20080704 innovative approach in contracts and tender procurement management

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Innovative Approach in Contracts and Innovative Approach in Contracts and Tender Procurement Management Tender Procurement Management A Presentation A Presentation o o n n

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Page 1: 20080704 innovative approach in contracts and tender procurement management

Innovative Approach in Contracts and Innovative Approach in Contracts and Tender Procurement ManagementTender Procurement Management

A PresentationA Presentation oonn

Page 2: 20080704 innovative approach in contracts and tender procurement management

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

Presentation OutlinePresentation Outline

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Innovation ImplementationInnovation ImplementationCreativity ( C) is a function of three components by Creativity ( C) is a function of three components by TereasaTereasa AmabileAmabile

expertise (E)expertise (E)CreativeCreative--thinking skills (CTS)thinking skills (CTS)motivation (M)motivation (M)matching people with right projects and tasksmatching people with right projects and tasksAlways ask why, what if?Always ask why, what if?

Making most of the Best by James QuinnMaking most of the Best by James Quinnknow what know what –– knowledgeknowledgeknow how know how –– skillsskillsknow why know why –– understandingunderstandingcan why can why -- motivationmotivation

Generating ideas by Robert CooperGenerating ideas by Robert Coopercreativity is the ability to develop new ideascreativity is the ability to develop new ideasthrough stagethrough stage--gate systems (stage 1 gate systems (stage 1 –– gate 1 gate 1 –– stage n stage n –– stage n stage n -- ??(i.e. screening process)(i.e. screening process)

EE CTSCTS

MMCC

Page 4: 20080704 innovative approach in contracts and tender procurement management

Now Now

think ofthink of Traditional Contract

Procurement - know what- know how- know why

Bills of Quantities (Firm or Approx.)Bills of Quantities (Firm or Approx.)Lump sum (Drawing & Specification)Lump sum (Drawing & Specification)RemeasurementRemeasurementDesign and BuildDesign and BuildManagement ContractingManagement ContractingConstruction ManagementConstruction Management

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Innovation Contract Procurement ApproachInnovation Contract Procurement ApproachSet up a task force led by a “Champion”

Make up a platform for investigation

Project Requirement

Generating Questions- why? what if?

Options / Proposal Idea Generating - Creativity

Sorting process through innovation

Traditional Approachor modified standardor tailmade version

Timeframe / Uncertainties / Risk allocation / Ceiling process

Selections

Most effective contract approach

Mission / Goal Setting

Identify problems

Disadvantages Advantages

ScreeningOptimization

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See Common ProblemsSee Common Problems

Unforeseen design problemsUnforeseen design problemsLate design informationLate design informationProgramming problemsProgramming problemsSubSub--contractor arguments contractor arguments May not be suited best to DeveloperMay not be suited best to Developer’’s s Objectives Objectives

Page 7: 20080704 innovative approach in contracts and tender procurement management

Generating Ideas : Generating Ideas : --

Why choose Design & Build?Why choose Design & Build?OROR

Develop & Construct?Develop & Construct?

Page 8: 20080704 innovative approach in contracts and tender procurement management

Question 1:Question 1:How to do get flexibility in design, How to do get flexibility in design,

quicker construction period but with quicker construction period but with certainty of product? certainty of product?

D&B contractsD&B contractsSingle Stage TenderingSingle Stage Tendering

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Design-and-Build ProcurementContractor responsible for design and constructionContractor responsible for design and construction

SingleSingle--point responsibilitypoint responsibility

Functional LinkFunctional LinkContractual LinkContractual Link

Employer’s AgentQuantity SurveyorEmployerEmployer’’s Agents AgentQuantity SurveyorQuantity Surveyor

D&B ContractorD&B ContractorD&B Contractor

ClientClientClient

DesignersDesignersDesigners Sub-ContractorsSubSub--ContractorsContractors

LetLet’’s sees see

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Typical Typical D&B D&B Documentation Documentation

StructureStructure

Standard Form with Contractor’s DesignStandard Form with ContractorStandard Form with Contractor’’s Designs Design

