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1、Joint Function of HKIE,CIBSE and ASHRAE,Innovative Approach in Contracts and Tender Procurement Management,A Presentation on,for,IntroductionInnovation/ImplementationTypes of Contract ProcurementWhy Choose Design and Build ProcurementWhat are the Various OptionsCase Study to illustrate the suitabili
2、tyQuestion-and-Answer Session,Presentation Outline,Innovation Implementation,Creativity(C)is a function of three components by Tereasa Amabile expertise(E)Creative-thinking skills(CTS)motivation(M)matching people with right projects and tasks Always ask why,what if?,Making most of the Best by James
3、Quinn know what knowledge know how skills know why understanding can why-motivation,Generating ideas by Robert Cooper creativity is the ability to develop new ideas through stage-gate systems(stage 1 gate 1 stage n stage n-?(i.e.screening process),Now think of,Traditional Contract Procurement-know w
4、hat-know how-know why,Bills of Quantities(Firm or Approx.)Lump sum(Drawing&Specification)RemeasurementDesign and BuildManagement ContractingConstruction Management,Innovation Contract Procurement Approach,Set up a task force led by a“Champion”,Make up a platform for investigation,Project Requirement
5、,Generating Questions-why?what if?,Sorting process through innovation,Traditional Approachor modified standardor tailmade version,Timeframe/Uncertainties/Risk allocation/Ceiling process,Selections,Most effective contract approach,See Common Problems,Unforeseen design problemsLate design informationP
6、rogramming problemsSub-contractor arguments May not be suited best to Developers Objectives,Generating Ideas:-Why choose Design&Build?ORDevelop&Construct?,Qualifer,Question 1:How to do get flexibility in design,quicker construction period but with certainty of product?D&B contractsSingle Stage Tende
7、ring,Design-and-Build Procurement,Contractor responsible for design and constructionSingle-point responsibility,Lets see,Typical D&B Documentation Structure,Employers Requirements,Design Intent Proposals,Design brief-most important element,Clear statement of what Owner wantsVaries in detail:Very bri
8、ef?Maximum design flexibility for ContractorVery detailed?Close control over end-productEnsure ER clearly set out quality benchmarks requiredAs Contractor has fitness-for-purpose obligation,ERs must be clear on what the Employers purpose is,Salient Points to Note,Contractors Proposals,Response to ER
9、sPresentation format as stipulated in ERPart of contract documentsNo provisional sums allowed unless called for in ERs,Contract Sum Analysis,Contractors lump sum priceProvides detailed analysis of offerAssists in valuation of Changes and checking payment applicationsPart of contract documents,D&B Do
10、cumentation,Question 2:But even with D&B contracts,how can we get the right contractor for the job?Risk Management&Two Stage Tendering?,(1)Design and Build Form with design consultants engaged by Contractor or through novation of consultants(2)Design and Build Form but retention of Architect by Empl
11、oyer as Architectural QP and Employers Agent(3)D&B with Architectural design by Architect engaged by Employer and Structural and M&E design by Engineers engaged by Contractor,Which Option?,Design-and-Build Procurement,D&B Form(including FULL novation of consultants),(1)Either Contractor engages all
12、design consultants team or Employer-engaged consultants novated to D&B contractor(2)D&B contractor engages architects and engineers not only to design the works but also to act as the appropriate Qualified Persons for the works under the Building Control Act.,Salient Features,D&B Form(including nova
13、tion of consultants),Employers AgentQuantity Surveyor,Organisation Structure,D&B Form(including novation of consultants),ProsSingle point responsibility Contractor engaged professional architects and designers not only to design the works but also to act as appropriate Qualified Persons(QPs)for the
14、works.Whole design process(statutory and non-statutory)carried out by D&B contractor=Contractor cannot argue that his design liability has been discharged by the involvement of another party,D&B Form(including novation of consultants),PROS and CONS,ConsEmployer appointed project manager to administe
15、r the ContractMay not know history,D&B Form(including novation of consultants),PROS and CONS,D&B Form but retention of Architect as Architectural QP and Employers Agent,(1)Contractor engaged structural and M&E consultants(including Employer-engaged structural and M&E consultants novated to D&B contr
16、actor)(2)Employer-engaged Architect is retained to act as the Architectural QP for the works and to act as the Employers Agent.,Salient Features,D&B Form but retention of Architect as Architectural QP and EA,Employers Agent(Architectural QP)Quantity Surveyor,Organisation Structure,D&B Contractor,Cli
17、ent,QP(Structural)QP(M&E Services)Own Designer,Sub-ContractorsSuppliers,D&B Form but retention of Architect as Architectural QP and EA,ProsEmployer appointed project manager is discharged from duty to act as Contract administrator.,D&B Form but retention of Architect as Architectural QP and EA,PROS
