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Construction Industry, Dynamic, Framentation, Goods, Services, Procurement…
Construction Industry
Characteristics
Variety of stakeholders
Subcontractors
Dominated by SMEs
Designers
Consultants
leads to
A Wide Range of Business Activities
Tendering
Tender Invitation
Collecting Details
Tender briefing
Site show-round
Contact Person
Queries
Tender Addenda
Tender Submission
Required Format
Number of copies
Specialist Subcontractor Information
Method Statement
Quantities/ Rates
Submissions Rules
Tender Return Date
Restrictions on alterations
Return of Tender Drawings
Work Programmes
Tender Document
Conditions of Tender
Form of Tender
Form of Contract
Specification
Pricing Schedules
Summary of Tender
Tender Drawing
Pre-tender Health and Safety Plan
Contract Administration
Procurement Services
Power asymmetry
Main Contractors
Small Numbers
Oligopoly
Suppliers
Clients
Complex
Unpredictable
Time
Time Constraints
Speedy Completion
Extended Time
Between Procurement and Final Delivery
Long Project Duration
Cost
Sometimes only known close to completion
Market Change
End Products
Variations
Quality
Defects
Disputes
Expensive Remedial Work
Take for Granted
Labour intensive
Specialised Skills
Carpenters
Electricians
Steel Fixers
Bricklayers
Plumbers
Labour Shortage
Overseas Labours
Dynamic
Project Requirements
Unit Sizes
Layout
External Factors
Interest Rate
Market Demands
Overall Construction Costs
Weather
Typhoons
Heat
Disrupt Work
Legislative
Conduct Risk Analysis
Contingency Sum
Inflation
Price Fluctuation
Higher costs for materials and labours
Market Change
Global Issues
War
Migration
Policy
Top Talent Pass Scheme
Technology and Methods
MiC
Framentation
Goods
Services
Procurement
Factors of Considerations
Clients' Resources
Capabilities
Hire Consultants
Take Full and Active Role
Financial Resources
Greater Cost Certainty
Firm Tender Price
Completed Designs
Critical Contingency
Greater Flexibility
Faster Delivery
Design Controls
Late-Completion Cost
Project Characteristics
Size
Large
More Stakeholders
Client Project Sponsors
Higher Costs
higher Contingency
Longer Project Duration
Overrun
Small
Lower risks
Faster Completion
Location
Dense Urban Area
Logistics
Restricted access for Plants
Noise Control
Traffic Management
Rural
Lower Contingency
Better Cost Certainty
Complexity
Specialised Projects
Rely more on clients' resources
Multi-headed
Client Project Sponsors
Resolve Disputes
Detailed knowledge of clients's business
Everyone wants to have a say
Technology
Ability to Change
Design Freeze
Cost
Quality and Performance
Over-specification
Paying of Premium
Overruns
Unerspecification
Sub-standard Products
Disputes
Project Timing
Early Completion
Improved Cash Flow
Reduced Interest
Reduced Insurance Charge
Procurement Route
Traditional (DBB)
Common for inexperienced clients
Least Risks
Methods
Design completed before construction
Clients employ design team to control the design
Submit tender to bid and select contractors
Contractors construct according to the completed design
Advantages
Client has strong influence over the design
Transparent and familiar process
Price Certainty
Changes are easy to manage and value
Disadvantages
Relative slow as the design and constructions are sequential
Divided Responsibilities
Little contractors input
Incomplete designs
variations
Delay
Additional Cost
Disputes
Design and Build
Methods
Design is done by contratcor
Get a fixed price lump sum
Design and construction go parallel
Advantages
Reduced Divided Responsibility
Faster
High Price Certainty
Contractors and Subcontractors can contribute to design
Disadvantages
Clients lose control over design
Clients change may be expensive
Preparing an adequate brief is difficult
Clients must define requirements clearly
Construction Management
Method
Clients
Design Team
Construction Manager
Manage, programme and coordinate the design and construction actuvities
Suncontratcors
Advantages
Design and construction can overlap
Faster
Clear roles and relationship
Later design change can be accommodated
Disadvantages
Uncertain Price
Significant risks for clients
Technically and commercially capable clients
For large, complex, innovative projects
Management Contracting
Methods
Clients
Main Contractor
Sub Contractors
Manages construction process
Provide common site services
Design
Advantages
Faster
Construction and construction can overlap
Work packages can be competitively tendered
Disadvantages
Price uncertainty at early stage
Requires strong client brief
Design and Manage
Methods
Clients
Main Contractor
Designers
Sub Contratcors
Advantages
Clients deal with one firm
Better Coordination between designers and constructors
Faster
Disadvantages
Clients lose control on the design quality
Price uncertainty at early stage
Sufficient authority to manage the client functions
Experienced in Project Management
Power structure
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