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Project Delivery Systems .. by alphaplus architecture

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presentation to discuss the different project delivery systems, advantages & disadvanges of each system

presentation to discuss the different project delivery systems, advantages & disadvanges of each system

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  • 1. Project methodology &Project delivery systems Prepared by : alphaplus architecture
  • 2. Project Delivery ProcessProject Stages  Project initiation  Project Design  Project ConstructionMajor criteria which impact on managing project stages  Time  Cost  Quality
  • 3. Project Initiation Phase IntroductionThe Golden Rule “Rigorous information analysis at the beginning of a projecthas the greatest potential to significantly improve the performance and qualityof projects.”Rushing the concept and evaluation phase misses the best and lowest costopportunity to get the project right. Changes made at the concept phase costlittle but can have a major impact. In contrast, late changes are expensive orcannot be done, and then disrupt and dislocate project delivery leading tocost and time overruns.
  • 4. Project Initiation Phase Procurement StrategyProject initiation process1. Project idea • Opportunity identification • Strategic planning2. Concept development • Check the strategic plan & prepare outline description • Develop a project strategy & prepare basic criteria • Set out objectives • Set-out function analysis • Research the market • explore options • Use strategic value management techniques to answer key functional questions • Prepare evaluation brief & actions3. Evaluation • Preferred option functionally & financially4. Delivery brief • A descriptive & illustrative definition of the preferred option including ; time schedule, cost plan, & schematic drawings • A value management report confirming value for money • Identified ranked trade-offs
  • 5. Project Initiation Phase Core Principles1. Project initiation processes should strive to achieve value for money in the delivery of assets.2. A whole-of-life approach should underpin procurement planning and decision-making.3. The project concept should align with the project end users strategic plan and Service delivery objectives.4. Effective end user sponsorship of the methods and outcomes to achieve efficient project implementation.5. Every stage of project initiation should involve checking back against all the project end user’s objectives.(Value Management)6. identification of a clear project implementation and procurement plan including clear project stages with defined outcomes7. A critical objective of project initiation should be to achieve project success for all those involved in it.8. maintaining continuity in the key elements of the team9. the establishment and maintenance of good working relationships10. effective construction planning during design
  • 6. Project initiation process Conclusion It was Winston Churchill who said "He who fails to plan is planning to fail“Agreed project definition, concept plan & realistic Cost plan have asignificant impact on the delivery success of an asset. This requires sufficienttime and professional fees to be available in the initiation stage for thegeneration of alternatives, and for them to be evaluated against requiredstandards of performance and quality.
  • 7. Project ManagementThe Project nine areas of management 1. Project Integration Management 2. Project scope management 3. Project time management 4. Project cost management 5. Project quality management 6. Project Human resources management 7. Project communications management 8. Project risk management 9. Project procurement management
  • 8. Project Delivery Methodso Fixed Price Contract (lump-sum tender)o Develop Design & Construct (DD&C)o Project Management Agreement (PM)o Construction management (CM)
  • 9. Fixed Price Contract Organization Chart
  • 10. Fixed Price Contract Procurement StrategyTraditional Design – Bid – Buildo Cost Consultant with good experience in the particular fieldo Comprehensive Bill Of Quantityo Accurate site investigationo 100% complete & well coordinated set of construction Documentso Tight & well defined specificationo Preparation of Contract Packages.o Pre-qualification of contractorso Lowest responsive bid is selectedo The designer maintains oversight of the work and responds to questions about the designo The designer administer the construction contract, including determination of progress payments & variation claims.
  • 11. Fixed Price Contract Advantages & DisadvantagesAdvantageso widely applicable, well understood, and well-establishedo clearly defined roles for the parties involved.o Cost controlo offers the Owner a significant amount of control over the end producto the facility’s features are fully determined and specified prior to selection of the contractor.Disadvantageso The process is time-consuming.o Fast tracking is impossible.o Least-cost approach by contractor.o The absence of a contractor’s input into the project design may limit the effectiveness and constructability of the design.o Any changes in the brief becomes very costly.o Any discrepancy in the documents is taken to the benefit of contractor.o Disputes over variations – quality & defects.o Contractors make sure they are pricing the minimum – from day 1 they look for variations & discrepancies with a magnifying glass.
  • 12. Fixed Price Contract ConclusionFor the procurement of technically complex & highly specialised facilities1. Owners should ensure that design team is highly qualified & have a proven track record of expertise with similar facilities.2. Effort should be made to pre-qualify contractors, either through invitation, or through an objective set of criteria considering construction experience and financial capability to assure the Owner that the contractor is capable of providing a high- quality product.3. The Owner should really be seeking the best value for money, not necessarily the lowest initial cost.4. The owner should maintain the maximum amount of control over the design stage as well as the construction portion of the project.
