Professional Practice Commission: March Alternative Project Delivery Systems

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1 Professional Practice Commission: March 2013 Alternative Project Delivery Systems

2 UIA Accord Building project delivery systems. Definition Building project delivery systems are defined as the contractual relationships between the project client and the other parties involved in the design, documentation and construction of the building. Context

3 UIA Accord Building project delivery systems. Background Traditionally building project delivery systems have involved architects in the role of the project client s agent, with responsibility for the design, documentation and administration of the building contract agreement. Context

4 UIA Accord Building project delivery systems. Background Under many current and emerging building delivery systems the architect no longer acts as the agent of the project client. Therefore it is important that the role, responsibilities and constraints placed on architects in providing their services under different building project delivery systems are clearly understood. Context

5 UIA Accord Building project delivery systems. Policy Architects should maintain high standards of professionalism and service under all forms of building project delivery systems. Context

6 UIA Accord Recommended guidelines for the policy on building project delivery systems. Policy Definitions Introduction The alternative methods Aspects critical to success of alternative methods Conclusion Appendices Context

7 Accord Policy Architects should maintain high standards of professionalism and service under all forms of building project delivery systems. + Architect as (the only) objective adviser on the balance of quality, cost, and time. Relative lifecycle cost of construction Relative lifecycle cost of architectural services Relative lifecycle cost of low design quality (financial, environmental, social and cultural)

8 Accord Policy Architects should maintain high standards of professionalism and service under all forms of building project delivery systems. + Architect as (the only) objective adviser on the balance of quality, cost, and time. + Impact of over-sensitivity to risk. + Professional Institutes to promote the significant role of the architect in achieving design quality.

9 1. Definitions Building project delivery systems. Project client. Architect s client. Novation. Professional adviser. + Brief. + Business case. + Budget.

10 1. Definitions + Lifecycle cost. + Post occupancy evaluation. + Procurement. + Program. + Risk allocation. + Tender. + other key terms

11 2. Introduction The education and training of architects has, until recently, been oriented towards the traditional relationship between architect, project client and builder, and the lump sum contract That is, the project client directly commissions and briefs the architect; the architect prepares contract documents; the builder prices and builds from the contract documents

12 2. Introduction During construction the architect acts as the project client s agent and as certifier of quality etc However, this traditional method has been challenged and when other methods are used the role of the architect changes Alternative building project delivery systems have evolved In order to maintain an effective professional role, the architect must

13 2. Introduction The guideline needs to present a logic that permits consideration of all alternative delivery systems, not just some. This logic should be based on

14 2. Introduction whether the architect is engaged directly or indirectly, and by who Agent of Indirect engagement Owner/ Contractor Direct engagement Architect

15 2. Introduction whether the basis of the architect s engagement changes after the initial appointment Agent of Owner/ Novation Contractor Architect

16 2. Introduction who is responsible for contract administration during construction Agent of Owner/ Contract administration Contractor Architect

17 2. Introduction who engages other professional consultants Agent of Owner/ Consultant engagement Contractor Consultants Architect

18 2. Introduction and who engages required subcontractors. Agent of Subcontractor engagement Owner/ Contractor Consultants Architect Subcontractors

19 3. The Alternative methods Variations on the traditional building contract: Negotiated price Cost plus Two-stage tender Construction management Design and construct Multi-party contracts

20 3. The Alternative methods Variations on the traditional building contract: Negotiated price Cost plus Two-stage tender + Traditional lump sum tender

21 3. The Alternative methods Construction management + Managing contractor Design and construct + Novation Multi-party contracts + IPD + Project Alliancing + PPP s/pfi s

22 3. The Alternative methods Also need to link with alternative methods of procuring design services: + Direct engagement + QBS + Architectural competition + Tender/fee bid + Novation

23 3. The Alternative methods Architectural/design services procured direct by Operator Agent of Contractor construction Owner/ design Subcontractors Consultants Architect Traditional contract

24 3. The Alternative methods Architectural/design services procured direct by through an agent Operator Project Manager Contractor construction Owner/ design Subcontractors Consultants Architect Traditional contract (project management)

25 3. The Alternative methods Architectural/design services procured direct by through CM as agent Operator Agent of construction Construction Manager Owner/ design novation Subcontractors Consultants Architect Construction management/managing contractor

26 3. The Alternative methods Architectural/design services procured indirectly by Operator Agent of Contractor Owner/ design & construction novation Subcontractors Consultants Architect Design and construct (novation)

27 3. The Alternative methods Architectural/design services procured as part of design, build, operate bundle by Government Financier Operator Contractor PPP Consortium Govt/ design Legal Consultants Architect Private Public Partnership

28 3. The Alternative methods Architectural/design services procured through partnership with Financier Operator Contractor Owner/ Alliance Vehicle Subcontractors Consultants Architect Project Alliancing

29 4. Critical success factors Independent assessment Expertise of project/construction management services Value of a builder on the design team Risks of an early start Effectiveness of time and cost control Extent of documentation

30 4. Critical success factors + Level to which the model contributes to a good design outcome + Scale and level of complexity of the project + Scope for innovation + In-house resources of the + Consideration of operational and lifecycle costs + Specific time constraints

31 5. Conclusion Architects should be able to operate within a variety of client, architect, management and builder relationships in an effective and professional way however, some project and building delivery methods constrain the ability of architects to impartially apply their professional knowledge and skill architects may thus be prevented from acting independently to protect the interests of clients, owners, consumers and the public

32 5. Conclusion therefore, in the public interest, these constraints must be recognized and understood by those that use the services of architects, the communities they serve and the governments that regulate the markets within which architectural services are provided. + need to equip architects with skills to be effective within all delivery systems + Institutes to promote preferred approaches to clients, governments and the public

33 6. Appendices A Checklist for architects giving advice B Checklist for architects considering their own involvement in non-traditional methods + Advantages and disadvantages of alternative delivery systems C Responsibilities of the parties D Further reading + Factors influencing choice of delivery model

34 Recommendations 1. PPC to formally resolve to revise the current policy and guideline on Building Project Delivery Systems. 2. PPC to formally establish a new drafting panel to undertake the work in 1. above. 3. Focus of the revision is to be on: a) strategies that benefit the role of the architect in each system, and b) identifying common attributes of systems internationally. 4. Final draft ready for 2014 PPC meeting. Recommendations

35 Professional Practice Commission: March 2013 Alternative Project Delivery Methods Questions and Discussion

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