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QUALITY

Dispute Quality Methods And Procurement

Content
  1. INTRODUCTION
  2. MAIN BODY DISCUSSION
  3. Explain the quantity surveyors' role in the various needs of customer for selection of procurement at inception stage of the construction project.
  4. What is the Procurement method of Construction Job?
  1. Client's Requirements at the Inspection Stage
  2. Quantity Surveyor Role based on Customer requirements at for select the Procurement methods
  3. Analyze different type of procurement set up (procedure for conducting with advantages and disadvantages).
  4. Traditional (Design-bid-build)
  5. Generally Traditional methods can be defined under few varieties procuring process as follows;
  6. Cost Reimbursed Contract
  7. Cost plus percentage
  8. Cost plus Fixed fee
  9. Cost plus Targets
  10. Lump Sum Contract
  11. Measure and pay contracts
  12. Cost Reimbursed Contract
  13. Introduction
  14. Cost plus Permanent fee: - Revenue of Companies are pre-determined and trust both customer and contractor under this technique before the start of work. Also builder will try to regulate the task cost by reducing his management costs etc.
  15. Lump Amount Contract
  16. This method generally both company and client acknowledge for a fix amount prior to the commencement of the project. The contractor is dependable to carrying out works according to the contract documents discussing the agreed cost. Further lump amount contract obtain two forms as with Amounts and without Amounts.
  17. Measure and pay contracts
  18. Design and Build
  19. Management Contracting
  20. Construction Management
  21. Design and manage
  22. Explain your take on the construction procurement and suggestion to increase the effectiveness.
  23. Briefly describe each ADR methods with advantages and disadvantages in agreement.
  24. Alternative Dispute Resolution (ADR)
  25. Negotiation
  26. Mini-trial
  27. Mediation
  28. Conciliation
  29. Mutual fact-finding
  30. Dispute image resolution boards
  31. Expert determination
  32. Private judging
  33. The parties got into into the agreement they could face to various disputes. Discuss the role of the number surveyors' suggestions, from the inception to completion of the project.
  34. CONCLUSION/ RECOMMENDATION
More...

The term of procurement method is generally complex network of relationships which are produced between clients, consultants and engineering companies, to enable a building task to be realized. Quantity Surveyors learn how to provide a full Procurement solution at the inspection stage. There are crucial client's requirements at inspection stage such as; Advice on procurement method, Contractual advice, Builder selection, Planning of sensitive and contract documents, Forms of contract, etc.

Particularly on the development job it is quite crucial to set up of the right approach to procuring the structure works. There will vary types of procurement arrangements and options can be found in the construction industry Such as; Traditional (Design-bid-build), Design and Build, Management Contracting, Building Management, Design and Manage, etc.

ADR typically refers to functions and techniques of resolving disputes that land beyond the judicial process (HG. org Worldwide Legal Directories)

ADR is calls for few variety varieties as Negotiation, Mini-trial, Mediation, Conciliation, Mutual fact-finding, Expert Dedication, Private judging, Dispute quality boards, etc.

INTRODUCTION

This report emphasize for discovering critical stages of the Construction procurement and Alternative dispute quality methods Therefore, especially showcase concerning significant stages of procurement and disputes.

And also critically discuss key role of Amount Surveyor for Disputes resolution and viewpoints to improve the procurement methods.

MAIN BODY DISCUSSION

Explain the quantity surveyors' role in the various needs of customer for selection of procurement at inception stage of the construction project.

What is the Procurement method of Construction Job?

The term of 'procurement method' is frequently sophisticated network of associations which are shaped between clients, consultants and building companies, to permit a building job to be realized. It is important to discriminate the contractual interactions from managerial links, and in intricate modern procurement systems. (Which Agreement? 4th edition by Sarah Lupton, Stanley Cox and Hugh Clamp)

Client's Requirements at the Inspection Stage

Quantity Surveyors learn how to give a full Procurement solution at the inspection stage of project for many clients, such as Main Companies, Private & General public Clients. Whatever degree of construction procurement is required; Quantity Surveyors have the knowledge and experience to guide clients toward an effective construction job. Hence as discovered essential client's requirements at inspection level those can be specify the following;

Advice on the most appropriate procurement method for the job,

Contractual advice,

Contractor selection advice,

Preparation of tender and contract records (bills of amounts & schedules of rates),

Forms of deal,

Reviewing sensitive documents (drawings and specs).

