2 design build lease and build operate transfer bot

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: struction and then “turns the key” to the owner on completion, for a previously agreed price. 2. Design-build-lease and build-operate-transfer (BOT) / “design-build-lease-to-operate”: Extensions of turnkey. The owner delays capitalizing the project permanently or to some future date. 3. Bridging: Traditional owner/designer relationships followed by competitive proposals by design-build contractors to complete documents and execute construction. 4. Subcontractor design-build: A trade or specialty contractor performs both design and installation of particular systems such as HVAC, curtain wall, or roofing. 12 • Major reasons owners selected DB (Pros): – Single point of responsibility – Shorten duration – Cost reduction – Enhanced constructability / innovation – Earlier known cost and schedule – Reduced disputes involving contract interpretation, design clarifications, RFIs and coordination issues – Reduced claims – Support large project size / complexity – Allow phased and fast-track construction 13 Phased and Fast-Track Construction 14 Phased and Fast-Track Construction • Phased construction / fast-track construction – Stages of design and construction overlap, thereby shortening the time necessary to complete the project. • Fast tracking/ phased construction is allowed in – Design-build – Construction management (e.g. agency CM, CM at-risk) – Multiple prime contracting systems. 15 2.3 Multiple Prime Contracting Delivery System • A single contract for the construction is commonly used. The single contract is usually the easiest to administer because of its centralization of responsibility, namely, one owner, one contractor, and one construction contract. • Sometimes, the owner divides a project into more than one part and contracts directly with several contractors rather than with a single prime contractor. – E.g. separate contracts with major specialized trades like electrical contractor, plumbing contractor, heating ventilating and air conditioning (HVAC) contractor, and the contractor for construction of the building itself. Owner Prime Contractor A/E Prime Contractor Sub Sub Prime Contractor workers 16 • Pros: – Allows phased construction – Permits more firms to bid for the work lower prices due to increased competition • Cons: – More time and expense for the owner to receive separate bids and/or to negotiate...
View Full Document

This document was uploaded on 01/28/2014.

Ask a homework question - tutors are online