Contractor’s ProposalsContractorContractor’’s Proposalss Proposals

Particular ConditionsParticular ConditionsParticular Conditions

Schedule of RatesSchedule of RatesSchedule of Rates

Employer’s RequirementsEmployerEmployer’’s Requirementss Requirements

Contract Sum AnalysisContract Sum AnalysisContract Sum Analysis

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EmployerEmployer’’s Requirementss RequirementsDesign Intent ProposalsDesign Intent ProposalsDesign Intent Proposals

Design brief - most important elementDesign brief Design brief -- most important elementmost important element

Clear statement of what Owner wantsVaries in detail:− Very brief ? Maximum design flexibility for Contractor− Very detailed ? Close control over end-product

Ensure ER clearly set out quality benchmarks requiredAs Contractor has fitness-for-purpose obligation, ERs must be clear on what the Employer’s ‘purpose’ is

Salient Points to NoteSalient Points to NoteSalient Points to Note

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Contractor’s ProposalsContractorContractor’’s Proposalss Proposals

Response to ERsPresentation format as stipulated in ERPart of contract documentsNo provisional sums allowed unless called for in ERs

Contract Sum AnalysisContract Sum AnalysisContract Sum AnalysisContractorContractor’’s lump sum prices lump sum priceProvides detailed analysis of offerProvides detailed analysis of offerAssists in valuation of Changes and checking payment applicationAssists in valuation of Changes and checking payment applicationssPart of contract documentsPart of contract documents

D&B Documentation

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Question 2:Question 2:

But even with D&B contracts, how But even with D&B contracts, how can we get the right contractor for can we get the right contractor for the job? the job?

Risk Management & Two Stage Risk Management & Two Stage Tendering?Tendering?

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(1) Design and Build Form with design consultants (1) Design and Build Form with design consultants

engaged by Contractor or through engaged by Contractor or through novationnovation of of

consultantsconsultants

(2) Design and Build Form but retention of Architect by (2) Design and Build Form but retention of Architect by

Employer as Architectural QP and Employer’s AgentEmployer as Architectural QP and Employer’s Agent

(3) D&B with Architectural design by Architect engaged(3) D&B with Architectural design by Architect engaged by by

Employer and Structural and M&E design by Engineers Employer and Structural and M&E design by Engineers

engaged by Contractor engaged by Contractor

Which Option?Which Option?

Design-and-Build Procurement

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D&B Form D&B Form (including FULL (including FULL novationnovation of consultants)of consultants)

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(1) Either Contractor engages all design consultants team or (1) Either Contractor engages all design consultants team or

EmployerEmployer-- engaged consultants engaged consultants novatednovated to D&B contractor to D&B contractor

(2) D&B contractor engages architects and engineers not only (2) D&B contractor engages architects and engineers not only

to design the works but also to act as the appropriate to design the works but also to act as the appropriate

Qualified Persons for the works under the Building Control Qualified Persons for the works under the Building Control

Act.Act.

Salient FeaturesSalient Features

D&B Form (including novation of consultants)

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Functional LinkFunctional Link

Contractual LinkContractual Link

Employer’s AgentQuantity SurveyorEmployerEmployer’’s Agents AgentQuantity SurveyorQuantity Surveyor

Organisation Organisation

StructureStructure

D&B ContractorD&B ContractorD&B Contractor

ClientClientClient

•QP (Architect) •QP (Structural)

•QP (M&E Services)

••QP (Architect) QP (Architect) ••QP (Structural) QP (Structural)

••QP (M&E Services)QP (M&E Services)

•Sub-Contractors•Suppliers

••SubSub--ContractorsContractors••SuppliersSuppliers

NOVATED DESIGN TEAM

D&B Form (including novation of consultants)

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ProsPros•• Single point responsibility Single point responsibility –– Contractor engaged Contractor engaged

professional architects and designers not only to design professional architects and designers not only to design

the works but also to act as appropriate Qualified the works but also to act as appropriate Qualified

Persons (Persons (QPsQPs) for the works.) for the works.

