INDIVIDUAL ASSESSMENT COVER SHEET

STUDENT DETAILS

Student name: Beatriz Cruz da Silva Student ID: 201702351

UNIT DETAILS

Unit name: Project delivery sytem Unit code: SBM1204

Class day and
Course name: Master of Business and Project M. time: Wenesdays

Lecturer and/or Tutor name: Dr. Rakesh Khanal

Campus: Sydney

ASSESSMENT DETAILS

Assessment
Title: Arcticle Summary no.: 1

Word count: 650 Due date: 17.11.2019 Date submitted: 17.11.2019

 ARTICLE SUMMARY

This summary provides relevant information about project delivery methods and

contract management looks into the following articles ‘Project delivery systems for nZEB

projects` & ‘Ensuring functionality of nearly zero-energy building with procurement

methods’ by Mikko Kantola and Arto Saari (2016;2014). The articles main purpose is to

expose common functioning project delivery and contracting for a nearly zero-energy

building (nZEB) projects.

The authors organize project delivery into four categories and choose the best for

nZEB project. The categories contain the most common methods, design-bid-build or hard

bid, design build, construction management at-risk (CM-at risk), integrated project delivery

and public-private-partnership (PPP). The first method known as traditional delivery, design-

bid-build the lowest bidder wins regardless of qualifications in other words the lowest bidder

gets the job not being necessary the most qualified. Next category is called fast tracking

delivery system, combining design build and construction management at risk having

different method basis, they are in the same category because of a not multi-party-based

contract in the relationship between owner and stakeholders. The need for only one bidding

competition to be organized and the speed of tracking results in time savings of the design-

build system. While CM- at risk the project is based on incentives and the constructor has

participation from the beginning. The following is integrated project considered an authentic

project delivery method because of multi-party contract dividing responsibilities, risk and

earnings between project members, this system optimizes bottom line by taking advantage of

talents and ideas. Last but not least, the fourth category is life cycle orientated delivery which

contains PPP where the owner maker a monthly payment to the service provider but if that

service does not meet the standards initially request the payment amount is reduced. In this

way this method makes the service provider feel part of the business and offer a product
quality meeting the requests. According to the article the appropriate project system is IPD

because the process is attended by competitive procedure withal settlement or competitive

discussion procurement modus operandi. Also, it is point out that CM at risk is a satisfactory

delivery method to obtain but should be added methods such as negotiation and procurement.

The following article the authors explores contracting and the environmental

(indoor/outdoor) related, developing a call for bids and construction contracts certifying the

energy consumption aim. Contracting in a construction project ensure that final result, owner

satisfaction is achieved. As well as, avoiding or preparing for unpleased situations utilizing

good contracting and procurement and also an appropriate project delivery system. In

addition, looking to nZEB requirements and contractors the call for bids should be taken into

account the local production of energy efficiency and renewable quantity, as well as which

methods can be used for the local energy production. The contractor can be performed using

the traditional method with strict rules giving no room for creativity. The author also cites the

use of PPP where the call for bids clearly defines the objectives. Looking into indoors

environment and contracting bidders must have a choice at least in bidding, in this way they

can use creativity and not just think in the low budget to win the deal. Competitive bargaining

with procurement method has power to give the service provider independence from which to

choose by detailing and monitoring just a few factors. In indoors environment bidders can

solve the problem or call for bids, always boosting they capability to offer superior solution

or even add further features.

In conclusion, through the summary it is possible to observe that to choose the project

delivery method and contracting that suits in the project is extremely essential to analyse how

each method would match to projects the needs and objectives.

 REFERENCE

Kantola, M. & Saari, A. 2016, "Project delivery systems for nZEB

projects", Facilities, vol. 34, no. 1, pp. 85-100.

Mikko, K. & Arto, S. 2014, "Ensuring functionality of a nearly zero-energy building with

procurement methods", Facilities, vol. 32, no. 7, pp. 312-323.