Lessons from Managing Design-Build Construction Projects in Hong Kong

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Lessons from Managing Design-Build ConstructionProjects in Hong KongEdmond W. M. Lam a , Albert P. C. Chan a & Daniel W. M. Chan aa Department of Building and Real Estate , Hong Kong Polytechnic University , HungHom, Kowloon, Hong Kong, ChinaPublished online: 09 Jun 2011.

To cite this article: Edmond W. M. Lam , Albert P. C. Chan & Daniel W. M. Chan (2006) Lessons from Managing Design-BuildConstruction Projects in Hong Kong, Architectural Science Review, 49:2, 133-142

To link to this article: http://dx.doi.org/10.3763/asre.2006.4918

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*Department of Building and Real Estate, Hong Kong PolytechnicUniversity, Hung Hom, Kowloon, Hong Kong, China†Corresponding Author: E-mail: [email protected]

IntroductionThe traditional design-bid-build procurement method has been com-

monly used for delivering construction projects. It has become the dominant method of project delivery in the U.S. and is still dominant in Hong Kong [1,2]. However, the intensive number of disputes and the growing emphasis on client’s requirements have triggered the need for other alternative procurement systems [3,4]. Design-build (D&B) is one such alternative which is experiencing expansive growth in both the private and the public sectors all over the world [5].

D&B is a procurement method where one entity or consortium is con-tractually responsible for both the design and construction of a project [6]. It has become a popular mode of procuring construction work in the U.S., Singapore and Hong Kong [7,8,9]. Most previous research have documented the benefi ts of the D&B method, but the management approaches to running D&B projects in practice are rarely discussed. D&B projects require a greater level of managerial expertise [10]. While contractors have been accused of sacrifi cing design quality in the pursuit of constructibility [3], the management approaches for D&B projects have drawn the attention of project participants to enrich their understanding of managing D&B projects successfully.

The objective of this study is to investigate the management approaches of different variants of D&B projects. The scope of the management approaches was identifi ed from relevant literature, which includes the development of the brief, quality management, compliance with employ-er’s requirements, liaison with end-users and the application of innova-

Lessons from Managing Design-Build Construction Projects in Hong Kong

Edmond W. M. Lam*†, Albert P. C. Chan*, and Daniel W. M. Chan*

Received 5 April 2005; accepted 15 August 2005

tive management approaches. The paper is divided into four sections. The methodology of the paper is fi rstly presented. Key fi ndings on the management approaches to running D&B projects are delivered from twenty-three structured interviews with D&B participants in Hong Kong. The focus of the interviews is limited to some recently completed D&B projects in Hong Kong, including residential quarters, slaughterhouse and hospital projects in the search of project details and features, project brief development and project management approaches. Relevant literature fi ndings are also incorporated to complete the case study research and the paper will be ended with conclusions.

MethodologyThe methodology adopted in this research is a combination of structured

interviews and literature search. Such research methods have been used by the authors in the investigation of the reasons for wider adoption of the D&B method in the public sector and the success criteria and critical success factors for D&B projects [11,12]. Senior staff with experience in running at least one D&B project were targeted for interviews and they were contacted via phone. There were altogether twenty-three interview-ees including clients, contractors and consultants who were labeled with prefi xes Clt-, Ctr- and Cot- respectively as shown in Table 1.

A list of ‘open’ questions was attached to the letter of interview invitation prior to the actual interview including project details and features, the development of the brief, the effective measures to control the quality of the D&B project, the mechanisms on the matching between the con-tractor’s proposals and the employer’s requirements, the control system on the end-users’ requirements and the application of the innovative management approaches. The interviews were recorded upon approval and transcribed for the analysis of the management approaches for D&B projects. Indeed, not all interview transcripts were analyzed for the manage-ment approaches and one typical project in each of the D&B variants was

The design-build (D&B) procurement method has emerged for several decades in the construction industry to overcome the problems inherent in the traditional design-bid-build method. As a result, some countries in the East, like Japan, have a very developed D&B market, while the use of D&B in Hong Kong is still developing due to a lack of management studies in the local context. This paper evaluates the management approaches for the three major types of D&B construction projects in Hong Kong, namely traditional D&B, novation D&B and enhanced D&B. Further case analysis was conducted on some recently completed D&B projects in Hong Kong, including residential quarters, slaughterhouses and hospital projects. Project details and features, project brief development and project management ap-proaches on these projects were scrutinized. Further research on the quantitative analysis of the criteria and critical factors for D&B project success is recommended to develop benchmark studies for the D&B procurement system.

Keywords: Case analysis; Design-build;Hong Kong; Management approaches.© 2006 University of Sydney. All rights reserved.

