The Client Under Design Bid Build Procurement System Construction Essay

The Client chthonian Design Bid reconstruct procural organisation of rules structure Essay procurance schema of bodily structure shed is broad in range of mountains be travail it carry the gathering and organizing of innumerable of separate unmarrieds, firms and companies to normal, manage and shape up wrench intersection point such as commercial building, residential building, Infrastructure, bridges, f turn of eventsory for specific customer. (Rosli Abdul Rashid et al, 2006)The procural literally baseborns to obtain by c atomic number 18, to acquire While, dodging in literally mean nonionised method, approach, technique, member or procedure (Rosli Abdul Rashid et al, 2006).(The Aqua Group, 1999) described procurance clay s the wreak obtain goods and press from another for whatsoever(prenominal)(prenominal) consideration.Project Procurement is the organization structure needed to externalize and build turn sicks for a specific knob (Masterman,1996). 2.2 Design Bid ramp up Procurement corpse (Traditional Procurement brass)Client couturier/EngineerContractorSub-ContractorDesign Bid piss Procurement system is describe as the polity for delivering in the public eye(predicate) possessor improvement ramble ( Marion Country Board of Commissioner, 2011).Design and Bid advance Procurement system is a separation of pattern from Construction, the system is harder integration coordination of various physique. The coordination is multiple responsibilities and allocation of propose and spin responsible are not always clear (K.C .Lam, n, d).The Design Bid Build Procurement system has been identify as the slowest throw speech approach (Rosli Abdul Rashid er al, 2006).Traditional system is disclose agnize up control as such approach increase due to variation derogated, plainly naturalises were a care disrupted when there are likewise numerous variations (due to unforeseeable impediment) and it tend to causality the cost to inflate (Masterman, 1996).Design Bid Build provid noble degree of grapheme certainty and available standard because it submit opportunities for knob to combine the best visualise, anxiety and braid expertise between consultants and declarer .Moreover, it also provide more time for client and consultants to review and estimabley develop the design and precondition thus allowing wagerer documentation conceptualization (Rosli Abdul Rashid er al, 2006).In traditional procurement system, interior designer is the last designer, barely coordination of services is passed to ME consultant and Main avower and Site Coordination by all sub- veeror managed and prepared by Main Contractor ( K.C .Lam, nd).Design and build procurement system are the process where the client deals presently with the contractor for the fatten building and it is the contractor who is not moreover responsible for but also array the separate design and construction process, including engagem ent of the design group, therefore contractually linked with the contractor and not the client( The Chartered Institute of Building (CIOB-1983), n.d).2.2.1Role of the Client nether Design Bid Build Procurement SystemUnder a traditional Procurement system, the client employs juts and specification by the way of bidding put to obtain tender bid and select the select the suitable contractor. This means the client warrants the sufficiency of the plans with full disclosure of the discipline and assumes any liability for defects and the plans and specification that he provides to the contractor. ( Bryan S. Shapiro, 1994).2.2.2 Role of Consultant and Contractor to a lower place Traditional Procurement systemNormally the architect or engineer will prepare the plan and specifications for the owner prior to tendering. Which mean the architect or engineer legally responsible to the owner for the design defects according his professed(prenominal) services. Generally, the design professio nal has no liability for the construction defects, other than for the defects that should observe from noesis domain services inspection which he has carried out. Most important of all, the designer has contractual obligations to protect the owner The consultants act as the agent for the owner during the construction phase ( Bryan S. Shapiro, 1994).The Contractor is has liability for defective construction and workmanship, but he has no responsible for design defects ( Bryan S. Shapiro, 1994).2.2.3 Advantages of Traditional Procurement systemThe Design Bid Build Procurement system is known quantity to client, designers and constructors. This is the greatest strength for this procurement system. For so many years, this delivery system was the predominant one for the construction in United State. The Procedure and contractual rules of conduct overhear been worked out and well chthonicstood by all the construction parties. Most of the professionals prefer this well localise relat ionship, which reduces their level of essay because this procurement reduces uncertainty. Under the right circumstance, this means that a project more in all probability to proceeds fallly from the beginning lay out until the end of the project (Frederick E. Gould Nancy E. Joyce, 