Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.1: Stage 1—The concept of a project : Stage 1–The concept of a project 1m Stage 1–The concept of a project A project is... an individual or collaborative enterprise that is carefully planned to achieve a particular aim. (Oxford University Press, 2021). Footnote 1. Oxford University Press. (2021). Oxford languages. https://languages.oup.com/google-dictionary-en/ What's your project? Most of us will have set out to complete a project at some stage in our lives. A project is a series of tasks that, when carefully planned and carried out, will lead to a particular outcome. In construction terms, a project can be as small as renovating a bathroom or repairing a leaking garage roof to a huge and complex enterprise to build specialised construction projects such as the Marsden Oil Refinery, Forsyth Barr Stadium in Dunedin, or architecturally unique buildings such as Te Papa and the Beehive. To complete a project, the right resources (both financial and skills) must be in place and an appropriate process planned. A construction project life cycle Typically, there are three overarching stages of a construction project: design procurement construction. © The Open Polytechnic of New Zealand Ltd You'll take a brief look at each stage next. Thoughts on this page? RETURN PREVIOUS: TOPICS IN THIS MODULE NEXT: CONSTRUCTION PROCESS–THE DESIGN STAGE Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.1: Stage 1—The concept of a project : Construction process–The design stage 1m Construction process–The design stage Stage 1: The design stage In this first stage, the owner of a building needing modification or the client wanting a new build will engage the services of a designer or architect to turn their proposal into a design for the building. Depending on the size and complexity of the project, the architect may create a design team. For the more complex projects, this will include one or more specialist engineers, such as structural engineers or fire engineers, and specialist consultants such as quantity surveyors and project managers. Design brief The design team works with the client to identify the client's requirements and form a brief. From this brief, the team produces documentation including construction drawings, technical specifications and estimated costs that can be used to procure the services of a contractor to construct the building. Building consent Once the final design has been agreed and the project has reached the construction drawing stage–known as the working drawing stage–applications are made to the local authority for building consent. © Getty Images Thoughts on this page? RETURN PREVIOUS: STAGE 1–THE CONCEPT OF A PROJECT NEXT: CONSTRUCTION PROCESS–THE PROCUREMENT STAGE Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.1: Stage 1—The concept of a project : Construction process–The procurement stage 5m Construction process–The procurement stage What is procurement? Procurement is the process of acquiring and delivering goods, services, and works. It starts with identifying the need and finishes with either the end of a service (or project) contract or the disposal of an asset (New Zealand Government Procurement, n.d.). Footnote 1. New Zealand Government Procurement. (n.d.). Definitions – A list of words and what they mean. Retrieved September 30, 2021. https://www.procurement.govt.nz/procurement/principles-charter-andrules/government-procurement-rules/definitions/ Procurement When the design has got to a certain stage–and this stage varies between different projects and the approach taken–the services of a contractor have to be obtained. The process of securing the services of a contractor is known as procurement. There are different approaches to procurement depending on the method chosen to deliver the project. You'll learn about these different procurement and delivery methods in Module 1 Fact sheet 1.3. Procurement and tendering Whatever procurement method is chosen, at some stage the project work will need to be put out to tender. This means that sufficient documentation is 'put out to market' so that potential contractors (tenderers) can 'tender' (or bid) for the work to construct (and sometimes design) the project. The amount and type of documentation provided for tender vary depending on the procurement and delivery method chosen (see Fact sheet 1.3). Next, you'll take a brief look at the process of tendering. The next course, CON102 Tendering Administration Processes for Construction Projects, explores tendering in more detail. What is a tender? A tender is a written or formal offer to do a job or supply goods, for an agreed price (Cambridge Dictionary, n.d.). Footnote 2. Cambridge Dictionary. (n.d.). Tender. In Cambridge Dictionary.org. Retrieved September 30 2021. https://dictionary.cambridge.org/dictionary/english/tender Invitation to tender Once the design documentation is agreed upon and completed, contractors are invited to tender for the work. Invitations to tender are sent out in one of four ways: Open tender—The invitation to tender is advertised publically via a publication. The platform that government organisations use for publishing a tender is the New Zealand Government Electronic Tenders Service (or GETS for short). Selective tendering—A known contractor is asked to submit a tender for the project. Seeking a negotiated contract—A contractor is asked to carry out work for an agreed amount. Advertising for an expression of interest—Contractors who want to apply for the construction project work submit a proposal that outlines their expertise, experience with similar projects, capability as a construction company, and their professional qualifications and memberships. From these applicants, strong candidates are invited for an interview with a panel comprising the client and the design team. Tender documentation When a design is put out to tender, the main contractors (known as tenderers) are supplied with the same information and tender documents. This documentation may include: Drawings—site plans, floor plans, layout plans, sections, elevations and detail drawings. Specifications—details of the type of work and the materials to be used. Schedule of quantities—a list of all the materials to be used and their quantities. This documentation would usually only be provided for larger projects. Related information—where relevant. Using these documents, the tenderers prepare a tender outlining how much they would charge the client to do the work specified. All tenders must be submitted by a set date and time. Late submissions are not accepted to avoid disadvantaging those who submitted on time. What if... ...there are questions raised? Sometimes, contractors (the tenderers) may have questions about the documentation. If this is the case, they may raise these questions with the design team. The design team responds by issuing Notices to Tenderers (NTT). These contain the required clarifications or corrections to the tender documents and are provided to all tenderers so that everyone receives the same information. ...some of the work is outside the scope of the contractor? If some of the work includes specialist areas outside the contractor's normal work areas, these contractors can, in turn, place tenders out to specialist contractors or subcontractors for this work. Examples of these may include structural steelwork contractors, electrical contractors, HVAC (Heating, Ventilation, and Air conditioning) engineers. Choosing a tender Once all tenders are received, the design team reviews them. The team may ask the tenderer to clarify some details. They may also check that the contractors (tenderers) have the requisite experience, expertise and financial security to complete the project. When the team is satisfied that all criteria have been met, they rank the bids in order of suitability and discuss or present them to the client. It's usual practice that the client accepts the lowest price but the client is not obliged to do so. If none of the tender submissions meet the client's requirements, the client can retender the project with additional material or select different contractors. Becoming legally binding Once the client and design team have decided which contractor they want to work with and have informed them, the tender document submitted by that contractor becomes legally binding. From the accepted tender, the contract documents for the construction phase of the project are drawn up. You'll look at the construction stage next. Thoughts on this page? RETURN PREVIOUS: CONSTRUCTION PROCESS–THE DESIGN STAGE NEXT: CONSTRUCTION PROCESS–THE CONSTRUCTION STAGE Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.1: Stage 1—The concept of a project : Construction process–The construction stage 1m Construction process–The construction stage Once the contracts are in place and the necessary building consents have been obtained by the client, the construction phase can begin. Variations As construction progresses, there may be changes to the original design and documentation. These changes are called variations. Usually, they are initiated by the client, the contractor, or a member of the design team. When a variation occurs, the drawings must be revised and written confirmation of what has changed from the original documentation must be issued. All changes must be re-costed by the quantity surveyor. Variations often result in additional costs to the contract, which is why they must be in writing–occasionally they may result in savings. As-built drawings At the end of the contract, the designer gives the client a set of 'as-built' drawings and documentation. These are a record of the design of the building plus all the changes that took place during the actual construction. In other words, they're a detailed blueprint of the building as it was actually built. This is a vital record to enable the efficient ongoing maintenance of the building. Before exploring these stages of the construction process in more detail, take the opportunity to look at different types of construction projects. Thoughts on this page? RETURN PREVIOUS: CONSTRUCTION PROCESS–THE PROCUREMENT STAGE NEXT: TYPES OF CONSTRUCTION PROJECTS–RESIDENTIAL Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.1: Stage 1—The concept of a project : Types of construction projects–Residential 2m Types of construction projects– Residential What projects will you work on? In the construction industry, you have the opportunity to gain experience in a range of construction projects. Broadly speaking, these could be residential, commercial, institutional, specialised or civil construction projects. Take a brief look at each of these. Construction is big business In February 2019, there were 65,230 enterprises in the construction industry with 177,000 employees (Stats NZ, 2019). Footnote 1. Stats NZ. (2019, October 25). Construction industry at the top of the ladder for business counts growth. https://www.stats.govt.nz/news/construction-industry-atthe-top-of-the-ladder-for-business-counts-growth Overall, it employs over 250,000 people in the different construction areas. Construction is the fifth largest sector in the Aotearoa New Zealand economy (MBIE, 2020). Footnote 2. MBIE. (2020, July 23). Construction fact sheet — July 2020 — impacts of COVID19 and future outlook. https://www.mbie.govt.nz/dmsdocument/11600construction-factsheet-july-2020 An infographic from Ministry of Business, Innovation and Employment's 2021 Annual Report on trends in the building and construction sector. © Crown Copyright Residential construction projects In the construction industry, a residence is a building that people live in. It's a term that refers to detached, semi-detached, and terraced houses, flats, apartment blocks, townhouses, and also