Quantity Surveyor Role based on Customer requirements at for select the Procurement methods

Quantity surveyors provide an important role to execute in building procurement selection at the inspection stage based on customer requirements because deciding on the best procurement method is essential to the success of a building job. Some experience clients who may have their own professional team and a highly effective procurement insurance policy and inexperience customer have little if any knowledge of procurement methods; hence they require extensive expert advice at the inspection level. Below mentioned will be the vital important roles as determined.

Advice on the most likely procurement method: - as a area of expertise of construction Deals, Quantity Surveyor has to advice for decide on a appropriate procurement methods predicated on client need. Since some clients need different type of procurement methods relating to their job scope.

Contractual advice: - as an important part of agreement at the original stage of job, required organizing an agreement to obtain clear understand and less disputes until carry out the task. Hence Variety Surveyor will involve selecting and advising proper appropriate contract agreement for the job as per customer requirements.

Advice for Builder selection: - collection of suitable builder is sophisticated process within role of Number Surveyor, because job success is be based upon which selected contract organization. Hence Variety Surveyor includes at the job inspection stage considering consumer needs for decide on a reputed contractor according to the standards methods.

Preparation of sensitive and contract paperwork: - Variety Surveyor involves immediately for prep of calling tenders and documentations, such as, Company assurance, Sectional Completion, Restriction of Contractors Responsibility, Price Modification for Inflation, Bonus for early Conclusion, Delay Problems, Changes in Legislation, Condition of deal, Additional Conditions, Bills of volumes & schedules of rates, etc.

Forms of deal: - Quantity Surveyor involves selecting ideal form of contract expelling having benefit to the task when select the most suitable form of contract according to the considering client requirement. One particular as JCT varieties FIDIC form, NEC form, ICTAD form of agreement in Sri Lanka.

Reviewing sensitive documents: - Volume Surveyor involve to examine drawings and specs for tenders process, also tender evaluation based on predetermined estimate and preparing final report for soft award.

Analyze different type of procurement set up (procedure for conducting with advantages and disadvantages).

Particularly on the development project it is quite crucial to arrangement of the right approach to procuring the engineering works. Not only is it important to choose the right company but it is vital that the agreement paperwork and form of deal is suitable to the job.

In basic conditions Procurement is the process used to obtain construction projects. It involves the selection of a contractual platform that clearly recognizes the composition of obligations and government bodies for participants within the building process.

There will vary types of procurement arrangements and options exist in the development industry the following;

Traditional (Design-bid-build)

Design and Build

Management Contracting

Construction Management

Design and Manage

Traditional (Design-bid-build)

Generally Traditional methods can be defined under few varieties procuring process as follows;

Cost Reimbursed Contract

Cost plus percentage

Cost plus Fixed fee

Cost plus Targets

Lump Sum Contract

Measure and pay contracts

Engineers

Main Contractor

CLIENT

Cost Specialist / Number Surveyor

Nominated

Sub-Contractor

Domestic

Sub-Contractor

Consultant

The client who's appoints an Architect as first appointment to the job under this method, consequently the architect appoint his design team and other consultants as requires to the job. And also the design team provides advice to the client until conclusion of project execution. Furthermore understand of Contractual romantic relationship shows by below given graph. (Make reference to diagram 01)

Diagram 01- Contractual relationship

Cost Reimbursed Contract

Introduction

This method is not constructive for just about any client scheduled to lack of tender total or final expected final cost. Hence cost reimbursed deal also often provide some motivation to contractors to control costs. This method generally used only for following situations; Disaster projects, when the correct opportunity is unavailable where obligations will be paying day work basis etc.

Cost plus Permanent fee: - Revenue of Companies are pre-determined and trust both customer and contractor under this technique before the start of work. Also builder will try to regulate the task cost by reducing his management costs etc.

Lump Amount Contract

This method generally both company and client acknowledge for a fix amount prior to the commencement of the project. The contractor is dependable to carrying out works according to the contract documents discussing the agreed cost. Further lump amount contract obtain two forms as with Amounts and without Amounts.

Measure and pay contracts

Particularly the Company is paid for genuine work done in line with the contract documents. There are several types of methods under this technique, predicated on provide Drawing and Specs, Performance specifications, Timetable of rates, Monthly bill of quantities, Expenses of Approximate volumes, etc.

Advantages of Traditional Method

The total cost of the job Client is familiar with early,

Tender price is little,

High tender quality and superlative tender competition,

Allow to design changes,

Assist the price management process.

Disadvantages of Traditional Method

Acquire additional time to begin work execution from inception,

Risk of design mistake occur to task delay,

Lack of involvement of contractor with design process.