Architectural Science ReviewVolume 49.2, pp 133-142

www.arch.usyd.edu.au/asr

www.earthscan.co.uk/journals/asre doi:10.3763/asre.2006.4918

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Architectural Science Review Volume 49, Number 2, June 2006134 Architectural Science Review Volume 49, Number 2, June 2006134 Architectural Science Review Volume 49, Number 2, June 2006

selected for detailed analysis. The information of the cases was retrieved from structured interviews with relevant D&B participants. Similar method was adopted by Mustapha and Li [13] who conducted case studies using structured interviews in their research of client involvement in building projects. Indeed, case studies produce a massive amount of data which is often in a qualitative format [14]. Therefore, the authors used a highly descriptive approach in conducting the present research.

Apart from the empirical study on the management approaches for D&B projects, literature survey was also undertaken to investigate the management approaches as described by previous researchers to enrich the content of the paper, such as Pearson and Skues [15] who listed some project management objectives for D&B projects and investigated the corresponding project controls, including the project procedures manuals. Relevant fi ndings from the theses at the Hong Kong Polytechnic University were also incorporated to make the study more thorough.

Common Variants of Design-Build in Hong Kong

The D&B alternatives require the contractor to provide a single point of contact to the client for both design and construction. To cope with the complexities of projects, the client and the design consultants may provide details of design to various degrees and various organizational structures evolve to set up the D&B team, of which traditional D&B, enhanced D&B and novation D&B are most commonly used in Hong Kong [16].

Traditional D&BThis form of variant requires the contrac-

tor to accept total responsibility for both the design and construction to meet the requirements of the client (Fig. 1). In Hong Kong, the D&B contractors normally allocate the professional staff into two groups – the design team and the construction team for better management of the project, and the residential quarters project (LORQ) in the research adopted this variant.

Enhanced D&BEnhanced D&B enables the client to en-

sure the conformance of the basic design to his requirements by retaining control of the initial design [9]. The term ‘enhanced’ signifi es that the client would develop the design, using their own team of consultants, to a point where the signifi cant planning issues and inter-departmental relationships were all determined, and require tenderers to submit a conforming bid based on this design (Fig. 2). In Hong Kong, enhanced D&B has been employed in two hospital projects, one of which (TKOH) was reported in the research.

Novation D&BNovation is a mutual agreement which

substitutes an old obligation for a new one

Table 1: Details of intervieweesRef. No. Group Project TypeCtr1 Contractor LOR QuartersClt2 Client LOR QuartersCot3 Consultant LOR QuartersCot4 Consultant LOR QuartersCot5 Consultant SS SlaughterhouseClt6 Client ST Offi ceCtr7 Contractor FL QuartersClt8 Client LOR QuartersClt9 Client FL Quarters, SHW DepotClt10 Client HNR QuartersCtr11 Contractor HNR QuartersCtr12 Contractor HNR QuartersClt13 Client TKO Hospital, ND HospitalCtr14 Contractor SHW DepotClt15 Client SS SlaughterhouseCtr16 Contractor SS SlaughterhouseClt17 Client GFS HeadquartersCot18 Consultant CP CentreClt19 Client FO ContractsCot20 Consultant ND HospitalCtr21 Client WKR QuartersClt22 Client ND HospitalCtr23 Contractor WKR Quarters

Table 2: Background of the D&B projects [24,25]Name LORQ SSS TKOHProject Type Residential quarters Slaughterhouse HospitalEstimated Budget

(HK$M)3,231 1,793 1,600

Contract Period 30 months 804 days 1110 daysD&B Variant Traditional Novation Enhanced

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Figure 1: Traditional D&B contract [17]

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135Design-Build Construction Projects in Hong KongLam, Chan & Chan

[18]. Under novation, the client needs to take a more active role in the building process and the contractor is required to employ the same team of consultants after the award of contract (Fig. 3). This variant was adopted in the slaughterhouse project (SSS) of the research.

Case Studies on Management Approaches for Design-Build Projects

D&B project delivery requires careful planning and professional execu-tion to be successful [19]. Retherford [20] described the successful result of some new D&B embassy projects and Ibbs et al. [21] examined the benefi ts of D&B to project performance. Other researchers also conducted research on the performance of D&B projects [22,23] and the current research investigated the managing process of the D&B projects. Moreo-ver, previous researchers and practitioners in the industry have shown concern on the quality aspect of the building under the leadership of the contractor. Therefore, the project management approaches in quality management, compliance with employer’s requirements and liaison with end-users were investigated in some recently completed D&B projects in Hong Kong. The innovative management strategies in the D&B projects were also investigated for successful project implementation. Table 2 illustrates some background information of the D&B projects.

Case Project (1) - Residential Quarters Project (LORQ)

Project details and featuresThe project comprises eight residential blocks in thirty-seven storeys

over a four-storey podium. The development also includes parking, land-scaping, recreation and commercial areas and more than 1,500 site staff were involved. In the project, the contractor suggested some alternative materials which deviated from those stated in the specifi cation. Accord-ing to the contract, the contractor can only submit better alternatives, subject to approval from the in-house professionals (Cot3). Moreover, several alternative ideas were proposed by the contractor, Ctr1, in design matters. For example, the ‘butterfl y’ orientation has been suggested to further provide privacy of individual fl ats. A central landscape area was created from the re-orientation of the fl ats to provide a new layout with a central space for landscape. The shuttle lift was also relocated to enhance the control of the fl ow of residents. One consultant pointed out that the proposed layout is widely different from the client design since there is a valley portion in the existing ground level, which has been built up to form a car-park and a park is also created which is absent in the original client design (Cot4). Therefore, the landscape was improved to create more open space for both visitors and residents. Moreover, the plastering was the spray plaster which is thinner than the traditional plaster and which is more environmentally friendly.