•• Whole design process (statutory and nonWhole design process (statutory and non--statutory) statutory)

carried out by D&B contractor => Contractor cannot carried out by D&B contractor => Contractor cannot

argue that his design liability has been discharged by the argue that his design liability has been discharged by the

involvement of another partyinvolvement of another party

D&B Form (including novation of consultants)PROSPROS and and CONSCONS

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ConsCons•• Employer appointed project manager to administer Employer appointed project manager to administer

the Contractthe Contract

•• May not know historyMay not know history

D&B Form (including novation of consultants)

PROSPROS and and CONSCONS

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D&B Form but retention of D&B Form but retention of Architect as Architectural Architect as Architectural QP and Employer’s AgentQP and Employer’s Agent

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(1) Contractor engaged structural and M&E consultants (1) Contractor engaged structural and M&E consultants

(including Employer(including Employer-- engaged structural and M&E engaged structural and M&E

consultants consultants novatednovated to D&B contractor) to D&B contractor)

(2) Employer(2) Employer--engaged Architect is retained to act as the engaged Architect is retained to act as the

Architectural QP for the works and to act as the Employer’s Architectural QP for the works and to act as the Employer’s

Agent.Agent.

Salient FeaturesSalient Features

D&B Form but retention of Architect as Architectural QP and EAD&B Form but retention of Architect as Architectural QP and EA

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Functional LinkFunctional Link

Contractual LinkContractual Link

Employer’s Agent(Architectural QP)Quantity Surveyor

Employer’s Agent(Architectural QP)Quantity Surveyor

Organisation StructureOrganisation Structure

D&B ContractorD&B ContractorD&B Contractor

ClientClientClient

• QP (Structural)•QP (M&E Services)

•Own Designer

•• QP (Structural)QP (Structural)••QP (M&E Services)QP (M&E Services)

••Own DesignerOwn Designer

•Sub-Contractors•Suppliers

••SubSub--ContractorsContractors••SuppliersSuppliers

D&B Form but retention of Architect as Architectural QP and EAD&B Form but retention of Architect as Architectural QP and EA

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ProsPros

•• Employer appointed project manager is discharged Employer appointed project manager is discharged

from duty to act as Contract administrator.from duty to act as Contract administrator.

D&B Form but retention of Architect as Architectural QP and EAD&B Form but retention of Architect as Architectural QP and EA

PROSPROS and and CONSCONS

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ConsCons

•• Liability for Design in the Employer’s Requirements Liability for Design in the Employer’s Requirements --

Employer’s Architect prepare the Employer’s Employer’s Architect prepare the Employer’s

Requirements (ER).Requirements (ER).

-- Contractor may rely on above fact to discharge or Contractor may rely on above fact to discharge or

reduce their liability for the design of the works by arguing threduce their liability for the design of the works by arguing that at

they should not be liable for the adequacy or fitness of the they should not be liable for the adequacy or fitness of the

design contained in the ER.design contained in the ER.

D&B Form but retention of Architect as Architectural QP and EAD&B Form but retention of Architect as Architectural QP and EA

PROSPROS and and CONSCONS

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ConsCons (..continued)

•• Employer’s Architect’s statutory submissions and Employer’s Architect’s statutory submissions and

supervisionssupervisions

-- Contractor may argue that since the Employer’s Contractor may argue that since the Employer’s

Architect had made the necessary submissions Architect had made the necessary submissions

(which would include checking the submission)=> (which would include checking the submission)=>

this fact should discharge or reduce his liability for this fact should discharge or reduce his liability for

any inadequacy in the detailed design.any inadequacy in the detailed design.

D&B Form but retention of Architect as Architectural QP and EAD&B Form but retention of Architect as Architectural QP and EAPROSPROS and and CONSCONS

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ConsCons (..continued)

•• Employer’s Architect’s Approval of the Contractor’s Employer’s Architect’s Approval of the Contractor’s

Detailed Design and Shop DrawingsDetailed Design and Shop Drawings

-- Contractor may argue that such approval Contractor may argue that such approval

discharges or diminishes his responsibility and discharges or diminishes his responsibility and

liability for the detailed design for the architectural liability for the detailed design for the architectural

works that have been approved by the Employer’s works that have been approved by the Employer’s

Architect.Architect.

