2. Presentation Outline
Introduction
Innovation / Implementation
Types of Contract Procurement
Why Choose Design and Build Procurement
What are the Various Options
Case Study to illustrate the suitability
Question-and-Answer Session
3. Innovation Implementation
Creativity ( C) is a function of three components by Tereasa Amabile
expertise (E)
Creative-thinking skills (CTS)
motivation (M) E CTS
matching people with right projects and tasks
C
Always ask why, what if? M
Making most of the Best by James Quinn
know what – knowledge
know how – skills
know why – understanding
can why - motivation
Generating ideas by Robert Cooper
creativity is the ability to develop new ideas
through stage-gate systems (stage 1 – gate 1 – stage n – stage n - ?
(i.e. screening process)
4. N ow f Traditional Contract
hink o Procurement - know what
t - know how
- know why
Bills of Quantities (Firm or Approx.)
Lump sum (Drawing & Specification)
Remeasurement
Design and Build
Management Contracting
Construction Management
5. Innovation Contract Procurement Approach
Set up a task force led by a “Champion”
Mission / Goal Setting Make up a platform for investigation
Project Requirement Identify problems
Generating Questions
- why? what if?
Options / Proposal Idea Generating - Creativity
Sorting process through innovation
Traditional Approach
Disadvantages or modified standard Advantages
or tailmade version
Timeframe / Uncertainties / Risk
allocation / Ceiling process
Optimization
Screening Selections
Most effective contract approach
6. See Common Problems
Unforeseen design problems
Late design information
Programming problems
Sub-contractor arguments
May not be suited best to Developer’s
Objectives
8. Question 1:
How to do get flexibility in design,
quicker construction period but with
certainty of product?
D&B contracts
Single Stage Tendering
9. ee Design-and-Build Procurement
t’s s Contractor responsible for design and construction
Le Single-point responsibility
Client
Employer’s Agent
Employer’s Agent
Quantity Surveyor
Quantity Surveyor
D&B Contractor
D&B Contractor
Designers
Designers Sub-Contractors
Sub-Contractors
Contractual Link
Functional Link
10. Standard Form with Contractor’s Design
Contractor’s
Particular Conditions
Typical D&B
Documentation Employer’s Requirements
Employer’s
Structure
Contractor’s Proposals
Contractor’s
Contract Sum Analysis
Schedule of Rates
11. Employer’s Requirements
Design Intent Proposals
Design brief - most important element
Salient Points to Note
Clear statement of what Owner wants
Varies in detail:
− Very brief ? Maximum design flexibility for Contractor
− Very detailed ? Close control over end-product
Ensure ER clearly set out quality benchmarks required
As Contractor has fitness-for-purpose obligation,
ERs must be clear on what the Employer’s ‘purpose’ is
12. D&B Documentation
Contractor’s Proposals
Contractor’s
Response to ERs
Presentation format as stipulated in ER
Part of contract documents
No provisional sums allowed unless called for in ERs
Contract Sum Analysis
Contractor’s lump sum price
Provides detailed analysis of offer
Assists in valuation of Changes and checking payment applications
Part of contract documents
13. Question 2:
But even with D&B contracts, how
can we get the right contractor for
the job?
Risk Management & Two Stage
Tendering?
14. Design-and-Build Procurement
Which Option?
(1) Design and Build Form with design consultants
engaged by Contractor or through novation of
consultants
(2) Design and Build Form but retention of Architect by
Employer as Architectural QP and Employer’s Agent
(3) D&B with Architectural design by Architect engaged by
Employer and Structural and M&E design by Engineers
engaged by Contractor
16. D&B Form (including novation of consultants)
Salient Features
(1) Either Contractor engages all design consultants team or
Employer- engaged consultants novated to D&B contractor
(2) D&B contractor engages architects and engineers not only
to design the works but also to act as the appropriate
Qualified Persons for the works under the Building Control
Act.
17. D&B Form (including novation of consultants)
Organisation
Structure Client
Employer’s Agent
Employer’s Agent
Quantity Surveyor
Quantity Surveyor
D&B Contractor
D&B Contractor
NOVATED DESIGN TEAM
•Sub-
•Sub-
Contractual Link
Contractors
Contractors
•QP (Architect)
•QP (Architect) •Suppliers
Functional Link
•Suppliers
•QP (Structural)
•QP (Structural)
•QP (M&E Services)
•QP (M&E Services)
18. D&B Form (including novation of consultants)
PROS and CONS
Pros
• Single point responsibility – Contractor engaged
professional architects and designers not only to design
the works but also to act as appropriate Qualified
Persons (QPs) for the works.