The rapid construction of the development has been made feasible with the use of light weight aluminium panel formwork system (The Mivan System Formwork), which is smaller and lighter than the traditional one. Such system is metal-made and the number of reuses is higher, which is considered environmentally friendly. The system was used for typical fl oor slabs of the building and had two temporary fl oor openings for each fl at for direct movement of materials to the fl oor above, creating a less congested and therefore safer working environment for the labour. As a result, time was shortened while accuracy of the fi nal product was enhanced (Clt8). The 4-day cycle programme can therefore be maintained (Cot3).

Development of the briefThe preparation of the brief is based on how the operator can defi ne

accurately the requirements for the project, including what materials will be used, what facilities will be provided and the requirements of the design team on aesthetics in order to fulfi ll the requirements of the client (Ctr1). It was considered by Clt8 as specifi c and clear and is formulated by the in-house consultants to form the employer’s requirements (ER) for the contractor to tender. In fact, the brief is essentially the ER, which states clearly the plot ratio and the schedule of accommodation to allow the contractor more free-hand in design (Clt2). Moreover, performance standards were commonly used where a specifi c brand will not be stated so that there is room of design freedom. For example, the corian top of a bench in the kitchen is 20mm thick and the contractor can make changes on the colour and pattern of the material. Therefore, the detailing was left for the contractor based on the parameters to achieve the stated standard and requirement. However, the parameter of the ER is rather rigid in terms of design fl exibility since the public sector cannot give too much freedom on the contractor; otherwise, comparison among the tenders may pose great diffi culty. As a result, the brief can constitute some grey areas in the contract which rely heavily on the in-house professional’s judgement to assess the returned tenders (Cot3).

Quality ManagementOne contractor interviewee claimed that the quality matter should be

independent of the procurement method since it is the design of the drawings to deal with the quality aspect (Ctr1). Instead, the size and mission of the company may also affect the implementation of quality management. Actually, the client used its internal project team members to assess the design submission from the contractor while the contrac-tor’s consultants housed all the required design consultants, including architectural, structural and E&M designers [26]. The contractor was required to be ISO 9000 certifi ed (Clt2). He was required to employ the approved designers to carry out the design works as well as the design checkers to check on the design of the project to monitor the quality. Indeed, the supervision at the construction stage is similar in the D&B and the conventional contracts (Clt8). In construction, like the traditional approach, the contractor was required to assign some resident profes-sionals on site to make sure that the quality follows strictly to that in the brief (Cot3). The quality of the D&B project was further safeguarded by the supervision of the consultants and the representatives of the client. Therefore, measures in both construction and supervision like

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Figure 2: Enhanced D&B contract [9]

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the quality plan and the supervision team are important to control the quality of a D&B project (Clt8). Contract provisions in the ER can also control the quality of the project and the prequalifi cation stage ensures the selection of a competent contractor, which does not solely focus on the price aspect, but also the technical proposal so as to encourage the contractor to come up with a better design (Cot3).

Compliance with Employer’s RequirementsA specialist group was formed at the tender stage, which is responsible

for ensuring that the ER were fulfi lled as the ER is part of the contract (Ctr1). Such task was performed during the tender assessment stage where procedures were drafted to ensure the matching (Clt2). It is essential for the designers employed by the contractor to follow the requirements in the specifi cation. During construction, the design checkers were required to monitor the details of the proposal. Indeed, it is the job of the design checkers who are responsible for ensuring that the design of the D&B project complies with the ER and that the D&B project proceeds in accord-ance with the statutory regulations. The Supervising Offi cer Representative (SOR) will also carry out the design checking duties (Clt8). Some design approval procedures, like the Approved In Principle (AIP) and Detail Design Approval (DDA), were effected to further ensure that the design can meet the ER requirement (Cot3). One consultant interviewee claimed that it is not diffi cult to meet the requirements of the client since the ER, as part of the contract, should be met (Cot4).

Liaison with End-usersCommunication among project participants and end-users is important

to achieve the stated purpose of the building [25]. In the LORQ project, the overall master program was drafted in the pre-tender stage. There was little control at the outset of the project, which was heavily based on the experience of the previous D&B projects (Clt8). The feedbacks of the project-related participants were incorporated in the coordination program where meetings were held to invite all related participants, includ-ing the end-users, i.e., Government Property Agency (GPA). As a result, the feedback of the end-users has already become the project brief and the ER. Details in the control programme included formulating the ideas into packaging of design to make sure that the package activities work in line with the sequence of actual works. In the case of re-design, the control programme will be revised (Ctr1). Moreover, there were liaison meetings between the client and the end-users, apart from the regular meetings with the contractor to collect feedbacks from different project

participants (Clt2). The end-users may also require the contractor to make mock-ups, e.g., where to put the accessories in kitchen and bathroom, the layout of IT items, and some special architectural features like the main entrance, the podium and the clubhouse areas. The schedules of the meetings follow the programme and design management of the contractor. Moreover, there is no need for the contractor to communi-cate with the end-users, who were contacted by the client (Cot3). End user satisfaction can also be known when the project is fi nished and the reports on complaints can indicate whether the feedbacks of the end user are well-treated (Cot4).