18、and CONS,ConsLiability for Design in the Employers Requirements-Employers Architect prepare the Employers Requirements(ER).-Contractor may rely on above fact to discharge or reduce their liability for the design of the works by arguing that they should not be liable for the adequacy or fitness of th
19、e design contained in the ER.,D&B Form but retention of Architect as Architectural QP and EA,PROS and CONS,Cons(.continued)Employers Architects statutory submissions and supervisions-Contractor may argue that since the Employers Architect had made the necessary submissions(which would include checki
20、ng the submission)=this fact should discharge or reduce his liability for any inadequacy in the detailed design.,D&B Form but retention of Architect as Architectural QP and EA,PROS and CONS,Cons(.continued)Employers Architects Approval of the Contractors Detailed Design and Shop Drawings-Contractor
21、may argue that such approval discharges or diminishes his responsibility and liability for the detailed design for the architectural works that have been approved by the Employers Architect.,D&B Form but retention of Architect as Architectural QP and EA,PROS and CONS,Partial Novation Design and Buil
22、d on Structural and M&E works,(1)Architectural works are designed by the Client-appointed Architect whilst the Contractor is responsible for the design and construction for the structural and M&E works,Salient Features,SIA Form with Design and Build on structural and M&E,(2)Lump sum tenders are invi
23、ted based on the following:-Full detailed drawings for the architectural works-Employers requirements comprising the design brief and performance requirements for the contractor-designed portion(structural and M&E works).,Salient Features,SIA Form with Design and Build on structural and M&E,Architec
24、t(Qualified Person and Contract Administrator)Structural Engineer(Technical advisory role)Services Engineer(Technical advisory role)Quantity Surveyor(Full pre and post contract services),Organisation Structure,Contractor,Nominated Sub-contractors,Nominated Suppliers,Contractor-Designed PortionStruct
25、ural WorksMechanical and Electrical Services,SIA Form with Design and Build on structural and M&E,Client,Architect(Qualified Person and Contract Administrator)Quantity Surveyor(Full pre and post contract services),Organisation Structure,Contractor,Client,Nominated Sub-contractors,Nominated Suppliers
26、,Contractor-Designed Portion with Novated ConsultantsStructural WorksMechanical and Electrical Services,SIA Form with Design and Build on structural and M&E,ProsClient has full control over architectural design.Contractor is responsible for co-ordination of all drawn and written information between
27、and within the different disciplines and integration of his design with the design of the Works as a whole.Contractor assumes a fitness for purpose obligation where the choice of materials and workmanship and/or design is left to him.,SIA Form with Design and Build on structural and M&E,PROS and CON
28、S,ConsAs the SIA Form is a traditional delivery contract,it is unclear to what extent the draftsmen of the SIA Form intended it to be used as a form of D&B contract=If such form is to be used,modifications would be required in particular the Clause 3 of the SIA Contract Conditions.,SIA Form with Des
29、ign and Build on structural and M&E,PROS and CONS,The Case Study,The Project,Tight Time lines from conception to completion Retail targeted to open in 1st quarter 2009.That means that Completion&TOP need to be obtained in December 2008 for tenant fit-out.Consideration for top-down construction with
30、fast construction cycle time Possible need for construction innovation Numerous specialist works needed coupled by complicated contractual relationshipsSpecialist needed for related works such as fire,security,temporary works etc.Eventual contractual relationship will be complicated due to multiple
31、contractual relationshipsPossible cross-liabilities,The Project,Numerous Authority Approvals for the construction of the building e.g.LTA,MRTC,URA and BCA requirements.No night working which involves noise generationStringent scrutiny for approval by authorities due to existing infrastructure works(
32、e.g.MRT box,lines,bus routes,HT cables etc)Neighbouring high-end residential blocks less than 100m.Complication of Design Tall tower over podium Podium over MRT box(need for transfer structure)Deep basement(safety and construction risks),What choices?What if?Common Procurement Routes in Singapore,Bi
33、lls of Quantities(BQ)Lump Sum(LS)Design&Build(LS)+GMP Option,TraditionalContracting,Common Problems in Traditional Contracting in relation to Project,Unforeseen design problems due to technicalitiesLate provision of design information Splits construction and design Possible Programming problemsSub-c
