Architecture / May 30, 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.
Speedy completion is often required on commercial developments. The pressure to achieve early completion intensifies when financing and interest costs associated with acquiring the site begin to mount. Clients will seek the early appointment of a contractor in these situations to enable a fast start up on site and will favour fast track design approaches where the design is developed in parallel with site construction operations. Such approaches risk allowing insufficient time to identify or consider beneficial design options, and may, on occasion, lead to abortive working and losing time. Speedy construction on site often requires accelerated working and shift or overtime payments, more intense management presence, and the use of dependable subcontractors and suppliers, all of which add to the cost of the project. Fast track approaches rule out cost certainty and the client will become aware of the eventual cost only at an advanced stage of the project.
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
We have all seen McMansions, they have one thing in common–they focus all of the quality on the front of the building with brick or stone or gables or arched windows. Meanwhile the sides and rear are completely devoid of character (quality) and so become bland vinyl-clad sides of a box that are truly ugly. But here is the motivator behind this: the decrease in quality allows the McMansion to increase in size. This happens in the interior, too. The volume of one big open room can seem impressive, but where are the cozy spaces for intimate conversations? Where can you get away to relax and read a book? Do you want everyone who is come for a holiday dinner to see all the dirty dishes used to prepare the meal? Is there a smart, discrete place for the powder room? At first glance, the larger home at the same price seems to be an excellent value, but there are things to consider when sacrificing other elements of a home for size. These show up in many, many ways including: Enjoyment of Your Home, Resale Value, bigger does not mean more value, Maintenance, Energy Bills