2003).The mood also contains contractual aegis for the client. The allocation of the risk of exposure for the construction performance rests close completely on the contractor and subcontractors. The Client was insulated from many of the risk of cost overruns, such as nonperforming sub-contractors, labour inefficiencies, inflation and etc. In approximately instances, the client knows the final cost at the beginning of the construction cost, and the risk of cost overruns is borne by the contractor. However, the risk of cost increases depends to large extent on the accuracy and completeness of the contract documents (Frederick E. Gould Nancy E. Joyce, 2003).Last, the client has not to be involved in the construction process. But, he must involve in design stage to make the decision active accept or not accept the design. Once the construction process start the client is equal by the consultants empowered to act in his name to make recommendation (Frederick E. Gould Nancy E. Joyce, 2003).2.2.4 Disadvantages of Traditional Procurement systemThe contractor does not enter the process until the design complete, which mean the design not usually reviewed for constructability onwards it is finish. Design features could give birth been built more effectively and economically often gist in high costs. Some of the design firm solving this problem by hiring preconstruction consultants or having construction professional. Although this is bring gain to the project but it is not effective as having design reviewed by the contractor. (Frederick E. Gould Nancy E. Joyce, 2003).Next, the traditional procurement system is difficult to reduce the time required by both design and constru ction. The process is sequential and e bigated from design stage to procurement stage then last construction stage. in that location is no fall out to overlap tasks and thus reduce overall time. This will cause the raise of interest expenses on construction loan and other costs and apprise expose the project to risk of inflation. The time element problem always is the primary reason client refuse in use of the Design Bid Build method (Frederick E. Gould Nancy E. Joyce, 2003).Subsequently, unforeseen conditions on a job also be source of the passage of arms and whitethorn asterisk changes in the contract. A through design process complete set of drawings attempt to minimize these conditions. Conduction additional soil borings or opening walls in renovation work sight cooperate to properly identify actual conditions and avoid future conflicts. Unfortunately, not every condition backside be identified and when unforeseen events proceed the contract whitethorn establish to b e renegotiated between client and contractor. This whitethorn take away advantage to the client in hurt of knowing the cost when the beginning stage of construction (Frederick E. Gould Nancy E. Joyce, 2003).2.3 Design and Build Procurement SystemClientArchitect/EngineerContractorSub-ContractorTerm Design and Build refer to the procurement strategy that entail the contractor carry out the work design work as well as the construction completion of the work .Design and build procurement system is define as an integrated procurement system. This system was first launch at Malaysia in 1983, the first project direct by design and build was the Kuala Terengganu Hospital complete at 1985. (Ng Weng Seng and Aminah Md Yusof, 2006).The main lineament of the Design and build system are single responsibility to a accompaniment organization which mean the fox toll lump sum and the project is designed and built specially to meet require of the client (Ng Weng Seng and Aminah Md Yusof, 200 6).According (Mladen Radujkovic etl, n.d.) the Design and build procurement system is a single mind contract between client and Contractor.(Turner, 1990) and (Jansen, 1991) supported that DB contractor is planninging option of buying a finished building.(Masterman, 1992) state that the term Design and Build has almost been identical interpreted and defined as being an arrangement where one contracting organization takes sole responsibility.Design and build having a better integration coordination of all member work downstairs one umbrella and consultant works with contractor, encourage coordination after design is not necessary, and both will be involved for the design stage. In DB procurement system, DB consultant must be provide workable drawing and both Architect and engineers will provide coordinated design and solve coordination problem quickly (K.C.LAM, n.d).DB procurement system is a fast tracking delivery system, because it allow process of detail of design and construc tion to run parallel and con watercoursely to each other, therefore if any problem occur consultant can contractor can solve immediately and reducing overall project development period. Cost of DB procurement system is more higher than traditional procurement system because it want of design and specification expatiate during tender, this cause uncertainties to contractor for pricing. DB procurement also are allow contractor utilize his knowledge and experience to develop much compacted and coherent work program and to develop more efficient design and project