34、ontractor arguments due to multiple contractsHigh chance of variation due to clashes in coordination High possibility of time and cost escalationsLong design development time=June 2008 deadline will not be met in all circumstances for commencement of Tenant Fit-outHigh time and cost risk to JV owner
35、s,Design&Build-Innovation(Develop&Construct),Design intent drawings has to be completed i.e.key plans,layouts,framing plans sections and elevations.No need for construction detailing at this stage(usually 1st two to three months from project commencement).Tender to include Performance Specification,
36、Prime Cost Rates,Employers Requirements etc.Contractor to bring to completion and carry out design development and be solely responsible for the design in totality.(Single point responsibility)Combines the technical know-how and knowledge of the contractor and the ability to amalgamate design and co
37、nstruction,The D&B Approach in relation to Project,Single point responsibilityShorter construction period due to the condensing and overlapping of the contractors programme I.e.design development commences during piling and as the work proceeds.The risk for the deep basement excavation and building
38、on top of the MRT box lies solely on the contractor as compared to the traditional approach whereby certain risk can be linked to the Employer(Employers consultants design)Quality can be met via the Employers Requirements,Schedule of Finishes,Prime Cost Rates,Provisional Sums etcCoordination respons
39、ibility lies with the Contractor.Better time and cost certainties.,Why choose the D&B Approach in relation to Project?,As this project is of high quality and is in the heart of the Orchard Road district,quality of the Architectural works is important.Therefore,it is our recommendation that the Archi
40、tect remains with the Employer(not novated like the M&E and C&S Consultants).However,all design responsibility still rests on the ContractorProcurement package can be further tightened with a Guaranteed Maximum Price(GMP)Methodology.This is to safeguard the clients interests in any variations that m
41、ay lead to cost and time implications,Design-and-Build Procurement,Contractor responsible for design and constructionSingle-point responsibility,Project ManagerArchitect(Qualified Person and Contract Administrator)Quantity Surveyor(Full pre and post contract services),Novated ConsultantsCCivil and S
42、tructural EngineerM&E Engineer,Client,Main Contractor,DomesticSub-Contractors,Domestic Suppliers,Novated services contracts,Services contracts cancelled,Summary,Summary,Post Contract Administration Merging of Singapore&Hong Kong Practices,Variation Process AIP System/meeting CPO at site apart from p
43、roject office ICU,Cost Report/Cost Plan/Cost Reporting Executive Cost Report Monthly cost Review Overbudget Vs Saving Benchmark JV approval in monthly DC meeting,Sub-Contract Semi system as DSC,How to merge two countries one system,SHK&CapitaLands concerns,Contract provisions to protect the Client i
44、n Contractors VO claims,Article 5 of the SIA Conditions and Contract(7th Edition),Prices to be inclusive,Subject to adjustment of the Contract Sum for variations under Clause 12 of the Conditions.The Contact Sum and Contractors Rates and prices in the SOR,.,shall be inclusive of all ancillary and ot
45、her works and expenditure,which are either indispensably necessary to carry out and bring to completion the Works described in the Contract Documents,or which may contingently become necessary to overcome difficulties before completion,Also added,adopting the GMP Conditions whereby notwithstanding c
46、lauses 1(2),1(4)and 12(2)of the Conditions of Contract or any other provisions of this agreement and the Contract,nothing whatsoever in the Design Development and/or Construction Detailing or the Contractors compliance with such Design Development and/or Construction Detailing shall constitute a var
47、iation under this Contract,or at law and/or shall result in any increase whatsoever of the Contract Sum or EOT for the completion of the Works,unless;,the Architect issues an instruction which fundamentally and materially changes the overall floor plan area,building volume,function of an area and/or
48、 the level of quality of an area;or,the GMP shall have included the latest development in rules and regulation that are being discussed and/or contemplated y the Government of Singapore that is relevant and is in connection to the construction industry of Singapore but not yet enacted up to and unti
49、l the submission of the Tender.,Architects Instructions that materially change:-Overall floor plan-Building volume-Function of an area-Level of quality of an areaChanges as a result of legislation or statutory requirementsChanges of Intent,GMP Variations and Adjustment,Relevant Project Experiences,V
50、ivoCity(Design and Build with GMP)One George Street(Design and Build with GMP)Church Street(Design and Build)SIF Building(Design and Build with GMP)Condominium at Draycott(Lump Sum with GMP)Ang Mo Kio Town Centre Mall(Design and Build),Other Projects with Full D&B,St Regis(JCT Form)City Square(JCT F