nursing homes, elderly persons' homes and dormitories. Small-scale building companies Many of our detached homes in Aotearoa New Zealand are built by small-scale building companies consisting of fewer than five employees. These companies rely on using labour-only contractors (for carpentry, concrete, roofing, wallboard, bricklaying) and subcontractors (such as electricians, plumbers and gas fitters). Franchised residential building companies Group housing companies offer packages for new houses based on standard plans. Others specialise in mass-produced prefabricated homes. © Getty Images Next Strong growth in residential building construction In February 2019, over 30,000 people were employed in the residential construction industry. That's an increase of over 50% in the past five years (Stats NZ, 2019). Footnote 3. Stats NZ. (2019, October 25). Construction industry at the top of the ladder for business counts growth. https://www.stats.govt.nz/news/construction-industry-atthe-top-of-the-ladder-for-business-counts-growth Will this be maintained? It's hard to predict the future, but it's always possible to look at what the experts say. If you're interested in analysing the future outlook in the construction sector, read this fourpage PDF, Construction fact sheet–July 2020–impacts of COVID-19 and future outlook. Next, take a look at other types of construction projects. Thoughts on this page? RETURN PREVIOUS: CONSTRUCTION PROCESS–THE CONSTRUCTION STAGE NEXT: TYPES OF CONSTRUCTION PROJECTS–COMMERCIAL AND INSTITUTIONAL Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.1: Stage 1—The concept of a project : Types of construction projects–Commercial and institutional 20m Types of construction projects– Commercial and institutional Commercial construction projects Select the white arrows < > at the side of each image to see examples of commercial construction projects such as retail malls, warehouses, multi-purpose office blocks. Other examples of these projects include factories and workshops. From this, you'll ascertain that: Commercial construction is the building of a structure to be used for commercial or industrial use. Types of commercial construction projects–retail malls © Getty Images Next Compared with the small-scale residential builder, commercial construction involves medium- to large-scale companies. These companies have a larger workforce, access to greater capital, and larger and more extensive equipment. In Aotearoa New Zealand, main commercial contractors cover all aspects of the construction process from design to construction to cost analysis. In addition to permanent staff, main contractors employ subcontractors with specialist fields of expertise, such as pile driving and steel fabrication. Both of these are common in Aotearoa New Zealand due to the need for earthquake strengthening in our larger, commercial buildings. Institutional construction projects Institutional construction projects involve the building of schools, colleges, hospitals, clinics, museums, art galleries, sports stadiums, and cultural centres. Large-scale construction companies undertake these projects. As with large-scale commercial construction projects, the main contractors will employ many specialist subcontractors for their specialist services. In these projects, it's usually the client who will employ the main project manager as the risks are high, and financial penalties may be imposed if the project is not delivered within time and budget. Select the white arrows < > at the side of each image to see examples of different institutional construction projects. Types of institutional construction projects–sports stadium © Getty Images Next ACTIVITY 1.1: COMMERCIAL CONSTRUCTION COMPANIES How many large construction companies can you think of that operate in Aotearoa New Zealand? Write a list then Submit your answer. Check the feedback and compare it with the list you collated. BOLDITALICUNDERLINE BULLET LISTNUMBERED LISTALIGN LEFTALIGN CENTERALIGN RIGHT SUPERSCRIPTSUBSCRIPT TABLE 0Word(s)0 words written SAVE DRAFT SUBMIT You might like to explore the websites of some of these companies listed in the feedback to the commercial construction companies task. If you do, you'll notice that different companies specialise in different types of construction projects. Some will specialise in large commercial or institutional projects like those mentioned previously; whereas others will specialise in infrastructure projects such as roading, or drain laying, or water system management; or specialised construction projects such as oil refineries. Take a look at specialised construction projects next. Thoughts on this page? RETURN PREVIOUS: TYPES OF CONSTRUCTION PROJECTS–RESIDENTIAL NEXT: TYPES OF CONSTRUCTION PROJECTS–CIVIL CONSTRUCTION AND SPECIALISED CONSTRUCTION Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.1: Stage 1—The concept of a project : Types of construction projects–Civil construction and specialised construction 1m Types of construction projects–Civil construction and specialised construction Civil construction projects Civil construction projects do not involve habitable buildings. Instead, they include mega-structures such as roads, dams, bridges or tunnels. These may be referred to as 'horizontal' construction projects (as opposed to the 'vertical' construction projects of buildings). Like institutional or large commercial construction contractors, contractors who undertake civil construction projects are large, corporate organisations with significant assets and access to specialised expertise. Select the white arrows < > at the side of each image to see examples of Aotearoa New Zealand civil construction projects. Types of civil construction projects—bridges such as Arthur's Pass in the South Island © Getty Images Next Specialised construction projects Specialised construction projects tend to be one-off projects involving a combination of government and private financial backing, and several large contractors–many of whom may be brought in from overseas. Marsden Point oil refinery is an example of a specialised construction project in Aotearoa New Zealand. It took two years to build back in the 1960s with the American company, Bechtel, as the main engineering and construction contractor. Specialised construction projects–Marsden oil refinery © Getty Images Now that you've explored the concept of a project and looked at examples of types of construction projects, next you'll look at the start of the construction process– beginning with the design stages. Thoughts on this page? RETURN PREVIOUS: TYPES OF CONSTRUCTION PROJECTS–COMMERCIAL AND INSTITUTIONAL NEXT: STAGE 2–DESIGN Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.2: Stage 2—Design : Stage 2–Design 1m Stage 2–Design In this fact sheet, you'll explore what happens in the design stage of a construction project, who's involved, and what documents they produce. Who's involved during the design stage? Depending on the scale and complexity of the project, the design team could be as small as a single designer or it could involve many designers, engineers, quantity surveyors and landscape designers. What happens during the design stage? The client's needs are identified. The client's needs are translated into a design. The design is checked to make sure it's feasible within the project constraints of time, budget, space and other resources. The design stage can be considered in four stages: The design brief. Preliminary design. Developed design. Detailed design. These stages may be given different names in different contexts, and one stage may overlap with another, but this classification is helpful to enable a high-level understanding of the design processes involved in a construction project. Let's look at each in turn. Thoughts on this page? RETURN PREVIOUS: TYPES OF CONSTRUCTION PROJECTS–CIVIL CONSTRUCTION AND SPECIALISED CONSTRUCTION NEXT: THE DESIGN BRIEF Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.2: Stage 2—Design : The design brief 1m The design brief The client's requirements Clients may be one individual, a group of individuals, an organisation or a company who has identified a need for a building or modification of a building, and who have the means to finance the building project. Clients may know the type of building required or they may only know what outcomes they desire from the project, or what problems or deficiencies they wish the building project to solve. The designer's focus The design team listens to the client and establishes their requirements through discussion, research and consultation. Their aim is to prepare a brief that both satisfies the client's needs and meets the requirements for good design, buildability and sustainability. What's the outcome? The completed design brief must present a solution that meets the client's requirements in terms of: the function of the building and its interior spaces the structure of the building within the constraints of the site and regulations cost–taking into account the client's budget, size of the building and quality aesthetics–how the building looks with respect to its function, its surroundings and local culture. Thoughts on this page? RETURN PREVIOUS: STAGE 2–DESIGN NEXT: PRELIMINARY DESIGN Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.2: Stage 2—Design : Preliminary design 10m Preliminary design What happens in the preliminary design stage? In the preliminary design stage, concept designs are created as initial design proposals based on the client's brief. This stage may also be known as the schematic design stage. Think of this stage as a type of brainstorming–multiple concept designs are put forward, each meeting the design brief in slightly different ways. The designers will test ideas such as: circulation–how people will move around the building spatial flow–what activities will occur in the building and how they need to relate to each other. Not all the concept designs will be suitable when the constraints of the site, time, budget and so on are considered. But, by testing these ideas first, the final design is more likely to meet the client's requirements effectively. As well as ideas, the preliminary design stage is also a time for gathering information from specialists. Who's involved in the preliminary design stage? Specialist consultants–such as engineers (structural engineers, services engineers and so on) provide input and feedback based on their areas of expertise and investigations they may conduct on the site so that the services and mechanical processes can be integrated into the designs. Quantity surveyors (QS)–it's a quantity surveyor's job to outline the preliminary cost of the proposed design, assess the impact of changes on the original budget, and consider likely future costs in terms of running costs and maintenance. Client or client's representative (often a designer)–will investigate viable options with contractors who have the right expertise for particular designs or services. They will also use the cost estimates from the QS to estimate how long the construction process is likely to take and to start drawing up a planned outline of the construction programme. Designer–The designer will draw designs based on the preferred and most feasible concepts. They may use 3D modelling software to provide virtual walkthroughs and show the client how the building will work. The designer will adapt the designs as needed based on feedback from the stakeholders listed above. What's the outcome of the preliminary design stage? Based on all this input, the preliminary design stage results in design drawings (such as plan, sections, elevations, views) that communicate the design concept to the client and other stakeholders. The number of design drawings required will vary depending on the size