  • 13. Develop Design & Construct Organization Chart
  • 14. Develop Design & Construct Procurement StrategyContractor to tender on the works described in a Design Brief for the detaileddesign and the construction of the works described.The preparation of the Design Brief is usually performed by the Principalsdesign consultants. The Design Brief is sufficiently detailed to express exactlywhat it is that is to be designed and constructed by the DD&C Contractor.Design Brief includeso Schematic drawings of the proposal;o General specifications, function definition and performance criteria for end producto Site information;o Any other technical details which impinge on the worksThere should be a process whereby the detailed design is ultimatelysubmitted to the Principal for the Principals approval prior to construction.
  • 15. Develop Design & Construct Advantages & DisadvantagesAdvantageso Single point of responsibilityo “Buildability” construction contractor brings his construction expertise into the design process.o Increases the possibility of “fast tracking” of the project.Disadvantageso Significant loss of control and involvement by the owner & stakeholderso The Contractor in performing the design role, will have a conflict between the proper performance of that design and the desire to keep costs to a minimumo Disputes might rise over the detailed designo The Contractor will be inclined to use lesser quality materials to reduce cost (the Contract Sum having already been agreed)o The DD& C contractor may conclude that his contractual obligations cease at the end of the defects Liabilityo Any changes in the brief becomes very costlyo Typically consultants services are cut back to a minimumo Contract administration not by the original designero Difficult for the owner to verify that it is receiving the best value for money
  • 16. Develop Design & Construct ConclusionThe owner needs to recognize the effort and completeness that must be behind itsinitial scope/preliminary design which forms the basis of its contract with the developdesign & construct. Often, the Owner needs additional consultants to help it develop itsscope or preliminary design, in the role of a traditional design firm.Owners with highly specialized program may not find it advantageous to turn overresponsibility to an outside team.DD&C is best suited to conventional projects for which project requirements can beclearly defined and for which expertise is widely available.Proper selection of the DD&C team is essential. Since the Owner selects a team thathas been created prior to selection, it may be difficult for the Owner to maintain theproper balance of design expertise, financial capability, construction experience, andexperience in D&C team roles.
  • 17. Project Management Organisation Chart
  • 18. Project Management Procurement StrategyIndependent professional expertise provided on behalf of the Owner to manage all aspectsof a project; o Developing the project plan o Managing the project stakeholders o Appoint & manage the project team o Managing the project risk o Managing the project schedule o Managing the project budget o Managing the project conflicts o Managing the design o Managing the procurement of construction o Manage permit approvals o site selection, site acquisition,PM is the application of Knowledge, skills, tools & techniques to plan, monitor & control allaspects of a project to achieve the project objectives on time and to the specifiedcost, quality & performance.PM areas of experience include; cost estimating, systems analysis, valueengineering, "constructability" review, scheduling of activities, procurement, and constructioncoordination and supervision.
  • 19. Project Management Advantages & DisadvantagesAdvantages - are only secured by direct client engagement and actiono single point of contact– one directional relationship with project teamo saves client’s timeo one point of accountability to maximize owner’s value in regards to costs, time and qualityo Trained to manageo Team interacts relating to construction cost, completion schedule, and quality worko Possible synergistic team approach in the owner’s interest.o Possible cost savings through value engineering in the appropriate stages.o All records, books, estimates are "open book".o System of checks and balances exist.o No additional owner personnel required to monitor construction.Disadvantageso Duplication of some supervision, contractors mark-upso May not be viewed as to have owner’s interests as a priority.o High degree of client ownership of riskso Impacts of uncoordinated design.o Potential for overlap with the work of other consultantso Considerable authority with limited responsibilityo Client lose control over consultants & contractors
  • 20. Project Management ConclusionEffective use of administrative tools available to project management team alongwith the range of standard processes, documents, templates and databases will playan important role in enabling the client to discharge its responsibilities.it is essential that the project manager’s ability and track record in delivering across itsfull range of project responsibilities is carefully tested at appointment, and that thisappointment takes place at a sufficiently early stage, for the project manager to beable to carry out all aspects of its pre-construction role.If the owner does not have experienced in-house staff or adequate time to dedicateto the project, they will have no input or control of the process to protect theirobjectives.
