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Incredible House Designs

Architecture / June 20, 2018 / .

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Construction involves the production of large scale capital assets which affect not only the client, designers and constructors but also users, the public, and the environment at large. Common law regulates the rights and obligations of the contracting parties not only to each other but also their duties of care to society in general.

The clients attitude towards initial versus the whole life cost of the building can significantly influence the specification. Buildings incur costs over their life time; these include initial capital costs, operating costs, maintenance, disposal and finance costs. The key decision is whether to spend more money initially on better alternatives in order to save money in maintaining and operating the facility

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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.

Local contractors are usually at an advantage when competing for work. Contractors who have the capacity to construct work from within their own organisation should, in theory at least, be more competitive than those who sub-contract large proportions of the work. Current site management practice however tends to favour the widespread use of subcontractors. Nevertheless, the ability to attract labour and to source materials in the locality is an important factor in ensuring that unnecessary travelling and transport costs are not incurred in carrying out the work. Seeley notes that contractors will have to consider whether management, labour and plant resource requirements can be met from within the contractors own organisation or whether it will be necessary to recruit specifically for the project. The contractor will also have to consider what demands the proposed project would put on own plant, scaffolding and equipment.


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