and complexity of the project. There may also be a preliminary design report to accompany the drawings to outline features such as structural components, material and equipment specifications and cost schedules. Go / No-go At the end of the preliminary design stage, sufficient ideas, information and input are gathered to decide if the project is viable for the client or not. In a simple project, it's possible that the process will go straight from the preliminary design stage to the detailed design stage. In more complex projects, a developed design stage is also required–you'll explore this next. If you are new to the construction sector, you may like to watch the following videos which demonstrate what is meant by the design drawing terms: Floor plan (How to Architect, 2009) (3:11). Footnote 1. How to Architect. (2009, December 30). How to draw like an architect, pt1 – The floor plan [Video]. YouTube. https://www.youtube.com/watch?v=b_bEps3hJLI Elevation (How to Architect, 2010) (2:16). Footnote 2. How to Architect. (2010, January 7). How to draw like an architect, pt 2 – The elevation [Video]. YouTube. https://www.youtube.com/watch?v=5zIZBZRea8w Section (How to Architect, 2010) (2:32). Footnote 3. How to Architect. (2010, January 12). How to draw like an architect, pt 3 – The wall section [Video]. YouTube. https://www.youtube.com/watch?v=MKc7yYurPis Thoughts on this page? RETURN PREVIOUS: THE DESIGN BRIEF NEXT: DEVELOPED DESIGN Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.2: Stage 2—Design : Developed design 2m Developed design What happens in the developed design stage? Once the design team has agreed on the preliminary design, the concept is further developed to define the functionality and spatial flow required, to ensure the required structural strength and integrity can be provided and all the services included within the project budget. In other words, a developed design is adding the necessary details to the preliminary design. Who's involved in the developed design stage? Designer–will focus on finalising the details of the 'spatial coordination'; that is, how the spaces in and around the building will work to enable it to function as needed for the number of people and types of activities involved. Specialist consultants–the structural engineers and building services consultants will finalise their project strategies so the designer can check and incorporate them into the final design. Quantity surveyor (QS)–QS completes their cost estimates and life cycle costs and checks they're within the client's budget. They will also identify specific costs associated with construction (for example, pumps and cranes) and post-construction (for example, fitting out the building). The QS monitors the design process throughout to ensure changes are within budget. What's the outcome of the developed design stage? At the end of the developed design stage, more detailed drawings will be drawn up or completed. These may be highly technical and outside the normal scope of the client, so careful explanation may be needed to ensure the client has a sufficient understanding of the project. Developed drawing–site plan of a garage © Design Factum Ltd Thoughts on this page? RETURN PREVIOUS: PRELIMINARY DESIGN NEXT: DETAILED DESIGN STAGE Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.2: Stage 2—Design : Detailed design stage 2m Detailed design stage What happens in the detailed design stage? In the detailed design stage, the design team refines the design to provide technical definitions for the project. Any specialist work needed is agreed on and the details finalised as part of the design. Drawings produced at this stage will show the working details of how the building is to be constructed. They'll be drawn at such a scale and accuracy that it's possible to show details of; for example, junctions–not just at one angle but at different angles–so what's required to construct them is clear to the contractors. Who's involved in the detailed design stage? The same team members as before. Often they may work independently to bring all the details together, so it's important that the lead designer, or project lead, or client's representative coordinates and collates all the information to ensure the whole design works. What's the outcome of the detailed design stage? At the end of this stage, all design aspects are complete. Any changes after this stage could be expensive to accommodate. The detailed design drawings and accompanying documentation are collated and will be the documents that are put out to tender. Detailed drawing–section of planned garage © Design Factum Ltd When the detailed design documents are ready, the next stage in the construction process is procuring the services of a contractor or contractors who will build the project. There are different ways of procuring a contractor which depends on the approach to building you wish to take–this is known as the procurement or delivery method. You'll look at these next. Thoughts on this page? RETURN PREVIOUS: DEVELOPED DESIGN NEXT: STAGE 3–PROCUREMENT STAGE Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.3: Stage 3—Procurement stage : Stage 3– Procurement stage 45m Stage 3–Procurement stage What is procurement? Procurement is the process of acquiring and delivering goods, services, and works. It starts with identifying the need and finishes with either the end of a service (or project) contract or the disposal of an asset (New Zealand Government Procurement, n.d.). Footnote 1. New Zealand Government Procurement. (n.d.). Definitions – A list of words and what they mean. https://www.procurement.govt.nz/procurement/principles-charterand-rules/government-procurement-rules/definitions/ Procurement strategy In the construction sector, procurement refers to the process (usually after the design phase) where the client, client representative and design team decide: how they're going to seek potential contractors to build the project (known as the approach to market) how they'll evaluate each contractor who puts forward a tender, then select their best option what delivery method they'll use for the project. This is known as the procurement strategy. How to develop an effective procurement strategy MBIE has developed guidelines that it considers good practice when developing a procurement strategy for a construction project. While these guidelines are intended for government agencies undertaking construction projects, they also apply to non-government construction projects (MBIE, 2019). Footnote 2. MBIE. (2019, October). Developing your construction procurement strategy— Construction procurement guidelines. https://www.procurement.govt.nz/assets/procurementproperty/documents/developing-your-procurement-strategy-constructionprocurement.pdf In these guidelines, they identify factors that help you develop an effective procurement strategy. These are to: make sure you fully understand your project's characteristics, such as the key drivers, constraints and risks work out the best delivery models for your project involve key stakeholders and specialists early in your planning and development process challenge any assumptions use practical techniques to analyse issues to help you make the right decisions. Next are the three crucial steps in a procurement strategy. Steps to developing your procurement strategy © MBIE Gather and analyse project information The first step in procurement as you gather information is to make sure you fully understand the project brief. Table 1.1 shows some key areas to consider. If you're new to the construction sector, the information in this table may look overwhelming. How can you remember it all? You don't have to! These are the sort of factors you'll naturally think about–as a team–when beginning a project. Not convinced? Read the table then test your own thinking with the scenario that follows. Table 1.1 Gathering information for your procurement strategy Project requirements Project constraints Project risks Client capability What are your... What are your... Could there be issues with... Do you know about your... priorities site constraints such as size, geotechnical, cultural, and outcomes environmental considerations. site permits design client knowledge, experience and resources materials desired milestones design criteria and Could there be issues with... client concern planning and consent different delivery methods reasons behind them. finances their experience with design complexity. Is there... stakeholder management neighbouring sites during and after building. their desired level of oversight in the project. flexibility for change. ACTIVITY 1.2: ANALYSING PROJECT INFORMATION Read the following scenario, then list at least six important features of this project that need to be considered in the project brief. Scenario The new board of trustees for a local high school wants to construct a new, innovative and complex gymnasium. As a member of the board and as an architectural designer, you're the most experienced member in construction procurement and they're looking to you for early stage guidance. Because they're a public institution, they require a high degree of transparency in costs, and have a low tolerance to risk or cost fluctuations. A competitive cost is required by the government. The project is expected to cost around $7.2 million. Funding is currently secured for $5.9 million. The board has several options to fund the balance and is not concerned about the shortfall. Developed design is not yet complete. The project has a tight timeframe as the board wishes to minimise disruption to the school. All the board members are busy professionals and are unable to actively monitor or invest time into the building process. Their intention is to potentially lease or share ownership of the building with a private organisation to reduce costs and to make better use of the space, but this is not yet confirmed. This project will be a focal point for the community, community stakeholder management is a priority. They are interested in involving a specialist contractor at an early stage to ensure the technical aspects of the gym are state-of-the-art. The contractor's involvement will influence the final set of drawings. BOLDITALICUNDERLINE BULLET LISTNUMBERED LISTALIGN LEFTALIGN CENTERALIGN RIGHT SUPERSCRIPTSUBSCRIPT TABLE 0 / 500 Word Limit SAVE DRAFT SUBMIT ACTIVITY 1.3: CATEGORISING PROJECT INFORMATION Now you've elicited the key features of this college gymnasium project, familiarise yourself with the terminology involved in construction by classifying each feature to its appropriate category. Drag each term to the appropriate column, then Submit your answer. Note, not every column will have the same number of terms. Project requirements Project constraints Early engagement with specialist Cost transparency Stakeholder management Low client capability New, innovative gymnasium Low risk Design complexity Cost fluctuations Possible shared ownership Tight timeframe SUBMIT Project risks Client capability The next step in your procurement strategy is to determine your preferred delivery model. So, on the following pages, you'll look at the different types of delivery models, their advantages and disadvantages, and what to consider when choosing the delivery model. Thoughts on this page? RETURN PREVIOUS: DETAILED DESIGN STAGE NEXT: TYPES OF DELIVERY MODELS Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.3: Stage 3—Procurement stage : Types of delivery models 20m Types of delivery models Choosing the right delivery model is one of the most important decisions in the construction procurement process–choosing the wrong model can affect the cost, quality and timing of your project. The delivery model you select will also determine how you organise your project