Innovative Management ApproachesUnder the traditional type of contract, it usually takes time to com-

plete the fi nal account of the project. To speed up the settlement, a regular meeting was held every month to discuss the variation orders (VO) so that the fi nal account can be settled within the specifi ed period (Cot3). Formal partnering procedures were not followed but informal partnering principles were applied to the project to foster an open and dispute-free work atmosphere to enable a timely and effi cient feedback (Ctr1). A partnering workshop was initiated at the start of the project by the contractor to gather design issues for the project and to convey all participants a sense of partnering (Cot4). Moreover, a dispute resolving person called the dispute resolution advisor (DRA) was employed in the project where a professional body is employed to take a proactive role whenever disputes arise (Clt2). While partnering suggests a friendly concept, DRA is rather a straight forward approach where an independent third party was employed and 50-50 paid by the client and the contractor to deal with disputes. Such an approach is a tool to achieve the partnering concept and has been adopted in some government projects, provided the contract sum exceeds a certain amount (Cot3, Clt8).

Case Project (2) - Slaughterhouse Project (SSS)Project Details and Features

The project consists of the Lairage block, Slaughter block, Meat dis-patch block, Administration block, Platform and railway siding area and underground wastewater treatment plant [27]. It is the fi rst government-funded project adopting Novation D&B in Hong Kong and it is designed to meet the highest international standards for hygiene, i.e., European Community (EC) and United States Department of Agriculture (USDA)

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Figure 3: Novation D&B contract [18]

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standard [26,27]. The slaughterhouse is housed in a confi ned place to avoid the leakage of odour. It also makes the best use of natural sunlight by designing the lower storeys in a confi ned area while the upper levels are enclosed by transparent and fi xed window to enable exposure. Sun shaders are built to avoid direct sunlight to the slaughterhouse and allow refl ection and refraction of light rays.

Regarding the design, the project is rather new in the environmental protection requirements which include noise, odour and waste water, all of which require special attention. An extensive waste water treatment was applied and so the operation effi ciency minimized water usage by 20%. The waste water was also pretreated before discharging and the “Flotation Clarifi er Activated Sludge” waste water treatment process was adopted. The discharge was also monitored by on-line monitoring system. The indoor air quality was safeguarded with the use of high effi ciency particulate fi lters and ultraviolet light and sterilization system. Positive pressure was also maintained in the Meat Dispatch Area. To control the odour and gas emission, the odour level at sensitive receivers was moni-tored. The water hose points, lorry wash bay, enclosed waste skips and containers, and manure chutes were also set up. Several noise mitigation was exercised, including acoustic louvers, acoustic enclosures and silenc-ers, double glass panels, perimeter noise barrier walls and off site noise barrier walls. Several solid waste disposal measures were adopted, like the use of close container vehicle, dewatered sludge and coagulated blood and the treatment of condemned carcasses in plastic bags before disposal. Indeed, safety aspect is one key design consideration in the project and some principles were adopted, e.g., the provision of protection covers, warning signs and signal, extensive training to operator, sage storage of chemicals, multiple batch testing and extensive period for commissioning. The functional requirement of the project was highly stressed and the aesthetic issue may not be of paramount importance since the project is not necessarily the landmark. However, there was great improvement in the design when compared to the other slaughterhouse in Hong Kong in terms of the aesthetic purpose and visual impact. Special attention was also paid to the height of the building and its presence in harmony with the surrounding areas (Clt15).

Development of the BriefThe design objectives of the project were derived from the consid-

eration of cost economy, operational effi ciency, energy conservation, waste recycling, animal welfare and environmental awareness [28]. As Hong Kong does not have much experience in designing and managing slaughterhouse projects, the brief was developed by the client, the design team consultants, the operation consultants and the specialist consultants, and a feasibility report was conducted (Cot5). It is diffi cult to draft the ER because of the fast development in slaughtering technology. Take the design of the water treatment plant of the project as an example. It was estimated by the client that a certain amount of water was to be treated every day. Therefore, the contractor was required to design the plant to cater for the required quantity and to the required standard. However, the client was not determined to state such requirement in defi nite terms since the client did not want too much fl exibility. The design should also meet the requirement of environmental protection. As a result, there was a section termed ‘Inviolable design requirement’ in the contract, the requirements under which cannot be altered. Such section gave the contractor an idea of changes and fl exibilities in the design of the project. The contractor interviewee believed that the brief is clear, particularly the hygienic section which is quite stringent (Ctr16). By contrast, the selection of materials was quite fl exible and no particular brand had been specifi ed

so long as the product can meet the requirements.

