Architecture / June 23, 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.
Meteorological conditions vary immensely throughout the world and although Ireland experiences a temperate climate all year round, the weather conditions on individual sites in different parts of the country may be very different from each other. Of particular concern may be sites that are prone to flooding, or are exposed or elevated sites where high winds may curtail the use of plant.
It is clear that the purpose of a building will have a major bearing on its cost. Housing has a very different cost range to apartments and commercial development. Likewish the cost of providing public amenities such as conference centres, theatres and sports stadia cannot be directly related to the provision of public infrastructure such as hospitals or schools. The cost of each building must be related to its individual design, which may be benchmarked against similar national and international projects.
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.