Negative Aspects Of Construction Methods – Description And Analysis

Discussion

Discuss About The Negative Aspects Of Construction Methods?

This report is the description and analysis of the negative and positive aspects of the three methods of procurement for the construction. The three modern procurement methods are also discussed exclusively together with other modern types of procurement methods have also been reported. The problems and benefits that these procurement methods have on developer/client, end-users, builders, and consultants. Some of the types of procurement include Public-Private Partnership, construction management method, Design and Construct, and Design, Bid, Build (DBB).

The procurement for construction is a solution which gives the necessary support and guidance to assist in reducing the cost and risks overruns. This system assists agencies to realize prosperous project results through provision of support and guidance to assist in risks minimization as well as overruns in cost, helping agencies, and their advisers to apply suitable discipline levels to procurement and through provision of a consistent basis for interface management between private sector and government (Akintola Akintoye, 2015, p. 189).

The procurement system for construction gives support for selecting appropriate contracting and procurement strategies, preparing for tender contracts and documents based on forms that are standard, selecting consultants and contractors with records of performance that is proven, efficient contracts management such as checklist of sample letter, resolution of disputes and claims that are contractual, and maintaining efficient system of performance management through reporting and monitoring. Some of the factors influencing the strategy of procurement include timing, project characteristics, external factors such as commercial, social, and political factors, cost issues, client resources, ability to make changes, and project characteristic (Austroads Limited, 2012, p. 158).

The three types of procurement that have been discussed exclusively in this paper include Public-Private Partnership, construction management method, Design and Construct, and Design, Bid, Build (DBB). Their characteristics, positive and negative aspects of the above three mentioned procurement methods are also discussed with the concentration made of their effects on developer/client, builders, consultants, end-users, and sub-contractors(Derek H. T. Walker, 2013, p. 278).

The major parties involved in the DBB method are the contractor, design consultant, and principal as illustrated in the figure below:

The DBB is a construction delivery procedure such that the owner or agency contracts with different entities for construction and project design. The three major categories of DBB method include: 

Design phase: For this section, the owner preserves an architect to produce and design the document of bidding, such as drawings of the construction as well as technical specifications of which many general contractors will in turn bid to project construction. In case of a project of building, the architect should work with the possessor to find out the needs of the owner (Frank R. Dagostino, 2011, p. 189).  

The Design Bid Build Procurement Method

Tender or bidding phase: The process of bidding may be free such that any bidder that is qualified can take part or select. A specific number of contractors who are pre-selected are invited to make a bid (G. William Quatman, 2015, p. 179).

Construction phase: After the awarding of the construction of the project, the documents of the bids should not be altered. The required permits such as building permit should be met so as the process of construction is started.

The consultant of the design helps the principal in the process of selection of suitable contractor of the construction and then carries out the following functions drafting the conditions of the tender, recommending the procedure of the process of tender, evaluating the tenders, recommending the winning tenderers, and then recommending the sub-contractors preferred. The relationship between the head contract and the principal is a significant since after the issuing of the construct, the contractor and the head contractor will construct the project whose conditions include building the building at a certain cost, completing the building at a given time, and finishing the building to a high standard of quality. The consultant of the design assumes the full authority of the contract after the awarding of the tender (Goodhew, 2013, p. 289).

The links between subcontractors and head contractor since after the awarding of the contract, the actual work will be done by a subcontractor who is specialized for that particular field. The head contractor splits the actual contract into a smaller contract as then assumes the role of construction activities manager which include resource allocation, subcontractors co-ordination, and budgeting and programming (Goodhew, 2013, p. 308).

• The estimation of the cost may be made before the awarding of the contract fairly.
• There is the limitation of financial risks because the majority of the risks are taken by the construction contractor.
• The variations in design are minimized since the documentation of the design are finalized before the awarding of the construction to the contractor.
• The design team take note of the owner’s interest
• There is fairness during the bidding process on the bidders that are potential and develops the process of decision-making since the owner has a wide variety of probable choices (Jeffrey L. Beard, 2010, p. 189).