Quality ManagementThe contract was tendered on a set of guideline drawings and perform-

ance driven specifi cation, with a unique provision that the consultants team would be novated to the Contractor [27]. Indeed, both the D&B contractor and the novated consultant are HKQAA accredited companies and the requirements of ISO9000 are strictly followed in the project. Overseas experts were invited in the preparation of the outline design and the contractor appointed independent design checkers for the design of the novated designers in the pre-contract stage. The combined team was also charged with the responsibility of the design, construction and commissioning of the project. Heavy demand was therefore required by the D&B contractor’s organization in design and technical coordination. As the consultants’ company housed all types of designers for architectural, structural and building services designs, coordination would be better to secure the single-point of responsibility [26]. One consultant interviewee pointed out that the existing design approval procedures can deal with the quality management, provided there was adequate time for checking which was stated in the contract. The quality of workmanship was moni-tored by the independent consultants and the site team members (Cot5). Key project staff was also resident on site for better communication and coordination [26]. For material procurement, the materials were fi rstly submitted by the contractor to the novated consultants. Upon approval, the materials will be submitted to the design checkers for comments. The materials will fi nally be submitted to the client for endorsement. The shop drawing submission was similar, and lots of comments were received from the design checkers. Clear procedures were also enacted to achieve the required performance requirement and the contractor was required to make good for any difference to achieve the required standard included in the Special Features of the contract. The client interviewee mentioned that the level of quality standard has no direct relationship with the type of procurement and the contractor interviewee did not agree that the quality would be sacrifi ced under D&B since the contractor can hardly provide a product with inferior quality in the presence of design check-ers and the client’s representatives. (Clt15, Ctr16). Indeed, the design checking procedures are more complicated than those in the traditional system and the design approval process requires the endorsement from the designers, checkers and the client (Ctr16). Other statutory bodies would also be invited to give specialist advice to the client [26].

Compliance with Employer’s RequirementsThe project required highly specialised equipment not only in the

slaughtering hall, but also in the environmental engineering aspect. Moreover, the client was aware of energy conservation and life cycle costs [27]. As a result, the matching of the contractor’s proposal and the ER was done through the design approval procedures, the AIP and the DDA. Independent checkers were also employed to ensure that the ER were satisfi ed (Cot5, Clt15). In fact, the client organization does not have a separate consultant fi rm to check the detail design submitted by the D&B contractor. It relies mainly on the checking by the independent design checkers [26]. Although the designers and the checkers were all employed by the contractor, the D&B contractors in Hong Kong are all large in scale and have reputation in the industry. They would act impartially to maintain the reputation in the industry (Ctr16). Moreover, the client’s design consultants were novated to the D&B contractor after contract award, who had a better understanding of the original design requirements than any other consultant fi rms did [26,28]. In case the client initiates a

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change, the contractor is required to submit a brief assessment on time and cost implications for approval by the client’s representatives. Such procedures are similar to those in the traditional method.

Liaison with End-usersPre-tender meetings were organized among the design team members,

the client and the prequalifi ed tenderers. At the meeting, the principal consultants would collect information from end-users before the return of tenders. Reports were made and submitted to the relevant departments for reporting purposes and feedback was collected so that follow-up ac-tions would be taken. Such reports were prepared from the start of the project till completion. More meetings were held during the progress of the project to collect the feedback on an ad-hoc basis. When the project was fi nished, the client would be asked for the satisfactory level and verbal comments would be collected for future improvement. To satisfy the requirements of different end-users, a close liaison with the related departments was required to set up the standard for the project together with testing and commissioning to verify the results (Clt15). There was no stringent mechanism for collecting the feedback from the clients and the end-users and normally only meetings were held for the purpose. Indeed, the contractor may not be the main driver to initiate meetings. However, one consultant interviewee believed that consultation with end-users may not be appropriate, which may even cause a disturbance to the D&B project (Cot5). Indeed, changes can occur at any time but the changes regarding the layout were few, probably because the initial layout has been confi rmed and the late requests may constitute additional time and cost. Moreover, the client actively involved in the progress of the works throughout the contract and so the client did not have major changes when the project came to an end (Ctr16).

Innovative Management ApproachesThe client interviewee claimed that no special management strategies

were applied to the project and only the general management principles were adopted (Clt15). Moreover, only the partnering concept was shared among the parties but no charter was signed (Ctr16). The main aim of partnering was to identify the objectives of the project which should be communicated to other project participants. To achieve a win-win situation, the opposing two-side relationship should not be established between the client and the contractor. Instead, the problems of the contractor should be put forward in meetings and should be solved by all relevant parties including the client. Such operation follows the essential spirits of partnering and the project participants can all cooperate with each other. Although there was no such requirement in the contract, the objectives of time, cost and quality should be achieved and the concerned parties should be open to discussion (Clt15). Value engineering has also been applied to the project to achieve cost saving [28]. Three-day workshops were organized to verify the design issues of the project and discuss the suitable system method. A matrix of project participants was involved and the experience can act as a reference for future projects (Cot5). As a result, the relationship between the novated consultants and the client was maintained, ensuring an open communication among the parties [26].

