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Forms of procurement procedures
Description
Forms of Collaboration in Civil Engineering (Reader) Mind Map on Forms of procurement procedures, created by Francisco Guzman on 04/11/2017.
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forms of collaboration in civil engineering
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Mind Map by
Francisco Guzman
, updated more than 1 year ago
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Created by
Francisco Guzman
about 8 years ago
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Resource summary
Forms of procurement procedures
Design Bid Build
Characteristics
Clear distinction between employer and contractor
Employer designs and controls
Contractor builds
Advantages
No discussion, standard contract clauses
Disadvantages
The contractor doesn't contribute in any other phase
Irregularities between design and construction
Position in the building process
Liabilities
Employer for the design
Contractor for the construction
Remains liable in case of damages to the project for a period of time after construction
Design-Build
Characteristics
Employers involvement concerns mainly the definition and quality assurance system of the project
Advantages
Employer
Deals with only one party
Cost ant time estimates are more reliable
Consultancy costs can be reduced
Execution of works is improved
Contractor
Put themselves in a strategic market position
Project harmony is improved, design-construction
Disadvantages
Employer
Limited competition, not many companies can do this
Contractor
All responsibilities
Position in the building process
Liabilities
Unknowns belong to the employer
Uncertainties belong to the contractor
Design-Build (with repayable performance)???
Characteristics
Most risks are assigned to a single party
Fixed price based on an initial concept
Associated with some preformance targets
Price is based on expected uncertainties, but not unforseable ones
The employer prescribes how performance will be measured
The model relies on performance measurements made during the building process and completion
Extra work is paid by a predefined formula taking possible variations into account
Advantages
Employer
He does not pay for risks that do not occur
There is competition in a value-price basis
He has influence on the product
Contractor
Higher level competition
Less risks
Room for innovation
Liabilites
Every party deals with their own work, no overlapping
Build Operate Transfer
Characteristics
Similar to EPC model + maintenance and exploitation stages
Consortium of parties
Contractor
Investor
Operator
Financer and/or project developer
Feasible when there is a need for a project but no funds to start it
Advantages
The government can provide for a social need without carrying the financial burden for it
Public facility obtained without investing any funds in it
Disadvantages
Depends on external factors such as economy, politics, social context and environment
Liabilities
All risks are responsibilities of the consortium
Position in the building process
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