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Complexity of Project And Impacts on Preliminaries of Construction Project At Tender Stage
1. T01-006 : COMPLEXITY OF PROJECT AND IMPACTS ON PRELIMINARIES OF CONSTRUCTION
PROJECT AT TENDER STAGE
METHODOLOGY
INTRODUCTION & PROBLEM STATEMENT RESULTS AND DSCUSSION
CONCLUSION
OBJECTIVE
Preliminaries and contractual matters are in
fact the risks that deal with non-trade
elements.
To establish reliable Preliminaries i.e. accurate, reasonable,
conclusive and yet easy to be priced by Contractors
Reliable Preliminaries are crucial. The finding suggests the Preliminaries items to be
broken down into smaller items and adopt several sum
approaches for accuracy reason. Preliminaries are imperative in nature,
thus expected to be comprehensive, easy to understand, practical
and effective.
Project Cost
Construction Cost
Preliminaries
< 10%
Bills of
Quantities
Preliminaries
Trade
Bills
•  Information
•  Instruction
•  Obligation
Competitive cost Without risking
project performance
Project Constraints
Complexity Direct costs
Indirect costs
Underestimation of price would lead to
abandonment of the project, possible lawsuit and
contract difficulty. Overestimation would
overshoot the allocation and deferment of the
project (Azman 2013).
LITERATURE REVIEW
Theoretical
Analysis
Synthesized
Complexity
Uncertainties
CONCLUSION
PROBLEM STATEMENT
Establish Gaps
OBJECTIVE
RESULTS & DISCUSSION
Preliminaries Uncertainty Complexity
Risks & Problems
To Arrive
Contractors are facing a great deal of
arbitration, exaggeration of risks and unseen
problems to arrive to a competitive price.
Lump Sum
Quantity
Lump Sums
Provisional Sum
•  Ability to anticipate present & future risks - experience
•  Miscalculation, not competitive / cost overrun
•  Large lump sum creates larger inaccuracy
•  Broken down into smaller items
•  Indirect costs require sound anticipations
Time-base
One-off
Researchers’
findings related to
costs are crucial
Complexity is part of the uncertainties exists in
the construction project and directly influences
the Preliminaries at Tender Stage.
(Turner et al. 2013)