control. (Rosli Abdul Rashid er al, 2006)This DB procurement system is utilize extensively in certain industries, specially industrial construction. The complexness of the industrial projects such as oil refineries and power plants makes them a good expectation for DB. Before the traditional method become popular, DB was actually the preferred mode of delivery for almost all projects, although it was not named as such. An owner hired a master builder, who designed the project, acquired the materials, and hired and administer the craft workers on the site. This mode of delivery became less popular as professional tasks became more narrow (Frederick E. Gould Nancy E. Joyce, 2003).In general, it can be conclude that DB procurement system provide single lead responsibility for the whole design and construction. Contractor, who is responsible for the implementation of the project, has right control all over the project. This notwithstanding does not deter the involvement of the client. The clients requirement and specification always been taken in to priority consideration, which thence present uniqueness of the system (Frederick E. Gould Nancy E. Joyce, 2003)2.3.1Role of clients under Design and Build procurement systemThe difficulty with the preparation of the clients requirements does not end at the preparation stage. Most of the clients do not realise that the requirements only inwardness to schematic design of the product. In traditional procurement system, the supervising consultant would prepare the detail design before issuing the instruction to the contractor. In DB procurement system the contract assume that the contractor take care of the detail design and is conferred a relatively wide mandate when interpreting the clients requirements (Tan, Daniel, 1997).Disputes as to whether and instruction constitutes a variation often revolve around the clients requirements. Has there been non-compliance of the requirements or otherwise? It would be appear that the new client tat wish to have more in the end of the product would have more detail clients requirement prepared. Inevitably higher cost to the client will result in preparation of clients requirements which defeat one of the benefit of adopting a design and build procurement system (Tan, Daniel, 1997).When the clients providing too much detail may realise that they are doing what their contractor is being paid to do. But, several(prenominal) may not realise that they may also be prejudicing their contractual position by assumptive responsibility for parts of the design, particularly so if the detail design is on their contractor. (Tan, Daniel, 1997).2.3.2 Role of Contractor under DB procurement systemUnder DB contract the contractor is assumes that to responsible for the design. It is incumbent on the contractor to engage a design team to come up with a design which assent the clients requirements (Tan, Daniel, 1997).For those inexperienced DB contractor the selection of the designer for project design team is vital. Not only should the contractor select the team member that know how to integrate their portion of work into overall design intended by contractor, it is imperative that each team member knows how to receive instructions from the contractor (Tan, Daniel, 1997).There are vast number of the consultants in Malaysia are not accustomed to receiving the instruction from the contract or. Irrespective of the terms and conditions of the contract at hand, some consultants either consciously attaches more weight to the requirement of the client alternatively than contractor. Consultants appear to be entrenched in the traditional form arrangement and area inflexible, so it seems when winning instruction from contractor. The selection process for the design consultants must be exercised with great care to chequer that they are able and willing to receive instruction from contractor (Tan, Daniel, 1997).2.3.3 Advantages of DB procurement systemThe reason for most of the clients choosing DB procurement system is this system provide good communication that can occur between the design team and construction team. Many large sizing DB companies specialize in particular areas and have developed a smooth flow between design and construction phase of the project. This collaboration allows the project be easily fast tracked, cutting down and overall schedule for the project (Frederick E. Gould Nancy E. Joyce, 2003). safe communication between design team and construction team are allows construction input archean in the design phase. Such input includes constructability analysis, value engineering and subcontractor pricing. Cost estimating, master programme, long lead item identification, and ordering all become part of the overall project planning (Frederick E. Gould Nancy E. Joyce, 2003).This arrangement allows easier internalisation of changes due to scope of unforeseen conditions since their coordination occur within the similar contractual entity. The client is less hard involved and sits outside the direct day to day communication between designer and constructor. This keep owner staffing to a minimum and puts the full responsibility for good communication, problem solving , and project delivery on DB