES of WORKS PROJECT RESOURCES SUBCON- CON-SUPPLIERS SUBCON- CON-SUPPLIERS TRACTORSTRACTORS TRACTORSTRACTORS Procurement : the acquisition of project resources

4. 1. Client concern to 2. Competitive tendering 1. Client concern to 2. Competitive tendering ‘get the best deal’ for all aspects of the ‘get the best deal’ for all aspects of the project project 5. Increase surveillance 5. Increase surveillance and control systems and control systems 4. Contractor/professional 3. Reduction in expected 4. Contractor/professional 3. Reduction in expected opportunistic behaviour profit for contractor/ opportunistic behaviour profit for contractor/ directed at increasing professionals directed at increasing professionals expected profit expected profit Vicious circles in construction procurement

5. Organisation theory and the project process n Interdependence n Differentiation n Differentiation & specialisation n Integration n Integration & coordination n Universal n Universal vs contingency approaches

6. appointmentappointment appointmentappointment consultantsmain contractor consultantsmain contractor designing +constructing designing +constructing GENERIC GENERIC The traditional approach

7. appointment appointment design and construct company design and construct company tendering designing constructing tendering designing constructing The design-and-construct approach

8. appointmentappointment appointmentappointment consultantsspecialist contractors consultantsspecialist contractors designing tendering designing tendering earthwork earthwork framework framework mechanical work mechanical work electrical work electrical work completion completion The divided contract approach

9. Selection Process Exercise Draw up a list of criteria that a typical typical client might have in selecting a procurement path. What were/are the criteria of the client on your current project?

10. A comparison of USA and UK practice

11. Construction Management Design andDesign, Construction Management Design andDesign, management contractingmanage manage and management contractingmanage manage and construct construct Professional Contractoral Professional Contractoral The range of management systems and their professional contract

12. Management contracting systems

13. Management contracting systems (cont)

14. Criteria your project n timing n variation n complexity n quality n price certainty n competition n division of responsibility n professional responsibility n risk avoidance

15. Contract strategies variables Organisation Organisation form Payment Payment method

23. Contract strategy variables Overlap Overlap of project phases Contractor Contractor selection process Source Source of project finance Contract Contract documents Leadership Leadership / Authority Organisation form Organisation form Payment method Payment method

24. Selection Exercise Using the chart in “Thinking about Building” select a procurement path for your current project. Is the path with the highest score the one that you actually chose? If not, why not?

25. Construction contracts n Flexibility n Price to be paid n The fallacy of cost certainty n Release of control

26. Comparisons Time vs Cost Time vs CostTraditional Design Build Management

27. Comparisons Pros & Cons Pros & ConsTraditional Design Build Management