D&B Form but retention of Architect as Architectural QP and EAD&B Form but retention of Architect as Architectural QP and EA

PROSPROS and and CONSCONS

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Partial Partial NovationNovation Design and Design and Build on Structural and Build on Structural and

M&E worksM&E works

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(1) Architectural works are designed by the Client(1) Architectural works are designed by the Client--appointed appointed

Architect whilst the Contractor is responsible for the design Architect whilst the Contractor is responsible for the design

and construction for the structural and M&E worksand construction for the structural and M&E works

Salient FeaturesSalient Features

SIA Form with Design and Build on structural and M&E

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(2) Lump sum tenders are invited based on the following:(2) Lump sum tenders are invited based on the following:

-- Full detailed drawings for the architectural worksFull detailed drawings for the architectural works

-- Employer’s requirements comprising the design brief and Employer’s requirements comprising the design brief and

performance requirements for the contractorperformance requirements for the contractor--designed portion designed portion

(structural and M&E works).(structural and M&E works).

Salient FeaturesSalient Features

SIA Form with Design and Build on structural and M&E

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Functional LinkFunctional Link

Contractual LinkContractual Link

Architect (Qualified Person and Contract Administrator)Structural Engineer (Technical advisory role)Services Engineer (Technical advisory role)Quantity Surveyor (Full pre and post contract services)

Architect (Qualified Person Architect (Qualified Person and Contract Administrator)and Contract Administrator)Structural Engineer Structural Engineer (Technical advisory role)(Technical advisory role)Services Engineer Services Engineer (Technical advisory role)(Technical advisory role)Quantity SurveyorQuantity Surveyor (Full pre (Full pre and post contract services)and post contract services)

Organisation Organisation

StructureStructureContractorContractorContractor

Nominated Sub-contractors

Nominated Nominated SubSub--contractorscontractors

•Nominated Suppliers

••Nominated Nominated SuppliersSuppliers

Contractor-Designed Portion

• Structural Works• Mechanical and

Electrical Services

ContractorContractor--Designed Designed PortionPortion

•• Structural WorksStructural Works•• Mechanical and Mechanical and

Electrical ServicesElectrical Services

SIA Form with Design and Build on structural and M&E

ClientClientClient

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Functional LinkFunctional Link

Contractual LinkContractual Link

Architect (Qualified Person and Contract Administrator)Quantity Surveyor (Full pre and post contract services)

Architect (Qualified Person Architect (Qualified Person and Contract Administrator)and Contract Administrator)Quantity SurveyorQuantity Surveyor (Full pre (Full pre and post contract services)and post contract services)

Organisation Organisation

StructureStructureContractorContractorContractor

ClientClientClient

Nominated Sub-contractors

Nominated Nominated SubSub--contractorscontractors

•Nominated Suppliers

••Nominated Nominated SuppliersSuppliers

Contractor-Designed Portion with Novated Consultants

• Structural Works• Mechanical and

Electrical Services

ContractorContractor--Designed Designed Portion with Portion with NovatedNovated ConsultantsConsultants

•• Structural WorksStructural Works•• Mechanical and Mechanical and

Electrical ServicesElectrical Services

SIA Form with Design and Build on structural and M&E

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ProsPros

•• Client has full control over architectural design.Client has full control over architectural design.

•• Contractor is responsible for coContractor is responsible for co--ordination of all drawn and ordination of all drawn and

written information between and within the different written information between and within the different

disciplines and integration of his design with the design of thedisciplines and integration of his design with the design of the

Works as a whole.Works as a whole.

•• Contractor assumes a fitness for purpose obligation where the Contractor assumes a fitness for purpose obligation where the

choice of materials and workmanship and/or design is left to choice of materials and workmanship and/or design is left to

him.him.

SIA Form with Design and Build on structural and M&E

PROSPROS and and CONSCONS

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ConsCons

•• As the SIA Form is a traditional delivery contract, it As the SIA Form is a traditional delivery contract, it

is unclear to what extent the draftsmen of the SIA is unclear to what extent the draftsmen of the SIA

Form intended it to be used as a form of D&B Form intended it to be used as a form of D&B

contract => If such form is to be used, modifications contract => If such form is to be used, modifications

would be required in particular the Clause 3 of the would be required in particular the Clause 3 of the

SIA Contract Conditions.SIA Contract Conditions.