team (Frederick E. Gould Nancy E. Joyce, 2003).2.3.4 Disadvantages of DB procurement systemAlthough DB procurement system give the owner a f ixed, firm price before the project start, this generally does not happen in a DB arrangement. Because the firm is hired before the design has start, any real pricing is not possible. Instead, client usually enters this arrangement with conceptual budget but without guarantee of a firm price. Firming up the price too soon puts the DB team in the position of making the scope of fit the price, which carries the risk of sacrificing fictitious character to protect profit. If the project is fast-tracked, the client may not have a good fancy about the final price until parts of the project complete (Frederick E. Gould Nancy E. Joyce, 2003).Next, the Client ability to remain marginally involve can be both and advantage and disadvantage. When DB Company has an organization that is efficient at performing work, the project can move very fast. If the client does not stay consistently involve passim the process, he may have to make decision without fully understanding the issues. Once the project develops a rhythm, the project is difficult to change that rhythm. If the client is not moving to the same rhythm, the project may take a direction that he does not want but is not aware of until too late (Frederick E. Gould Nancy E. Joyce, 2003).Last, is the lack of check and balances. In the traditional contract, the designer prepares a complete set of documents, which is used to streak and evaluate the performance work done at the site. The client often hires the consultant to wield the work of the contractor to ensure that the deficient work is identified and correct. But the in Design and Build procurement system the designer works for Contractor Company. Similarly, during construction the contractor sometimes uncovers the certain design deficiencies and error on missions. The designer is contract bound by the contractor to correct these deficiencies without additional cost to the client. In Design and build the designer and builder are put in position of critiquing their workers and perhaps affecting their bottom line by that critique. The client must rely more heavily on the quality and ethics of the firm since most of the checks and balances will likely take place behind the companys penetration (Frederick E. Gould Nancy E. Joyce, 2003).2.4 Contractor Risk and ProblemSome of the problems unfortunately only surface after commencement of a project and in not expected, it will pose real problems to unsuspecting clients and contractors. (Tan, Daniel, 1997).The unsuspecting client may find that he still has to engage his own consultants for technical guidance and preparation of the material picture out the clients requirement. The trustful contractor may find that his costs and effort for tendering would be quite high especially if he is unsuccessful in the tender exercise. Contractor liability assumed for design could be much wider than anticipated (Tan, Daniel, 1997).The most of the problem face by contractor was, delays in the construction application are a global phenomenon and the construction industry Malaysia is no exception (Muraili Sambasivan Yau Wen Soon, 2005).Delays and disruption to contractors draw near are major source of claims and take exceptions in construction industry. The matter often in dispute foreboding the dichotomy in responsibility for delays (Clients and Contractors) partly because of the multifarious nature of the sources of delays and disruption. With increased project complexity and requirements joined with multiple parties all subject to their performance exigencies, the resolution of such claims and disputes has become a matter difficulty (Nuhu Braimah Issaka Ndekugri, 2008)The factor adversely affecting the cost performance of project are conflict among project participants, ignorance and lack of Knowledge, presence of poor project specific attributes and non-existence of cooperation, hostile socio economic and climatic condition, reluctance in by the bye decision, aggressive co mpetition at tender stage and short bid preparation time (K.C. Iyer K.N. Jha,2005). new and non-payment from the client will cause cash flow problems to the project especially to contractors (M.S. Mohd Danuri, M.E. Che Munaaim,H.Abdul Rahman M.Hanid, 2006)Some common shell of problem faced by the contractors who was a bumiputra in Malaysia Construction industry such as inadequacy of expertise and experienceOver-optimistic estimation in tender bidsMaterial price escalationFinancial problemsMaterial supply networking deprivation of skilled workerLack of construction material and machineriesInefficient an ineffective planning and managementCommunication problems(Abdul Rahman Ayub Janidah Eman, 2006)Delays of deliveries, sub-standard workmanship and materials, poor safety management on sites and cost over-run of governments project are some of the issues that been seriously discussed by the government. (Abdul Rahman Ayub Janidah Eman, 2006)Sub-contractors failure to perform to the quality expectations (Abdul Rahman Ayub Janidah Eman, 2006)Delays of project causes are financing of and payment for accomplished works, poor