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Matters

affecting
choices of
contract
Involvement of
client in the
construction
process

Traditional contract

Design & Built

CM/MC

Demand the least from the clients


because it involves delegating
most of the management functions
to an architect.

-Does not involve a contract


administrator
-this places extra demand on the
employer

-removes the role of main


contractor completely
-client takes on the most
active role

Separation of
design from
management

-unites management with


design by virtue position of the
architect in the process
-architect is in control of most of
the major decisions in a project
-displays the LEAST separation of
design from management

-exhibit NO SEPARATION of design


from management since both lie
within the same organization.
-where design issues come, issues
are resolved within the DB firm
-this excludes the involvement of the
client from such debates

Reserving the
clients right to
change the
specification

-typically contain detailed clauses


defining what would be permitted
as a variation

-usually lack of detailed contractual


machinery and bills of quantity for
valuing variations
-as a lump sum contract for an
integrated package, variations are
best avoided.

-a CLEAR SEPARATION of
design from management.
-design consultant has the
role in coordinating the
design work
-CM/MC must ensure that
design information is
available at the right time
and that the trade
contractors design is
properly intergrated
-involves a series of separate
packages
-each can be finally specified
quite late in relation to the
projects overall start date
but before the individual
package is put to tender.
-has highest flexibility

Complexity of
the project
(organizational
complexity)

Speed of
completion

-involves an organizational
structure that is too complex for
simple projects
-the idea of fully designing all
works before a contractor bids for
it assumes that the design is
beyond the contractors skill
-in simple projects this is not so
and would be better to rely on the
skill and judgement of a contractor
-complex projects may require
NSC because of the need to
incorporate the design skills of the
specialist trade contractors
-SLOWEST METHOD as the
drawings have to be completed
before inviting tenders
-cannot start the site early

-ideal for simple jobs due to its


single point of responsibility and
control
-but this does not preclude is use for
more sophisticated work
-if I is complex project, DB
contracts may lack the experience
and skill needed for high levels of
coordination and integration
required

-DB contractor will undertake the


design, so early assumptions are
fairly safe

-suitable for very complex


project
-CM/MC tends to be more
experienced
-they should hv no vested
interest in conflict between
design and fabrication
exisgencies or between trade
contractors.
-this independence +
professional management
role, renders CM/MC ideal for
dealing with organizational
complexity
-can be very quick because
the relationships are
conducive to quick working
and overlapping of design
and construction

Certainty of
price

-can be a fully measured bill or a


bill of approximate rates
-even with a schedule of rates,
contractors are paid according to
their own pre-priced

-a lump sum contract


-although contractor may add
contingencies in to the price to deal
with the unexpected, they remain
the responsibility of the contractor
-this may result in a higher price,but
the benefit is that the final price is
agreed at the outset

-most of the time the


drawings are incomplete
when the contractor is
appointed.
-thus no certainty of price
until the last work package is
signed