Page 103 - BASIC GUIDELINE FOR QS

Professional Practice: Guideline for Quantity Surveyor Chapter 3

3.7 Advantages & Disadvantages of Traditional Contract in Procurement

Method

Advantages of Traditional Contract

 A distinct advantage of this arrangement is that client, designers, and builders
familiar with this type of procurement.

 A high level of price certainty for the client. Since cost is known before
construction commences, and providing the design process has been
completed fully in the pre-contract stage.

 Opportunity to get good price competition from the open market. The client is
able to advertise the job to everyone. A word of caution is that the contract

documents must be accurate, containing no errors, and they must reflect
exactly what the client wants, since any and all changes will subject to
renegotiation of the contract amount with the main contractor.

 Client does not have to be actively involved on a day-today basis. The clients
needs to be involved at a specific review points during the course of the

project.

Disadvantages of Traditional Contract

 The contractor and subcontractor have no input until they are selected during
the bid and award phase.

 The owner, consultants and contractor work autonomously. The architect
designs the project based on owner instructions alone; the contractor prices
and schedules the project based on the construction documents alone. This

approach provides little opportunity for interaction and team building among
the participants, so that when interpretations have to be made, and if they are

made differently, major conflicts can occur.
 A relatively lengthy time from inception to start on site.
 Problems relating to design error. The risk relating to the design lies with the

client. Post contract design changes are frequently abundant and resultant
delays and disputes are common.

 Lack of involvement of the constructor in the design process.

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