Page 42 - Civil Engineering Project Management, Fourth Edition
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Procedures for design and construction
                          given period of a year or longer. The terms of the contract set payment and
                          other conditions for a series of similar works which are ordered from time to
                          time as they are needed.
                          2.7 Comment on possible arrangements                                 27
                          A comparison between the two most commonly used methods of develop-
                          ing a project – completing design first and letting a contract for construction,
                          or adopting a D&B contract – are given in Table 2.1. The advantages and


                          Table 2.1
                                        Comparison of different methods of project promotion

                          Advantages to promoter                Disadvantages to promoter
                                        Separate design, followed by contract for construction
                          Designer chosen to suit nature of works  Promoter has to employ designer and check
                          Works designed suit promoter’s     designs
                           requirements                     Promoter may have to let separate contracts
                          Promoter can check designs before   for special equipment and ensure delivery
                           construction contract is let      on time
                          Competitive tenders for construction    Construction cannot start until designs are
                           obtained on clearly defined basis  sufficiently complete
                          Promoter not committed to project until   Contractor’s experience does not contribute
                           construction contract entered     to design
                          Direct control over quality of    Promoter needs to employ engineering
                           construction work possible        staff to supervise construction
                          Minor variations and additions to works   Cost outcome dependent upon extent of
                           possible during construction if ICE or   unforeseen conditions met
                           FIDIC conditions used
                                             Design and construct combined contract
                          Promoter needs no knowledge of    Extensive specification of requirements is
                           construction                      needed
                          Promoter need not check design if    An engineer is needed to draw up specification
                           he only requires guaranteed works   Design unspecified may suit contractor
                           performance                       and not promoter, because contractor
                          Promoter does not have to organize    designs for only the minimum necessary
                           separate contracts for special   Time for specifying, tendering, and examining
                           equipment                         tenders lengthy
                          Contractor can achieve low price by  Tender comparison difficult because designs
                           choosing designs cheapest to construct  and materials offered differ
                          Lump sum project cost known before   Promoter committed to works before they are
                           construction starts               designed
                          Construction may start before design is  Changes difficult to make after contract
                           complete providing early completion  is let and may be costly
                          If project is simple a satisfactory result    Promoter may need an engineer to watch
                           can be obtained at lowest practicable   construction
                           price                            Contractor’s price may be high due to risks
                                                            Number of contractors tendering may be
                                                             limited
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