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CIVL202 Construction Engineering I. Tutorial 6 T1 Mon 11:00 – 11:50 T2 Wed 09:00 – 09:50. Tutorial Outline. Project Delivery Methods Design-Build Contract Design-Build in a Consortium Format Construction Management Contracts Comparing Project Delivery Methods Legal Structure
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CIVL202Construction Engineering I Tutorial 6 T1 Mon 11:00 – 11:50 T2 Wed 09:00 – 09:50
Tutorial Outline • Project Delivery Methods • Design-Build Contract • Design-Build in a Consortium Format • Construction Management Contracts • Comparing Project Delivery Methods • Legal Structure • Proprietorship • Partnership
Project Delivery Methods • It reduces the time required to construct a facility • The comprehensive process of assigning the contractual responsibilities for designing and constructing a project • Design/Build and Construction Management Contract
Design-Build Contracts • Design and build are carried out by a single contractor • Advantage: Easy to settle disputes between different entities, designer and builder • Disadvantage: Some technology may not be available for a single company
Design-Build in a Consortium Format • Builders do not have in-house design capability form consortium • The consortium give the owner a final lump-sum price at the end of the preliminary design phase
Construction Management Contracts • Construction manager coordinates the selection of design and construction firms and supervises and controls the pre-design, design, pre-construction, and construction activities related to the project on behalf of the owner • Agency Construction Management: only responsible to provide management service • Construction Management at risk: will sign all contracts related to construction phase of work
Comparing Project Delivery Methods • Competitive Bid Contracts - usually DBB • Negotiated Contracts - also allows compression of design and construction • Design-Build Contracts - owner enters into contract with single entity • Construction Management Contracts -owner holds multiple contracts
Chapter 5 – Legal Structure • Proprietorship: A single person owns and operates a business activity and makes all of the major decisions regarding the company’s activity • Partnership: Two or more persons own and operate a business activity • Corporation: a small number of persons hold all the stock in the firm; or it allows its stock to be sold and bought freely
Proprietorship • All revenue to the firm is personal cash revenue to the proprietor • The credit that the firm can obtain and its ability to generate new capital are limited by the personal assets of the proprietor • Loss must be recovered by the proprietor; liability incurred is owner’s liability • The proprietorship cease once the owner dies
Partnership • Partners share the profit or losses of the firm according to their degree of ownership • If one of the partners does not have enough money to pay for the loss, the remaining partners are responsible to share the loss according to their degree of ownership • There is no limit for the liability of each individual partner
Partnership • Limited partner - has no voice in the management of the firm - his level of loss has been limited to the amount he invested • Partnership terminates when one of the partner dies; but appropriate arrangement can be made