SIA Form with Design and Build on structural and M&E

PROSPROS and and CONSCONS

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The Case StudyThe Case Study

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GFA• Retail area • Residential areas

• 125,726m2 • 38,240m2 (4 levels basement retail + 4 level retail podium) • 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

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The ProjectThe Project1.1. Tight Time lines from conception to completion Tight Time lines from conception to completion

1.1. Retail targeted to open in 1Retail targeted to open in 1stst quarter 2009. That means that Completion & TOP need to quarter 2009. That means that Completion & TOP need to be obtained in December 2008 for tenant fitbe obtained in December 2008 for tenant fit--out. out.

2.2. Consideration for topConsideration for top--down construction with fast construction cycle time down construction with fast construction cycle time

3.3. Possible need for construction innovation Possible need for construction innovation

2.2. Numerous specialist works needed coupled by Numerous specialist works needed coupled by complicated contractual relationshipscomplicated contractual relationships1.1. Specialist needed for related works such as fire, security, tempSpecialist needed for related works such as fire, security, temporary works etc. orary works etc.

2.2. Eventual contractual relationship will be complicated due to mulEventual contractual relationship will be complicated due to multiple contractual tiple contractual relationshipsrelationships

3.3. Possible crossPossible cross--liabilities liabilities

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The ProjectThe Project3.3. Numerous Authority Approvals for the construction of Numerous Authority Approvals for the construction of

the building e.g. LTA, MRTC, URA and BCA the building e.g. LTA, MRTC, URA and BCA requirements.requirements.1.1. No night working which involves noise generationNo night working which involves noise generation

2.2. Stringent scrutiny for approval by authorities due to existing iStringent scrutiny for approval by authorities due to existing infrastructure works (e.g. nfrastructure works (e.g. MRT box, lines, bus routes, HT cables etc)MRT box, lines, bus routes, HT cables etc)

3.3. Neighbouring highNeighbouring high--end residential blocks less than 100m. end residential blocks less than 100m.

4.4. Complication of Design Complication of Design 1.1. Tall tower over podium Tall tower over podium

2.2. Podium over MRT box (need for transfer structure)Podium over MRT box (need for transfer structure)

3.3. Deep basement (safety and construction risks)Deep basement (safety and construction risks)

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What choices ? What choices ? What if ?What if ?

Common Procurement Routes in SingaporeCommon Procurement Routes in Singapore

Bills of Quantities (BQ)Bills of Quantities (BQ)Lump Sum (LS)Lump Sum (LS)Design & Build (LS) + GMP OptionDesign & Build (LS) + GMP Option

TraditionalTraditionalContracting Contracting

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Common ProblemsCommon Problems inin TraditionalTraditionalContractingContracting in relation to Project in relation to Project

Unforeseen design problemsUnforeseen design problems due to technicalitiesdue to technicalitiesLate Late provision of provision of design informationdesign informationSplits construction and design Splits construction and design Possible Possible Programming problemsProgramming problemsSubSub--contractor argumentscontractor arguments due to multiple contractsdue to multiple contractsHigh chance of variation due to clashes in coordination High chance of variation due to clashes in coordination High possibility of time and cost escalationsHigh possibility of time and cost escalationsLong design development time = June 2008 deadline will not be meLong design development time = June 2008 deadline will not be met in all t in all circumstances for commencement of Tenant Fitcircumstances for commencement of Tenant Fit--outoutHigh time and cost risk to JV ownersHigh time and cost risk to JV owners

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Design & BuildDesign & Build -- InnovationInnovation(Develop & Construct)(Develop & Construct)

Design intent drawings has to be completed i.e. key plans, layouDesign intent drawings has to be completed i.e. key plans, layouts, ts, framing plans sections and elevations. No need for construction framing plans sections and elevations. No need for construction detailing at this stage (usually 1detailing at this stage (usually 1stst two to three months from project two to three months from project commencement).commencement).Tender to include Performance Specification, Prime Cost Rates, Tender to include Performance Specification, Prime Cost Rates, Employer’s Requirements etc. Employer’s Requirements etc. Contractor to bring to completion and carry out design developmeContractor to bring to completion and carry out design development and nt and be solely responsible for the design in totality. (Single point be solely responsible for the design in totality. (Single point responsibility)responsibility)Combines the technical knowCombines the technical know--how and knowledge of the contractor and how and knowledge of the contractor and the ability to amalgamate design and constructionthe ability to amalgamate design and construction

