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7202ENG

PROJECT CONTROLAND EVALUATION

GOLD COAST LIGHT RAIL

CONTRACT STRATEGIES

ALMTHAMI, KHEDHER S2187371

MARISSA ADRAINCEM S2850497

FRIDAY 25/05/2012

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OUTLINE

DESIGN

BUILD DESIGN-BID-BUILD

DESIGN-BUILD-OPERATE-TRANSFER

CHOSEN CONTRACT STRATEGY

COMMENTS & QUESTION

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CONTRACT STRATEGIESThere are several contract strategies that could beadapted to best suit the rapid transit project, the

following three strategies will be assessed to

determine the most suitable strategy.

1) DESIGNBUILD

2) DESIGN-BID-BUILD

3) DESIGN-BUILD-OPERATE-TRANSFER

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1. DESIGN

BUILDDesign-build can be considered a two-step contract in this strategy1. The design

2. Construction of a project

Both are completed by a single company.

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1. DESIGN

BUILDTHESIGNIFICANTDIFFERENCEBETWEENDESIGNBIDBUILD

is also the one problem that can plague the project, due

to the one company designing the project then

completing construction of the project there is a greatamount of trust that is placed in the company from the

client.

ADVANTAGE

Reduced delivery time from a design bid build contract,due to the nil effects of putting the construction element

out to tender.

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2. DESIGN-BID-BUILD

DESIGN-BID-BUILDCONTRACTSAPPOINTACOMPANYTO

1. Complete the design

2. and then following a tender

3. and approval process an additional contract is

awarded to a second company to complete the

construction aspect of the project of the project.

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2. DESIGN-BID-BUILDTHISPROCESSALLOWSTHECLIENTTOHAVEa second company check the work practices of

the other and therefore this will REDUCE THE

RISK of poor workmanship and short-cuts

devaluing the final product.

DIFFERENCEBETWEEN DB & DBB

Design bid build carries a SIGNIFICANTLY LONGER

PROCESSTHANdesign build as the additional bid

step in the program. This step can be

summarised as the tender stage and has the

potential to add months to the projectspractical completion date.

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3. DESIGN-BUILD-OPERATE-TRANSFERThe Design-Build-Operate-Transfer has the ability

to reduce construction time, therefore,

maintaining the clients cash flow.

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3. DESIGN-BUILD-OPERATE-TRANSFERTHISSYSTEMISSIMILARTOTHEDESIGNBUILDSTRATEGYhowever, prior to the project being transferred to

the client it is operated by the contractor to produce

revenue as part of the contract payment.

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3. DESIGN-BUILD-OPERATE-

TRANSFERThis allows the design company to

reduce their tendered price and

attempt to make up this difference at

the completion of the project.

THIS STRATEGY CARRIES THE MOST

AMOUNTOFrisk for the contractor, as it is reducing

the number of consumers the rail

system has and reducing the incomefor the contractor.

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CHOSEN CONTRACT STRATEGYTHEMOSTAPPROPRIATECONTRACTSTRATEGYFORTHELIGHTRAILPROJECTWOULDBE

The design build operate transfer.

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CHOSEN CONTRACT STRATEGYSEVERALFACTORSINFLUENCETHISDECISION

1.The risk of loss in profits following completion is

transferred to the contractor.

2.The current global debt crisis, this also maintainsgovernment revenue as the principle construction

expenses are shared with the contractor.

3. The deliver time of the project will be a top

priority of the contractor as they seek to deliver the

project earlier to eliminate potential costs associatedlengthy loan period

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