Select one contract type and one project delivery system How

Select one contract type and one project delivery system. How does each impact work-sequence decisions?

Solution

Selected type of contract - fixed price contract

Selected Project delivery system - construction management at risk

construction management at risk (CMR) method entails a commitment by the CMR for construction performance to deliver the project within a defined schedule and price, either a fixed lump sum or a guaranteed maximum price (GMP). The CMR provides construction input to the owner during the design phases and becomes general contractor during construction phase.

Key considerations of this method:

* designer works directly for owner

* project delivery typically faster

* earlier knowledge of cost

* earlier involvement of constructor expertise

* more professional relationship with contractor

The fixed price contract is a legal agreement between the project organizational and an entity ( person or company) to provide goods or services to the project at an agreed -on price. The contract usually details the quality of the goods or services, the timing needed to support the project , and the price for delivering goods or services. For commodities and goods and services where the scope of work is very clear and not likely to change , the fixed price contract offers a predictable cost. The responsibility for managing the work to meet the needs of the project is focused on the contractor. The project team tracks the quality and schedule progress to assure the contractors will meet the project needs. The risks associated with fixed price contracts are the costs associated with project change. If a change occurs on the project that requires a change order from the contractor, the price of the change is typically high