The level of documentation available before contracts are entered. The difficulty of meeting at a contract price. The lender’s preference (to protect their investment).
After thorough comparisons of various project delivery methods such as the traditional method, design and construct method and in house development method I came to the conclusion the best option would be the traditional method of project delivery. Traditional project delivery is the most frequently used method for construction projects. Using this method, the owner, designer and contractor are the 3 main parties of the structure. If a project manager/construction manager is involved in the process, the designer may assist the owner in administering the construction contract, including determining project progress for payment reasons.
Reasons for the use of a Traditional project delivery method: This method has been the standard delivery method for many years in comparison to other methods therefore it is widely applicable, well understood and has well establishes and clearly defined roles for parties involved. Because the completion of plans and specifications is done before the award, the main contract allows the owner and contractor to make relatively accurate estimates in relation to the cost and time of the project.
Other methods such as the design and construction method of project delivery make it difficult to estimate cost of a project due to the lack of documentation. Because this is a warehouse there will most likely not be any difficult design issues in relation to its construction BUT if there were, the risk would be low because sufficient time has been provided before construction for the development and design/production of documentation.
This proves a better alternative to develop an innovative/unique design compared to construction management method where this is often impeded due to the drive for maximum efficiency. This method is also well supported in Australia by range of standard conditions of contract due to its lengthy use.
The owner has a significant amount of control over the end product, mainly due to the projects features are fully determined beforehand the selection of the contractor. The principal/owners financial risk is relatively low because the contractor takes on most of it, this is different the construction management method and the design and construction method where the principal carries/is exposed to more risk. The traditional method provides the highest level of quality control due to the availability of full documentation and it is the design consultants responsibility to administer the contract.
A better contractor may be selected due to the competitive nature of the construction industry where there is a large pool of experienced contractors. The optimum/best contract strategy for projects using the traditional delivery method was defined by NPWC/NBCC which requires the following requirements to be satisfied: The optimum design for the project is established without involving the prospective general contractor or subcontractors. This is conditional on the design team having a broad site experience and safety aspects.
If this is not available, the principal should appoint a consultant with construction knowledge on a fee basis. The principal manages the interface between the detailed design/documentation and construction, and selects and engages the consultants, who are directly responsible to the principal. The principal requires the consultants to provide advice and monitoring of the project through the design, documentation and construction stages.
The time available for the project is such that the detailed design of the project is completed or may be substantially completed before construction commences. Few variations to the project design are expected to be required during construction. AS2124 general conditions of contract have been selected as a benchmark however the latest revision to AS2124 has been renumbered as AS4000 and is a substantial change to the style and format of the recent editions of AS2124. Also AS2545 is the companion subcontract document specifically prepared to be compatible with AS2124.
J.Burke, Australian Standards, 2012.
n.d, An owner’s guide to project delivery methods, 2012, CMAA. http://cmaanet.org/files/Owners%20Guide%20to%20Project%20Delivery%20Methods%20Final.pdf
Rawlinsons 2013, Rawlinson’s Australian construction handbook, vol. 31. Uher, TE & Davenport, P 2009, Fundamentals of building contract management, 2nd edn, UNSW Press, Sydney. http://site.ebrary.com.ezproxy.uws.edu.au/lib/sydney/docDetail.action?docID=10370184
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