Architecture / June 21, 2018 / .
Clients who prioritise cost over speed or who require fixed price lump sums will generally experience longer development programmes, as designs must be substantially completed before tenders can be obtained. This process may take a considerable amount of time as careful thought is required to develop and refine the scheme design. The design, in turn, influences the contractors construction methods which determine length of time taken to complete the contract on site.
The site topography i.e. the natural site features, ground conditions and obstructions, existing and adjoining building, and underground and over-ground services all impact on how the building is designed and subsequently constructed. The nature of each site must be individually checked to establish potential problems. Greenfield developments cost less than brownfield sites which may incur significant demolition, site clearance and remediation costs. Heavily sloped sites require extensive stepping or cut and fill operations and such sites may be dangerous and adversely affect the working conditions and productivity of operatives and plant output. Sites with poor loadbearing capacity will require more expensive foundations while exposed or waterlogged sites will also reduce overall productivity. The cost of dealing with unforeseen ground conditions, archaeological finds and encountering uncharted buried services may be substantial and will be borne by either the client or contractor, depending on the form of contract employed.
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.
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