team. Each model has its advantages and disadvantages, so a model should be chosen based on what is most appropriate for your project (MBIE, 2019). Footnote 1. MBIE. (2019, October 19). Developing your construction procurement strategy — Construction procurement guidelines. https://www.procurement.govt.nz/assets/procurementproperty/documents/developing-your-procurement-strategy-constructionprocurement.pdf You'll look at some common delivery models next. How to make the most of the next few pages In the next few pages, you'll explore six different types of procurement and delivery methods commonly used in Aotearoa New Zealand. It's a lot of information to take in, so you may wish to collate some useful ideas and notes as a table or spreadsheet, such as this table shown here. Table 1.2 Collating notes on construction procurement methods Method What it is When it's used Its advantages Alternatively, or in addition, you may wish to compile a document of flow charts for each method that show the contractual relationships between the different stakeholders at the different stages of the project. Examples, such as this one in Fig. 1.1, are shown in the course. Fig. 1.1 Contractual relationships in a traditional–design, bid, build model © MBIE Thoughts on this page? RETURN PREVIOUS: STAGE 3–PROCUREMENT STAGE NEXT: TRADITIONAL–DESIGN, BID, BUILD METHOD Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.3: Stage 3—Procurement stage : Traditional– design, bid, build method 20m Traditional–design, bid, build method Traditional–design, bid, build delivery method In a traditional delivery method, the client chooses an architect or design team and asks them to prepare specifications for a given budget. When the plans and design drawings are complete, the client releases them for bidding to general contractors. The contractors bid against each other for the work. The client evaluates the contractors' bids, selects a contractor, and establishes a contract with the chosen contractor to build the project. When does the traditional method work best? When: the client wants to retain overall control of the design throughout the project the client has project management and/or construction development experience requirements are straightforward and the scope is well-defined there is sufficient time to allow for separate design, tender and construction phases there's likely to be a large pool of tenderers and strong competition to win the contract for the project site conditions are known cost certainty is required. What are the advantages and disadvantages of the traditional method? Table 1.3 Advantages and disadvantages of the traditional method Advantages Disadvantages Client has full control over design and specifications at all stages. It's time-consuming–particularly to get full design a tender stage. Design team is directly employed by the client, so work in the client's best interests. The client doesn't get the benefit of the contractor optimise the design from a construction perspectiv The tendering process is straightforward which lowers the cost and effort for the client. Design risk rests with the client and construction ris be hard to decide who's responsible for defects late The tendering process introduces competition which results in lower prices. The tender process puts pressure on contractors to the risk of poorer quality work. Cost is established at the beginning. The client is responsible for cost and time overruns The traditional delivery method is well-known and understood. Contract variations, including design changes, are easy to deal with. (MBIE, 2019) Footnote 1. MBIE. (2019, October). Traditional delivery model – Construction procurement guidelines. https://www.procurement.govt.nz/assets/procurementproperty/documents/traditional-delivery-model-construction-procurement.pdf Figure 1.1 shows the contractual relationships of the key stakeholders in a traditional delivery method (MBIE, 2019). Footnote 2. MBIE. (2019, October). Traditional delivery model –Construction procurement guidelines. https://www.procurement.govt.nz/assets/procurementproperty/documents/traditional-delivery-model-construction-procurement.pdf Fig. 1.1 Contractual relationships of the key stakeholders in a traditional delivery method © MBIE Dig deeper If you would like to read more about the traditional, design, bid, build procurement method, then you can read this four-page information sheet by MBIE on the Traditional delivery model–construction procurement. Next, explore the design and build method. Thoughts on this page? RETURN PREVIOUS: TYPES OF DELIVERY MODELS NEXT: DESIGN AND BUILD (TURNKEY) METHOD Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.3: Stage 3—Procurement stage : Design and build (turnkey) method 20m Design and build (turnkey) method Design and build delivery method In the design and build delivery method, the client contracts with the main contractor who takes responsibility for both the design and construction phases for an agreed lump sum price. The client outlines, in detail, their requirements for the building–this information is then used in the tender process to seek contractors who will bid for both the design and construction phases of the project. In this way, the design and build method is sometimes called a turnkey approach because the client doesn't have to do anything except choose a contractor to do the design and build, choose a design, sign the contract, pay for the project, then pick up the key at the end of the construction stage. However, the requirements the client draws up initially must be detailed and comprehensive to ensure the final building meets the client's objectives. When does the design and build method work best? When: the client has clear specifications to provide to the design and build contractor at the time of tender the client is comfortable giving up design control to the main contractor and their designers speed of construction is important cost certainty at the outset is important. What are the advantages and disadvantages of the design and build method? Table 1.4 Advantages and disadvantages of the design and build (turnkey) method Advantages Disadvantages Speed to completion–construction on site can begin before all detailed design is complete. The client must be clear about thei they get the best outcomes. Advantages Disadvantages There's potential for innovation as the design stage benefits from the contractor's inputs around the best materials and construction methodologies. Sufficient time is needed in the ten both design proposals and construc Cost certainty–provided clear functional requirements are provided by the client at tender. Cost of tendering is usually higher f delivery method. Potentially fewer disputes as the main contractor has responsibility for both design and construction. There may also be a smaller pool o method. The client is not responsible for cost and time overruns. The designer is accountable to the their own design consultants to mo (MBIE, 2019) Footnote 1. MBIE. (2019, October). Design and build delivery model – Construction procurement guidelines. https://www.procurement.govt.nz/assets/procurementproperty/documents/design-and-build-delivery-model-constructionprocurement.pdf Figure 1.2 shows the contractual relationships of the key stakeholders in a design and build delivery model (MBIE, 2019). Footnote 2. MBIE. (2019, October). Design and build delivery model — Construction procurement guidelines. https://www.procurement.govt.nz/assets/procurementproperty/documents/design-and-build-delivery-model-constructionprocurement.pdf Fig. 1.2 The contractual relationships of key stakeholders in a design and build delivery model © MBIE Variations of design and build There are variations to the design and build model as outlined here: Competitive–This is the process described above. Contractors prepare tenders for both the design and construction proposals based on the client's output specifications (that is, their detailed requirements for the project). Develop and construct–The client appoints design consultants to design the building to a partial stage known as 'scope design'. This is then taken to tender. The chosen contractor uses their own in-house design consultants to complete the design and construction work. Novation–The client appoints design consultants to develop the design to a stage at which it can be taken to tender. This team of design consultants then transfers (novates) to the contractor who has won the bid. This variation is seen as a way to encourage contractors to bid and avoid high design development costs. Dig deeper If you would like to read more about the design and build (turnkey) method of delivery, then read this six-page information sheet Design and build delivery model–construction procurement guidelines. Next, you'll explore different types of managed delivery models. Thoughts on this page? RETURN PREVIOUS: TRADITIONAL–DESIGN, BID, BUILD METHOD NEXT: DIRECT MANAGED MODEL Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.3: Stage 3—Procurement stage : Direct managed model 20m Direct managed model There are different managed delivery models available to a client. For example: Packaged-based delivery model–with its two alternatives of construction management and management contracting. Direct managed delivery model. You'll look at the direct managed delivery model now and the package-based delivery model next. Direct managed delivery model In the direct managed delivery model, the client directly manages all aspects of the work, such as coordinating the design development, setting up the site, hiring equipment, undertaking the project management, being responsible for quality control. When does the direct managed delivery model work best? When: The client has their own team of designers, quantity surveyors, engineers, contract administrators and so on, or at least people they can easily contract to do this work. The client wants or needs to control all aspects of the project. The project is small. Flexibility on scheduling and delivery is required. What are the advantages and disadvantages of the direct managed delivery model? Table 1.5 Advantages and disadvantages of the direct managed delivery method Advantages Disadvantages Can be an efficient process for small projects. Client retains a lot of risk. Useful if there are limited numbers of suitable contractors. There's no tender price competition, so the client may be Useful if there are different areas of work that do not overlap. A lot of oversight is required and the client may struggle t sufficient expertise. Easier to change the design during the construction phase. Helps to develop the in-house expertise of the client's employees. Footnote 1. MBIE. (2019, October). Direct managed delivery model – Construction procurement guidelines. https://www.procurement.govt.nz/assets/procurementproperty/documents/direct-managed-delivery-model-construction-procurement.pdf (MBIE, 2019) Figure 1.3 shows the contractual relationships in a direct managed delivery model. Fig. 1.3 Contractual relationships of key stakeholders in a direct managed model © MBIE Dig deeper If you would like to read more about the direct managed model, then read this two-page PDF from MBIE on the Direct Managed Delivery Model Next, find about the package-based delivery model–another type of direct managed model. Thoughts on this page? RETURN PREVIOUS: DESIGN AND BUILD (TURNKEY) METHOD NEXT: PACKAGE-BASED DELIVERY MODEL Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.3: Stage 3—Procurement stage : Packagebased delivery model 20m Package-based delivery model Package-based delivery method A package-based delivery model can be one of two approaches, both of which break down the project into smaller management methods (packages), with the client