PROJECT

DELIVERY
1. SYSTEM
BUILDING
CONTRACT,
2. CONTRACT
APPROACH &
3. CONTRACTUAL
ARRANGEMENTS

DR AN NISHA NUR
WELLIANA BINTI ABD
RASED
INTRODUCTIO
There are many alternatives
N contractual approaches to bring
together a team for the design
and construction of a project.

Project delivery system is referred to method or

way that use in implementing the project and also
refer to the parties that involve such as owner/client
and professional member (engineer , architect) in
1. BUILDING
CONTRACT
Introduction to a basic
understanding on building
contract
DEFINITION OF A CONTRACT:
A contract:
• is a legally binding document
between that defines and governs
the rights and duties of the parties
to an agreement.

• is legally enforceable because it

meets the requirements and
approval of the law.

• typically involves the exchange of

Basic elements that should be included to establish
contract according the contract act

01 OFFER 05 INTENTI
ON
INFOGRAPHIC

02 ACCEPTA 06 FREE
NCE CONSENT
CONT
RACT
ELEM
CONSEN
03 CONSIDER ENT 07
ATION SUS
AD ITEM
OPTION

04CAPACIT 08NOT VOID

Y
 CONTRACT
APPROCH
A TRADITIONAL
OPTION
CONTRACT
Design-Bid-Build

OPTION

B POST MODERN
OPTION
APPROACH
Design and Build Contract
 TRADITIONAL
CONTRACT
(design-bid-build)

Much of the work may actually be performed by

individual trade contractors under subcontract to the
general contractor.
Although the subcontractors normally bid upon a
portion of the owner’s plans and specifications,
BUT…..their legal contractual relationships are directly
with the Main contractor; the latter, in turn, is
responsible to the owner for all the work, including that
which is subcontract.
TRADITIONAL CONTRACT
(design-bid-build)
The owner first hires a design
professional, who then prepares a
design, including complete contract
documents.

With a complete set of documents

available, the owner either conducts a
competitive bid opening to obtain the
lowest price from contractors to do the
work or negotiates with a specific
contractor.
The contractor is then responsible for
delivering the completed project in
accordance with the dictates of the
contract documents.
   TRADITIONAL
CONTRACT
(design-bid-build)
Owner
Contract
Designer relationship

Main / General Contractor

Supervise
at
site only Subcontractors
Domestic Nominated
Subcontractors
ADVANTAGES:
Traditional Contract
The traditional method has been well known to many parties; to
owners, designers, and contractors.  The procedures and contractual
rules of conduct have been worked out and are well understood.

Many professionals prefer this well defined relationship, which

reduces uncertainty.   This means that a project is more likely to
proceed smoothly from beginning to end.

The mode also contains considerable contractual protection for the

owner. The allocation of risk for construction performance rests
almost completely on the contractor and the subcontractors. 

Additionally, the traditional method provides the owner with all the
benefits of open market competition. 

The open bidding procedure, in which the lowest bidder is the

‘winner’ gives the owner the lowest price available in the
marketplace and presumably the greatest, economic efficiency.
DISADVANTAGES:
Traditional Contract
The  construction professional does not enter process
until the design is complete, meaning that the design is
not usually reviewed for constructability before it is
finished.
Design features that could have been built more
economically or effectively often result in higher costs.

Some design firms overcome this problem by hiring pre-

construction consultants or having construction
professionals on their staffs. Although this benefits the
project, it is not as effective as having the design
reviewed by the person who actually have to build it.
The traditional approach is difficult to reduce the time
required to do both design and construction. From
figure below, the process is sequential and linear, there is
no opportunity, to overlap tasks and thus reduce overall
time.
DISADVANTAGES: Traditional
Contract (CONT’D)
Finally, all parties work as an individual in this mode. 

The designer designs the project based on the owner’s

instructions.
The general contractor prices and schedules the project
based on the construction documents alone. 

This approach provides little opportunity for interaction

and team building among the participants can lead to
major breakdowns in relationships.
Conventional Sequential
Construction
DESIGN

PROCUME
NT

CONSTRUCT
ION
 A In design and build project,
there is no separation of design
and construction.
The owner hires a contractor who
undertakes the entire

B
responsibility of the project from
design to construction and also
commission. Entities offering this services may
be design & build firms with in-
house employees or joint-venture

An owner hired a master builder,

C firms that come together
contractually to perform a single
who designed the project, acquired project
the materials, and hired and
supervised the craft workers on the
site. This mode of delivery became D
less popular as professional tasks
became more specialized. POST MODERN
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APPROACH
EDUCATION

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(Design and build)
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 POST MODERN
APPROACH OWNER
(Design and build)
DESIGN &
BUILD
CONTRACT
OR

DESIGNER GENERAL
CONTRACTOR

SUBCONTR OWN FORCES

ACTOR WORK
• Single firm responsible for both design and construction
• Specialty subcontractors
• Fixed price, unit price, guaranteed maximum, or cost plus a fixed construction contract
• Negotiated professional fee for design services
 POST MODERN
APPROACH
DESIGN (Design and build)

PROCUMENT

CONSTRUCTION
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 ADVANTAGES: Post
•
Modern Approach
One major reason for choosing a design & build arrangement is
to benefit from the good communication that can occur
between the design team and the construction team.

• This collaboration allows the project to be easily fast tracked,

cutting down on overall schedule for the project.

• Good communication between the designers and the

construction professionals also allows construction input early
in the design phase.
• The owner is less heavily involved and sits outside the direct
day-to-day communication between designer and constructor.
INFOGRAPHIC
• This keeps owner staffing to a minimum and puts the EDUCATION
full
responsibility for good communication, problem solving,designed
and by
project delivery on design/ build team. tinyppt.com
 DISADVANTAGES: Post
Modern Approach
• Although it is possible to give the owner a fixed, firm price before
the project begins, this generally does not happen in a design/
build arrangement.
• This is because the firm is hired before the design has started, any
real pricing is not possible. Instead, an owner usually enters this
arrangement with a conceptual budget but without the guarantee
of a firm price.
• When a design & build company has an organization that is
efficient at performing the work, the project can move very fast.
• Lack of checks and balances. In the traditional arrangement, the
designer prepares a complete set of contract documents, which is
then used to measure and evaluate the performance of the
INFOGRAPHIC
contractor in the field.
EDUCATION
• The owner often hires the designer to oversee the work of the
contractor and to ensue that deficient work is identified designed by
and
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• But in the design/ build arrangement, the designer works for the
 Design and Build in
Malaysia
• The Design and Build system was first launched in the Public
Works Department by the Malaysia Prime Minister in 1983.
The first project handled by this unit was the Kuala
Terengganu Hospital, which was completed in 1985.

• Other example : Twin Petronas Tower, Kuala Lumpur

International Airport, Malaysia North South Highway,
Penang Bridge and etc,.

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KUALA LUMPUR 
CONVENTION
CENTRE
Contract Value : RM
549,300,000.00
Client : Kuala Lumpur
Convention
             Center Sdn Bhd
Completion : October 2005

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 NATIONAL REGISTRATION
DEPARTMENT AND MINISTRY OF
ENTREPRENEUR AND
COOPERATIVE DEVELOPMENT
Contract Value  :
RM 319,300,000.00
Client : Putrajaya
Holding Sdn Bhd
Completion: December
2003

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 Comparison of Traditional Contract &
Design & Build Contract
TRADITIONAL CONTRACT D&B CONTRACT

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