• Whole design process (statutory and non-statutory)
carried out by D&B contractor => Contractor cannot
argue that his design liability has been discharged by the
involvement of another party
19. D&B Form (including novation of consultants)
PROS and CONS
Cons
• Employer appointed project manager to administer
the Contract
• May not know history
20. D&B Form but retention of
Architect as Architectural
QP and Employer’s Agent
21. D&B Form but retention of Architect as Architectural QP and EA
Salient Features
(1) Contractor engaged structural and M&E consultants
(including Employer- engaged structural and M&E
consultants novated to D&B contractor)
(2) Employer-engaged Architect is retained to act as the
Architectural QP for the works and to act as the Employer’s
Agent.
22. D&B Form but retention of Architect as Architectural QP and EA
Organisation Structure
Client
Employer’s Agent
Employer’s Agent
(Architectural QP)
(Architectural QP)
Quantity Surveyor
Quantity Surveyor
D&B Contractor
D&B Contractor
•Sub- Contractual Link
• QP (Structural)
• QP (Structural) •Sub-
•QP (M&E Services) Contractors
Contractors
•QP (M&E Services) Functional Link
•Own Designer •Suppliers
•Suppliers
•Own Designer
23. D&B Form but retention of Architect as Architectural QP and EA
PROS and CONS
Pros
• Employer appointed project manager is discharged
from duty to act as Contract administrator.
24. D&B Form but retention of Architect as Architectural QP and EA
PROS and CONS
Cons
• Liability for Design in the Employer’s Requirements -
Employer’s Architect prepare the Employer’s
Requirements (ER).
- Contractor may rely on above fact to discharge or
reduce their liability for the design of the works by arguing that
they should not be liable for the adequacy or fitness of the
design contained in the ER.
25. D&B Form but retention of Architect as Architectural QP and EA
PROS and CONS
Cons (..continued)
• Employer’s Architect’s statutory submissions and
supervisions
- Contractor may argue that since the Employer’s
Architect had made the necessary submissions
(which would include checking the submission)=>
this fact should discharge or reduce his liability for
any inadequacy in the detailed design.
26. D&B Form but retention of Architect as Architectural QP and EA
PROS and CONS
Cons (..continued)
• Employer’s Architect’s Approval of the Contractor’s
Detailed Design and Shop Drawings
- Contractor may argue that such approval
discharges or diminishes his responsibility and
liability for the detailed design for the architectural
works that have been approved by the Employer’s
Architect.
28. SIA Form with Design and Build on structural and M&E
Salient Features
(1) Architectural works are designed by the Client-appointed
Architect whilst the Contractor is responsible for the design
and construction for the structural and M&E works
29. SIA Form with Design and Build on structural and M&E
Salient Features
(2) Lump sum tenders are invited based on the following:
- Full detailed drawings for the architectural works
- Employer’s requirements comprising the design brief and
performance requirements for the contractor-designed portion
(structural and M&E works).
30. SIA Form with Design and Build on structural and M&E
Organisation Client
Architect (Qualified Person
Architect (Qualified Person
Structure and Contract Administrator)
and Contract Administrator)
Contractor
Contractor Structural Engineer
Structural Engineer
(Technical advisory role)
(Technical advisory role)
Contractor-Designed
Contractor-Designed Services Engineer
Services Engineer
Portion
Portion (Technical advisory role)
(Technical advisory role)
Quantity Surveyor (Full pre
Quantity Surveyor (Full pre
•
• Structural Works
Structural Works and post contract services)
and post contract services)
•
• Mechanical and
Mechanical and
Electrical Services
Electrical Services
Contractual Link
Nominated
Nominated •Nominated
•Nominated
Sub-contractors
Sub-contractors Suppliers
Suppliers
Functional Link
31. SIA Form with Design and Build on structural and M&E
Organisation Client
Architect (Qualified Person
Architect (Qualified Person
Structure and Contract Administrator)
and Contract Administrator)
Contractor
Contractor Quantity Surveyor (Full pre
Quantity Surveyor (Full pre
and post contract services)
and post contract services)
Contractor-Designed
Contractor-Designed
Portion with
Portion with
Novated Consultants
Novated Consultants
•
• Structural Works
Structural Works
•
• Mechanical and
Mechanical and
Electrical Services
Electrical Services
Contractual Link
Nominated
Nominated •Nominated
•Nominated
Sub-contractors
Sub-contractors Suppliers
Suppliers
Functional Link
32. SIA Form with Design and Build on structural and M&E
PROS and CONS
Pros
• Client has full control over architectural design.