Case Project (3) - Hospital Project (TKOH)

Project Details and FeaturesThe project was the second hospital project procured by the enhanced

D&B method, which modifi es the standard form of D&B to allow for

a greater client control on the design of the project [9]. It is an acute general hospital with 458 beds and 120 day beds equipped with facilities like the physiotherapy services and more advanced day-time treatment and rehabilitation types of facilities and clinics since the future of hos-pital service aims at keeping the patients out of beds. Therefore, the size of the hospital should become smaller, but be provided with more rehabilitation facilities. The client interviewee pointed out some new designs in the hospital project (Clt13). For instance, there is a triangular wall in the main entrance and the nursing seating area nearby can en-able the nurses to have a wide angle of viewing all the patients. It is one innovative feature of the hospital building which has not been adopted elsewhere before. The three triangular ward towers and the landscaping surrounding the hospital were designed without demolishing the green plants [24]. The construction method for the project is quite traditional, which is the traditional timber formwork with reinforced concrete frame and concrete walls. Indeed, very few concrete walls were used inside the building. Instead, dry wall partitioning was used for the installation of the huge number of services. The structure is composed of columns and beams of 9 metres to provide a wide span for housing different types of equipment. There were no bearing walls and much glazing was used to make a more pleasant environment for the patients.

Development of the BriefThe client is the Hospital Authority, which developed the design, using

their own team of consultants, to a point where the signifi cant planning issues and inter-departmental relationships were all determined [29]. It also prepared a comprehensive functional brief with schedules of ac-commodation, generic room data sheets and furniture and equipment schedules. Tenderers were required to submit a conforming bid based on this design. As the hospital is a new project and all the equipment is new, the planning of the respective departments in a typical hospi-tal building, like the operating theatre, is very important. Indeed, in D&B hospital projects, it is essential for the participants to have good concepts on the functions at the design stage (Clt13). The architect needed to have a fi rm idea of how the building looks like in the design of the architectural features like those in the atrium since it may not be suitable for the contractor to develop the concept of the building. The brief documentation includes three parts, namely the functional brief, the schedule of accommodation and the performance specifi cations. It stated clearly the mock-ups that were needed, the functions of the mock-ups and how the mock-ups should be constructed in the building. Therefore, lists of mock-ups and advanced fi t-outs were clearly stated in the tender document. The performance specifi cations were considered by the client respondent as being well written. However, for some E&M services, because of the rapid change in technology, some kinds of cabling or conduits may not have been specifi ed early at the start of a project. At the time when the services were installed, the services may become obsolete. Besides the brief documentation, the client was required to show certain new features of the D&B hospital to the tenderers. Mock-ups were also required in some special features of the project, including the whole triangular nursing station with all necessary joinery work and services, and for some repetitive portions in the building. In fact, the TKOH project is the second hospital project adopting D&B with better management in documentation. Moreover, D&B allows better idea in design by outsourcing which enables the client to obtain a more innova-tive building from the contractor who associates with consultants of all types and from all over the world to develop the brief.

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Quality ManagementA consultant project manager was appointed to take up the project

management role in the Steering Committee on behalf of the client, the Hospital Authority. He acted as a coordinator to maintain tight control over time, cost and quality for the project. He also coordinated meetings to manage the design, construction and commissioning stages of the project. A project team and a tailor-made project management system were set up based on the Procedures Manual to regulate all controls and change systems. The Design and Build Procedures Manual was also established to guide the main contractor on both design and construction procedures. Regular meetings were held for controlling the progress of the project [24]. Strict controls were placed on the ability of end-users to introduce changes to requirements to ensure that the project would be completed within budget and time constraints. Indeed, the contractor was allowed to offer variations in the TKO project, as long as there is no cost implication. For instance, some medical carpets, which are imper-vious glass carpets, were cited in specifi cations and the ‘or equivalent’ phrase was inserted. So long as the alternative can achieve the required performance, the contractor can put forward his suggestion. Another example is the insulating material at roof, which is the more expensive glass rod in the requirements. Instead, the contractor proposed the use of polyfoam or polystyrenefoam, which are plastic in nature and can give the same performance. The two materials were quite similar in performance, except that the glass is infl ammable while plastics can burn. However, the fl ammability was not the main concern on the structure of the building in the project. As a result, based on the basic similarity of the two materials, the cheaper plastics can be used but the savings were deducted from the contract sum since there is slight difference in performance, which is the infl ammability. Therefore, the contractor can change the specifi cations with suitable alternatives and offer the client savings. Sometimes, the client tends to prefer the use of proprietary products due to higher guarantee on quality.

