Monday, October 31, 2011

Management contracting

" Fast-tracking " procurement approach

A contractor is contracted and paid a fee to manage , procure and supervise the construction of a project rather than to build the project .

The actual construction works are contracted out to many package or specialist contractors  sub contractors .

The management contractor is employed as a construction consultant to be part of the client's team .

The package contractor are in contract with the management contractor .

Sub-contractors
subcontractor enter into a standard JCT type of contract with the management contractor carry out construction work .

It is the management contractor who has a contratual relationship with the subcontractors who carry out the work , not the client . If any problems arise it is the management contractor who mustt pursue the subcontractor for a remedy .

Subcontractor are normally appointed by competitive tendering based on the drawings and bills of quantities .

Advantages

developer - work can start ealry - allowing deisgn and construction to overlap

To contractor - very few risks  - the PM and QS control costs - cost exceed the budget are borne by the client .

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