Design And Build Procurement

cast And throw procuralIn this chapter, the definitions of visualise and inning up procurance including its belief and characteristics will be revealed. The succeeder figures of using Design and constitute procurance and the major task of create the encounters scope of work will be covered in majuscule detail in this chapter. The definitive execution criteria of a bear specifically in major aspects of succession, approach and quality will deeply explained. The chapter thus moves forward to the affect of features of Design and Build on roles and responsibilities of the asserter within the member. The explanation on ways of the asseverator proposes to happen upon them. This chapter thus to a fault describes the implemen cohesivenession of Design and Build in Malaysia accordingly to its history performance and problems that shake off been occurred in Malaysia by using Design and Build winment.2.1 basis OF DESIGN AND BUILD procurementIt is clear that t here(p redicate) argon many a(prenominal) diametric variables to take into story when selecting the procural method for our sick. It is sooner unmanageable due to each procurance methods differ from each opposite in unique ways. The key on making decisions on choosing the right procural method is that each differs from the other on its own basis. Thus, it takes a few key questions to help sink which one should be form. The flow chart below shows the key questions and decisions on which procurance method should be used.The process of make procurement involves a series of different specialists in modify to the look work at different times. Design and piddle procurement has been in use for a truly long time for more(prenominal) than a decade in the twentieth century. It has become more general across United State as well as al some the world and had shape up in many industries. From a survey of trends in methods of procurement that were carried out by RICS from Davis Lan gdon and Everest revealed that in 1984, 5.06% of gimmick shake offs were procured on a Design and Build basis. Added that by 1991, this had risen to 14.78% .Revealing proudly by the fetch Journal July 1994, that the Design and Build turnover of the United Kingdoms top 70 Design and Build strikeors increased by 15% during the period 1992 to 1993. The offshoot in the use of Design and Build recently as a procurement route is seen as being such radical kind-hearted that could waive the indus examine to develop cost radical change that allow the industry to develop cost models that automatically faecal matter reflect the scoreion rather than frame processes.It seems as the roughly logical way to procure a building and thus given a clean envisionate to start with. However, many externalize professionals and owners had fe argond that this would result in the minimization or even destruction of the institutioners righteousness. This procurement is state to be able to for k over a origination that maximizes quality within the endures budgetary constraints.Numerous successfully realized Design and Build projects range from housing, through industrial and commercial-grade projects, to major complexes. It proves that this procurement method has very wide applicability. Frequently, the Design and Build contractor would be asked to contract with the leaf nodes aimers, so that there is some tenaciousness of the intention effort, but the remaining function work is the contractors responsibility. This involves formally transferring the designers contracts from the node to the builder which is called novation.2.1.1 DEFINITIONS OF DESIGN AND BUILD PROCUREMENTDesign and build procurement is a procurement where it combine the design and gimmick process infra a single entity. Design and Build terms are understand from its strategy itself where it would entail the contractor to carry out the work the design work as well as the tress and also the fi nish of the work. As according to Turner (1990) and Jansen (1991) has supported that design and build contractor is supplying the procurement option of buying a finished building. trance according to Masterman (1992) the term Design and Build has almost been unanimously interpreted and defined as being an formation where one contracting arrangement takes sole responsibility, normally on a lump sum set(p) price basis, for the bespoke design and construction of a clients project. he then elaborate that this contains three elements the responsibility for design and construction, contractors reimbursement is generally by representation of a fixed price lump sum and the project is designed and build specifically to meet the clients need. Furthermore, as according to David Cappell (1997), Design and Build place responsibility for both design and erection in the manpower of the contractor one intend of responsibility for everything. However, theres an existence of one greens thread that all Design Build delivery trunks share which would be a single point of responsibilities for both design and construction.In other definition, Design and Build tummy be said as arrangement where one organization design and construct to the firm orders of the client for a single financial transaction.In general, the definition of Design and Build fuck be summarized as providing a single point responsibility for the full-length design and construction. Below is a chart to differentiate betwixt Design and Build procurement with traditional procurement.