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The D&B Approach The D&B Approach in relation to Project in relation to Project

Single point responsibilitySingle point responsibilityShorter construction period due to the Shorter construction period due to the condensing and overlappingcondensing and overlapping of the of the contractor’s programme I.e. design development commences during contractor’s programme I.e. design development commences during piling and piling and as the work proceeds. as the work proceeds. The risk for the deep basement excavation and building on top ofThe risk for the deep basement excavation and building on top of the MRT box the MRT box lies solely on the contractorlies solely on the contractor as compared to the traditional approach whereby as compared to the traditional approach whereby certain risk can be linked to the Employer (Employer’s consultancertain risk can be linked to the Employer (Employer’s consultant’s design)t’s design)Quality can be met via the Employer’s Requirements, Schedule of Quality can be met via the Employer’s Requirements, Schedule of Finishes, Finishes, Prime Cost Rates, Provisional Sums etcPrime Cost Rates, Provisional Sums etcCoordination responsibility lies with the Contractor. Coordination responsibility lies with the Contractor. Better time and cost certainties. Better time and cost certainties.

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Why choose the D&B ApproachWhy choose the D&B Approachin relation to Projectin relation to Project??

As this project is of high quality and is in the heart of the OrAs this project is of high quality and is in the heart of the Orchard Road district, chard Road district, quality of the Architectural works is important. quality of the Architectural works is important. Therefore, it is our recommendation that the Architect remains wTherefore, it is our recommendation that the Architect remains with the Employer ith the Employer ( not ( not novatednovated like the M&E and C&S Consultants). However, all design like the M&E and C&S Consultants). However, all design responsibility still rests on the Contractorresponsibility still rests on the ContractorProcurement package can be further tightened with a Guaranteed MProcurement package can be further tightened with a Guaranteed Maximum aximum Price (GMP) Methodology. Price (GMP) Methodology. This is to safeguard the client’s interests in any variations thThis is to safeguard the client’s interests in any variations that may lead to cost at may lead to cost and time implicationsand time implications

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Design-and-Build Procurement

DesignDesign--andand--Build Build ProcurementProcurement

Contractor Contractor responsible for responsible for design and design and constructionconstruction\\

SingleSingle--point point responsibilityresponsibility

•Project Manager•Architect(Qualified Person and Contract Administrator)•Quantity Surveyor(Full pre and post contract services)

Novated Consultants•Civil and Structural Engineer

M&E Engineer

Client

Main Contractor

DomesticSub-Contractors

Domestic Suppliers

Novated services

contracts

Services contracts cancelled

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SummarySummary

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SummarySummary

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Post Contract Administration Post Contract Administration –– Merging of Singapore & Hong Kong PracticesMerging of Singapore & Hong Kong Practices

Variation ProcessVariation ProcessAIP System / meetingAIP System / meetingCPO at site apart from project officeCPO at site apart from project officeICUICU

Cost Report / Cost Plan / Cost ReportingCost Report / Cost Plan / Cost ReportingExecutive Cost ReportExecutive Cost ReportMonthly cost ReviewMonthly cost ReviewOverbudgetOverbudget Vs SavingVs SavingBenchmarkBenchmarkJV approval in monthly DC meetingJV approval in monthly DC meeting

SubSub--ContractContractSemi system as DSCSemi system as DSC

How to merge two countries one systemHow to merge two countries one system

SHK & CapitaLandSHK & CapitaLand’’s concernss concerns

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Contract provisions to protect the Client in Contractor's Contract provisions to protect the Client in Contractor's VO claims VO claims

Article 5 of the SIA Conditions Article 5 of the SIA Conditions and Contract (7th Edition) and Contract (7th Edition)

