PARTIES INVOLVED IN THE CONSTRUCTION INDUSTRY

FEDERAL

PUBLIC
SECTROR

PRIVATE
SECTOR

STATE

OWNER
DEVELOPER

LOCAL

APPOVING
AUTHORITIES

FINANCIER

PROJECT MANAGEMENT
CONSULTANT, PARTNER,
ARCHITECT, ENGINEER
(CIVIL,
STRUCTURAL,MECHANICAL
ETC), QUANTITY SURVEYOR,
LAND SURVEYOR, INTERIOR
DESIGNER, LANDSCAPE
ARCHITECT, OTHER
SPECIALIST CONSULTANTS

CONSULTANT
S
MAIN
CONTRACTOR

BANK, FINANCE
COMPANY,
CREDIT
CORPORATION,
LEASING

MATERIAL &
EQUIPMENT
SUPPLIER

NOMINATED
SUPPLIER
MANUFACTURER,
IMPORTER,
DISTRIBUTOR

NOMINATED SUBCONTRACTOR

BUILDER/
CONTRACTOR

MANPOWER

TECHNOLOGIST
TECHNICIAN, SKILLED WORKER

SEMI-SKILLED
WORKER, UNSKILLED WORKER

TRADITIONAL PROCUREMENT METHOD

__________________________________
CLIENT

DESIGN
TEAM

CONTRACT
ADMINISTRATOR

COLLATERAL WARANTY

MAIN
CONTRACTOR

DOMESTIC
SUB-CONTRACTOR

NOMINATED
SUB-CONTRACTOR

NOTES
1. Contract Administrators include the architect or civil engineer or project
manager or supervising officer.
2. Design Team includes the architect and anyone to whom he delegates
part of the design function- e.g. structural or services engineer.
3. However, specialists may also appear at different points of the work as
direct consultants to the client, the main contractor or the sub-contractor.
The contracts are signed with the client.

DESIGN & BUILD

(TURNKEY/PACKAGE)

CLIENT

CONTRACT
ADMINISTRATOR

COLLATERAL WARANTY

MAIN
CONTRACTOR

DOMESTIC
SUB-CONTRACTOR

NOMINATED
SUB-CONTRACTOR

NOTES
1. Contract Administrator are as for the traditional procurement method
2. There are no separate Design Team. This function is taken on by the Main
Contractor who may of course sub-contractor all or part of the works
(design) to architects, specialist engineers, etc.

MANAGEMENT
CONTRACTING
____________________

CLIENT

CONTRACT
ADMINISTRATOR

DESIGN
TEAM

COLLATERAL WARANTY

COLLATERAL WARANTY

MANAGEMENT
CONTRACTOR

WORK
CONTRACTOR

WORK
CONTRACTOR

NOTES
1. Design Team and Contract Administrators are as for the traditional
procurement method.
2. Although the contractual structure is very similar to the traditional method,
the allocation of risk is very different.

3. Specialist may come into the picture at different points (though they may not
be engaged as direct advisers to the management contractor)

CONSTRUCTION
MANAGEMENT
_______________________

CLIENT

CONSTRUCTION
MANAGER

TRADE
CONTRACTOR

DESIGN
TEAM

TRADE
CONTRACTOR

WORK
CONTRACTOR

NOTES
1. Design Team is as above. A specialist engineer may be a consultant to the
client the architect or a trade contractor
2. Contract administration is carried out by the Construction Manager, who
ranks alongside the Client are other professional advisers.

3. There is no main contract. Each of the trade contractors is linked directly

with the client. There is thus no need for.Collateral warranties.