Essay about Future Project Analysis: Factors and Risks

3168 Words 13 Pages
LAW FOR CONSTRUCTION
ISSUE ONE
1. “What do you consider is the best delivery model for this project? Please explain you answer with reference to the nature of the project, the risk, and the division of responsibility.”
PROJECT: The construction of a chocolate manufacturing factory and shop in Onehunga, Auckland.
The best delivery model for this project is Construction Manager at Risk (CMAR). In this method of project delivery, the construction manager (CM) bears the whole responsibility of completing the project with the scheduled time and budget. The CM gives a Guaranteed Maximum Price (GMP) after reviewing the works of the contracts. If the cost of construction overshoots the GMP, it will be bore by the CM. Once the GMP is fixed, it
…show more content…
It also offers the ability to “fast-track” early components of construction prior to full completion of design.
 The Construction Manager (CM) gives a Guaranteed Maximum Price (GMP), which helps the owner to know the total expense before the commencement of the project.
 The risk on the part of the owner reduces because he will not spend more than the GMP.
 As William and Charles are well aware of the scope and cost of work, they cannot be cheated by the CM, when he provides the GMP for the project.
 Quicker decisions. As CM is the main authority in this project, he can take quicker decisions if any dispute arises. This would lead to faster completion of the project. Like any other method, this method of project delivery too has some risks as follows:
 Contractual relationship among designer, CMR and owner once the price is fixed
 GMP can be interpreted wrongly by inefficient CMs, which can ultimately land the owner in deep trouble.
 Costs more than traditional bid due to reduced competition in pricing of contractor,

ISSUE TWO
2. “What are the risks associated with William accepting the cover note at Appendix A?”
The Appendix A clearly defines the
 Scope of works
 Architectural specifications
 Detailed design drawings and
 A completed NZ3910: 2013 ready for your signature
 Fixed price of $4,800,000 for the contract

Related Documents