employing either a construction manager or a management contractor. These manage the breakdown of the contract into smaller packages, supervise the tendering process and manage the contracts. Construction management approach–In this approach, the client contracts the trade contractors and suppliers, then the construction manager manages these resources and each stage of the project. Management contracting approach–Here, the client employs a management contractor to contract the trade contractors and suppliers, then manages the resources and each stage of the project. Select the white arrows < > at the side of each image to see flow charts representing the contractual relationships of both these types of packaged-based delivery methods. Note the different relationships around the construction manager and management contractor roles. Fig. 1.4 Relationship of key stakeholders in a construction management, package-based delivery method © MBIE Next When does a package-based delivery method work best? When: faster project delivery times are required the project requires specialist services that a single main contractor could not easily provide client wishes to maintain control over the design and quality the client requires expert advice around design and buildability from an experienced construction manager or management contractor the client is comfortable not knowing the final price (as each package is bid and paid for individually) there is adequate contingency in the budget to accommodate inflationary costs per package or to prevent a reduction in quality. What are the advantages and disadvantages of a package-based delivery method? Table 1.6 Advantages and disadvantages of a package-based delivery method Advantages Disadvantages The design can be varied with relative ease. The construction management approach carries more risk fo contracting approach–as the client appoints the individual co Management and coordination risk is reduced. It's a large time commitment for the client–the client needs t Contract administration is done by the construction manager or management contractor. Administrative arrangements are complex as they're renegot Client maintains a high degree of control. Uncertainty around final construction costs. The client owns the risk that the design team can meet the re management contractor's programme. Footnote 1. MBIE. (2019, October). Package based delivery model. https://www.youtube.com/watch?v=MKc7yYurPis (MBIE, 2019) Dig deeper If you would like to read more about the two different package-based delivery methods, then read this three-page information sheet on the Package Based Delivery Model. Next, find out about the early contractor involvement model. Thoughts on this page? RETURN PREVIOUS: DIRECT MANAGED MODEL NEXT: EARLY CONTRACTOR INVOLVEMENT METHOD Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.3: Stage 3—Procurement stage : Early contractor involvement method 30m Early contractor involvement method The early contractor involvement method (ECI) can be incorporated into either a traditional model or a novated design and build model, particularly if the client wants to gain early advice from a contractor about design and buildability. Rather than complete the design stage to developed design drawings and then put the project out to tender, in an ECI method there are two stages to tendering. First stage tender The first stage tender documents should provide early design information–such as concept or preliminary drawings–an indication of budget limit and sufficient project information that the contractor can submit a tender response that covers; for example, analysis of how realistic the client's budget is, the construction methodology they would use, how they would manage health and safety, how the contractor's project team would work with the client's design team, schedule of rates and so on. The client's first stage tender documents should also include a pre-construction services agreement (PSA) that outlines, for the contractor, the services the contractor should provide during the second tender stage. The PSA will also contain conditions that the contractor must meet–such as performance standards and acceptable contract sum. The PSA provides the client with the opportunity to go back out to tender if these conditions are not met. The PSA also ensures the contractor is paid for their services so far–this has the added bonus of preventing later disputes over the use of intellectual property if some of the contractor's ideas are subsequently used. Second stage tender The second stage tender involves the contractor working with the client's design team to provide input into the design and buildability. For a traditional delivery method, the client and contractor will agree on how the project is to be split into work packages and will put out to tender for each package. Once the client is happy with each package, the contractor is awarded the contract to proceed to build usually on a lump sum fixed price. For a design and build delivery model (the novated version), the design will not be complete at the time of awarding the contract, so the contract sum is arrived at via negotiation with the client's cost consultant (quantity surveyor) reviewing the contractor's cost estimates. If the client doesn't want to be involved too much and accepts the risk that comes with that, the contract may be awarded on a lump sum fixed price. If the client wishes to have more collaboration with the design team and contractor, then they may opt for a guaranteed maximum price contract. When is an ECI model best used? When: the project is large and complex innovative approaches are needed collaboration will provide value cost certainty and transparency is needed flexibility in scheduling and delivery is possible. What are the advantages and disadvantages of the ECI method? Table 1.7 Advantages and disadvantages of the early contractor involvement method Advantages Disadvantages Greater opportunity for optimising the design from a construction perspective. Requires strong leadership from the client a and cost consultants. Fewer disputes because relationship principles and collaborative practices are incorporated into the contract. Open book negotiations are required in the contractor's rates and margins to be indepe Greater opportunity for innovation arising from the collaboration. Competitive tension is present–which can b Improved cost and time savings. Earlier procurement of items with long lead times to prepare (such as steel). Footnote 1. MBIE. (2019, October). Early contractor involvement – Construction procurement guidelines. https://www.procurement.govt.nz/procurement/specialisedprocurement/construction-procurement/construction-procurement-guidelines/ (MBIE, 2019) Dig deeper If you would like to read more about the Early contractor involvement method, then read this three-page information sheet from MBIE on Early Contractor Involvement Construction Procurement Guidelines. Next, you'll briefly look at two further (and final) procurement and delivery models that involve collaboration. Thoughts on this page? RETURN PREVIOUS: PACKAGE-BASED DELIVERY MODEL NEXT: ALLIANCE DELIVERY MODEL AND PUBLIC PRIVATE PARTNERSHIP MODELS Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.3: Stage 3—Procurement stage : Alliance delivery model and Public private partnership models 20m Alliance delivery model and Public private partnership models Alliance delivery model This model is based on collaborative relationships and good faith and trust so that the decisions made are best for the project, not necessarily based on what's best for the individual companies involved. It's best for highly complex or large infrastructure projects as collaborative relationships facilitate innovative solutions. A good example of the Alliance delivery model is seen in the Stronger Christchurch Infrastructure Rebuild Team (SCIRT). Follow this link if you would like to read more about SCIRT's $2.2 billion, five-year programme of 700 individual projects–the model used, the programme management, people and culture and construction processes involved. Public-private partnerships In a public-private partnership model (PPP), the private sector finances the project (along with the government), builds the project then transfers control to the public sector once complete. The details of the partnership vary depending on the project. The benefit of a PPP is that it facilitates innovation from the private sector. In our final page on procurement, you'll look at two common pricing models, before testing your knowledge and understanding of procurement with some activities. Thoughts on this page? RETURN PREVIOUS: EARLY CONTRACTOR INVOLVEMENT METHOD NEXT: COMMON PRICING MECHANISMS Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.3: Stage 3—Procurement stage : Common pricing mechanisms 3m Common pricing mechanisms There are different pricing mechanisms used depending on the level of cost certainty needed by the client, the level of financial risk the client or contractor is willing to accept, and the delivery model used. Common pricing mechanisms are: lump sum guaranteed maximum price target costs measurement contract cost-reimbursable contract. See Fig. 1.6 to compare the pricing mechanism with the degree of financial risk for the client and contractor. Then see Fig. 1.7 to see which pricing mechanisms are usually applied to the delivery model. Fig. 1.6 Pricing mechanism and risk for client and contractor © MBIE Fig. 1.7 Delivery models and commonly associated pricing mechanisms © MBIE Lump sum contract A lump sum contract is the most commonly used pricing mechanism. The contract price is based on a single lump sum price for all the works agreed between the client and contractor. When are lump sum contracts best used? Lump sum contracts are best used where projects are well defined at the tender stage so that the contractor can accurately price the project and post-contract changes are unlikely. What are the risks with lump sum contracts? With lump sum contracts, the contractor carries more financial risk–particularly in a design and build model where the contractor contributes to the design. While lump sum contracts therefore provide some cost certainty to the client, if the client wishes to make changes post-contract this will result in a variation entitling the contractor to add costs. Inflation may increase the cost of materials and labour over the time of the project. So, lump sum contracts may include mechanisms to deal with this or the contractor will include this in their pricing–known as fixed price lump sum (MBIE, 2019). Footnote 1. MBIE. (2019, October). Lump sum contract – Construction procurement guidelines. https://www.procurement.govt.nz/assets/procurementproperty/documents/lump-sum-contract-construction-procurement.pdf Guaranteed maximum price (GMP) Guaranteed maximum price contracts arose from the design and build (turnkey) delivery models where the contractor is involved early and has full control in the design stage so they can ensure the design is cost-effective. The contractor tenders their price (GMP) for developing and managing the design and build of the project. To enable a guaranteed maximum price contract, the client has to be very clear on their desired outcomes in the information they provide for tendering. The client also has to know there are suitable contractors with the right expertise to complete the whole project. The contractor also has to be able to take on the financial risk. Any savings made may be shared between the client and contractor. When are GMP contracts best used? When: projects are straightforward or ones with repeatable design elements such as offices the client can clearly define their requirements the contractor is willing and has