I want to add on some comments on your third point that if the form of payment is a Lump Sum then the Employer does not have as much freedom to change his mind on requirements. Surely if he does such in respect of change of specification/requirements or issue instructions for additions beyond the defined work scope, definitely he will about that as he has to pay for that.
Overall view is that Design and build Contract is beneficial to the Owner because in such cases all responsibilities and risks lie upon Contractor and Consultants.
Member for
18 years 6 months
Member for18 years6 months
Submitted by Hernando Pesca on Thu, 2007-05-03 06:47
From a contractors view, design-build gives substantial benefits to the owner such as: potential reduction in const. claims, single-point of responsibility (for design & construction), total project cost known at the start, shortened time-frame, and innovations (perhaps) during construction.
Regards,
Hernan
Member for
19 years 10 months
Member for19 years11 months
Submitted by Bryan Russell on Wed, 2007-04-18 02:18
If the owner wants the adversarial set-up of a consultant engineer and a contractor, which of itself generates duplication of effort in order to prepare for disputes and claims by generating a shield of protective paper, so be it.
If there was a little more trust of the ethics of the contracting industry, the more efficient method of design and build would always be preferred. The consulting engineer would do what he has been trained for - designing things; and the contractor would build them - what he has been trained to do.
If the form of payment is a Lump Sum, risk is apportioned mostly to the Contractor, but the Employer does not have as much freedom to change his mind on requirements.
Member for
20 years 8 months
Member for20 years8 months
Submitted by Bijaya Bajracharya on Fri, 2007-04-13 05:54
There is no this or that answer to this quesiton as the project outcome depends on many factors. The choice of type of contract for the Owner also depends on factors like his own contract management skills, construction management skills etc. So to start with any Owner will be entering the Contract with the beleif that it is the best for him.
Member for
18 years 5 monthsRE: Construction contract Vs Design Build
Ram,
If you wish to have more light on such interesting topic you may refer to the following article
http://www.cwilson.com/newsletters/legalfw/lfsep05.htm
good luck
Member for
22 years 4 monthsRE: Construction contract Vs Design Build
Russell
I want to add on some comments on your third point that if the form of payment is a Lump Sum then the Employer does not have as much freedom to change his mind on requirements. Surely if he does such in respect of change of specification/requirements or issue instructions for additions beyond the defined work scope, definitely he will about that as he has to pay for that.
Overall view is that Design and build Contract is beneficial to the Owner because in such cases all responsibilities and risks lie upon Contractor and Consultants.
Member for
18 years 6 monthsRE: Construction contract Vs Design Build
Ram,
If you still need some remarks...
From a contractors view, design-build gives substantial benefits to the owner such as: potential reduction in const. claims, single-point of responsibility (for design & construction), total project cost known at the start, shortened time-frame, and innovations (perhaps) during construction.
Regards,
Hernan
Member for
19 years 10 monthsRE: Construction contract Vs Design Build
If the owner wants the adversarial set-up of a consultant engineer and a contractor, which of itself generates duplication of effort in order to prepare for disputes and claims by generating a shield of protective paper, so be it.
If there was a little more trust of the ethics of the contracting industry, the more efficient method of design and build would always be preferred. The consulting engineer would do what he has been trained for - designing things; and the contractor would build them - what he has been trained to do.
If the form of payment is a Lump Sum, risk is apportioned mostly to the Contractor, but the Employer does not have as much freedom to change his mind on requirements.
Member for
20 years 8 monthsRE: Construction contract Vs Design Build
There is no this or that answer to this quesiton as the project outcome depends on many factors. The choice of type of contract for the Owner also depends on factors like his own contract management skills, construction management skills etc. So to start with any Owner will be entering the Contract with the beleif that it is the best for him.