  • 21. Construction Management Organisation Chart
  • 22. Construction Management Procurement StrategyOwner’s Project ManagerMain Consultant/s o Reports directly to client o Manages all other secondary consultants o Liaise with construction managerConstruction manager o Reports directly to client o Cost estimates + program o Manages all trade contractors o obtain permits & licenses
  • 23. Construction Management AdvantagesAdvantageso Client retain direct control over all aspects & the quality of the project including bidding processo Increased quality control responsibility with the consultants protecting the client’s interesto the contractor, architect, and owner function more as a collaborative teamo Construction costs are identified and managed reliably during the design phaseo All records, books, estimates are "open book".o Competitive bidding is retained on all work.o Flexibility to pre-qualify trade contractors for better control of schedules and costs.o Facilitates fast track or phased construction providing earlier completion.o Ability to pre-order long lead items.o early involvement of mechanical and electrical construction expertise in value engineering and scheduling to ensure economical installation and operation.o flexibility in the selection of subcontractors on the review and value analysis of sub-bidso Allows clients more flexibility to use preferred suppliers.o There would be better coordination and more flexibility in regard to partial occupancy of the spaceo Regular site meetings along with progress cost reports allow flexibility for making decisions regarding budget.o Builders margin is less on a Cost Plus Contract.
  • 24. Construction Management DisadvantagesDisadvantageso Design co-ordination risk and increased likelihood of design change.o No cost certainty until all packages are let and no single point lump-sum commitmento Exposure to risk associated with construction manager and team performance.o Reliance on the capability of construction manager and project team to responsibly fund solutions to problems.o Increased administration role for the client.o CM and professional team owe duty of care liability only.o Added complexity of one to one contractual relationships of client with all team members.o Client position at centre of management requires effective decision-making .o Client exposure to performance risk and exposure to consequential loss associated with trade contractor faults.
  • 25. Construction Management ConclusionFor the procurement of technically complex & highly specialised facilitiesThe owner should retain control over all aspects of the project and should continue tobe involved providing overall general direction to the project and have direct accessto each team member, assuring that the facility will function in the most efficientmanner.The elimination of the general contractor avoids a duplication of fees, mark ups andgeneral conditions costs.The owner should select the key personnel from each organization:architect, consultants, construction manager for assignment to the project based ontheir competence, compatibility and ability to work with other team members.
  • 26. CONSTRUCTION MANAGEMENT TYPES OF CONTRACTSo Cost + Fixed Percentage Contracto Cost + Fixed Fee Contracto Cost + Fixed Fee with Guaranteed Maximum Price Contracto Cost + Fixed Fee with Bonus Contracto Cost + Fixed Fee with Guaranteed Maximum Price and Bonus Contracto Cost + Fixed Fee with Agreement for Sharing Any Cost Savings Contract
  • 27. ConclusionClearly, there is no one right project delivery method for a given project. All of themethods discussed have been used successfully, and have weaknesses which can limittheir success. The following considerations should guide the Owner in selecting the properdelivery method:o Type of Project- The Owner should gauge the level of complexity and uniqueness of theproject, and maintain an appropriate level of control.o Size of Project- Obviously, the more complex and costly a project, the greater the needfor professional management and advice.o Owner Capabilities- The Owner should realistically assess its own in-house capabilities inevaluating project procurement methods.o Time Considerations- If the project needs to be constructed in a severely compressedtime limit, methods adaptable to fast-track construction should be considered.However, this should be weighed against the increased cost and risk of fast tracking.o Likelihood of Changes- If the Owner is aware that its requirements may changeconsiderably during the project, this should be evaluated against the potential cost ofsuch changes. The success of any project with high risk profile depends significantly on the commitment & efforts of the team to stay focus on the end results.
  • 28. CONCEPTUAL STAGE Consultancy Services Due to the complex nature of the Pharmaceutical facilities it is advisable tocomplete a conceptual stage study (SOC Report) which will form the basis ofcapital expenditure approval & the preparation of tender documents forservices consultants & construction contracts.Consultancy services should include 1. Review & Expand basic criteria 2. Define Operational parameters 3. Test functions & objectives 4. Identify Constraints & Risks 5. Prepare Process Flow Diagrams (PFD’s) 6. Prepare functional analysis (affinity diagrams) 7. Assist in the preparation of/ or expand URS 8. Prepare broad options – evaluate – assist in selecting the preferred option 9. Ensure conformity with planning policies and regulation 10. Prepare Prelim Room Data Sheets 11. Organise budget estimate +/- 25% 12. Prepare Statement of Criteria (SOC)Report
  • 29. Thank you

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