Framing an Appropriate Research Question 6b9b26d93da94caf993c038d9efcdedb.pdf
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1. 1. Introduction
1.1 Purpose
The purpose of this report is to compare the different options of tendering method and
procurement system, and select the best for the project.
1.2 Background
Taylor’s University is a member of the Taylor’s Education Group; it has become one of
Malaysia’s most successful and reputable private higher education institution. The
number of student intake increases as Taylor’s reputation has reached to a certain
recognizable level. The most significant problem which is the shortage of car park arises
as the population of student increases.
1.3 Consideration of this project when making decision
This is a case where a multi-storey car park is needed and Taylor’s University is an
education institution so it needs it to be solved in short period of time. This is so that no
disturbance will be caused and affects the student’s schedule. In the perspective of
consultant firm, it is believed that Taylor’s University has a good financial background
which means the employer can afford to pay for t price of the project. A good pay master
shall provide good financial support and results in faster completion of the project.
2. 2. Procurement System
2.1Procurement
Procurement in construction term has been defined as the activities undertaken by a
client or employer who is seeking to bring about the construction or refurbishment of
a building. These are the main factors that affect which type of procurement method
to be used in this case:
1. Cost of the project
2. Completion of the project
3. Single point responsibility
4. Complexity of the project
5. Quality of work
2.1.1 Traditional Method
The traditional procurement remains the most commonly used method.
The employer will engage with consultants to plan and design the project in detail,
and prepare tender documentation, including drawings, work schedules and bills of
quantities. Contractors are then invited and submit tenders for the construction of the
project. Typically, the employer retains the design consultants during the
construction phase to prepare any additional design information that may be required,
to review any designs that might be prepared by the contractor, and to inspect the
works. Normally, one consultant will be appointed to administer the contract. This
Procurement Method
Traditional Method Design & Build Method
3. form of procurement is suitable for both experienced and inexperienced employers.
Design is completed before tender gives the employer certainty about design
quality and cost, but it can be slower than other forms of contracting, and as
the contractor is appointed only once the design has been produced, they are not
able to help improve the build-ability and packaging of proposals as they develop. It
is considered to be a low risk method of contracting for the employer, as
the contractor takes the financial risk for construction due to underpriced. On the
other hand, if design information is incomplete at tender, or if
significant variations are required after the contractor has been appointed, the cost to
the employer can be significant. Because of this, and because of the separation
of construction, traditional can be seen as adversarial.
2.1.2 Advantages & Disadvantages
Advantages Disadvantages
- Competitive price can be
obtained
- Takes long time before the
project can start
- Everyone is familiar with this
method
- Slow line of communication
- Price certainty at the award of
the contract
- Employer takes risk if the
contractor underpriced for the
project
- No favoritism is allowed - Lack of single control and
responsibility point
- Flexibility of change before the
letter of award is issued
- Employer’s involvement limited
4. 2.2.1 Design & Build Method
Design and Build procurement works on the basis that the main contractor is responsible
for undertaking both the design and construction work on a project, for an agreed lump-
sum price. Design and build projects can vary depending on the extent of the
contractor’s design responsibility and how much initial design is included in the
employer’s requirements. However, the level of design responsibility and input from the
contractor is much greater on design and build projects than a traditional contract with a
contractor’s designed portion. Sufficient time must be allowed to prepare the employer’s
requirements where the employer usually appoints consultants to facilitate this, as well
as time for the contractor to prepare their proposal and tender price. It is vital that the
proposal matches all of the employer’s requirements before any contract is entered into.
The employer has control over any design elements of the project that are included in
their requirements, but once the contract is let responsibility over design passes to the
contractor, so the employer has no direct control over the contractor’s detailed design.
The contractor can carry out the design in a number of ways. Often they will appoint their
own consultants or use their own in-house team. It is also common practice for the
contractor to take on the employer's consultants and continue to use them to complete
the detailed design under what is known as a ‘novation’ agreement.
2.2.2 Advantages & Disadvantages
Advantages Disadvantages
- High quality of work - High initial price
- Faster completion of the project - The owner does not benefit
from independent advice and
input from the
architect/engineer and
contractor
- Single-point responsibility - The project price is determined
after the whole construction has
been done
- Employer is not liable for any
error the design team made
- Uncertainty in commencement
of work as design approval is
pending
- Reduce administrative burden
for employer
- Loss of control and reduce
employer involvement in design
5. 2.2Recommendation
Aspects Traditional Method Design & Build Method
Completion of
project
- Takes longer time to
construct due to the time
for design to complete
- Design and construction
can be carried out
concurrently
Cost of entire
project
- Cheaper compared to
Design & Build method
- Higher price because there
is different design with
different price
Responsibility
point
- Multiple-point of
responsibility
- Single-point responsibility
Suitability for
inexperienced
employer
- Yes - Yes
Control of
design
- Design is flexible since
employer has control
over design team
- Design is decided by
contractor on behalf of
employer as long it meets
the Employer’s
Requirement
Reasoning:
The construction of this project is more likely to solve the problem of Taylor’s users have
encountered, it is strongly recommended to have fast completion of project. By
comparing the cost that these 2 different methods may incurred on employer, the Design
& Build method is definitely higher since the contractors will produce different designs
based on Employer’s Requirement, whereas the traditional method is the employer has
to engage with all consultants and produce the complete design before tendering
process. The tenderer with lowest price usually gets selected for the job but it also
carries the risk of underpriced. Under the circumstances, the design will not matter much
as long as it serves the purpose to reduce the problem of shortage of car park. Taylor’s
organization is also known as the inexperienced employer, it is good to have single-point
responsibility so that it is obvious the responsibility lies on the main contractor if any
issue arises. The reasons provided above enable to determine that design and build
method is more preferable to use in this case.