The project manager was responsible for site supervision, which was badly needed to control the quality of D&B projects (Clt13). Moreover, senior resident architects (SRA), senior building services engineers (SBSE) and resident engineers (RE) were employed by the client for supervising the site works. Some more front-line offi cers were also resident on site to assist the works of the supervising offi cers, including the clerks of works (COW) and the building inspectors. They all situated on site once the project started to work on quality issues. Although the client has some design procedures to maintain the quality of design, the contractor is also required to have design management to manage his own design. He was required to prepare the Quality Plan for the project, which should be approved by the Project Manager and the client. Monthly progress meetings were also held among project participants to report the progress of works and resolve the problems encountered during construction [24]. To better safeguard the quality of the hospital project, mock-ups or advanced fi t-outs for some units in the hospital were required so that the requirements can be met fi rst from on-site observations before repetitive units can be produced. For example, as more than 95% of the people are right-handed, the position of the control panel should be planned from which the doctor can know how long he has been working on, which always needs to be timed. The location of the gases should also be carefully placed to avoid obstacles to the doctor. The objective of the advanced fi t-outs is to ensure that every apparatus or instrument is in its right place. Such fi t-outs have sophisticated and expensive equipment placed which involves normally several millions and would not be taken

away once all the parties were satisfi ed with the layout. In the TKOH project, advanced fi t-outs were prepared for the operating theatre at the time near to completion while mock-ups were prepared for the nursing area which was taken away for fi nal set-up.

Compliance with Employer’s Requirements The project management team together with the overseas design team

employed by the client formed the Core Planning Team (CPT) which was held responsible for the control of the design of the contractor. In D&B projects, it is necessary to have checking on the design and the Project Manager regarded the design checking as the most important control process [24]. While the checking of the architectural design was carried out by the supervising offi cer representative and the design team, services installation checking was conducted by the structural consultant and the E&M consultant. To ensure consistency among the facilities, the client has developed a system of standards, not only in physical terms but also in terms of management [30]. All the parties were required to report to the Project Manager on the comments and design problems. At the start of the project, the client gave the contractor 1:200 drawings in the tender and the contractor was required to prepare the Approved In Principle (AIP) design for the drawings. The drawings required approval from the client in which the client was welcomed to make comments regarding the drawings. After the AIP design for the 1:200 drawings was prepared, the contractor would do other AIP designs for every element in the archi-tectural and E&M works. Detail designs, which were in the ratio of 1:50, would be made for all the elements including the doors and walls. The Detail Design Approval (DDA) was given based on the comments from the clients because it is the responsibility of the contractor who should comply with the performance specifi cations in the brief document and the client is not obliged to inform whether the contractor has complied. It took much less time for the AIP to be issued so long as the contractor complied with the specifi cations. By contrast, DDA took much longer time over the project (Clt13).

Liaison with End-usersThe tendering documents were made from gathering of information

from the end-users. At fi rst, schedules of accommodation and the functional brief were prepared from a series of meetings with the end-user departments. The Functional Brief was developed into 1:200 scale plans, sections and elevations, which were signed-off by the user groups and became the basis of the drawings in the tender documents [24]. The briefi ng process has been examined and refi ned so that end-user requirements were better satisfi ed and projects were less delayed by design changes [30]. Then the contractor was required to interact with the end-users to formulate the 1:50 drawings (Clt13). To avoid frequent changes from end-users, a cut-off date was fi xed beyond which further variations were put on hold until the building project was complete [30]. The client also set up a Steering Committee to coordinate and control the large number of end-user groups. The supervising offi cer also acted as a communication bridge between the end-user and the contractor. Once the drawings were signed off by the client’s representative, any end-users proposing changes to the signed drawings were requested to fi ll in a change proposal form. The change proposal form would be forwarded to the Core Planning Team (CPT), which was made up of the Project Manager and the client’s representative to assess whether such changes were justifi ed. Then the changes would be passed to the contractor as a variation order. It is necessary to explain to the end-users the cost and time implications incurred from a change since the change

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may not be necessary. As a result, all changes requested by the end-users were managed in accordance with strict procedures from the Steering Committee for fi nal decisions. As long as the end-users’ requirements complied with specifi cations, the end-users’ needs should be satisfi ed. If no details were given in the performance specifi cation, the client should accept what the contractor proposed (Clt13).

Conceptual design requirements were necessary for the mock-ups, such as the details of the joinery and other heavily repeated items since it is diffi cult to describe the components as perfectly in drawings and the mock-ups are important to demonstrate the details in order to reach agreement with the end-users. When the mock-ups of a functional unit, like the nursing area, were prepared, some relevant parties including the end-users would be invited for inspection and required to fi ll in question-naires to report on inconsistencies. The building professionals can then pick up the concerns raised by the end-users to modify the mock-ups. Indeed, it takes some time for the evaluation of the mock-ups since the end-users of a hospital project are medical persons who are busy at work. Every set of the questionnaires was then checked to discuss with the Core Planning Team to decide how to modify the mock-ups.

