The construction is carried out by a Contractor who is appointed after a competitive tender or through negotiation.Traditional procurement separates the design and construction processes.The Contractor has no responsibility for design and carries out the work as shown and described in documents provided by the Employer and his professional advisers.The basis of the tender price is for a fixed design element provided by the design consultants to varying levels of detail.
DESIGN BUILD Design-build offers an integrated supply chain from design to construction of a building project and provides a single point of contact for the Client. In design-build, the Client assembles an outline design and states his functional requirements for the Contractor to provide a design solution who also executes the construction of the building. Sia Conditions Of Contract 7Th Edition Full Control AndThe Contractor takes full control and responsibility contractually of the whole design and construction process from start to finish. Design-build variants have also been developed in an attempt to bring about the best combination of achieving the one-stop shop for the Client. MODIFIED TRADITIONAL APPROACH WITH CONTRACTOR- DESIGNED PORTIONS The modified traditional procurement method provides for defined parts of the works (for example, architectural works) to be designed by the Client-appointed Architect. The remaining portions (commonly, the structural works and mechanical and electrical services) are left to the Contractor who takes responsibility for the design and integrating them with the architectural portion for construction. GUARANTEED MAXIMUM PRICE CONTRACTS A Guaranteed Maximum Price (or GMP) is effectively a lump sum price for a project where the amount of money that a Client is contractually obliged to pay is the maximum price. In GMP contracts, the risk of the final cost exceeding the price cap and cost overruns falls on the Contractor whose entitlement to payment is capped at the GMP level. GMP contracts can work in a variety of procurement routes from the traditional approach to modified traditional with contractor-designed portions, design-build or management- oriented arrangements. The Client contracts directly with all Trade Contractors while the Construction Manager, on behalf of the Client, programs and manages the entire delivery process from reception to completion. A Construction Manager is a consultant, design team coordinator, manager of the myriad of Trade Contractors and the Clients construction adviser but is not the Main Contractor. Sia Conditions Of Contract 7Th Edition Plus A FeeA variant of construction management is management contracting where the works are let out in work packages by the Management Contractor who is reimbursed the costs of such works, plus a fee which can be a percentage of the costs or a fixed sum. It is contrasted to construction management in that it is the Management Contractor, not the Client, who contacts with each of the Works Contractors. PUBLIC-PRIVATE PARTNERSHIPS Public-Private Partnership (PPP) is a generic term which describes the various possible structures whereby the public and private sectors work together in the delivery of services and the provision and operation of an asset such as a building, facility, plant or equipment. The procurement of services (as opposed to assets) by the public sector Client is from an asset designed, constructed, funded and maintained by the private sector. Through PPP, private sector involvement introduces innovation and a high level of financial, managerial and technical expertise. Broadly, a typical PPP model involves the procuring authority (or public agency) contracting with the Special Purpose Vehicle (SPV) under a long-term service purchase agreement of usually 15 to 30 years for the design, construction, maintenance and operation of the facility. The SPV enters into a range of sub-contracts for the construction works, and also for the operations and maintenance of the asset.
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