Lecture 9 - Contract Strategies Flashcards
Contract Strategy
Determines contractual link between employer, designer and contractor
Choosing Contract Strategy
Employer: Experience, risk, funding, time
Contractor: Project, availability, payment
Strategy - Traditional (Seperated)
- Designer appointed first
- Contractor has little (if any) design obligations
- Relative cost certainty, fair risk distribution
Strategy - Design & Build (Integrated)
- Project requirements are clearly detailed in contractor brief.
- Contractor contacts designer, sub contractors and suppliers.
Management Contract Strategy
Contractor appointed early, working on the management and coordination of construction work (partnering with employer)
Management Contracting
- Design by independent team with contractor input
- Contractor places sub-contract and takes responsibility
Construction Management
- Firm of QS/Project Managers
- Managers/coordinates contractors but NOT liable to performance
Partnering
Collaborate management of a contract by employer and contractor to share risk and reward. (NOT BINDING)
Partnering Objectives
- Reduce tender times
- avoiding disputes
- quicker start
Partnering Workshop
Workshop to discuss introductions, project intentions and key difficulties
Partnering Charter
Agreements based on a charter consisting of objectives, intentions and goals
Alliances
Contractually binding agreements between companies to work together
Joint Ventures
Formal Agreement creates a separate legal organization
Consortium
Described formal agreement between groups of contractors
Private Finance Initiative (PFI)
Creates and public/private partnership. Private sector finances design and is payed back over the years.