(a) (b)Figure 2.2 (a) Single point responsibility Design and Build procural(b) Fragmented responsibility Traditional Procurement(Source Bennett and Grice, 1992)2.1.2 CONCEPT AND CHARACTERISTICS OF DESIGN AND BUILDA basic concept in Design and Build procurement is that it requires the project to be contracted to a single organization which is responsible for design, procurement, and engineering and commissioning. The first ste p in front choosing a procurement method should be through analysis of the projects characteristics on a global basis, including those technological requirements for design and construction. The projects owner will watch that the wide-cut context in which the project be delivered is thorough silent and burn down be accounted for in plans for schedule, price and quality. Once the owner has inflexible all the external constraints that might impact on its project, a project procurement method ass be selected.There are quite many good drives why an owner would select Design and Build for a given project. Theres a list of reasons for which an owner might decide that a project is suitable for the use of Design and Build procurement method. It would beWhere a compressed delivery schedule is requiredA single point responsibility is required,Constructability consideration drive the design concept or details,Unique factors require special knowledge or arrest to produce the least-cos t design,The owner/designer must rely on the builder to optimize technology wit cost,The project will site-adapt a forward design,The project is a common commercial facility,The project is beyond the owners technical capability,Lastly, where risk can be shared to shorten cost.This can be supported by Masteman (2002), who argued that the definitions of the Design and Build contains three elements that would fundamental characteristics of this outline, which are the responsibility for design and construction lies with one organization, reimbursement is generally by doer of a fixed price lump sum, and project is designed and built specifically to meet the needfully of the client.2.2 PERFORMANCE OF DESIGN AND BUILDAn owner of a project would definitely want to obtain a building that satisfies his needs of good performance. The meaning of a good performance here require the project to form a exalted level of quality, of which including optimal economic price within the agreed time . Hashim (1996) concluded that the major factors tat affect the time and cost overruns would be (1) the procurement systems adopted, (2) the variation works, (3) tick off in subcontractors work, and lastly (4) shortage of building materials. She also provides her findings to prove the congenator to the procurement systems used and their impact on time cost overruns.It is very crucial that the selection of the procurement method lies in the clients responsibility. Because of that, the selected procurement shouldMeets the needs of the client, the type of project and the risks that might occur, can be handle by the clientRelated to the expertise available within the clients organization, resource and backup facility.Before the client decides which procurement method to be use, the relative impressiveness of the three key criteria that need to be taken into account in procurement would be time, cost and quality performance.TIMECOST flavourThe three criteria are inter-related. For i nstance, decisions affecting time will affect cost or both cost and performance. The key objective are exists to realise that the clients objective are met effectively, efficiently and economically.2.2.1 TIMEEarly completion of a project rather one of the most required by the client. Neverthe slight, most construction project fails to achieve this requirement. Because of that the selection of procurement method to be use should be done wisely.This requirement of early completion can be achieved if construction starts before the design is holy. It can be said that the greater overlap between the construction and the design percentage point, the less time will be required to complete the project. However, the amount of variation is possible to increase because of this relation. Form the studies by University of Reading (United Kingdom) evaluate that the construction rush of design and build projects is 12% de nurseder than traditional approaches and the overall project delivery speed (including design and construction) is 30% faster than traditional methods. Added that, the conclusion of completion in time increases with the precedent the contractors involve in the design processes.2.2.2 COSTLower cost of the construction project is a nonher factor that is most important in ones employer requirement. The overlap between the design and construction means that construction starts before the cost is fixed, which will increase the irresolution over the cost. This will drag the cost forecasting to become critical. investigate had found out that time or cost have a real strong interactions between the design and build system. Also, from findings it stated that by combining the full overtime