General contracting and design and build contracts of international contractor

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

However, as experience suggests that international contractors generally prefer general contracting and design and build contracts. General contracting is the traditional procurement method by which the contractor agrees to build the design that is provided by the employer. The contractor only has responsibility for construction and not for design. The contract price is often based on a bill of quantities provided by the employer which quantifies, so far as possible, every aspect of the works. Occasionally contractors will price the works without a bill of quantities, for example from drawings. However, re-measurement contracts, target cost contracts and even cost plus/prime cost contracts are also not infrequentlyin·fre·quent

1. Not occurring regularly; occasional or rare: an infrequent guest.

..... Click the link for more information.used as a method of pricing. This method of contracting remains popular and in its favour it can be said that most employers and contractors would have experience of it. It is also thought that this route offers some price certainty if the design has been fully scoped out prior to construction (which is often not the case); and gives the employer greater control of the design as the employer controls the design team. This method also offers the advantage to an employer of having an independent professional in the role of the contract administrator monitoring the project. The main disadvantages of general contracting include split responsibility between construction and design. This can, and unfortunately often does, lead to disputes about whether defects are really design defects (for which the employer is responsible) or defects in materials and workmanship (for which the contractor is responsible). The other major disadvantage of this route is that the final design is often not fully developed before construction starts and this can create problems and price uncertainty. As we shall see below it can make general contracting unsuitable for public bodies with budgetary constraints CONSTRAINTS - A language for solving constraints using value inference.

["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. .

Design and Build comes in various forms but is typified by the contractor taking both design and construction responsibility. In integrated D&B contracting the contractor develops the design and constructs the building based on a set of requirements provided by the employer. In contrast, novated D&B contracting is closer to the traditional model in so far as the employer's design team develops the design but is then novated to the contractor who takes the design responsibility and then constructs the building. "Turnkey See turnkey system. " or EPC (1) (Entertainment PC) See HTPC.

(2) (Electronic Product Code) A standard code for RFID tags administered by EPCglobal Inc. (www.epcglobalinc.org). contracts are a type of D&B contract but Turnkey and D&B are not synonymous. The fundamental characteristic of Turnkey contracts is that at completion the contractor should simply be able to "hands over the keys" to the employer who can then operate the plant in question. Turnkey contracts are typically associated with process or power plants or works with a heavy engineering element and tend to be associated with performance based contracts. They typically place most of the risk on the contractor. The main advantages of this method of procurement are single point responsibility by the contractor for both design and construction and the ability to fast track the project. D&B lends itself more readily to allowing contractors to start on site before the design is completely finished. This can be important, particularly to government bodies who sometimes need to spend their budget for the project within allocated periods. This procurement method is increasingly common and shares the advantage that most employers and contractors would have experience of it. The disadvantages of D&B include the loss of design control by the employer. Experience suggests that in an effort to bring projects in on budget D&B contractors can often compromise on design and this can be a problem for employers. It places a greater responsibility on employers to carefully detail their requirements without being over prescriptive pre·scrip·tive.

1. Sanctioned or authorized by long-standing custom or usage.

2. Making or giving injunctions, directions, laws, or rules.

3. Law Acquired by or based on uninterrupted possession. to the point where they are effectively providing a design themselves. The client also faces the absence of the contract administrator as his eyes and ears for the project.