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  • pp1 Question 3

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    api-323157773
    28 vues19 pages
    The document discusses contractors' claims for loss and expense that often arise in building contracts. It notes that these claims are usually resolved during final accounting but sometimes become disputes that require legal action. It then addresses three questions: 1) Whether an extension of time automatically provides the right to recover loss and expense. 2) Whether construction management would be suitable for a car manufacturer, noting factors like inexperience, project complexity, and financing needs. 3) The advantages and disadvantages of open, selective, and negotiated tendering methods and the typical procedures for each.

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    The document discusses contractors' claims for loss and expense that often arise in building contracts. It notes that these claims are usually resolved during final accounting but sometimes become disputes that require legal action. It then addresses three questions: 1) Whether an extension of time automatically provides the right to recover loss and expense. 2) Whether construction management would be suitable for a car manufacturer, noting factors like inexperience, project complexity, and financing needs. 3) The advantages and disadvantages of open, selective, and negotiated tendering methods and the typical procedures for each.

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    28 vues19 pages

    pp1 Question 3

    Transféré par

    api-323157773
    The document discusses contractors' claims for loss and expense that often arise in building contracts. It notes that these claims are usually resolved during final accounting but sometimes become disputes that require legal action. It then addresses three questions: 1) Whether an extension of time automatically provides the right to recover loss and expense. 2) Whether construction management would be suitable for a car manufacturer, noting factors like inexperience, project complexity, and financing needs. 3) The advantages and disadvantages of open, selective, and negotiated tendering methods and the typical procedures for each.

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    © All Rights Reserved
    Téléchargez comme PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    sur 19

    PROCUREMENT

    METHODS
    TUTORIAL 3
    TUTORIAL 7

    Contractors claims for loss and expense have long been


    a contentious issue in many building contracts. These
    claims are usually resolved during the final accounting
    process but where negotiation fails, they usually become
    disputes with the parties adopting legal route to resolve
    their differences.

    a) The Contractor is granted an extension of time. Is


    there an automatic right to the recovery of loss and
    expense?
    1
    ANSWER : YES

    CLAUSE 24
    CLAUSE 24
    LOSS AND/ OR EXPENSE CAUSED BY MATTERS AFFECT
    PROGRESS
    Design overlap with Construction

    DESIGN &
    BUILD
    Recommendation! WHY?
    WHY?
    Design as Hospital not complicated
    Functional building
    Time - Fast track and Overlap
    Cost - Low Cost
    Single point responsibility
    Low Risk for Client
    Consultant and Contractor handle

    Why not MC:

    Inexperienced Client
    Project Cost higher
    Lack Single point responsibility
    Not Complicated
    TUTORIAL 3

    2) Mr. Tan is a car manufacturer. Would you consider


    construction management in your recommendation? Give reasons to
    support your advice.
    2
    CONSTRUCTION MANAGEMENT

    Ensuring it gets
    built right
    construction
    manager

    quantity
    surveyor

    employer engineer

    architect

    trade trade trade


    contractor contractor contractor
    Defining :
    Management and control of the construction phase of a project

    Purpose :
    Ensure all aspects of construction are executed for the owner, safety,
    on time, on budget and conforming to all standards and guidelines

    Resposibilities :
    Quality assurance/quality control
    Cost management
    Schedule analysis
    Contract compliance
    Claims avoidance
    Inspection
    CONSTRUCTION MANAGEMENT SUITABILITY

    May be suitable Less likely to be suitable

    Complex projects Straightforward, lower value


    Clients with experienced projects
    hands-on development teams Inexperienced or under
    Flexibility to change design resources clients
    required Financing needed from loans (no
    Strong collaboration between cost/time certainty)
    client and contractor Clients unwilling to trade risk for
    cost-effectiveness
    TUTORIAL 3

    3) As for the tendering methods, you shall consider all


    three methods: i.e. open, selective and direct negotiation methods.
    Similarly, you are to describe the advantages and disadvantages of
    each method before arriving at your recommendation.
    3
    TENDER METHODS

    Open
    Selective
    Negotiated
    OPEN TENDER
    Advertise local / trade publication
    Include type , scale & programme of work
    Collect tender & submit tender bond & deposit
    Submit on stipulated date
    Choose according to consultant recommendation

    Advantages Disadvantages

    Contractor can tender Risk selecting


    No restrictive list of tender Poor quality
    No obligation of tender
    Maximum competition
    SELECTIVE TENDER
    Proposed contractor by consultant
    Pre-qualification : based on experience , quality , size & final grade ,
    financial capabilities, reputation, management strength

    Advantages Disadvantages

    Only proper qualified tenders Longer process


    Minimize default chances Higher price which leads to
    Better quality evaluation and price check
    NEGOTIATED TENDER
    Approach one contractor only due to reputation & skills
    Contractor price BQ & negotiate with QS

    Advantages Disadvantages

    Experienced Higher price


    Met client expectation Longer time nego before award
    Higher quality
    PROCEDURES OF TENDERING

    Invite to Document Tender


    Tender Collection Closing
    Open tender : Stipulated date for Tenderer submit in
    advertisement collection & a box
    submission QS submit tenderer
    Selective tender : estimate
    list based on
    consultant

    Tender Tender Tender Tender


    Opening Evaluation Interview Award
    Presence of Check arithmetical Enquire about Within 14 days
    consultant & errors determine tenderer proposed
    employer's correct position schedule and
    representative and capabilities
    record tender
    figures
    SELECTIVE TENDERING
    WHY??
    Thanks!

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