Prices to be inclusive Prices to be inclusive Subject to adjustment of the Contract Sum for variations under CSubject to adjustment of the Contract Sum for variations under Clause lause 12 of the Conditions 12 of the Conditions ……. The Contact Sum and Contractor. The Contact Sum and Contractor’’s Rates and s Rates and prices in the SOR, prices in the SOR, ……. , shall be inclusive of all ancillary and other . , shall be inclusive of all ancillary and other works and expenditure,works and expenditure,…… which are either which are either indispensably necessary to indispensably necessary to carry out and bring to completion the Workscarry out and bring to completion the Works described in the Contract described in the Contract Documents, or which may contingently become necessary to Documents, or which may contingently become necessary to overcome difficulties before completion overcome difficulties before completion

Also addedAlso added

adopting the GMP Conditions whereby notwithstanding clauses 1(2)adopting the GMP Conditions whereby notwithstanding clauses 1(2), 1(4) and , 1(4) and 12(2) of the Conditions of Contract or any other provisions of t12(2) of the Conditions of Contract or any other provisions of this agreement his agreement and the Contract, nothing whatsoever in the Design Development aand the Contract, nothing whatsoever in the Design Development and/or nd/or Construction Detailing or the ContractorConstruction Detailing or the Contractor’’s compliance with such Design s compliance with such Design Development and/or Construction Detailing shall constitute a varDevelopment and/or Construction Detailing shall constitute a variation under iation under this Contract, or at law and/or shall result in any increase whathis Contract, or at law and/or shall result in any increase whatsoever of the tsoever of the Contract Sum or EOT for the completion of the Works, unless; Contract Sum or EOT for the completion of the Works, unless;

the Architect issues an instruction which the Architect issues an instruction which fundamentally and materially changes the fundamentally and materially changes the overall floor plan area, building volume, overall floor plan area, building volume, function of an area and/or the level of function of an area and/or the level of quality of an area; orquality of an area; or

…… the GMP shall have included the latest the GMP shall have included the latest development in rules and regulation that are being development in rules and regulation that are being

discussed and/or contemplated y the Government of discussed and/or contemplated y the Government of Singapore that is relevant and is in connection to the Singapore that is relevant and is in connection to the

construction industry of Singapore but not yet construction industry of Singapore but not yet enacted up to and until the submission of the enacted up to and until the submission of the

Tender.Tender.

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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

GMP GMP Variations and AdjustmentVariations and Adjustment

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Relevant Project ExperiencesRelevant Project ExperiencesVivoCity (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&BOther Projects with Full D&BSt Regis (JCT Form)

City Square (JCT Form)

City Lights (JCT Form)

The Sail (JCT Form)

One Marina Boulevard (JCT Form)

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WhatWhat’’s the beauty?s the beauty?Our preference to embrace the Our preference to embrace the innovatiiveinnovatiive Design and Build (Develop and Design and Build (Develop and

Construct) procurement approach for this project are as followsConstruct) procurement approach for this project are as follows

1.1. Concurrent planning, design and construction activities. Concurrent planning, design and construction activities. 2.2. In Develop and Construct there is singleIn Develop and Construct there is single--point responsibility that the contractor point responsibility that the contractor

will be responsible for the design.will be responsible for the design.3.3. A seamless involvement of the original design consultants by A seamless involvement of the original design consultants by novationnovation

combined with early dialogue with the authorities and relevant pcombined with early dialogue with the authorities and relevant parties.arties.4.4. Architectural structure requirements are stipulated and drawn atArchitectural structure requirements are stipulated and drawn at time of tender time of tender

and therefore this important aspect is not compromised.and therefore this important aspect is not compromised.5.5. Higher degree of cost and time certainty (if the GMP methodologyHigher degree of cost and time certainty (if the GMP methodology is adopted) as is adopted) as

opposed to the traditional procurement route. opposed to the traditional procurement route. 6.6. Modified form of contract incorporating latest legislations.Modified form of contract incorporating latest legislations.7.7. Not only a scientific approach but also an art of expression?Not only a scientific approach but also an art of expression?

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... and finally

Any Questions?Any QuestionsAny Questions??

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Thank Thank YouYou