co-operation in construction sector construction contracts dr. judit gyulay – dr. zoltán andrás...
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CO-OPERATION IN CONSTRUCTION SECTOR
CONSTRUCTION CONTRACTS
Dr. Judit Gyulay – Dr. Zoltán András VattaiBUTE Department of Construction Technology & Management
CO-OPERATION IN CONSTRUCTION SECTOR
CONSTRUCTION CONTRACTS
Dr. Judit Gyulay – Dr. Zoltán András VattaiBUTE Department of Construction Technology & Management
CONSTRUCTION AFFAIRS
CONSTRUCTION AFFAIRS
Construction Sector
Construction Sector
Construction Industry
Construction Industry
- erecting new buildings- reconstructing existing buildings- remodeling existing buildings- extending existing buildings- demolishing existing buildings
- erecting new buildings- reconstructing existing buildings- remodeling existing buildings- extending existing buildings- demolishing existing buildings
TYPICAL DELIVERIES OF CONSTRUCTION INDUSTRY
TYPICAL DELIVERIES OF CONSTRUCTION INDUSTRY
- immovability of product- performance exposed to weather - transport of great volumes- environmental charges/effects- high exposition
- immovability of product- performance exposed to weather - transport of great volumes- environmental charges/effects- high exposition
FEATURES OF CONSTRUCTION PERFORMANCES
FEATURES OF CONSTRUCTION PERFORMANCES
- Client (Investor)- Manager (Engineer)- Designer (Acrhitect)- Contractor (Craftsmen)- Bank- Authorities (Community)
- Client (Investor)- Manager (Engineer)- Designer (Acrhitect)- Contractor (Craftsmen)- Bank- Authorities (Community)
STAKEHOLDERS OF CONSTRUCTION PROJECTS
STAKEHOLDERS OF CONSTRUCTION PROJECTS
„Traditional”„Traditional”
PROCUREMENT POLICIES CONTRACTUAL RELATIONS
(PROCUREMENT SYSTEM)
PROCUREMENT POLICIES CONTRACTUAL RELATIONS
(PROCUREMENT SYSTEM)
ClientClient
DesignerDesigner ContractorContractor
Sub.Sub.Sub.Sub. Sub.Sub. Sub.Sub.Sub.Sub.
„Turn-key”„Turn-key”
PROCUREMENT POLICIES CONTRACTUAL RELATIONS
(PROCUREMENT SYSTEM)
PROCUREMENT POLICIES CONTRACTUAL RELATIONS
(PROCUREMENT SYSTEM)
ClientClient
DesignerDesigner ContractorContractor
Sub.Sub.Sub.Sub. Sub.Sub. Sub.Sub.Sub.Sub.
„Construction Management”„Construction Management”
ClientClient
DesignerDesigner ContractorContractor
Sub.Sub.Sub.Sub. Sub.Sub. Sub.Sub.Sub.Sub.
Engineer(Manager)Engineer(Manager)
PROCUREMENT POLICIES CONTRACTUAL RELATIONS
(PROCUREMENT SYSTEM)
PROCUREMENT POLICIES CONTRACTUAL RELATIONS
(PROCUREMENT SYSTEM)
„Management Contract”„Management Contract”
ClientClient
DesignerDesigner ContractorContractor
Sub.Sub.Sub.Sub. Sub.Sub. Sub.Sub.Sub.Sub.
Engineer(Manager)Engineer(Manager)
PROCUREMENT POLICIES CONTRACTUAL RELATIONS
(PROCUREMENT SYSTEM)
PROCUREMENT POLICIES CONTRACTUAL RELATIONS
(PROCUREMENT SYSTEM)
- Contract of works
- Agency Contract
- …
- Contract of works
- Agency Contract
- …
TYPE OF CONTRACTTYPE OF CONTRACT
- Design- Management- Accomplishment- Supply- Service- …
- Design- Management- Accomplishment- Supply- Service- …
SUBJECT OF CONTRACTSUBJECT OF CONTRACT
- Main contracting- General contracting- Co (-general-) contracting- (Sub-) Contracting- Service / Supply- Representation (agency)
- Main contracting- General contracting- Co (-general-) contracting- (Sub-) Contracting- Service / Supply- Representation (agency)
RANGE OF CONTRACTRANGE OF CONTRACT
- Contractor- Client- Subject- Deadlines- Offset
- Contractor- Client- Subject- Deadlines- Offset
ESSENTIAL DATA OF CONTRACTS
ESSENTIAL DATA OF CONTRACTS
- Who- Whom for- What- What time- What price
- Who- Whom for- What- What time- What price
– Free-hand (based on trust)
– Tendering (competition)= Public= Restricted (invited)= Direct negotiation
– Free-hand (based on trust)
– Tendering (competition)= Public= Restricted (invited)= Direct negotiation
FINDING CONTRACTUAL PARTNERS
„PROCUREMENT”
FINDING CONTRACTUAL PARTNERS
„PROCUREMENT”
SPECIFYING DELIVERY (DETAILS)
SPECIFYING DELIVERY (DETAILS)
PreparationPreparation
DesignDesign
Procurement
(contracting)
Procurement
(contracting)
AccomplishmentAccomplishment
„TRADITIONAL”„TRADITIONAL”
Clear details: known technical, technological, time and budget specifications at contractingClear details: known technical, technological, time and budget specifications at contracting
PreparationPreparation
DesignDesign
Procurement (contracting)Procurement (contracting)
AccomplishmentAccomplishment
„MANAGEMENT”„MANAGEMENT”
Change- and risk management have essential role
Change- and risk management have essential role
SPECIFYING DELIVERY (DETAILS)
SPECIFYING DELIVERY (DETAILS)
- Lump-sum (fixed price)
- Unit price
- Cost + fee
- Lump-sum (fixed price)
- Unit price
- Cost + fee
OFFSET OF CONTRACTUAL DELIVERIES
OFFSET OF CONTRACTUAL DELIVERIES
Timing of offset of deliveries is also aprice-forming factor („cost of financing”)Timing of offset of deliveries is also a
price-forming factor („cost of financing”)
- Referred standard contractual schemes, sets of regulations (FIDIC, VOB, …)
- Technical documentation (plans, specifications, budgeting, …)
- Referred technical standards (quality- and performance expectations)
- Referred standard contractual schemes, sets of regulations (FIDIC, VOB, …)
- Technical documentation (plans, specifications, budgeting, …)
- Referred technical standards (quality- and performance expectations)
„APPENDICES” OF CONTRACTS„APPENDICES” OF CONTRACTS
- Written contract (e.g. by FIDIC, VOB, …)
- Oral agreement (with precedents)
- Implied contract (?!)
- Written contract (e.g. by FIDIC, VOB, …)
- Oral agreement (with precedents)
- Implied contract (?!)
ENGENDERING A CONTRACTENGENDERING A CONTRACT
- Controlled mainly is the Client- Purchase on public funds - Strictly controlled procedures- Specific risks elements- Price raising effects (!!!)
- Controlled mainly is the Client- Purchase on public funds - Strictly controlled procedures- Specific risks elements- Price raising effects (!!!)
PUBLIC PROCUREMENTPUBLIC PROCUREMENT
- ~20 % of building deliveries- Periodicly „changing” conditions
- Balanced contracts- Precise (in-time) offset- Highly exposed investments
- ~20 % of building deliveries- Periodicly „changing” conditions
- Balanced contracts- Precise (in-time) offset- Highly exposed investments
PUBLIC PROCUREMENTPUBLIC PROCUREMENT