Design and Build

Employ of any contractor is directly by Client rather than appointing an architect to a project under this technique. Hence the Contractor is accountable for both developing and execution of the job. Also appoint a design team for develop the design using tender process by Clint. The company is asked by the client to develop and build the design which is performed by the client's consultant under this form. (Refer to diagram 02)

Design and build Contractor

Client

Nominated

Sub-Contractor

Domestic

Sub-Contractor

Cost Specialist / Amount Surveyor

Architect

Consultants

Licensees

Diagram 02- Contractual relationship

Advantages

Contractor can't make any charge on consumer for design problems,

High level of price certainty is accessible,

Reduced project length and enhanced amount of buildability,

Not essential to appoint employees apart from the Company.

Disadvantages

Difficult Cost management and evaluation of tenders,

The building may aesthetically less satisfactory if the constructor's business is smaller or less experienced team,

Less understanding of the value for the money customer has.

Management Contracting

Architect

Engineering Consultants

CLIENT

Quantity Surveyor

Trade Contractor

Management Contractor

Trade Contractor

Trade Contractor

In this technique, Contractor uses by the customer for mange the whole task by considering earlier experience. The management builder not doing any construction works himself. Generally distributes work deals to sub-contractors and manages them. Also paid by your client for management charge and also another additional charges for services if must provide before or during the building period. (Make reference to diagram 03)

Diagram 03- Contractual relationship

Advantages

Contractor work under client's team, therefore it influence to identify client's requirements.

Design team can use Contractor's knowledge and management activities for design requirements.

Work is ready to start early after the design of each work offer is completed and also reduce job duration.

Disadvantages

Final cost of the job available only following the conclusion of the previous work deal only.

The client could have risk on cost which can increase due to design problems.

Construction Management

This is comparable to the management contracting but deferent is each trade contractor has direct contract with your client. The client is appointing a building manager either expert or company for organize and plan building work. Also there exists responsibility of appointing a design team as customer needs.

Advantages

Every trade service provider have direct agreement with your client therefore it is easy to redress delays.

Easy to avoid or decrease practical troubles anticipated to close relationship between construction supervisor and design team.

Work is able to start early on after the design of each work package deal is completed.

Construction works and Project management integrated directly.

Disadvantages

Financial commitment difficult to recognize to your client until the last work package is agreed upon.

The client has to deal with another expert and contractors instead of main company more.

Design and manage

Designer

Work Sub-Contractor

Scope designer

CLIENT

Design & Manage Contractor

This method also like the management contracting and however the major difference is additional design responsibility to the management service provider. The proper execution of procurement of this type of contract shows similarities to the look and build agreements but extend of the single point design responsibility. (Make reference to diagram 04)

Diagram 04- Contractual relationship

Advantages

Design team may use task manager's knowledge and management experiences.

Work is able to start early on after the design of every work offer is completed.

Practical problems possible to minimize or avoid and also decrease the project length.

Explain your take on the construction procurement and suggestion to increase the effectiveness.

Suggestions to improvement of Traditional method

Need to be keeping away from design errors and project delays by involvement of an educated self-employed professional body at the inception of the task.

Carryout the tendering process separately for every single trade package once it is completed and start execution consequently for decrease the time length.

Suggestions to improvement of Design and Build method

Client can check contractor's recourses to make certain the capability of the company to perform his project

It can be done to develop the design by a 3rd party to ensures better value for the money.

Briefly describe each ADR methods with advantages and disadvantages in agreement.

Alternative Dispute Resolution (ADR)

Introduction

ADR typically identifies processes and techniques of resolving disputes that show up beyond the judicial process (HG. org Worldwide Legal Sites)

Alternative dispute resolution (ADR) is originated in the united states, was followed in Britain in the 1980s and is now applied worldwide (Webpage123, Variety Surveying & Construction Management, 2012)

Goodwill between both parties is very important to achieve good results from ADR applications without losing time and recourses with Arbitration or litigation. Basic benefits of ADR applications can review as Private, Quick, Economic, etc.

ADR is takes few variety varieties the following. (Site123, Number Surveying & Building Management, 2012)

Negotiation

Mini-trial

Mediation

Conciliation

Mutual fact-finding

Expert Determination

Private judging

Dispute image resolution boards

Negotiation

In negotiation involvement is voluntary and there is no third party who helps the resolution process or imposes a resolution. You can find no boundaries for quarrels.

Advantages:-

All Parties can find their own judgments and Money and time saving.

Fully private if third person not affecting with the procedure.