• Contractor is responsible for co-ordination of all drawn and
written information between and within the different
disciplines and integration of his design with the design of the
Works as a whole.
• Contractor assumes a fitness for purpose obligation where the
choice of materials and workmanship and/or design is left to
him.
33. SIA Form with Design and Build on structural and M&E
PROS and CONS
Cons
• As the SIA Form is a traditional delivery contract, it
is unclear to what extent the draftsmen of the SIA
Form intended it to be used as a form of D&B
contract => If such form is to be used, modifications
would be required in particular the Clause 3 of the
SIA Contract Conditions.
35. GFA • 125,726m2
• Retail area • 38,240m2
(4 levels basement retail + 4 level retail podium)
• Residential areas • 87,486m2
Height • 218 AMSL
Residential Unit Mix
Configuration
• 3 Bedroom • 84 nos
• 4 Bedroom • 84 nos
• Garden Unit • 3 nos
• Penthouse Unit • 4 nos
175 high end Residential units
Major consultants list
Concept Design Architect Benoy Ltd
Local Architect RSP Architects Planners & Engineers Pte Ltd
Structural Engineer Architects Planners & Engineers Pte Ltd
M&E Engineer Squire Mech Pte LTd
Quantity Surveyor Davis Langdon & Seah Singapore Pte Ltd
Lighting Consultant LPA with Parsons Lighting
Acoustics Consultant Acviron Acoustics Consultants Pte Ltd
Façade Consultant Arup Consulting Engineers
Building Consultant Integrated Building Consultants
Water Feature Consultant OASE Asia Pacific Pte Ltd
Video Wall Consultant Lightscape Technologies
Retail Designer Benoy Ltd
36. The Project
1. Tight Time lines from conception to completion
1. Retail targeted to open in 1st quarter 2009. That means that Completion & TOP need to
be obtained in December 2008 for tenant fit-out.
2. Consideration for top-down construction with fast construction cycle time
3. Possible need for construction innovation
2. Numerous specialist works needed coupled by
complicated contractual relationships
1. Specialist needed for related works such as fire, security, temporary works etc.
2. Eventual contractual relationship will be complicated due to multiple contractual
relationships
3. Possible cross-liabilities
37. The Project
3. Numerous Authority Approvals for the construction of
the building e.g. LTA, MRTC, URA and BCA
requirements.
1. No night working which involves noise generation
2. Stringent scrutiny for approval by authorities due to existing infrastructure works (e.g.
MRT box, lines, bus routes, HT cables etc)
3. Neighbouring high-end residential blocks less than 100m.
4. Complication of Design
1. Tall tower over podium
2. Podium over MRT box (need for transfer structure)
3. Deep basement (safety and construction risks)
38. What choices ? What if ?
Common Procurement Routes in Singapore
Bills of Quantities (BQ)
Traditional
Lump Sum (LS) Contracting
Design & Build (LS) + GMP Option
39. Common Problems in Traditional
Contracting in relation to Project
Unforeseen design problems due to technicalities
Late provision of design information
Splits construction and design
Possible Programming problems
Sub-contractor arguments due to multiple contracts
High chance of variation due to clashes in coordination
High possibility of time and cost escalations
Long design development time = June 2008 deadline will not be met in all
circumstances for commencement of Tenant Fit-out
High time and cost risk to JV owners
40. Design & Build - Innovation
(Develop & Construct)
Design intent drawings has to be completed i.e. key plans, layouts,
framing plans sections and elevations. No need for construction
detailing at this stage (usually 1st two to three months from project
commencement).
Tender to include Performance Specification, Prime Cost Rates,
Employer’s Requirements etc.
Contractor to bring to completion and carry out design development and
be solely responsible for the design in totality. (Single point
responsibility)
Combines the technical know-how and knowledge of the contractor and
the ability to amalgamate design and construction
41. The D&B Approach
in relation to Project
Single point responsibility
Shorter construction period due to the condensing and overlapping of the
contractor’s programme I.e. design development commences during piling and
as the work proceeds.
