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CONSTRUCTION AFFAIRS

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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CONSTRUCTION AFFAIRS

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  1. CO-OPERATION IN CONSTRUCTION SECTORCONSTRUCTION CONTRACTS Dr. Judit Gyulay – Dr. Zoltán András VattaiBUTE Department of Construction Technology & Management

  2. Construction Industry CONSTRUCTION AFFAIRS Construction Sector

  3. TYPICAL DELIVERIES OF CONSTRUCTION INDUSTRY erecting new buildings- reconstructing existing buildings- remodeling existing buildings- extending existing buildings- demolishing existing buildings

  4. FEATURES OF CONSTRUCTION PERFORMANCES immovability of product- performance exposed to weather - transport of great volumes- environmental charges/effects- high exposition

  5. STAKEHOLDERS OF CONSTRUCTION PROJECTS Client (Investor)- Manager (Engineer)- Designer (Acrhitect)- Contractor (Craftsmen)- Bank- Authorities (Community)

  6. Client Designer Sub. Sub. Sub. Sub. Sub. PROCUREMENT POLICIES CONTRACTUAL RELATIONS(PROCUREMENT SYSTEM) „Traditional” Contractor

  7. Client Designer Sub. Sub. Sub. Sub. Sub. PROCUREMENT POLICIES CONTRACTUAL RELATIONS(PROCUREMENT SYSTEM) „Turn-key” Contractor

  8. Client Designer Sub. Sub. Sub. Sub. Sub. PROCUREMENT POLICIES CONTRACTUAL RELATIONS(PROCUREMENT SYSTEM) „Construction Management” Engineer(Manager) Contractor

  9. Client Designer Sub. Sub. Sub. Sub. Sub. PROCUREMENT POLICIES CONTRACTUAL RELATIONS(PROCUREMENT SYSTEM) „Management Contract” Engineer(Manager) Contractor

  10. - Contract of works- Agency Contract- … TYPE OF CONTRACT

  11. Design- Management- Accomplishment- Supply- Service- … SUBJECT OF CONTRACT

  12. Main contracting- General contracting- Co (-general-) contracting- (Sub-) Contracting- Service / Supply- Representation (agency) RANGE OF CONTRACT

  13. ESSENTIAL DATA OF CONTRACTS Contractor- Client- Subject- Deadlines- Offset • Who- Whom for- What- What time- What price

  14. FINDING CONTRACTUAL PARTNERS „PROCUREMENT” – Free-hand (based on trust)– Tendering (competition) = Public = Restricted (invited) = Direct negotiation

  15. SPECIFYING DELIVERY (DETAILS) „TRADITIONAL” Preparation Design Procurement (contracting) Accomplishment Clear details: known technical, technological, time and budget specifications at contracting

  16. SPECIFYING DELIVERY (DETAILS) „MANAGEMENT” Preparation Design Procurement (contracting) Accomplishment Change- and risk management have essential role

  17. 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”)

  18. „APPENDICES” OF CONTRACTS Referred standard contractual schemes, sets of regulations(FIDIC, VOB, …)- Technical documentation (plans, specifications, budgeting, …)- Referred technical standards (quality- and performance expectations)

  19. - Written contract (e.g. by FIDIC, VOB, …)- Oral agreement (with precedents)- Implied contract (?!) ENGENDERING A CONTRACT

  20. Controlled mainly is the Client- Purchase on public funds - Strictly controlled procedures- Specific risks elements- Price raising effects (!!!) PUBLIC PROCUREMENT

  21. ~20 % of building deliveries- Periodicly „changing” conditions - Balanced contracts- Precise (in-time) offset- Highly exposed investments PUBLIC PROCUREMENT

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