Delivery method

1. Traditional lump sum - measurement contract

- cost reimbursement contract
2. Project management
3. Partnership/integrated
4. Design and build

Traditional lump sump Project management Partnership/integrated Design and build

 Separate design process  The basis of the

from construction The design and
client must provide construction
complete documents (ie
procurement is that
drawings, work
schedules, bills of
the general
quantities) before contractor is
inviting contractors to responsible for the
bid for work. design and
 Contractors are construction of the
usually selected and project at the agreed
appointed through total price.
competitive bidding,  Plan and
but sometimes they manufacture ventures
are appointed through can shift contingent
negotiation.  upon the degree of
 The terms of many the temporary
traditional contracts worker's plan
require clients to obligation and how
appoint professional much introductory
consultants (ie plan is remembered
architects, quantity for the business'
surveyors, contract prerequisites. By and
administrators) as by, the degree of
independent contract plan obligation and
administrators.  contribution from the
 Customers can contractual worker is
control the design a lot more
through their noteworthy on plan
designated and manufacture
consultants (ie ventures than a
architects). Generally, conventional
the contractor does agreement with a
not bear design contract based
responsibility. worker's planned part
 Design and  Sufficient time must
construction are be set aside to
separate sequential prepare the
processes-this employer’s
increases the total requirements
time of the project.  (employers usually
 The project cost can appoint consultants
be reasonably to help them), and
determined because contractors prepare
the contract figures time to prepare their
are usually known proposals and bid
from the beginning. prices. Before
The contract does signing any contract,
have provisions for the proposal must
expenses, if meet all the
necessary, it can be requirements of the
adjusted later. employer, which is
 One-time contracts very important.
are more inclined to  The employer can
customers, while control any design
metering contracts element of the
are less so. In terms project included in
of design, quality and its requirements, but
cost, the traditional once the contract is
one-time payment allowed to transfer
method is a relatively the design
low-risk procurement responsibility to the
option for customers, contractor, the
but the entire project employer cannot
may take longer than directly control the
other procurement contractor's detailed
methods. design.
 For a lump sum  Contractors can
contract, the contract design in many ways.
amount is determined Usually, they will
before the start of appoint their own
construction. consultants or use
 The "quantity" their own internal
contract is priced team. Contractors
according to the usually hire
drawings and the employers’
confirmed quantity consultants and
list. "No quantity" continue to use them
refers to contracts to complete detailed
that are priced based designs under so-
on drawings and called renewal
 usually other agreements.
documents such as  Since design and
specifications or construction can be
work schedules. carried out in
parallel, the overall
SCENARIO planning time for
 A traditional lump design and
sum contract  requires construction projects
a set of documents to can be shortened.
be presented before However, it depends
bidding. There must on how much design
be enough time for the contractor is
this. responsible for.
 Traditional  Since the contract
procurement methods price is known from
assume that the the beginning, the
design will be cost can be
appointed by the determined
consultant, and reasonably. If the
usually does not employer does not
imply that the order changes during
contractor undertakes the construction
any design period, the contractor
obligations. In this will be obliged
case, the contract (subject to
should contain clear conditions) to
terms. complete the project
 When employers for the contract
appoint consultants to amount. If the
advise on all matters employer does
of design and cost, require design or
they can therefore specification changes
fully control the during construction,
required design and the contractor’s
quality. suggestion to do so
may have an impact
 The contractor
on the cost or
largely depends on
additional time
the necessary
required.
information released
on time and the 
instructions from the
architect. Risk of
claims if delayed
 Although the
contractor may
require certain
 performance-related
protection measures,
the employer can
decide which
professional
companies the
contractor will use

MEASUREMENT
CONTRACT
 Before the
completion of the
project, the contract
amount of the
measurement contract
will not be finalized,
and will be reassessed
based on the
previously agreed
basis.
 This type of contract
may occur when the
contractor's work
cannot be accurately
measured before
bidding.
 Normally, the design
will be reasonably
complete, and bidders
can get accurate
quality instructions.
 This type of contract
with the least risk to
the customer may be
a contract based on
drawings and
approximate
quantities.
Measurement
contracts can also be
based on drawings
and prices or price
lists. A variant of it is
a measurable fixed-
term contract under
 which a single work
can be initiated as
part of a work plan by
instructions, and
pricing is based on
rates related to the
types of work that
may form part of the
plan.

COST REIMBURSE
CONTRACT

 These jobs are

sometimes referred to
as "cost plus" or
"original cost"
contracts, which are
based on the sum of
the actual costs of
total labor, plant and
materials, and add a
certain amount of
expenses to cover
management
Expenses and profits.
 The amount of
overheads and profits
can be fixed amounts,
percentages or other
repayments.
 This type of contract
is usually only used
when other
alternatives cannot be
used in the project or
there is a spirit of
cooperation, because
this may cause a great
risk to the customer.

ADVANTAGES
 Accountability due to
competitive choices;
 All bidding
contractors bid on the
 same basis;
 The design leader and
the customer can
have a direct impact,
which can promote
high-level functions
and improve the
quality of the overall
design;
 The certainty of the
price when the
contract is awarded;
 Contract changes
(changes) are
relatively easy to
arrange and manage;
and
 A tried-and-tested
procurement method
that the market is
very familiar with.

DISADVANTAGES
 Complete contract
documents can be
generated in time.
Can produce
incomplete design
bidding documents,
but can reduce costs
and time certainty,
and may cause
disputes
 The overall project
duration may be
longer than other
procurement methods
because the strategy
is continuous and
construction cannot
be started before the
design is completed
 The contractor did
not appoint them to
participate in the
design or planning of
the project during the
design stage.