the expertise to be involved in the design stage. What are the risks associated with GMP contracts? If the client has not outlined all their requirements clearly, any extra information provided post-contract could result in the GMP being increased (MBIE, 2019). Footnote 2. MBIE. (October, 2019). Guaranteed maximum price – Construction procurement guidelines. https://www.procurement.govt.nz/assets/procurementproperty/documents/guaranteed-maximum-price-construction-procurement.pdf Next, test your knowledge and understanding of the procurement and delivery models you've covered in Module 1. Thoughts on this page? RETURN PREVIOUS: ALLIANCE DELIVERY MODEL AND PUBLIC PRIVATE PARTNERSHIP MODELS NEXT: TEST YOUR KNOWLEDGE ON FACT SHEET 1.3 Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.3: Stage 3—Procurement stage : Test your knowledge on Fact sheet 1.3 30m Test your knowledge on Fact sheet 1.3 Test your knowledge and understanding about the different procurement and delivery methods by completing these tasks. These activities are not marked, but feedback is provided when you submit your answer. You may need to refer back to the relevant pages about different methods or models or use the notes, spreadsheets or flow charts you created. ACTIVITY 1.4: DELIVERY MODELS AND PROJECT SCALE, COMPLEXITY AND RISK Drag and drop the name of the delivery model, closest to the level of risk/complexity/scale that the model is most suitable for, then Submit your answer. Level of risk/complexity/scale is as follows: 1. = Low risk 2. = Medium risk 3. = High risk Traditional-design, bid and build Design and build (turnkey) Direct managed Packaged Early contractor involvement 1 3 1 2 3 Level of risk, complexity and scale SUBMIT ACTIVITY 1.5: DELIVERY MODELS AND OPPORTUNITY FOR COLLABORATION AND INNOVATION Which delivery models offer the most opportunity for collaboration and innovation? Drag and drop the name of the delivery model closest to its level of opportunity for collaboration and innovation, then Submit your answer. Level of opportunity for collaboration and innovation: 1. = Low level 2. = Medium level 3. = High level Traditional-design, bid, build Design and build Early contractor involvement Packaged based Alliance 1 3 1 2 3 Delivery models and opportunity for collaboration and innovation SUBMIT ACTIVITY 1.6: CONTRACTOR INVOLVEMENT AT THE DESIGN STAGE Which of the following delivery methods involve the main contractor at the design stage? Select all that apply, then Submit your answer. Traditional- design, bid, build Traditional- design, bid, build Early contractor involvement Early contractor involvement Package based delivery method Package based delivery method Design and build Design and build SUBMIT ACTIVITY 1.7: DELIVERY METHODS AND LEVEL OF CLIENT CONTROL Put the following methods in order of the amount of control the client has over the project. Start with the method which has the highest level of client control first. Traditional- design, bid, build Design and build Direct managed Package-based SUBMIT ACTIVITY 1.8: DELIVERY METHODS AND COST CERTAINTY AT OUTSET Put the following delivery methods in order of cost certainty for the client at the outset of the project. Start with the model or method that has the highest level of cost certainty at the outset, then Submit your answer. Package-based Design and build Early contractor involvement Traditional- design, bid, build SUBMIT ACTIVITY 1.9: CLIENT AND DESIGN If you were a client and were uncertain what design you'd like for your project, which procurement and delivery method would you choose? Explain your choice and give your reasons in the space provided, then Submit your answer. BOLDITALICUNDERLINE BULLET LISTNUMBERED LISTALIGN LEFTALIGN CENTERALIGN RIGHT SUPERSCRIPTSUBSCRIPT TABLE 0 / 500 Word Limit SAVE DRAFT SUBMIT Thoughts on this page? RETURN PREVIOUS: COMMON PRICING MECHANISMS NEXT: STAGE 4–PRE-CONSTRUCTION STAGE Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.4: Stage 4—Pre-construction stage : Stage 4– Pre-construction stage 15m Stage 4–Pre-construction stage What is the pre-construction stage? Between the end of the tender process–when the main contractor signs the construction contract—and the first day of work on site, there is a long 'to do' list that needs to be completed by the main contractor and members of their team. By the time the pre-construction stage is reached, contracts, finance, permits and consent are sorted. What happens during the pre-construction stage? The construction team is being assembled and every phase of the project is being planned, scheduled and budgeted for during the pre-construction stage. Communication processes and expectations are determined. Materials need to be purchased and suppliers are organised. Some materials have a long lead time (that is, the time taken to source, produce and supply them), so some materials may need to be swapped for alternatives due to availability or cost. The design drawings will be checked. Some design changes may be negotiated at this stage to streamline the build. Some components may need specific detailed drawings created and approved to facilitate their assembly. The main contractor will be awarding contracts to the subcontractors needed for the construction project. Sometimes this stage can take just as long as the actual construction. See the following activity for a more detailed list of pre-construction activities. ACTIVITY 1.10: PRE-CONSTRUCTION ACTIVITIES The preparation activities undertaken by the main contractor and their team comprise a long list. List four types of activities the main contractor must do before work on site can start. Type your suggestions, then Submit your answer. If you're new to the construction sector and are not sure, don't worry–have a go, then review the feedback for more detailed answers. These tasks are not marked. BOLDITALICUNDERLINE BULLET LISTNUMBERED LISTALIGN LEFTALIGN CENTERALIGN RIGHT SUPERSCRIPTSUBSCRIPT TABLE 0 / 500 Word Limit SAVE DRAFT SUBMIT In case you missed the previous activity, here's a list of some of the many preparatory activities undertaken by the main contractor, construction manager and their team in the pre-construction stage. Preparatory work identification of hazards on the construction site plans for mitigating the risks of these hazards and the risks related to the design itself development and approval of a health and safety plan organising of bonds, licences and insurance establishing a detailed programme of works setting up a system to track costs organising a site survey to agree schedules of conditions for adjacent buildings, where existing services are located and so on setting up of a site office procurement of materials and machinery sourcing and contracting subcontractors establishing a contact register of subcontractors devising method statements for how things will be done establishing inspection and site quality assurance plans arranging services such as power and waste management for the site. Next, you'll look at the construction stage. Thoughts on this page? RETURN PREVIOUS: TEST YOUR KNOWLEDGE ON FACT SHEET 1.3 NEXT: STAGE 5–CONSTRUCTION Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.5: Stage 5—Construction stage : Stage 5–Construction 1m Stage 5–Construction The goal of this stage is to have the structure built to plans and specifications, on time and within budget in an incident-free project with a satisfied client at the end of it. The construction stage starts when the main contractor takes possession of the site and ends when the building is complete and the site is handed over to the client. During the construction stage, the client takes a step backward compared with their level of involvement in the design stage; although they're likely to visit the site to inspect progress. The client may also appoint a project manager who will: review the contractor's method statements to ensure they're being followed inspect the quality of workmanship monitor the work carried out ensure specifications are complied with ensure health and safety requirements are implemented. You'll look at six different steps in the construction stage of the process–from mobilisation to building handover and final completion stage (in Fact sheet 1.6)–so you have a high-level understanding of the types of activities that occur throughout. © Getty Images Thoughts on this page? RETURN PREVIOUS: STAGE 4–PRE-CONSTRUCTION STAGE NEXT: STAGE 5 STEP 1–MOBILISATION Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.5: Stage 5—Construction stage : Stage 5 Step 1–Mobilisation 1m Stage 5 Step 1–Mobilisation What is mobilisation? Mobilisation is the point at which the construction team is brought together to prepare for construction. It cannot take place until the contract is signed. Once the contract is signed, the contractor has legal access to the site. Mobilisation meeting The mobilisation meeting–or the pre-start meeting–is held a couple of weeks before work on site begins. Its purpose is to establish good working relationships between those involved in the project, review the requirements and parameters of the project, establish communication protocols and procedures, and clarify the roles and responsibilities of all team members. All relevant parties attend the mobilisation meeting. At the very least, this will include the client, designer, quantity surveyor, project manager and main contractor. Thoughts on this page? RETURN PREVIOUS: STAGE 5–CONSTRUCTION NEXT: STAGE 5 STEP 2A–ON-SITE CONSTRUCTION PHASE Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.5: Stage 5—Construction stage : Stage 5 Step 2a–On-site construction phase 10m Stage 5 Step 2a–On-site construction phase In case you haven't yet seen the 'to do' list of preparatory jobs that need to be carried out by the main contractor before work on site can begin, here they are. Remember, these occur before the on-site construction phase begins. Preparatory work identification of hazards on the construction site plans for mitigating the risks of these hazards and the risks related to the design itself development and approval of a health and safety plan organising of bonds, licences and insurance establishing a detailed programme of works setting up a system to track costs organising a site survey to agree schedules of conditions for adjacent buildings, where existing services are located and so on setting up of a site office procurement of materials and machinery sourcing and contracting subcontractors establishing a contact register of subcontractors devising method statements for how things will be done establishing inspection and site quality assurance plans arranging services such as power and waste management for the site. Once the mobilisation, planning and preparation work has been complete, work on site can begin. Making adjustments Even with the best-planned construction projects, adjustments–both small and large–sometimes need to be made to accommodate issues such as: adverse weather disruptions in the supply chain unforeseen design or construction issues issues with traffic or surrounding buildings and their occupants human error and miscommunication client change of plans accidents. All construction projects have processes in place to ensure that adjustments can be made as seamlessly as possible. These processes include regular on-site meetings and inspections. On-site meetings On-site meetings are a must and a consistent feature of any construction project. The decision about when site meetings will be held and who will attend is decided during the mobilisation stage. Sometimes site meetings–their frequency and format–are determined in the contract. Site meetings These are formal meetings with agendas and minutes and action points recorded. These minutes become legal records. You will look