• The construction of the project cannot begin until it is fully documented and designed.
• The contractor of the construction does not take part in the design hence does not input their management and technical expertise.
• There are high risks of predatory bidding if there are documentation and design errors.
• The construction and design team can be under pressure because of competing for interests (Jeffrey N. Buxbaum, 2014, p. 216).

This is an arrangement that is corporative among tow or even more private and public sectors generally of a long duration. The Public-Private Partnership is a method of transferring the responsibilities to the private sector such as a construction company owned by an individual from the public sector owned by the government such as transferring construction contract from the public sector to private sector. This procurement approach may be (BOOT) which is an abbreviation of Build Own Operate Transfer (BOOT) or (BOT) which is an abbreviation of Build Operate Transfer method of delivery such that the computer doing the construction constructs the project, take ownership for a given duration, operates the building for the duration it is owning it, and then transferring the assets back to the real owner (Jeffrey N. Buxbaum, 2014, p. 218).

Positive aspects of the Design Bid Build

An example of the Public Private Partnership is the M7 motorway project. The links between the principal together with the consortium and promoter in the Public Private Partnership is a mutual relationship. The consortium and promoter commence the process of construction and management of the construction. The promoter and the consortium have the responsibility of funding the construction. The promoter then engages the contractor of the construction who in turn takes on the design and construction risks. The principal may incorporate guarantees into the construction plan so as to reduce the traffic flow or else allowing the operator to carry out the construction in return for rent (John Bennett (P.A.), 2010, p. 149).

• This method is important by encouraging investments into the public sector and more efficient management of public resources.
• This method provides higher timely and quality provision of the services to the public.
• The private entity is given a chance to acquire an implementation that is long-term.
• There is the faster completion of the projects and construction as well as limited delays on projects of infrastructure.
• This method ensures higher efficiency since the government budget deficits and budgets are greatly reduced (John Bennett (P.A.), 2013, p. 169).

• Poor communication and understanding due to the diversity of and differing in languages spoken between the sectors. Factors such as regulation, performance measurements, nature funding, and government regulations can be interpreted differently.
• Conflicts can arise from disagreements causing the partnership to be a halt. Lack of understanding and poor communications are usually the major causing conflicts between the members involved in the construction.
• This procurement method is also faced by the funding priorities since the parties involved cannot decide on where the funding should be placed leading to loss of some time and resources making the project to delay.
• The services and infrastructure being delivered by the constructor may be more expensive than other procurement methods.
• The procedures involved in the Public Private Partnership are more costly and takes a longer duration as compared to other procurement methods (Keith Potts, 2012, p. 179).

The Design and Construct procurement method is where a person design and construct within a single organization. This method is also known as turn-key or package deal methods. The Design and Construct method is usually carried out in a construction company which subcontracts the design to consultants of the design, a company which has the authority to do construction and design or a combined venture which uses a construction company and design company (Marcus C. Jefferies, 2011, p. 139). 

The Design and Construct method needs some quick tracking during the process through overlapping the construction and design stages. The principal has a greater involvement in this method compared to the approach of Design Bid Build. The principal in the Design and Construct method has a sole point of contact which is normally the contractor of the construction.  The major parties that take part in the Design and Construct method of procurement are the head contractor and the principal, where the head contractor being the point of contact for the subcontractors and consultants of the design. This is illustrated in the figure below:

Since the head contractor is involved in the initial stages, the majority of the risks are eliminated since they give their expertise of the construction from the beginning of the stage of design. Normally the Design and Contracts involve incidents as drawings and documentation may not be entirely complete at the stage of estimation. In case a huge number of contracts is sought in a Design and Construct method, the duration needed in the stage of tendering is prolonged, as the tenderers require duration to tender and design, while the client requires duration to scrutinize the tenders, as well as each company, can have full diversity of the designs (John Bennett (P.A.), 2013, p. 248).

