Architecture / June 25, 2018 / .
All construction work is ultimately undertaken for the benefit of a client. Clients fund the construction process, whether they are individuals extending their homes, or a multi-national corporation developing a cutting-edge production facility, or a government department providing much needed social infrastructure. The importance of clients cannot be over-emphasized. Very often clients do not get the building they want, because they do not know how to ask for it and the architect or other consultants think the building should look a different way. Clients expect that the project will be a success and that the providers will deliver a competent service. They will be dissatisfied, if these expectations are not met.
The contractor is selected on the basis of competitive tendering on most building contracts. The price which the contractor quotes for the job is heavily influenced by both the amount and intensity of the competition expected. In an open tendering arrangement the level of the competition is at its most intense and contractors must submit highly competitive bids to have any chance of winning the contract. This usually secures a rock bottom price. With selective tendering a limited number of competent contractors are invited to tender for the job, this limited competition arrangement results in a keen price being obtained. In the case of a negotiated tender there is no explicit competition and the parties seek to agree a fair price for the work, implicit competition exists, however, as the employer can break off negotiations. If there is no competition the contractor can, in fact, name his price. The tendering arrangement is, therefore, one of the most cost significant decisions a client will make in the course of a building contract.
Procurement refers to the process of obtaining goods and services from another for some consideration. They describe the process as being simple in theory – balancing quality, time and cost priorities, but complicated in practice by legislation, the need to achieve value for money, demonstrate accountability and coordinate consultant and contractual roles and obligations to achieve a satisfactory outcome. The procurement strategy identifies how the project is structured and establishes where responsibility for design is to be placed, how the work is to be co-ordinated, and on what price basis the contract is to be awarded. The procurement strategy also directly affects the level of risk borne by the contractor and leads to choices regarding the conditions under which the work will be executed. These risks must be appraised and managed by the contractor and has a direct impact on the price tendered by the Contractor
In general it can be said that larger buildings with simple, rectangular, regular floor plans and elevations will be less expensive per sq.m. of floor area than smaller, complex shaped, curved or angular buildings. Economies of scale apportion fixed overheads to a larger extent of productive space. Simple setting out and buildable solutions encourage greater plant use and generate higher productivity and less waste. Complex layouts and details are slower to assemble and may involve a number of trades with a consequent greater risk of mistakes and defects. The degree of compartmentation and repetition will also affect the overall cost of the work. New building work is considerably cheaper than work of a repairing nature or work in existing buildings. Single storey structures tend to be more costly than buildings up to three storeys high, beyond which point they become progressively more expensive.