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CO-OPERATION IN CONSTRUCTION SECTOR CONSTRUCTION CONTRACTS Dr. Judit Gyulay – Dr. Zoltán András Vattai BUTE Department of Construction Technology & Management. Construction Industry. CONSTRUCTION AFFAIRS. Construction Sector. TYPICAL DELIVERIES OF CONSTRUCTION INDUSTRY.
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CO-OPERATION IN CONSTRUCTION SECTORCONSTRUCTION CONTRACTS Dr. Judit Gyulay – Dr. Zoltán András VattaiBUTE Department of Construction Technology & Management
Construction Industry CONSTRUCTION AFFAIRS Construction Sector
TYPICAL DELIVERIES OF CONSTRUCTION INDUSTRY erecting new buildings- reconstructing existing buildings- remodeling existing buildings- extending existing buildings- demolishing existing buildings
FEATURES OF CONSTRUCTION PERFORMANCES immovability of product- performance exposed to weather - transport of great volumes- environmental charges/effects- high exposition
STAKEHOLDERS OF CONSTRUCTION PROJECTS Client (Investor)- Manager (Engineer)- Designer (Acrhitect)- Contractor (Craftsmen)- Bank- Authorities (Community)
Client Designer Sub. Sub. Sub. Sub. Sub. PROCUREMENT POLICIES CONTRACTUAL RELATIONS(PROCUREMENT SYSTEM) „Traditional” Contractor
Client Designer Sub. Sub. Sub. Sub. Sub. PROCUREMENT POLICIES CONTRACTUAL RELATIONS(PROCUREMENT SYSTEM) „Turn-key” Contractor
Client Designer Sub. Sub. Sub. Sub. Sub. PROCUREMENT POLICIES CONTRACTUAL RELATIONS(PROCUREMENT SYSTEM) „Construction Management” Engineer(Manager) Contractor
Client Designer Sub. Sub. Sub. Sub. Sub. PROCUREMENT POLICIES CONTRACTUAL RELATIONS(PROCUREMENT SYSTEM) „Management Contract” Engineer(Manager) Contractor
- Contract of works- Agency Contract- … TYPE OF CONTRACT
Design- Management- Accomplishment- Supply- Service- … SUBJECT OF CONTRACT
Main contracting- General contracting- Co (-general-) contracting- (Sub-) Contracting- Service / Supply- Representation (agency) RANGE OF CONTRACT
ESSENTIAL DATA OF CONTRACTS Contractor- Client- Subject- Deadlines- Offset • Who- Whom for- What- What time- What price
FINDING CONTRACTUAL PARTNERS „PROCUREMENT” – Free-hand (based on trust)– Tendering (competition) = Public = Restricted (invited) = Direct negotiation
SPECIFYING DELIVERY (DETAILS) „TRADITIONAL” Preparation Design Procurement (contracting) Accomplishment Clear details: known technical, technological, time and budget specifications at contracting
SPECIFYING DELIVERY (DETAILS) „MANAGEMENT” Preparation Design Procurement (contracting) Accomplishment Change- and risk management have essential role
OFFSET OF CONTRACTUAL DELIVERIES Lump-sum (fixed price)- Unit price - Cost + fee Timing of offset of deliveries is also aprice-forming factor („cost of financing”)
„APPENDICES” OF CONTRACTS Referred standard contractual schemes, sets of regulations(FIDIC, VOB, …)- Technical documentation (plans, specifications, budgeting, …)- Referred technical standards (quality- and performance expectations)
- Written contract (e.g. by FIDIC, VOB, …)- Oral agreement (with precedents)- Implied contract (?!) ENGENDERING A CONTRACT
Controlled mainly is the Client- Purchase on public funds - Strictly controlled procedures- Specific risks elements- Price raising effects (!!!) PUBLIC PROCUREMENT
~20 % of building deliveries- Periodicly „changing” conditions - Balanced contracts- Precise (in-time) offset- Highly exposed investments PUBLIC PROCUREMENT