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Document A-3.1
Turnkey and EPC Contracts:
Advantages
1. Interfacing: in a turnkey scenario, the employer doesn’t have to coordinate between the design team and
the constructing team.
2. Single Point Responsibility: The contractor in this case is the wholly responsible to deliver a product that
meets the needs of the employer and gives him a profitable.
3. Lump Sum Pricing: The lump sum pricing method provides more control of the project by the employer.
4. Speed of Procurement: The procurement phase in the EPC mode of construction can be compressed to
enhance the speed of construction.
5. Efficiency: As the contractor holds single point responsibility, he is aware of all time bound activities,
critical areas and important aspects of the project. The contractor can pre plan all the required logistics and
materials required to execute these critical aspects.
Disadvantages:
1. Loss of Control: The EPC system of work diminishes the employer’s understanding of the process of the
design and construction.
2. Cost of Tender: In the turnkey mode, the bidders have already spent a lot of money in the design phase
which reflects in their tender amount.
3. Cost of Risks: In EPC contracts, the contractor bids for a higher value by adding additional cost of risks
involved.

Document A-3.2
Fast Track Construction becomes the norm

1. Overlapping the engineering and construction phase of the project has been a normal trend for decades.
This concept is termed as ‘Fast-Tracking’. 40% of all projects in the world are utilizing this concept to ensure
higher productivity by compromising time.
2. The exact cost of the project is not known accurately right at the start of the project and the contractor
has to compromise on additional costs. The incentive in these projects is to squeeze the time by not
considering small increments in the total cost.
3. Fast-Track projects are schedule and time-dependent and so the design process and decisions are taken
based on the time frame of the project. The construction manager plays an important role as it involves a lot
of coordination between the various entities involved in the construction process namely design, execution,
architects, quality and safety professionals, specialized agencies, sub-contractors, vendors etc.
4. Design professionals find fast-tracking feasible only for repetitive and standard structures.
5. 15 to 20 years ago, any changes had to be communicated through older means of communication like
fax/post. Due to technological advances in the recent years, such information sharing is facilitated and can
be done almost instantaneously.

Document A - 2.3
Rethinking Construction – The report of the Construction Taskforce
Concerns:
The profit margins achieved by the contractors were very low; The investment in R&D and innovative
practices were low which led to the older practices being common; Less importance was given on training
which led to a pool of less-skilled workforce; The owners always put price over quality; Client dissatisfaction
Requirements - Focused top-management, customer-centric approach, Collaborative teams and processes,
Quality driven mind set.
Improving the project process:
Repeated Processes – Repeatability to improve productivity.
Integrated Project-Process – All stakeholders resolve any critical situation together.
Focus on end product – Key focus must be given to the quality of the finishing product.
Product development – In case of continuity of a specific process, the client and contractor together devise
a certain technique to reduce the construction time.
Project Implementation –The inter-team coordination between design, procurement, execution and other
enabling teams will make the project an integrated one.
Sustained Improvement – It is vital to take measures that ensure that the process and the project as a whole
is sustainable.
Enabling Improvement - Decent working conditions, more and better training, design for construction and
use, standardization, technology, long term relationships, improving house building with government
support and regulatory forums.
The Way Forward:
Commitment from major clients, government and the construction industry
Demo Projects – Certain projects must be earmarked if they have used a specific innovative technique or a
good cost-saving tool.
Movement for Change - Focusing on client needs, improving the Supply chain culture, training, monitoring
performance, obtaining profit margins

Document A-2.2
An Introductory Guide to the Best Practices in Construction

1. Procurement: Selection of the type of project management and the apt agency for carrying out the same
has a major role in the success of a project and meeting the business needs of owner.
2. Partnering: Working collaboratively is the norm in modern project as all the stakeholders are looking out
for better value for money, profits, lesser time and more predictability in the projects.
3. Risk Management: Better risk management is made possible by having a proper documentation of all
risks, their identification, assessment and the appropriate solution that nullifies the risk.
4. Value Management: Value engineering enables tackling the risks and constraints and meeting the clients’
needs essentially through the co-operation of all entities involved.
5. Sustainable Construction: Any construction activity has to handle the health, safety and well-being of the
employees, improving the conditions at site and ambience, protection of environment, flora and fauna,
minimize energy consumption, reduce waste generation and avoid pollution.
6. Benchmarking: The performance of a project and the construction practices involved in it have to be
evaluated against the established benchmarks (both Internal and Public).
7. Supply Chain management: A comprehensive supply chain management facilitates effective management
among the various parties involved has a huge impact on time and cost saving.
8. Whole Life Costing: Analysing the cost of a project including the discounted operational and maintenance
costs (Net Present Value) is a good measure to gauge the actual cost of ownership.
9. Health & Safety: The health and safety of employees at work place can be attained by proper planning
and scheduling of activities, following the SOP, training of all personnel.
10. Lean Construction: It focuses on the integration of processes and hence reduce the time taken for the
construction activity by reducing the unnecessary movement of men and material through principles like
value analysis management, process optimization and continuous improvement.