The document discusses four construction project scenarios and the appropriate procurement method for each. Scenario (a) involves rebuilding airport facilities damaged by fire, for which construction management is recommended to meet the tight timeline. Scenario (b) is a property development project; construction management allows flexibility and cost savings. Scenario (c) is a government project; the traditional method ensures quality and cost control. Scenario (d) involves building a parking structure; design-build transfers design responsibility to the contractor.
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Scenario (a)
A fire occurs six (6) weeks before Chinese New Year.
Busy times of the year & could suffer a loss of profit (somewhere in the order of
RM500,000/day) if facilities are not able to cater for the holiday demand.
(Anticipated contract value: RM 20 million)
QualityCost
Time
Time is
prioritized
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Scenario (a) Fire Damaged Airport
Developer
Works Packages
Contractors
Management
Contractor
Consultant
Team
Contractual Relationship & Coordination Coordination
4. CONSTRUCTION MANAGEMENT
• Management Contractor (M.C.) is appointed at early stage before full design is
completed
• All the works to be split into work packages
• Contract Sum as “basis of budgetary control” = Management Fees or Lump Sum
Fixed Fees based on estimated price cost of work packages
• To identity Sub-Contractor packages and draw up construction programme
• Contract cost plan is prepared by the QS based on specific set of drawings and
specification and upon agreement with the M.C.
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Scenario (a) Fire Damaged Airport
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Scenario (a) Fire Damaged Airport
Pros
Shortened overall construction time
Best possible price
Budget control
Expertise
Good and early coordination and close link between Client, Consultants and M.C.
Cons (Eliminated)
Uncertainty of final cost
Variations and remeasurement
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Scenario (b)
In the midst of a property boom, a developer purchases an old rice
mill and wishes to refurbish the building, converting it into high-
quality residential accommodation.
(Anticipated contracted value: RM 400 million)
What is Construction Management ?
Construction Management is a service that uses specialized, project management
techniques to manage the planning, design, and construction of a project, from its
beginning to its end.
7. Reason of choosing Construction Management
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Design flexibility
- Client can change their
design anytime
Privity of Contract
- Protect client from unfair
situation
Cost Saving
- Client can select the work
contractor himself
Reduce Construction Time
- Overlapping the design and
construction time
Change
Design
@#!
8. Flows of Construction Management
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Developer
Package
Contractor
Construction
Manager
Consultants
Contractual
Relationship
Coordination
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Scenario (c)
The Selangor State Government is to develop a new community facility to provide
locally available social care.
(Anticipated contract value: RM 250 million)
Traditional procurement method
• Design work separate from construction
• Full documentation needed before tendering procedure begin
• Consultant appointed for design and cost control
• Contractor appointed through tendering for the construction works
Design BuildBid
10. Flows of Traditional Procurement Method
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Developer
Nominated Sub
contractors
Consultants Main Contractor
Contractual
Relationship
Coordination
Domestic Sub
contractors
11. Why Traditional Procurement method
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Better quality work
Consistent Construction Cost
Commonly adopted in construction line
Competitive fairness among contractor
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Scenario (d)
Taylor’s University is considering building a multi-storey car park building in the
vicinity of the campus to overcome the serious shortage of car park spaces.
(Anticipated contract value: RM 50 million)
What is Build & Design?
The main contractor is appointed to design and construct the works
The client can have greater influence over the design, a concept design and outline
specification
Contractor is appointed to complete the design and carry out the construction.
The contractor may use their own in-house designers to design the building
13. Flow of Design & BUild Procurement method
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14. Why Design & Build Procurement method
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Suitable for simple projects, where design quality is not
the main consideration.
Employer’s financial commitment is capped
It allows a fully integrated team to work together on the
project from the beginning.
Design and build contracts can be awarded on a fixed
price, lump sum basis due to GMP ( Guarantee Maximum
Price )
Editor's Notes
The type of procurement I chose for this scenario is construction management and its based on the cost, time and design risk. So, what is construction management ? It is a service that use to manage the planning, design and construction of a project and basically this construction management will not take physical construction but to split the work to packages which is similar to the management contracting.
The advantages of construction management is design flexibility because the design is not fixed like how traditional procurement method so the client can change their design anytime.
Cost saving because the client can select the work contractor himself, cost saving because he might know some of the trade contractor since he is a developer and also construction manager is appointed in the early stage hence the construction manager can reduce the cost of proposal.
Reduce construction time by overlapping the design and construction this basically mean they construct while they designing it.
Lastly, privity of contract between the client and work contractor this contract protect client from unfair situation