schedule, average ordering and also fast track construction with moderate crashing of design can made achieve towards improvements in both time and cost.By the researchers findings, it had stated that 75% of design and build project were completed within 5% of budget, comp ared with 63% of traditional projects. Design and build projects are at least 13% cheaper than traditionally procured projects. Greatest cost certainty is achieved for design and builds projects when the owners requirements are elaborate.2.2.3 QUALITYThe issue of building quality is very important. From the facts, the quality performance characteristics determine the project time and cost. The performance of a project includes the function of the facility, its quality and bearing and durability, together with reliability and efficiency of the operation. The quality performance required from the completed facility is where it has the ability to control and make changes to the detailed specification subsequently the contracts have been let. Design and build consistently let on in encounter quality requirements for complex or innovative buildings rather than simple, standard, traditional buildings.2.2.4 ROLES AND RESPONSIBILITIES OF THE contractile organThe roles and responsibili ties of each of the members of the project team should be considered carefully to avoid problems associated with accumulation temporary teams of professionals. The contractors are responsible to (1) undertake the design work sketch in contractors proposal which match with the employers requirements, (2) to fabricate the building, (3) to coordinate and integrate the entire process. The figure below shows the relationship of project team in design and build procurement.This contractual relationship in design and build is distinctly shows that the contractor is responsible for everything. The design and build process increases the opportunities to use the contractors inhabit during the design stages of the project and their key strengths in trouble of the construction works. The reference book of the contractors role design role is sometimes much less than the associated design responsibilities. The contractor then takes the responsibility for the design, without having any previ ous involvement with the design team. However, with the variability of types of construction projects and the experiences of clients in such projects, recent research had found that contractors may lack proper understanding of managing the varying types of design processes.The contractor must do whatever it takes to achieve the employers requirements. A single point responsibility means that the contractor is responsible for ensuring that the project is completed in time within the specified budget. Any delays beyond the control of the employer would be at the risk of the contractor. Other than that, the contractor also has to take into account the qualities that are agreed between the employers. Design and build contractors should understand the esthetics or architecture value because the clients might not understand this kind of things. However, to ensure a contractor to produce what is specified by the client is not the same as ensuring the contractor producing a good and high qu ality building.2.3 IMPLEMENTATION OF DESIGN AND BUILD PROCUREMENT IN MALAYSIA crook activities occurred mostly on the more developed western side of peninsular Malaysia, which would be around KL. It began to gain importance in the economy in the 1990s through its roles in the areas of reconstruction and modernization.There are 7 main elements of the processes of construction procurement considered to be specific to Malaysia. These seven elements are divided into two broad categories (1) the processes during preconstruction stage, and (2) the processes during construction stage.The processes of construction procurement during preconstruction stage areInitiation / promotionFundingDesign schematic design, detailed design and specialist design.Statutory approval approval to initiate and to construct a facility and final approval to occupy the completed facility.TenderingThe processes of construction procurement during construction stage areConstruction management and fleshly constr uction processes.Risk allocationThe mostly used procurement are listed below in order of their importance that has been identified as the prevailing procurement systems in Malaysia.Traditional lump sum systemDesign and build / turnkey systemManagement contracting2.3.1 HISTORY AND scope OF STUDYDesign and build procurement was first launched in the human beings Works Department by the Malayan Prime Minister in 1983. The first unit that has applied the system would be by the Kuala Terengganu Hospital, which was completed in 1985. Research has shown that there is a continuous increase in the use of Design and Build over the last 24 years. The system use in Malaysia was pioneered by the JKR. In this system, there exist sole(prenominal) two parties, i.e., the client and the contractor.In Malaysia, comprehensive data on the use of different types of procurement systems is not available. However, design and build is one of the procurement systems frequently used in Malaysia.2.3.2 CONT RACTORS IN MALAYSIAThe total goals of a project to significant