at how to run a meeting effectively in Module 3. Usually, site meetings are organised on a weekly basis and attended by the main contractor, design team, client's representative and relevant subcontractors. However, this depends on the size of the project. On large commercial construction projects, the main contractor may arrange the main site meeting fortnightly and smaller subcontractor meetings weekly. A typical weekly site meeting will include: a progress report from the contractor an update on issues related to the availability of materials, labour and possible delays due to weather or supply issues a report from the QS on variations and budget costs to date feedback from the client. Subcontractor meetings These meetings are to coordinate the work being completed by the subcontractors and address any issues. In smaller projects, they may be subsumed into the weekly site meeting. These meetings will cover: requests for further information from other trades by the design team notification of any changes or adjustments so plans can be made to incorporate these efficiently checks on quality control and health and safety. Toolbox meetings These are often more informal meetings arranged with workers to provide an opportunity to talk about issues and plans, particularly around health and safety. Take a look at this case study video of Wellington Pipelines (Wellington Pipelines Case Study, 2016) (3:20) Footnote 1. WorkSafe New Zealand. (2016, October 17). Wellington pipelines case study [Video]. YouTube. https://www.youtube.com/watch?v=2SmwDomtLQc&t=1s to see how they engaged their workers and incorporated a positive health and safety culture through whanaungtanga (a sense of relationship, like a family). This approach, instigated through toolbox meetings brought the following benefits: innovation and practical improvement was driven by worker ideas excellent worker buy-in better reporting and site management productivity benefits client recognition (WorkSafe, 2017). Footnote 2. WorkSafe. (2017, September 4). Tikanga approach to health and safety builds a stronger business. https://www.worksafe.govt.nz/the-toolshed/casestudies/wepr-case-studies/wellington-pipelines-tikanga Next, you'll look at another important feature of the construction stage–on-site inspections. Thoughts on this page? RETURN PREVIOUS: STAGE 5 STEP 1–MOBILISATION NEXT: STAGE 5 STEP 2B–ON-SITE INSPECTIONS Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.5: Stage 5—Construction stage : Stage 5 Step 2b–On-site inspections 1m Stage 5 Step 2b–On-site inspections There are a number of inspections conducted during the construction stage of a project. Some are routine and some are by specialists assessing specific aspects of the project. Table 1.8 On-site inspections Daily inspections Weekly inspections Other inspections Building control inspection Who: Main contractor with subcontractors if needed. Who: Project team (design team plus main contractor and client or client's representative). Who: Health and Safety representative. What: Checks health and safety processes are being followed. Who: Building Control inspector. What: Checks work in progress, records completions, checks against programme of works to ensure project running to schedule, within scope and budget. What: Checks progress and quality to ensure project conforms to plans, specifications and consent requirements. Who: Subcontractors. What: Inspects materials being delivered and used. When: At stages laid down in the building consent. Client (or their delegate) must inform building consent authority when stage of work is ready for inspection. What: Building Control inspector confirms work meets the Building Code an the consented plans and specifications. Thoughts on this page? RETURN PREVIOUS: STAGE 5 STEP 2A–ON-SITE CONSTRUCTION PHASE NEXT: STAGE 5 STEP 3–THE PRE-FINISH OR SNAGGING STAGE Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.5: Stage 5—Construction stage : Stage 5 Step 3–The pre-finish or snagging stage 5m Stage 5 Step 3–The pre-finish or snagging stage What is a snag? A snag is a small defect or problem that remains in a property after the building work has been completed (New Build Consultants Ltd, n.d.). Footnote 1. New Build Consultants Ltd. (n.d.). What is snagging? https://www.newbuildinspections.com/about-us/what-is-snagging/ The snagging stage When The snagging stage, also known as the pre-finish stage, usually takes place about two weeks before the end date of the contract. Who It includes an on-site meeting of the project team; that is, the client, contractor and the design team. The purpose of the meeting is to identify outstanding work, work that has not been signed off during regular inspections, or visible minor issues (snags). What The project team looks for unfinished surfaces, work not completed to specification or good practice (such as scratches, missing hinges and so on), untidy verges, rubbish not cleared. A snagging list is created of all the 'snags' found by the team. The QS or designer, together with the main contractor, agree on the snagging list and the timeframes by which all the snags or items on the list need to be completed. The QS must be involved in this process if it's likely to have significant financial implications. Once the list is agreed and issued, the items on the snagging list are addressed and signed off before further invoices from the contractor are processed. The project can then move to Step 6–the post-construction stage. Thoughts on this page? Addressing a snagging list Have you been involved in a new house build or had renovations done? Do you work for a construction company and have experience on-site in construction projects? Have you been involved in the snagging phase of a project? If so, describe some snags that were found and what was required to resolve them. Please remember not to name any companies or individuals involved in your discussion. Write your comment ADD FILE POST CANCEL Sort by: Like Aaron Cain 01 Apr 2022, 12:12 PM Vanity drawer handles are often the wrong way around from delivery. It's a simple problem to solve but takes time. Adjustment to external doors that don't latch correctly. Again a simple problem that takes time. Kitchen benchtops not sealed to walls. A return trip for the joiner. REPLYREPLY LIKELIKE Jennelyn Ould 31 Mar 2022, 6:26 PM 1. uneven painting finishes - touched up by painters 2. damage on floor finishes - rework 3. Cleanliness REPLYREPLY LIKELIKE Matthew Timperley 31 Mar 2022, 1:15 PM - paint touch ups to walls, door jambs and architraves - missing door handles or hinges - smoke alarms not installed - kitchen cabinetry door or drawers not lining up properly when closed - marks or imperfections to external fittings eg: spouting and downpipes REPLYREPLY LIKELIKE Leah Warbrick 29 Mar 2022, 1:30 PM draft behind the kitchen sink REPLYREPLY LIKELIKE Leah Warbrick 29 Mar 2022, 1:30 PM door not flushed and gets stuck when closed REPLYREPLY LIKELIKE Aneurin Lock 29 Mar 2022, 9:57 AM Leaking pipe. Plumber to tighten fittings. Door jamb damage. patch and repaint REPLYREPLY LIKELIKE Barrett Warren-Chapman 27 Mar 2022, 7:07 PM One snag that we came across during the end of the build was trying to keep the floors, windows and walls tidy and presentable to the potential buyers (apartment building), while minor finishing works were still going on REPLYREPLY LIKELIKE Jinzhao Xia 26 Mar 2022, 10:44 AM hinger screw missing painting touch up sillicon is not cleaned on surface door stops missing screw or nail pop up extrior cladding is loose or damaged REPLYREPLY LIKELIKE Jinzhao Xia 26 Mar 2022, 10:43 AM This item was deleted by Jinzhao Xia. Replies are now closed. Peter Borja 26 Mar 2022, 9:17 AM Garage door not closing properly REPLYREPLY LIKELIKE Toi Pham 24 Mar 2022, 8:42 PM Concrete residue on exterior wall Decking to close not draining water Scratches on interior wall Tap fittings insecure Rain water container lid missing, replaced with temporary lid. REPLYREPLY LIKELIKE Julia Croft 23 Mar 2022, 7:39 PM Sliding door to scullery not working smoothly Wood panel cladding outside damaged Rubbish on site Light fitting in kitchen needed redoing Concrete path needed resurfacing as large crack in it REPLYREPLY LIKELIKE Rosemarie Holmes 23 Mar 2022, 7:09 PM Snag list: Scuffs on the walls from final fit-out. Painter asked to do touch ups. Door stops not installed, builder asked to install. Different door locks on a house, joinery company asked to make them the same. Toilet roll holder install upside down so fixing screws visible, builder asked to fix. Missing kitchen cabinet doo, kitchen company asked to remedy. REPLYREPLY LIKELIKE David Grant 23 Mar 2022, 8:24 AM Scratches/dents to surfaces Glass needed replacement after damage from grinding Areas of plaster work sub-standard. Floor tile or carpet damage Masking tape left on too long leaving residue REPLYREPLY LIKELIKE Ezrah Sanders 19 Mar 2022, 8:17 PM scratches to finished walls surfaces. Aircon unit leaking. Rubbish not removed. The plastic covering is still on door handles or locks. The painting was below average. scuff marks on ceiling tiles. REPLYREPLY LIKELIKE Jeanil Kim 17 Mar 2022, 8:48 PM a. b. c. d. leaking roof missing handles raised ground level issues incomplete paintwork REPLYREPLY LIKELIKE Haider Ali 17 Mar 2022, 8:08 PM Loose-fittings Poor paint job Poor installation of tiles Rubbish REPLYREPLY LIKELIKE Michael Mead 17 Mar 2022, 6:00 PM - Dented window joinery - Damaged windows - Poor paint quality REPLYREPLY LIKELIKE Danial Bin Samsuri 17 Mar 2022, 4:18 PM -Concrete Ribs were abused and not properly taken care of onsite -wrong installation hence needed to do extra installation REPLYREPLY LIKELIKE Georgia Ballentyne 17 Mar 2022, 8:19 AM Unfinished paint jobs - painters would go around and ensure all were finished to a high standard door handles not on properly - ensure all door handles are screwed in securely rubbish left lying around the building - a big clean up done and put into the skip bin REPLYREPLY LIKELIKE Jerome Raagas 15 Mar 2022, 7:17 PM A good number of scenarios I have seen mostly would be 1. paint finishes, 2. loose electric switches, 3.poor installation of door hinges, door closer, knobs. 