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Wednesday, May 18, 2016

Construction Procurement System Types Contd.........

Design and Build - A design and build contract is a contractual agreement whereby the contractor offers to design and build a construction project for a contract sum which is all-encompassing of both the design and construction costs.
In design and build procurement the client may choose to keep hold of the services of an architect and quantity surveyor to act as independent professional advisers for the client to offer essential advice in terms of cost, time and quality, and also to evaluate the building contractor's proposals with consideration to both design and cost, and to scrutinize the work on site.
Advantages of Design and Build System
  • There is a single point responsibility
  • Offer shorter overall time
  • Fixed priced bids are used. So financial commitment known by client early in the process.
  • Achieve high level of buildability
  • Reduce variations and destruction to the original design
  • Design becomes a competitive element
  • Client's financial risk is minimal
Disadvantages of Design and Build System 
  • Comparison of bids can be complicated
  • There are lower level of competitions at the tender than in other arrangements
  • It requires a detailed brief
  • The tender process can be expensive to bidders
  • There is a lack of independent professional advice to the client at the time of tender
  • These forms often lack broad experience or expertise
  • Change can be expensive as valuation of variations
  • Aesthetically important buildings are not recommended to procure this method
There are several methods available under the Design and Build system

Turnkey - It means a program, project, solution or system where the contractor or provider undertakes the entire responsibility from design through completion and commissioning. This client only has to turn the proverbial key to make everything function as it should.

Package deal - feasibility also done by contractor & client is able to see the actual examples before making decision. 

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