Architecture / April 22, 2018 / .
The payment arrangements adopted on a contract directly affects the level of risk borne by the contractor. Where the contract is let on the basis of a drawings and specification lump sum the contractor assumes the risk for both the quantity and pricing. In lump sum contacts based on bills of quantities and remeasurement contracts the contractor assumes the risk for the pricing only. With reimbursement contracts the client assumes the risk for the quantity and pricing. The payment arrangement, therefore, directly motivates the contractors efforts to carry out the work in an efficient and economic manner. This in turn has a major impact on the final price paid by the client.
This is where the contractor works alongside or within the design team providing a construction management service. The management contractor does not undertake either the design or the direct construction work. The physical construction is carried out by specialist subcontractors, package contractors. There are two main forms of this approach: Management Contracting where the contractor employs the subcontractors and Construction Management where the subcontractors are employed directly by the client and the project is managed by the construction manager - there is no actual main contractor. Management procurement routes are associated with fast moving, complex construction projects. The early appointment of manager within the design team allows the design and construction operations to be fast-tracked while also ensuring that the required quality standards are delivered. These projects, however, tend to be expensive. Figure 1 sets out a summary of the advantages and disadvantage of various procurement approaches which may be of use in meeting project objectives.
A project may be completed on time and within budget, but unless it achieves the specified quality or performance criteria it will be considered to be a disappointment or even an outright failure. High profile building failures such as Priory Hall only serve to strengthen the public concern expressed in the Egan Reports findings that 30% of buildings fail to meet the expectations of their owners. Such failures may be prohibitively expensive to rectify, dangerous and can ruin reputations overnight.
Insulation is an area where some look to save. Because after all, the reasoning goes, you cannot see the insulation in the walls or the attic once it is complete and who wants to spend money on things you can not see in your new home? Do not make this mistake. Not only will it translate into a lifetime of higher monthly energy bills, but it will lead to everyday discomfort with the home feeling too cold in winter and too hot in summer.