Clients

Traditional: All type of clients. Clients control design and variations to a large extent. Client
can achieve the best price through competitive tendering. Benefits in cost and quality but at
the expense of time.

Design & Build: All type of clients. none for the client once the contract is signed. Saving in
time and cost of construction. Quality of materials may be compromised in view of the D&B
Contractor’s profit. Benefits in cost and time but at the expense of quality.

Management contracting: Experienced clients. Client can modify or develop design

requirements during construction. Benefits in time and quality but at the expense of cost.

PFI: Government

Design

Traditional: architect is to prepare design proposals to meet the client requirements.

Design & Build: Design possibilities are not explored in full and tend to be restricted by the
D & B Contractor’s standard design and construction method.

Management contracting: Consultants prepare the design

PFI: output specification

Role of Contractor

Traditional: contractor, who has no responsibility for the design, will usually be selected by
competitive tendering. The design team work independently from the contractor, who is
responsible for executing the construction work in accordance with the teams of the contract

Design & Build: without heavy cost penalties. Flexibility in developing details or making
substitutions is to the contractor’s advantage.

Management contracting: MC determines construction/management method. This method is

popular used in UK.

PFI: the government’s responsibility on financing, managing capital and services including
the construction, management, maintenance, refurbishment of public sector asset will be
transferred to the private sector. The private sector will construct the assets based on the
client (government) specification using own funds and the assets or facilities will be
delivered to the client after the contract ends.

Contractual relationship

Traditional: The client is in direct contractual relationship with the consultants on the one
hand and the contractor on the other

Design & Build: employ a contractor directly for an all-in design and construction
services. the main contractual link is between client and the contractor and the client’s agent
or representative has only a limited role. The contractor might also have a contractual link
with his own design consultants, and with sub-contractors and suppliers. As the contractor is
wholly responsible for their performance, both in terms of design and construction, there
might be less need for collateral agreements between them and the clients. independent
professional advisers to monitor the progress and quality of the contractor’s work and to
agree the value of interim certificate for payment purposes

Management contracting: client and the management contractor, with all works contactor in
direct relationship with the latter.

PFI: government sign a long-term contract with the private contractor and private contractor
in charge of construction, operating, maintenance and refurbishment

Management relationship

Traditional: 2 stages work. Architect is as the lead designer to coordinate with Engineers on
the part of M & E works. Architects are also to ensure that the design complies with the local
authority requirements. Besides that, Architects is to manage the whole project and supervise
the works. Contractors to execute and complete the building works based on the design and
specifications in the contracts. Contractors are to coordinate with the nominated Sub-
contractors (NSC) on specialist works.

Design & Build: D & B Contractor prepares the details design and prepare the cost proposals
to the client. Therefore, successful D & B contractors are responsible for designing, planning,
organizing, constructing and controlling the whole project.
Management contracting: Management contractor (MC) is to manage construction works for
a management fee that comprises a percentage for profit and fixed overheads. Normally MC
does not undertake the construction works by himself.

PFI: SPV will find the best contractor by tendering

Completion Time

Traditional: takes long time because no Fast track (Overlapping of design and construction)

Design & Build: Relatively fast method. construction time reduced because design and
building proceed parallel.

Management contracting: Shorter project period because increase speed of design and
construction. Early start on site is possible, long before tenders have even been invited for
some of the works packages.

PFI: time is as short as possible by the private contractor to operate faster

Cost

Traditional: Lower. Cost certainty

Design & Build: guaranteed cost

Management contracting: This should therefore result in the lowest cost for each trade and
thus for the construction work. Each trade required for the project is tendered for
independently by subcontractor, either upon the basis of the measured work packages or a
lump sum. Less price certainty

PFI: only best value for money project will be carried out

Risk

Traditional: Clients require certain standards to be shown or described. Contractor is wholly

responsible for achieving the stated quality on site.

Design & Build: contractor undertakes the responsibilities and risks for both the design and
construction phased.
Management contracting: Managing contractor responsible for quality of work and materials
on site. Manages work package contractors

PFI: distribute to the best-managed party. Optimal sharing of risks whereby risk is allocated
to the party who is best able to manage it

Type of Suitable Projects

Traditional: Complex projects – Quality design development

Design & Build: ‘suitability for complex projects

Management contracting: complex project

PFI: government project. infra. projects with commercial viability. Large scare project

Payment method

Traditional: lump sum

Design & Build: lump sum

Management contracting:

PFI: government pay by lease rental phase by phase based on performance as agreed in
contract document