cost savings, time savings and better quality can be achieve in considering the contractors construction experience in earlier construction phases. Since the system of design and build become successfully increase in recent years, many contractors are successfully operate in this market and they bring appropriate skills to bare in regard to the management and co-ordination of the overall process.However, the studies from Nima, M.A. M.R. Abdul-Kadir et al. (2001) also Rosli M.Z. (2004) show a shortage of knowledge among Malaysian contractors. They added that, a contractor have a supreme position in developing the constructability issue in different stages of construction projects which decreases probability of stoppages, delays and contract modifications. Any contribution from construction players in early stages of project can supply a useful guidance to bring deconstruction rules to design phase (Herman et al., 2003) .The issue in this country is where the construction contractors are not invited to participate in design activities, before the design reaches to end. This will reduce their ability to influence the project specification finally.Other researches had state that different sources of knowledge has emphasized on importance of design phase and decisions that can make tremendous changes in the project output (BCA, 2005 Construction manufacturing Review Committee, 2001 Galvinich, 1995 Gray Hughes, 2001 Nima et al., 2002 Unlik Lones, 1998). The more integration will result in greater amount of cost savings, labor savings and also less substance wastage.The design itself can lead the contractors to choose a better construction method which helps to an improved constructability. In addition, the contractors can use their construction experience to help the designers in better designs, then they can try to increase the flexibility of the project to avoid any later design modifications that requires more money injections to the projects (Lam et al., 2007).2.3.3 ADVANTAGES AND DISADVANTAGES IN DESIGN AND BUILDNdekugri Turner (1994) suggests that by using design and build can provide better value for money and can give rise to fewer disputes than other procurement methods. One of the key advantage by using design and build is the opportunity to integrate the design and construction components. Argues by Saxon (2000) include that design and construction offers better performance in time and cost and results in lesser defects.The main advantages of design and build system that are obviously shown includeSingle point responsibility for both design and construction processesPrice is fixed in advance of construction coincide of design and construction process (in contrast to the traditional system)The design and build contractor could incorporate the concept of buildability into the design which in turn would avail speedier and economical construction production.However, i mplementing design and build procurement also have the cons that need to be aware of. Its disadvantages areUnclear client truncated (Ho et al., 1996 Chan, 1997 Ernzan Schexnayder,2000)Lack of standard forms of contract (Ho et al., 1996 Gunning McDermott, 1997)Inadequate and insufficient information and coordination among parties (Ndekugri Church, 1996 Ho et al., 1996)Late design changes (Gunning McDermott, 1997 Chan, 1997).The projects costs could be higher than the traditional systemProjects often lacks of aesthetic valuesThe system is not very cooperative to changesOther than that, Smith (1992) stated some of his research of design and build difficulties that may have to be faced declarer dominated by staff who are unfamiliar with the design processInadequate give quoted for design services by consultantsContractors operational staff too spry to consider design issuesContractors lacks expertise to manage the design interface between consultants and subcontract designersCon tractor leaves subcontractors to co-ordinate work amongst themselves2.4 CONCLUSIONAlternative project system or delivery is gaining popularity towards Malaysia and outside countries. From this literature, we can see that the carrying out of design and build in Malaysia proven to be one of the successfully delivering method in an expeditious manner without sacrificing quality or economy. As for the contractors in Malaysia, the lack of knowledge can become the main reason to the unsuccessful of design and build delivery. Other than that, design and build seems the most appropriate delivery method that can improve ones project performance. adumbrate OF CHAPTERSCHAPTER 1 ABSTRACTCHAPTER 2 LITERATURE REVIEWCHAPTER 3 look into METHODOLOGYCHAPTER 4 DATA ANALYSIS (CONTRACTORS VIEW ON DB)CHAPTER 5 DATA ANALYSIS (DB ACHIEVEMENT)CHAPTER 6 CONCLUSIONTABLE OF CONTENTCHAPTER 2 LITERATURE REVIEW2.0 INTRODUCTION2.1 INTRODUCTION OF DESIGN AND BUILD PROCUREMENT2.1.1 Definitions of Design and Build Procurement2.1.2 Concept and Characteristics of Design and Build Procurement2.2 PERFORMANCE OF DESIGN AND BUILD2.2.1 Time2.2.2 Cost2.2.3 Quality2.2.4 Roles and Responsibilities of the Contractor2.3 IMPLEMENTATION OF DESIGN AND BUILD PROCUREMENT IN MALAYSIA2.3.1 History and flat coat of Study2.3.2 Contractors in Malaysia2.3.3 Advantages and Disadvantages of Design and Build2.4 CONCLUSION