4.Poor install of tiles. REPLYREPLY LIKELIKE Nicola Heighway 15 Mar 2022, 7:52 AM - spouting leaking as euro tray roofing not installed correctly - Door handles not installed into cavity sliders - Cavity slider door being scratched by protruding nail - Vanities hadn't been sealed with silicon REPLYREPLY LIKELIKE Andrew Cowen 14 Mar 2022, 11:29 AM Water damage in power sockets. Installation of power cabling and sockets had been completed before the space was water tight. Water hadn't been noticed at the time, but as the project was of significant duration rust was showing around the power sockets. Cabling and power outlets were replaced. Significant marking on paint work. On a large project with a lot of contractors completing rework marked or damaged paint finished walls. It was not identified which contractors had created the marks, so the main contractor had to have the spaces repainted to a finished standard. Missing fixtures. Lack of security on site may have lead to items being removed and taken from site, or they just had not been installed in the first place. The items had to be replaced by the main contractor. REPLYREPLY LIKELIKE Yufei Wei 14 Mar 2022, 7:24 AM -Scratches on the wall -Missing hinges -untidy verges -rubbish not cleared REPLYREPLY LIKELIKE Luke Badcock 13 Mar 2022, 10:46 AM - Marks on walls, paint to be fixed in areas - Toilet roll holder not installed - Rubbish not cleared yet - Missing screws on hinges REPLYREPLY LIKELIKE Lydia Ohuka 11 Mar 2022, 11:20 AM Missing grout and chipped tiles Paint flacking over sealant Scuffs and chipped wood surface on door. REPLYREPLY LIKELIKE Chris Seo 10 Mar 2022, 2:15 PM Cracked tile. Gutter is not pitched proper Shower leaking REPLYREPLY LIKELIKE Jamie Rafferty 09 Mar 2022, 11:29 AM Snags that have been previously raised: - Marks on walls and paint to be touched up - sealing of penetrations - Resetting of fittings such as electrical outlets to be aligned to be visually more appealing REPLYREPLY LIKELIKE Jennifer Rhodes 05 Mar 2022, 4:10 AM Cracks in concrete floor Bad paint and plaster work Fittings not fixed properly REPLYREPLY LIKELIKE Jessica Thomas 03 Mar 2022, 6:01 PM paint touch ups toilet roll holders missing external taps leaking hot and cold water around the wrong way REPLYREPLY LIKE1 RETURN PREVIOUS: STAGE 5 STEP 2B–ON-SITE INSPECTIONS NEXT: STAGE 5 STEP 4–PRACTICAL COMPLETION STAGE Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.5: Stage 5—Construction stage : Stage 5 Step 4–Practical completion stage 1m Stage 5 Step 4–Practical completion stage Practical completion stage Once the contractor has completed all the outstanding work, a final site visit is held. At this visit, all work is checked. Once everyone has agreed it has been completed to a satisfactory standard, it's signed off and a practical completion certificate is issued. The practical completion stage means that the client is able to occupy and use the building, perhaps within certain constraints while waiting for some work to be completed or rectified. Retention fee The client holds back a retention fee–usually about 3–5% of the contract sum, or as specified in the contract–for the duration of the defects liability period. This is an amount of time–often a year–during which if any defects in the work or materials are found, the contractor must put them right at their own cost. You'll learn about this in Stage 6 Step 6 Final Completion Stage, but we recommend you read Stage 5 Project handover stage first.Step 6—Final completion stage . Thoughts on this page? RETURN PREVIOUS: STAGE 5 STEP 3–THE PRE-FINISH OR SNAGGING STAGE NEXT: STAGE 6–POST-CONSTRUCTION STAGE Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.6: Stage 6—Post-construction stage : Stage 6– Post-construction stage 1m Stage 6–Post-construction stage In terms of the overall construction process, the post-construction stage is part of the whole construction process. However, to aid learning we're exploring it as a separate stage. In this post-construction Stage 6, we've continued with the steps from the previous construction stage so you'll cover: Step 5–Building handover stage. Step 6–Final completion stage. Step 5–Building handover stage At the building handover stage, the client is given the keys and takes possession of the building. The insurance of the building is given from the contractor to the client. The contractor gives the client the following documentation: as-built drawings code of compliance certificates (CCC)–both for the building and specific systems within the building, such as active fire protection systems like sprinkler systems producer statements from the specialists involved–such as engineers, fire protection installers, lift manufacturers operation and maintenance manuals–both for the building and specific systems within it. Certificate of public use (CPU) If the contractor is unable to obtain a code of compliance certificate due to outstanding work identified by the building inspectors and still to be completed, then the client is given a certificate of public use (CPU) which allows the building (if it's a commercial or institutional building) to be used within certain limitations. Thoughts on this page? RETURN PREVIOUS: STAGE 5 STEP 4–PRACTICAL COMPLETION STAGE NEXT: STEP 6–FINAL COMPLETION STAGE Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Fact Sheet 1.6: Stage 6—Post-construction stage : Step 6– Final completion stage 1m Step 6–Final completion stage Final completion stage–or the defects liability period What is the defects liability period (DLP)? The defects liability period is a fixed period of time during which the contractor has the right to return to the site to rectify any defects (McIntosh, 2018). Footnote 1. McIntosh, M. (2018, August 24). What is the defects liability period (DLP)? Turtons Blog. https://www.turtons.com/blog/what-is-the-defects-liabilityperiod Why do defects liability periods exist? DLPs benefit both contractor and client. Clients want to occupy a building as soon as construction is finished (practical completion stage), and contractors want the opportunity to rectify defects or finish incomplete items of work rather than pay the costs of the client engaging another contractor to conduct the work. So, the defects liability period provides a compromise–the client can occupy the building and the contractor can enter to complete any outstanding work. What happens during the DLP? The contractor has the right to return to the site to rectify defects or complete unfinished works. The client holds the retention fee until defects have been rectified. How long is the DLP? It can be anything from three to twelve months. It's usually set at six months, depending on the size of the project. Officially, the defects liability period starts after Step 4–the practical completion stage where the client signs off the work after checking it's completed to a satisfactory standard and the practical completion certificate issued. At the end of the defects liability period, the client conducts another inspection of the site with the contractor, the final certificate is released, and the retention money is given to the contractor. What happens to defects outside the DLP? This depends on the type of contract. Generally, the DLP refers to the time period a client has to give notice of a defect, not the time required to repair the defect. So, provided the client has notified the contractor of the defect within the defects liability period, then the contractor is obliged to fix the defect. It's vital to check each contract in case variations occur. Thoughts on this page? RETURN PREVIOUS: STAGE 6–POST-CONSTRUCTION STAGE NEXT: MODULE 1 JOB SHEET Skip to main content Notifications My courses Overview Contents Downloads Search Tasks Notes New activity Talk CON101 Communication in the Construction Industry : Contents : Module 1: Overview of the Construction Process : Module 1 Job sheet : Module 1 Job sheet 60m Module 1 Job sheet Ka pai! Module 1 has been a big undertaking to cover–even at a high level–the end-to-end construction process. To practise what you've learnt, we recommend completing the task in this Job sheet. It's not marked but will help you prepare for your assessments. Here, you'll revisit the earlier scenario of the college gymnasium. This is outlined again below. Scenario The new board of trustees for a local high school wants to construct a new, innovative and complex gymnasium. As a member of the board and as an architectural designer, you're the most experienced member in construction procurement and they're looking to you for early-stage guidance. Because they're a public institution, they require a high degree of transparency in costs and have a low tolerance to risk or cost fluctuations. A competitive cost is required by the government. The project is expected to cost around $7.2 million. Funding is currently secured for $5.9 million. The board has several options to fund the balance and is not concerned about the shortfall. Developed design is not yet complete. The project has a tight timeframe as the board wishes to minimise disruption to the school. All the board members are busy professionals and are unable to actively monitor or invest time in the building process. Their intention is to potentially lease or share ownership of the building with a private organisation to reduce costs and to make better use of the space, but this is not yet confirmed. This project will be a focal point for the community and community stakeholder management is a priority. They are interested in involving a specialist contractor at an early stage to ensure the technical aspects of the gym are state-of-the-art. The contractor's involvement will influence the final set of drawings. Your brief As a board member of this college and also an architectural designer who has worked in the region for a long time, you have many contacts in the design and contracting space. As a result, you are expected to lead the subcommittee arranging and overseeing the design and build of the gymnasium. Your task is to determine the best procurement method for this project. See further instructions in the task below. JOB SHEET 1: CHOOSING A DELIVERY METHOD FOR NEW COLLEGE GYM Given the project brief, decide which procurement and delivery method would be best for this college gym construction project. You may find it helpful to use an evaluation spreadsheet. If so, download the spreadsheet and follow the instructions outlined in the Helpful tool section that follows this task. It's not compulsory to use this tool for this task. When you've decided on a method, outline the following as if you were presenting it to the board. the delivery method chosen reasons for choosing this method over others explain why at least two other methods were considered, but then discarded describe the next steps the board can expect to take once they've agreed to this method. You can choose how you'd present this information to the board. It could be as a: Word document with paragraphs and bullet points to be read with the minutes. Formal report (if you are already familiar with formal report writing). PowerPoint. Other apps or software you're comfortable using. When your information is complete, upload it via the Add file button, then Submit your answer and compare it with the feedback provided. ADD FILE SAVE DRAFT SUBMIT Helpful tool You may find it useful to use this evaluation tool for delivery and procurement method (MBIE. n.d.). Footnote 1. MBIE. (n.d.). Delivery model evaluation tool. https://www.procurement.govt.nz/procurement/specialisedprocurement/construction-procurement/construction-procurement-guidelines/ It's a spreadsheet that allows you to decide weightings for different criteria in your project's context, then you rank each delivery method in terms of how well it fulfills each criteria. The spreadsheet automatically calculates the total weighted score for each method. The method with the highest weighted score is likely to be the most appropriate delivery and procurement method for your project. Step-by-step instructions for use of a spreadsheet A. On a separate piece of paper, rank the criteria listed in column A in order of importance for the college gymnasium project. B. Allocate a percentage weighting for each of the criteria–based on your ranking in Step A–and put this percentage in column B. The percentages must total 100%. C. Next, score each delivery method against how well that method fulfills each criterion. Use a 0–5 scale as follows: 0–Method does not fulfil that requirement. 1–Method might meet some of the requirement but there are significant features of the method that will und 2–Method might meet some of the requirement but there are some features of the method that may undermin 3–Method satisfies the requirement. 4–Method satisfies the requirement and other features of the method enhance this. 5–Fulfilling this requirement is a strong feature of this method. D. Check the total weighted score shown in row 19 for each method. E. Do you think the method with the highest weighted score is the most appropriate delivery and procurement method for the college gymnasium project? When you've completed this task and considered the feedback, you're ready to move to Module 2: Construction team roles and responsibilities. Thoughts on this page? RETURN PREVIOUS: STEP 6–FINAL COMPLETION STAGE NEXT: MODULE 1: REFERENCES