The risk for the deep basement excavation and building on top of the MRT box
lies solely on the contractor as compared to the traditional approach whereby
certain risk can be linked to the Employer (Employer’s consultant’s design)
Quality can be met via the Employer’s Requirements, Schedule of Finishes,
Prime Cost Rates, Provisional Sums etc
Coordination responsibility lies with the Contractor.
Better time and cost certainties.
42. Why choose the D&B Approach
in relation to Project?
As this project is of high quality and is in the heart of the Orchard Road district,
quality of the Architectural works is important.
Therefore, it is our recommendation that the Architect remains with the Employer
( not novated like the M&E and C&S Consultants). However, all design
responsibility still rests on the Contractor
Procurement package can be further tightened with a Guaranteed Maximum
Price (GMP) Methodology.
This is to safeguard the client’s interests in any variations that may lead to cost
and time implications
43. Design-and-Build
Design-and-Build Services
contracts
Client
Procurement
cancelled
Procurement •Project Manager
•Architect
Contractor (Qualified Person and Contract
Administrator)
Novated Consultants •Quantity Surveyor
responsible for •Civil and Structural Engineer (Full pre and post contract services)
design and M&E Engineer
construction
Single-point Novated
Main
responsibility services
contracts Contractor
Domestic Domestic
Sub-Contractors Suppliers
46. Post Contract Administration – Merging of Singapore & Hong Kong Practices
How to merge two countries one system
SHK & CapitaLand’s concerns
Variation Process
AIP System / meeting
CPO at site apart from project office
ICU
Cost Report / Cost Plan / Cost Reporting
Executive Cost Report
Monthly cost Review
Overbudget Vs Saving
Benchmark
JV approval in monthly DC meeting
Sub-Contract
Semi system as DSC
47. Contract provisions to protect the Client in Contractor's VO claims
Prices to be inclusive
Article 5 of the SIA Conditions Subject to adjustment of the Contract Sum for variations under Clause
and Contract (7th Edition) 12 of the Conditions …. The Contact Sum and Contractor’s Rates and
prices in the SOR, …. , shall be inclusive of all ancillary and other
works and expenditure,… which are either indispensably necessary to
carry out and bring to completion the Works described in the Contract
Documents, or which may contingently become necessary to
overcome difficulties before completion
adopting the GMP Conditions whereby notwithstanding clauses 1(2), 1(4) and
12(2) of the Conditions of Contract or any other provisions of this agreement
and the Contract, nothing whatsoever in the Design Development and/or
Also added Construction Detailing or the Contractor’s compliance with such Design
Development and/or Construction Detailing shall constitute a variation under
this Contract, or at law and/or shall result in any increase whatsoever of the
Contract Sum or EOT for the completion of the Works, unless;
the Architect issues an instruction which … the GMP shall have included the latest
fundamentally and materially changes the development in rules and regulation that are being
overall floor plan area, building volume, discussed and/or contemplated y the Government of
function of an area and/or the level of Singapore that is relevant and is in connection to the
quality of an area; or construction industry of Singapore but not yet
enacted up to and until the submission of the
Tender.
48. GMP Variations and Adjustment
Architect’s Instructions that materially change:
- Overall floor plan
- Building volume
- Function of an area
- Level of quality of an area
Changes as a result of legislation or statutory requirements
Changes of Intent
49. Relevant Project Experiences
VivoCity (Design and Build with GMP)
One George Street (Design and Build with GMP)
Church Street (Design and Build)
SIF Building (Design and Build with GMP)
Condominium at Draycott (Lump Sum with GMP)
Ang Mo Kio Town Centre Mall (Design and Build)
Other Projects with Full D&B
St Regis (JCT Form) One Marina Boulevard (JCT Form)
City Square (JCT Form)
City Lights (JCT Form)
The Sail (JCT Form)
50. What’s the beauty?
Our preference to embrace the innovatiive Design and Build (Develop and
Construct) procurement approach for this project are as follows
1. Concurrent planning, design and construction activities.
2. In Develop and Construct there is single-point responsibility that the contractor
will be responsible for the design.
3. A seamless involvement of the original design consultants by novation
combined with early dialogue with the authorities and relevant parties.
4. Architectural structure requirements are stipulated and drawn at time of tender
and therefore this important aspect is not compromised.
5. Higher degree of cost and time certainty (if the GMP methodology is adopted) as
opposed to the traditional procurement route.
6. Modified form of contract incorporating latest legislations.
7. Not only a scientific approach but also an art of expression?
