nature of construction contracts introduction for this assignment the writer is going to discuss the nature and types of construction contracts and will explain the legal responsibilities of the various parties involved in the design and the construction process. Construction industry institute (cii) research indicates that the most frequent contractual disputes involve scope of work, scope changes, project control issues, and a lack of alignment between owner and contractor on the risk allocation effect of particular contract clauses. The process of contract management - it is the strategic step as this level of development is achieved, an enterprise is able to evaluate contract and partnership network from a strategic point of view.
In accordance with the state procurement policy, procurement strategy and contract selection for government building projects is required, among other things, to achieve value for money. The majority of construction companies have a bidding strategy of some form whether it is specified or not, in the instance that a company does not engage in a process of selection when approaching new work then they will offer little value as they would be pricing every job available regardless of the contract value, location, programme or. 22 selection of contract type the selection of contract type to be used for a construction project is made by the owner, acting upon the advice of his engineer and his legal advisor.
The contractor tenders against a client brief and will often follow an initial concept design prepared by consultants appointed to advise the client9/1/2015 the factors influencing procurement strategy construction essay this method of procurement involves the contractor being responsible for design as well as construction. Early contractor procurement is a way to get the contractor involved before the construction phase begins, (mosey, 2011) the idea of this is to make use of the contractor and their knowledge and understanding of the construction industry. The selection team was a truly multi-disciplinary one that brought together disciplines in engineering, procurement, commercial, project management, and construction all meetings were held jointly, as this was key to effectively communicating salient risks. 3 qualifications based selection of contractors august 2009 qualifications based selection of contractors the purpose of this paper is to present and explore qualifications based selection (qbs) of.
The selection of construction project contractors :it is problematical to select a suitable contractor bid bid evaluation is one of the major challenges that face owners and consultants in the public and private sectors. Contractor document tendering process cost & financial management introduction this paper discusses the contractor's tendering process and how the estimator deals with the preparation of a tender on behalf of his firm. The contractor selection process in the boo case would be very different than • contract with engineering, construction, selecting a contractor/project.
Process although contracts can be made by word of mouth or by conduct, it is difficult to prove what has for the recommended contract strategy clamp, et al. After the selection of a contract strategy, client needs to select the contractor the selection of a contractor is a crucial decision made by client the criteria for selection might be cost, time or quality. 10 introduction to select a suitable procurement strategy for a construction project, there are some issues which need to consider from all of those issues, there are 3 big issues that mainly affect the selection decision which are time, cost and quality. Selection and management of the building contract for each project, key criteria must be considered and risks allocated, before the form of contract is selected.
The selection of a procurement method should be viewed as an iterative process whereby project objectives and constraints are constantly compared with possible procurement solutions to. A cost-reimbursable contract with a fixed fee provides the contractor with a fee, or profit amount, that is determined at the beginning of the contract and does not change a cost-reimbursable contract with a percentage fee pays the contractor for costs plus a percentage of the costs, such as 5% of total allowable costs. Decide on the selection process and type of contract: the architect and project manager are best suited to assist you in prequalifying several contractors by looking at: the reputation and relevant experience of the contractor and team members.