Traditional Contracting Lump Sum Construction Essay

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In construction industrial, procurement system is a method from client to choose a suitable contractor to construct of the project. The main consider are time, cost and quality. However, the selection of an appropriate procurement method used in the construction, all depends on the client's intentions and objectives. Client should be considered in order of priority from the time, cost and quality of which is the most important first. Second factors should be borne determining the most appropriate procurement methods are external factor such as economic, commercial, technological, political, social and legal factors. At the same time project characteristics such as size, complexity, location and uniqueness of the project of selection for use.

This contract is by the client appoint an architect, quantity surveyor, services engineering, structural engineer are consultants for the construction design and cost control, and main contractor according to consultants design drawing, specification and with/without bill of quantity for carrying out the works. It includes allocate all work to subcontractors and suppliers to construction of the building. (Ref: fig.1) Generally the main contractor undertakes to carry out a defined amount of work in return for an agree sum. Moreover, this contract all of the activities are sequential and without any overlapping (Ref: fig.2). Therefore this contract within the time is longer for completion.

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This is also a fast track strategy where individual elements of the project are let before the design of later work packages or elements have been completed. The provider will appoint a Construction Manager to manage the overall contract in return for a management fee as with Management Contracting. Also, as before, the project can benefit from early involvement of the Contractor. In this process the contracts for the sub-contractors are placed directly between the Client and the sub-contractor and the Client will need to have a high level of involvement during the design development and the construction phases of the work. As with Management Contracting, the final costs will only be known once the final work elements have been awarded. The organization chart is show as following.

Generally, the client’s perspective is based on the need, it depend on the available of budget and time of the client to meet the need. The three factors are related, with variations in one impacting the other two. Therefore, the ability of the project to fulfil the owner’s needs, it is the most important measure of success for the clients. Clearly, if the project does not function at an acceptable level, completion under budget or a head of schedule is meaningless.

However, Management contractor have some disadvantage which have mention at Para. 5.1.3.4 Client may employ experience and good reputation management contractor to minimums the risk, clients may use negotiate tender to minimums the paperwork in tender stage. The cost control is the main disadvantage of the management contract, the design and construction stage was overlapped, the final cost is hard to determine, therefore, the management contractor need to concentrate on cost control to prevent the project became over budget, experienced management contractor can roughly to estimate the remain budget of the project, also, if the cost is nearly the budget at the final part of the project, client may need to use cheaper material in the finishing or etc, it can reduce the construction cost of the project.