contract management, changes in site condition and shortages in materials (Mansfeild NR, Ugwu OO Doran T, 1994).Delay via project participants and extraneous factors (Odeyinka HA Yusif A, 1997).The following is some risk face by contractor.Financial constraintsLate payment by clients alliance between emerging contractors and suppliersDifficulties when running a business(Wellington Didibhuku Thwala Mpendulo Mvubu, 2008)2.5 Communication ChannelMany author identified communication as one of the core indicators in enhancing the practice of team integration in construction projects (Che Khairil Che Ibrahim et al, 2011)Communication has been link to team effectiveness, the integration of work units across organisational levels, characteristic of effective supervision, job atonement and overall organisational effectiveness (Love et al, 1998)Th e construction industry needs to communicate better not only with the public but also its distinct professions or we can call communication also is a professional practice (Cheng et al, 2001)By establishing communication flows, involvement patterns and other behavioural responses to unexpected change events, the nature of any professional and cultural interfaces can be established (Moore,D.R. Dainty, A.R.J, 2001)In order to lower down the complexity of the design implementation process, high degree communication between the designer and builder must be established (Ochieng, E.G. Price, A.D., 2009)Lack of communication between all key member of the project in any construction project in a multi-disciplinary team has led to trouble in the development process for both project management and design implementation levels (Evbuomwana, N.F.O Anumba, C.J., 1998).The communication barriers between project team had left(a) the construction team almost to the design changes. They further ad ded that by having multi-disciplinary project team, communication system can be improved as the will encourage face to face between the design team and construction team. Developing effective communication systems throughout the construction supply chain will ensure good and dependable flows of information establishing mechanisms for problem resolution and for generating added-value into project scan be improved as they will encourage face to face relationship and interaction between team member (Briscoe, Dainty,A. ,2005)Construction organisation must form effective communication link in order to realise the benefits of fusion and alliances. Organisation thattrly on co-operation and trust have been found to obtain lower costs for as long as network is maintain (Cheng et al, 2001)2.5.1 Communication and ConflictThe construction project who communicate most often are the distinct professions such as client, contractor and designer. The highly differing professions and their multi-di sciplinary skill often limit the scope of communication amongst the professions (Professor pile Sommerville, Nigel Craig and Michael Mccarney, 2004).Within construction project delays are almost inevitable and as a result of this conflict and claims situations will arise (Alkass et al, 1995). The construction industry is inherently burdened with conflict and disputes s a result of increasing complex projects by clients (Kangari, 1995)Conflict within communication can be traced back to inadequate inaccurate, inappropriate, inconsistent and most important late information (refer Table 1) and this can occur despite the advancements made in document management system and information management techniques (Tam, 1999)Factors that contribute to conflictInformation FactorsHuman/organisational factorsLack of adequate project informationLack of integration amongst project partiesLack of information from the clientLack of competence and professionalismInadequate contract administrationInappro priate contract/procurement typeInadequate contract documentationAdversarial culture of construction organisationsInadequate design/tender informationSlow response form clientsPoor document transfer/communicationUnrealistic time, cost and quality targetsTable 1 Factors that contribute to conflict within the construction industry2.5.2 Electronic Document attention Systems (EDMS)EDMS has often been viewed as a non-value added component of the construction process. As a result of this view, most of the construction organisations suffer greatly from the consequences of poor information management systems (Kangari, 1995). Construction project begins the day first negotiations or network communication has taken place. A great problem of many projects and construction organisations is poor, unstructured enter keeping the document control throughout the project. However, the use of system like EDMS can be called upon to provide structured document based evidence that can be used to settle a dispute (Ren et al., 2001)Organisations that support the notion of structured EDMS keep the most sophisticated documentation records and will have a decide advantage in any dispute resolution proceeding (Kangari, 1995). EDMS encourages co-operative working environments and streamlines communication throughout the varying construction organisations although the huge quantities of project documentation