PROJECT MANAGEMENT FOR THE BUILT ENVIRONMENT (AQS 4292)

For this 5 star hotel project, traditional procurement system has been applied as its procurement
method. Firstly, for the traditional procurement system, the time, cost and quality are differ from
the other method of procurement.

Time

Due to its linear or sequential approach, the traditional procurement system has been
identified as the slowest project delivery approach. However, this approach is more
preferable because it provides clear accountability and better design and construction
control by the client. Since the pre-contract stage of this system is longer, more time is
available for the client and the project team to scrutinize and review the design before
construction.

Cost

This system provides more price certainty to the client at the very early stage of the
project. It also gives the client firmer and more competitive price because the design plus
the complete working drawings have been fully developed and detailed out prior to
tendering. It eliminates any design or construction ambiguity or uncertainty which often
causes the contractors to unnecessarily inflate the price. In the case where bill of
quantities is used, the bidding tend to be more fair as such the project cost is also lower.
The system also better cost control as such cost increase due to variations is minimized,
but works were often disrupted when there are too many variations (due to unforeseeable
problems) and it tend to cause the cost to inflate. (Masterman, 1996)

Quality

The traditional procurement system also provides a high degree of quality certainty and
functional standards. It is also a system that provides an opportunity for the building owner
to combine the best design, management and construction expertise between consultants
and contractor. It also provide more time for client and consultants to review and fully
develop the design and specification thus allowing better documentation preparation.
However, this system does not provide opportunities for contractor to contribute his
construction technology and management expertise because they only come into the scene
after the design has been fully developed and approved.

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As the parties who are involved in this project, there are steps and measures that have to be
taken in order to control time, cost and quality during the pre contract stage. These are the
identified steps that can be considered in order to make sure that the project can be done
without any critical constraints.

TIME CONTROL

During the pre-contract stage, there are few steps that might be taken by the parties involved in
order to make sure that the aim and objectives of the project can be achieved. In terms of time
control, during the pre contract stage, the steps that could be taken into considerations are;
• Regular meeting with consultants
• Follow up on consultants, client organization and the government bodies for example the
authority body.
• Monitoring the work program especially on the critical activities
• If delay is expected to occur, or has occurred, plan and execute next course of action in
order to remedy the situation
• Identify those items that are within and beyond your control

QUALITY CONTROL

During the pre contract stage or more specifically during the design stage, quality control is one
of the most important steps to taken out. It is important to makes sure that all design is according
to client’s project and design brief. Moreover, it also in order to minimize the discrepancies
between the various design consultants is in order to make sure that the design is buildable.
Furthermore, on the level of quality is required, it can assure that there is no uncertainty occur.
These can be done by performing regular meeting for plan and design which in order to make
sure that the design is according to brief. Moreover, by implementing value engineering process
in the design, it also can make sure that quality of design in following the requirements and lastly
is by the design team itself having the quality system in their work.

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COST CONTROL

The time at which major cost savings can be achieved is during planning and design for the
project. During the actual construction, changes are likely to delay the project and lead to
inordinate cost increases. As a result, the focus of project control is on fulfilling the original
design plans or indicating deviations from these plans, rather than on searching for significant
improvements and cost savings. It is only when a rescue operation is required that major changes
will normally occurring in the construction plan.
The steps take can be taken in order to control the cost during pre- contract stage can identified as
below;
1. Need to start with knowing the capital outlay of your client.
2. Perform cost planning using elemental cost planning method or superficial area method.
3. Does a cross check by comparing costs of buildings of similar type, construction,
finishes, built on similar site or similar conditions (this is a difficult to stage to cross-over
unless you have details of similar construction projects).
4. If the stage (iii) above is not possible, you can probably cross check if you are within the
cost limits set by client if he has one.
5. As the final design and BQ are made available, you will be required to verify the present
costs if the elemental values considered by you earlier are within reasonable limits.
6. If the elemental costs are not ok compared with correct BQ, then the surveyor must go
back re-contact if any alternatives are possible so that the pre-contract cost plan can be
adhered to. Or can you do any other adjustments or see if the client has changed his
requirement now etc.