The Lean Project Delivery System: An Update - Lean Construction
Construction Project Delivery
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Transcript of Construction Project Delivery
8/9/2019 Construction Project Delivery
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What leads to the need to undertakea construction project?• A problem has to be solved using a
constructed facility;• An opportunity for added value has been
identied and a constructed facility isnecessary; Real value can be added – eg generate income; !ntrinsic value added – a prestigious project –
eg monument; or
• A decision made by higher authorities
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Project delivery processes:Project conception; Project inception;Project implementation: processes
include feasibility studies, tendering,contract execution, other projectactivities;
Need of standard professionaldocuments and codes of practice,
codes of practice in use (emphasis tobe made per discipline), conformity to
professional documents and codes.
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Financing of projects: Selfnancing, nancing by publicfunds; grant and credit nancing
facilities (!orld "an#, $%", etc.),. Project Procurement Aspects
Pulic Procurement Act
!e"uirements: procurements ofconsultancies, procurement of&or#s, procurement of goods.
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Contract management:'ntroduction to la& of contract,arties to the contract, standard
conditions of contract,appreciation of contractmanagement issues, fraud and
corruption, conict resolution(including conict of interest).
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• ,f t#e $nance needs to e raised ororro&ed - necessary arrangementmust e put in place* &#ic# may mean
negotiating &it# a an/ orinternational funding agency.
• %#en $nance is orro&ed - t#e lendingagency &ill proaly impose
restrictions on t#e project and t#emet#od of procurement; e. g. %orld0an/ * Local an/s
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1treme alternative &ays for organi3ingdelivery of projects:
4&o essentials:
• A sound contractual relationship bet"een the
o"ner and each of his#her consultants andcontractors
• $ooperation and trust bet"een the people fromdi%erent organi&ations and professions
involved
Doing everything in-
house using expertise
within the ownersorganisation
Total responsibility
to a contractor -
finance, design,execute, operate
the project
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'efore an engineering facility isreali&ed t"o essential functions haveto be performed(
)esign; *rection
• +o" much "ork in,house; and
• +o" much to consultants and contractors
DESIGNIdea
Feasibility
Preliminary design
Detailed design
ERECTION
and
COMMISSIONING
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-he "ords Construction*
,nstallation; and 1rection
shall be usedinterchangeable
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-he range of options includes(• All "ork in,house;
• )esign in,house and erection by a
contractor• !nitial design brief in,house. designby a consultant and erection bymain contractors "ho "ill usesubcontractors as necessary
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•All design and management by aproject manager. using severaltrade contractors "hom "ork
directly for the o"ner /includesdesign and build approach0;
•Raising the nance. design. erectionand operation by a singlecontractor. "ho employsconsultants and subcontractors asnecessary
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-he choice "ill depend partly on(
•the 1"ners policy;
•facilities "hich the 1"ner has availablein,house;
•the si&e and type of the project
-here are advantages and
disadvantages of each
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2or any system of procurement. the1"ner must decide "hat s#he "ants , A'rief
Avoid fre3uent changes of mind , itcosts more and delays4
-he e5tent to "hich the 1"ner "ishesto in6uence the detailed design and the"ay in "hich s#he sees the design
developing "ill in6uence the choice ofmethod of procurement Adhere to legal and regulatory
re3uirements
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-he 1"ner does the feasibility study;
-his is follo"ed by preliminary designsand estimates done by the o"ner;
1"ner then uses o"n e5pertise to
prepare detailed design; 7#he uses an established contractor tocarry out the construction#erection;
Method 2: Design in-house and erection by a contractor
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1"ner supervises "ork performed bythe contractor
$ontractor hands over constructed
facility "hen construction is completedto the satisfaction of the o"ner
9ain disadvantage(
• :ack of accountability for design;• :ack of 3uality control mechanism for design
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9ain disadvantage – may be timeconsuming
-his is the method that is kno"nas the traditional method "hich isused very often – main attention
in the course "ill be centered onthis method
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-he 1"ner prepares the project brief
/or can be assisted by a consultant0; $lient prepares preliminary estimate
based on prelim designs; /or
appoints a $onsultant to preparedprelim )esigns0;
$ontractor is appointed on for
detailed design and erection;
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$lient supervises the erection toensure that performance
re3uirements are met; /or mayappoint a $onsultant to do so0; 2inal project accepted on the basis
of performance tests by $onsultantor $lient;
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9ain )isadvantage(• !f the 9 is not good the project can failvery easily
•$osts may increase beyond budget Advantage( 7peed
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Advantage(•$lient does not use his#her o"nfunds for the project;
)isadvantage(•$lient has little control unless bymeans of legislation or special
agreements;
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-he ublic rocurement Act >@ /A>@0 is based mainly on thetraditional method – appointment of
consultant and then appointment ofcontractor
+o"ever. it allo"s for other methodsof delivery "ithin the ublic rivateartnership /0 $oncept
Regulations and standard documentsfor the same are "idely available
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$overs supply of goods. construction.professional /consultant services0.and non,consultant services
Applies for all public institutions; ot follo"ing the A >@ is
breaking the la"; !t is necessary for both public and
private sector to understand as itgoverns the procedures that must beused in procurement
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PPA 2556
Guidelines
Standard Documents
Regulations for Procurement
of Consultant Serices
Regulations for Procurement of Goods!
"or#s! Non Consultant Serices
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We shall e5amine the A in somedetail in the ne5t lecture