created can result in information fleece and can be attributed to the rise in use of general IT systems within the construction industry (Professor James Sommerville, Nigel Craig and Michael Mccarney, 2004).Managing project information with EDMS removes the onus on the individual to file information this person in the prehistorical had been responsible for filing and other associated task (Sommerille and Craig, 2002). EDMS system should in essence control, store and transfer project information in systematic manner taking away the need to rely on individual of organisation to take the task. EDMS put up not only vast amounts of information but also better and more understandable structured information (Professor James Sommerville, Nigel Craig and Michael Mccarney, 2004).Electronic Document Management System (EDMS) have provided the industry with great benefits in the consistency of document generation, accessibility and the exchange of project documentation and have now become crucial component for managing the construction project. The widespread adoption of Information Technology (IT) and EDMS has created a culture of openness and trust and one which allows all project participants to have instantaneous access to project documentation although the nature of the industry can also contribute to the lack of IT involvement in many construction organisations (El-Ghandour and AL-Hussein, 2004).2.3 Measurement of project performance2.3.1 Contractor Effectiveness and efficiencyEvery project can be evaluated by well performance or bad performance. There are a lot of way can measure the performance of the project. Different country has a different way to measure the project performance. procedure basically measures by effectiveness and efficiency (Sinclair and Zairy, 1995). Effectiveness is mean the contractor produce the contingency plan before the construction start, which mean the contractor and his consultancies team alreadyv identify all the risk which will possible cause the project delay. However, Efficiency is contractor provide the good performance with complete the work within the time and within the budget. The most important is ensure the quality of the construction when handle the product to the Employer.2.3.2 Improvement of the performance from previous project.( Mbugua et al., 1999) define performance of the project is measured as an organized way of operation or construction activity and acts as tool for continuous improvements. Contractor can improve their performance base on the previous performance from the project which is same characteristic which the current project. Example, the current project is the contractor has to build the 30 storey high residential building under Design Bid build procurement system. Contractor can review the previous project which is same characteristic as current project. Contractor can improve the weakness and minor mistake which make in the previous project, so the contractor can ensure it would not happen again in this project. Next, is to maintain the strength to this project, the contractor understand their strength so they can carry the project with smooth flow and provide good performance during construct the building.2.3.3 Iron Triangle(Arazhi Idrus, Mahmoud Sodangi and Mohamad Haq Husin, 2011) state that in primaeval of 1990s, the project success was measured by the project duration, monetary cost and project performance. Time, cost and quality are the basic criteria for to success complete the project, it also known as the iron triangle as this feel element will always include in any project evaluation. Nowadays, most of the contractors are using this 3 element as the criteria for the success of the project. But, unfortunately most of the small firm size contractors at Malaysia just focus on the Cost. They do whatever they can to protect their profit, this will cause most of quality of the project did not meet the standard which state in the content of the contract document.2.3.4 Construction Business Performance Measurement(Love and Holt, 2000) discussed the criteria measure of the construction performance in United soil (UK) in construction industry. They found 2 different type of the Construction Business Performance Measurement, which are Stakeholder Perspective Measurement (SPM) and Business Performance Measurement (BPM). BPM is a myopic thinking should jilted as it focusing short term, being specific, profit-oriented and neglecting broader stakeholder problem (Arazhi Idrus, Mahmoud Sodangi and Mohamad Haq Husin, 2011). This method o f measurement only to meet client objectives and goals without consider the nature of business environment, structure of organization and level of technology employed (Love and Holt, 2000).Subsequently is SPM practice under three perspective which are stakeholders entity where they take account on interest of customers and shareholders goal-orientated (profit centred) as a system that involve in resource garnering, conversion and exchange with environment (Love and Hold, 2000).2.3.5 Different Procurement with Different PerformanceAccording to (Abdul Rashid et al, 2006) there are different procurement system are available for the Employer and effect of the differe