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Tse Yau Shing

FIDIC CONFERENCE 2005, BEIJING Workshop 13 Design & Build - Role of Consulting Engineers in the Tender Process. Tse Yau Shing. Infrastructure Project Delivery. Traditional Design - Bid - Build Growing Trend Design & Build

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Tse Yau Shing

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  1. FIDIC CONFERENCE 2005, BEIJINGWorkshop 13Design & Build - Role of Consulting Engineersin the Tender Process Tse Yau Shing

  2. Infrastructure Project Delivery Traditional • Design - Bid - Build Growing Trend • Design & Build • Buildings, transportation, utilities (water, wastewater, solid waste, power)

  3. Why the Trend ? • Clients wanting to transfer risks • Government departments downsizing / eliminating in-house engineering capability • Perceived shorter implementation period • Contractors having more control in project implementation

  4. Some Different Forms of D&B • EPC (Engineer, Procure, Construct) • DBO (includes operations) • DBOO / BOO (own & operate) • BOT (operate then transfer) • BOOT (own, operate then transfer) • etc

  5. Possible Roles of Consulting Engineers For Owners (Purchasers) • Initial planning, project definition • Concept design • D&B tender document preparation • D&B tender evaluation • Proof checking / design verification

  6. Possible Roles of Consulting Engineers Also design verification roles for : • BOO developer (who appoints D&B contractor) • Financier to BOO developer

  7. Possible Roles of Consulting Engineers Also design verification roles for : • BOO developer (who appoints D&B contractor) • Financier to BOO developer

  8. Possible Roles of Consulting Engineers For Contractors • Tender design • Detailed design • Construction management • Commissioning

  9. Issues during Tender Stage • Contractors expecting CEs performing tender design at no (or very low) fee • Short available time to produce tender design • Tender design based on insufficient information • Pressure to take design risks • Contractors expecting CEs to ‘guarantee’ tender design / quantities

  10. Contractual Issues • Back to back contract arrangement • Fit for purpose • Liquidated damages – schedule • Liquidated damages – performance • CEs’ professional indemnity insurance

  11. Good Practices • Must be paid for tender services • Obtain commitment for appointment and fee level for a successful bid • Consider ‘success fee’ / gain share

  12. Good Practices • Clearly state limitations (sufficiency of data, time, design accuracy) • Define tender design scope / responsibility • Define exclusions (guarantees, fit for purpose) • Involve contractor in design / decision process • Document instructions / joint decisions

  13. Makes Sense to Contractor • Commitment from and motivation of both parties to win • CE takes ownership of tender design • A true D&B team • Minimise disputes • CE remains in business for the next successful job

  14. FIDIC Reference Material • FIDIC Scoping definition ?? • FIDIC D&B guide ?? • International form for DBO contracts (Draft)

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