Disadvantages:-

This might influence to the relationship of the both functions due to pointless arguments.

Mini-trial

Mini-Trial involves the most notable decision producers of the firms creating a dispute by engaging them in the display of their respected cases and the next negotiating process. A mini-trial is normally not a binding method unless the gatherings agree otherwise.

Advantages:-

Independent advisor and facilitator can be acquired.

Time and money keeping is exist.

Unfriendliness is reduced.

This method is not a trial by any means and taken care of confidentiality.

The business relationship of the both gatherings is maintained

Disadvantages:-

Resolution if fail, parties can go to the court.

Process won't succeed if the gatherings have any question on his impartiality and self-reliance.

Any get together at any point of your energy, there is a possible to withdraw.

Not much affordable all the time.

Mediation

Mediation a forum in which a neutral alternative party facilitates communication between get-togethers to promote settlement. A mediator may well not impose his or her own wisdom on the problems to the of the get-togethers.

Advantages:-

Avoid unfriendliness and Less cost than go to the courts.

Mediator's knowledge helps to the parties guide clear future disputes.

Disadvantages:-

When get-togethers week and strong, Possible to make agreement it can be lopsided to prefer of the more prominent aspect.

Conciliation

One get together invites to other get together to resolve disputes trough Conciliation and the process will commence after the invitation is accepted. This technique newer commence if other get together rejects the invitation. If both get together fail the procedure they has to go to the arbitration to resolve disputes.

Advantages:-

Both parties try to become for negotiation as of the great admiration of the neutral person and and yes it is faster than negotiation.

Disadvantages:-

Less confidential scheduled to involvement of conciliator.

Expenses are higher.

No any binding between both get-togethers.

Mutual fact-finding

All the get-togethers strongly indulge and make a report with or without assistance of a common expert. The parties can solve their disputes trough the record and also this report is possible to use as a trial, as well as can provide as data to the court or arbitration.

Dispute image resolution boards

In the background of construction deals, a DRB add a board of 1 or three people, in addition to the contracting parties, employed to carry out a synopsis role of the execution of the task. Its main function is to aid the parties to avoid disputes when possible or if not, to assist them to a quick, cost-effective and prevent the necessity for arbitration or litigation. (Dr Donald Charrett, Barrister, Arbitrator and Mediator Owen Dixon Chambers East, Melbourne)

Advantages

The panel serves realistically as third person.

The Panel participants are commercial experts.

Early responses save money and time.

Disadvantages:-

Select and appoint of people are complicate process.

Not retain confidentiality.

Expert determination

This is a private alternative to court docket litigation for the image resolution of disputes. It really is one of a number of ADR methods available including arbitration, mediation and adjudication. (Daniel Djanogly Forensic Accountants & Chartered Arbitrators)

Advantages

Cheaper than owning a case to trial.

Allow both functions a greater understanding of the way the factual evidence is likely to be decided if the case would go to trial.

Disadvantages

The expert has no power to pressure his studies on the functions.

One party is probable to have to sure the other to put into action conviction of the expert.

Private judging

Private Judging is a special type of decisional process, based on arbitration. A retired judge is appointed by people in dispute to preside over the "private trial".

Advantages

It offers convenience and flexible to all gatherings.

The flexibility of the method ownership and control of the litigation to the dispute.

It is speedy process & confidentially

Disadvantages

This is some significantly costly method in ADR

The parties cannot measure the quality of the wisdom which given under this method.

The parties got into into the agreement they could face to various disputes. Discuss the role of the number surveyors' suggestions, from the inception to completion of the project.

Role of the number surveyors for Disputes Resolution

To be recognized and planned might be occurred disputes at the first stage.

Involving and consult with line managers regarding the recognized disputes.

Advice to your client for selecting an accurate method of dispute resolution.

As an initial action make an effort to be negotiate by negotiation action to avoid wasting money and time.

If negotiation is unsuccessful, to be advised to the senior management for go directly to the ADR methods by steering clear of go directly to the Arbitration or Litigation.

Perform to judge and advise to choose the right method from available in ADR process.

Collects and prepares all necessary assisting documents necessary to the ADR process.

Attending for relevant meetings and review the problems of meeting

CONCLUSION/ RECOMMENDATION

Basically Construction project disputes are took place due to collection of improper procurement applications for the task. Hence collection of suitable procurement methods at project inspection stage is an essential responsibility within role of Quantity Surveyor. I recommend every Volume Surveyor should develop their knowledge in-field of Structure procurement software and disputes resolution methods in nearly.

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