Negative aspects of Design Bid Build

• The client has to the pact with a single firm and minimizing the requirement of committing time and resources contracting contractors and designers separately.
• There is certainty in price before the commencement of the construction since the requirements of the clients are exact and variations are not introduced.
• High constructability because of the input of the contractor into the design.
• The overlap of the construction and design activities may minimize the duration of the project (Austroads Limited, 2012, p. 217).

• There is difficulty in extending the time in this method of procurement leading to the application of liquidated damages, no bonus of late accomplishment, and bonus for early accomplishment.
• The Design and Construct approach may lead to variations which will cause blowout to the budget and design error.
• There is also need of including special conditions in the contract when implementing this procurement approach (Frank R. Dagostino, 2011, p. 179).

Conclusion

This report is the description and analysis of the negative and positive aspects of the three methods of procurement for the construction. The three modern procurement methods that have been discussed exclusively together with other modern types of procurement methods have also been reported. The problems and benefits that these procurement methods have on developer/client, end-users, builders, and consultants have also been discussed in this report. Some of the types of procurement discussed in this report include Public-Private Partnership, construction management method, Design and Construct, and Design, Bid, Build (DBB).

The DBB is a construction delivery procedure such that the owner or agency contracts with different entities for construction and a project design. The Public-Private Partnership is a method of transferring the responsibilities to the private sector such as a construction company owned by an individual from the public sector owned by the government such as transferring construction contract from the public sector to private sector. The Design and Construct procurement method is where a person design and construct within a single organization. This method is also known as turn-key or package deal methods.

References

Akintola Akintoye, M. B. C. H., 2015. Public-Private Partnerships: Managing Risks and Opportunities. Paris: John Wiley & Sons.

Austroads Limited, E. C., 2012. Building and Construction Procurement Guide: Principles and Options. London: Austroads Limited.

Austroads Limited, E. C., 2013. Building and Construction Procurement Guide: Principles and Options. Michigan: Austroads Limited.

Derek H. T. Walker, B. M. L.-W., 2013. Collaborative Project Procurement Arrangements. California: Project Management Institute.

Elias G. Carayannis, Y.-H. K. F. T. A., 2015. The Story of Managing Projects: An Interdisciplinary Approach. Michigan: Greenwood Publishing Group.

Elisa Casey, P. L. C. M., 2016. Guide to Project Delivery. Paris: Elisa Casey, Peter Letts, Colin MacKay.

Frank R. Dagostino, L. F., 2011. Project Management Institute. Chicago: Prentice Hall.

William Quatman, I. R. (. D., 2015. The Architect’s Guide to Design-Build Services. New York: John Wiley & Sons.

Goodhew, S., 2013. Sustainable Construction Processes: A Resource Text. London: John Wiley & Sons.

Jeffrey L. Beard, L. E. E. C. W., 2010. Design-Build: Planning Through Development. London: McGraw Hill Professional.

Jeffrey N. Buxbaum, I. N. O., 2014. Public Sector Decision Making for Public-private Partnerships. Colorado: Transportation Research Board.

John Bennett (P.A.), E. P. G. R., 2010. Designing and Building a World-class Industry: The University of Reading Design and Build Forum Report. Paris: Centre for Strategic Studies in Construction.

John Bennett (P.A.), E. P. G. R., 2013. Designing and Building a World-class Industry: The University of Reading Design and Build Forum Report. Colorado: University of Reading. Centre for Strategic Studies in Construction.

Keith Potts, N. A., 2012. Construction Cost Management: Learning from Case Studies. Toledo: Routledge.

Levy, S. M., 2012. Design-Build Project Delivery: Managing the Building Process from Proposal Through Construction. London: McGraw Hill Professional.

Marcus C. Jefferies, S. R., 2011. New Forms of Procurement: PPP and Relational Contracting in the 21st Century. New York: Routledge.