Innovative Management ApproachesThe partnering approach was written in the tender document, which

became an important management aspect for the project (Clt13). Moreo-ver, the client has set the partnering regimes and required the tenderers to describe the details for partnering in their tenders. Partnering was exercised where partnering workshops were conducted with the client, contractor, consultants and end-users at key stages of the contract to

achieve willingness from all parties to improve the cooperative relation-ship and resolve disputes. A Partnering Charter was also drawn and signed and meetings were conducted regularly to monitor the process of partnering [24]. Value management techniques were also applied to enable the project participants to identify the goals and derive suitable solutions to fulfi ll the client’s requirements [31]. Since the outline design has been made before the award of the contract, the contractor cannot make big changes to the design since the requirements were defi ned in the enhanced D&B (Clt13).

Summary of Management Approaches for D&B Projects

The management strategies in brief formulation, quality management, compliance with employer’s requirements, liaison with end-users and innovative management approaches of three recently completed D&B projects of different D&B variants are described. It is clear that the management tools adopted by the practitioners for D&B projects are, to some extent, similar to those procured through the traditional method, especially in supervision of on-site works at the construction stage, which relies heavily on the experiences of the resident supervising offi cers. The D&B contractor becomes the ‘driver’ of the D&B project and is expected to be more competent at risk and dispute resolution management. Besides the traditional tasks of material ordering, scheduling planning and construction supervision, the contractor is also required to control the design issues of the project and coordinate among designers and sub-contractors. Therefore, the responsibilities are not just confi ned

Table 3: Management approaches for different types of D&B projects

Project Case Project (1) Case Project (2) Case Project (3)

Brief formulationFormulated by the in-house

consultants; rather rigid in terms of design fl exibility

Design objectives stated at the outset of the project; section on ‘Inviolable design requirement’ for special unalterable items

A comprehensive functional brief developed with schedules of accommodation, generic room data sheets and furniture and equipment schedules; the importance of mock-ups and advanced fi t-outs stated in the tender documents

QualityManagement

Assess the design submissions by the internal project team members; supervision at the construction stage similar to that under traditional contract

Overseas experts invited in the outline design; design con-sultants novated to contractor for better design and technical coordination

Set up of Steering Committee to maintain tight control over time, cost and quality of the project; manuals on design-build procedures enacted for project implementation

Compliancewith Employer’sRequirements

A specialist group formed at tender stage; AIP and DDA operated and design checkers employed

Independent design checkers employed for checking; AIP and DDA in place

Set up of Core Planning Team to control the design of the contractor; AIP and DDA operated and design checkers employed

Liaison withEnd-users

Feedbacks incorporated in the coordination program; liaison meetings held between the client and the end-users

Pre-tender meetings organized to collect information from end-users; reports on feedback col-lected for follow-up actions

Tendering documents prepared from end-us-ers’ consultation; sign-off procedures for tender drawings; mock-ups prepared for end-users’ comments

InnovativeManagementApproaches

Informal partnering principles applied; DRA employed for dispute resolution

Partnering concept shared among parties; value engineer-ing applied to achieve cost saving

Partnering workshops conducted among parties; value management techniques applied to improve design solutions

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to the construction aspect, but also extend to design and management.

Structured interviews with selective participants provided real-life ex-periences of the management issues for D&B projects. It is revealed that some basic procedures like the design checking and approval procedures are similarly adopted in the D&B projects to safeguard the quality of the project, and the degree of design fl exibility depends on the nature of the project, which in turns determines the variant of the D&B project. The D&B residential quarters, being the traditional variant, is simpler in design and hence gives more fl exibility to the contractor to induce in-novation. The D&B slaughterhouse, being the novation variant, is more complicated and specialized in nature, conferring less fl exibility in design for the contractor. The D&B hospital, being the enhanced variant, is housed with a variety of services and advanced equipment and so more efforts are placed on the end-users’ requirements to make sure that the project meets the functional standards. Table 3 provides a summary of the management approaches highlighted in the survey. The quality of the building outcome should be independent of the type of procurement adopted. The D&B procurement method may even better achieve the quality requirement because of the more systematic design checking pro-cedures which involves different types of professionals. Such mechanism enables a strict compliance with the client’s requirements.

ConclusionsDesign-build has been increasingly adopted all over the world and

practitioners in the industry may fi nd it important to know the man-agement strategies in some recently completed D&B projects for their decision-making towards the use of such alternative procurement system. This paper presents the key fi ndings from structured interviews with industry practitioners to evaluate the management approaches in the D&B projects.

The research indicates that most management controls are common to both traditional and D&B methods. However, D&B projects require more control on design management, compliance with employer’s requirements and liaison with end-users. The knowledge on managing D&B projects can help formulate and develop new D&B guidelines and practices. Moreover, understanding the current management approaches for D&B projects provides a foundation for developing uniform guidelines and standards, especially in places where D&B continues to expand. Further research should be conducted on examining the problems quantitatively and identifying the critical factors to enhance the success of D&B projects.

AcknowledgementsThe authors gratefully acknowledge the respondents for providing

valuable information in interview surveys and the Hong Kong Polytechnic University for providing funding to support this research effort.

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Documents

Lessons from Managing Design-Build Construction Projects in Hong Kong