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After 28 years, Asia Pacific has experienced the whole process of transformation from providing basic services to "diversified development of enterprises", and at the same time, it is constantly improving the business scope of enterprises.
How to select the appropriate APD system to promote the efficient and successful operation of construction projects
Release time:
2021-07-06 13:50
Source:
Https://www.xianjichina.com/special/detail_487778.html
Unlike in the past when choosing whether a project delivery system was in the form of a fixed price or a contract unit price, today's construction industry has a large selection of alternative project delivery (APD) systems. These include traditional design-bid-build, design-build, design-assist, progressive design-build, risk construction managers, integrated project delivery, and more. With all of these options, deciding which APD system is best for each construction project requires careful thought and consideration.
Selecting the right APD system helps to establish project procedures and processes that will help to successfully complete the project within the specified time and budget parameters. Jim Gallagher, head of the Resolution Management Consultants, said that it is also important to verify that the selected APD system correctly allocates risks in line with the expectations and capabilities of all parties. For example, trying to fast-track a project through design-build may not be productive in situations where performance criteria are not clear or where owners are unwilling to relinquish design control.
The successful delivery of the project requires all parties to understand their assigned roles and responsibilities, establish open communication channels on quality, schedule and cost control, and solve problems in a timely and proactive manner. Under the right circumstances, each APD programme should prove successful in enabling parties to meet their performance and financial objectives, while providing tools for risk management.
Gallagher recommend the following six questions to help evaluate whether a particular APD system will make your project run most effectively and successfully:
1 What is the project schedule?
Unlike the design bid-build process, where design and construction are separated, other APD systems simplify the design-build process by allowing design and construction to potentially overlap. While this may allow for an accelerated completion of the work, it also requires the parties to the project to properly manage their responsibilities and to ensure a timely response to issues as they arise.
Who will make the final decision on the design?
Has the owner established specific performance standards or developed bridging documents to communicate basic design parameters to the design-build team? Does the owner retain control over specific design decisions, or will the design-builder be provided with authority to determine how best to achieve the owner-specified design standards?
Will the project benefit from the cooperation of early contractors?
If the owner maintains control of the design process by retaining the design firm through a separate contract, the early involvement of construction team members in the design process may create a collaborative atmosphere to minimize project risks that may be encountered during the execution of the project.
Under the traditional design-bid-build system, the competitive bidding process ensured that construction costs were reasonable and within the building industry codes of the time. In other APD systems, construction costs may not be known until the design is nearing completion and/or the transaction package is bought out. Therefore, it may be necessary to develop a budget or estimate to ensure that the design and proposed construction costs meet the owner's financial expectations.
Is the scope of the project expected to change significantly?
Although almost every project will inevitably have a change order, some projects know from the beginning that some scope or area of work of the project is not defined and/or will change as the project progresses.
How to identify and resolve disputes?
The allocation of risks and responsibilities may vary for each contract and for each APD system. Therefore, it is important to determine the way to identify, escalate and resolve disputes in a timely manner when needed, so as not to interfere with the execution of design and construction.
"These questions are just a start for owners and contractors to start thinking about whether traditional delivery or alternative delivery is better in each case," Gallagher noted. "There are advantages and disadvantages to both. No one answer applies to the industry as a whole."
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