1. CO-OPERATION IN CONSTRUCTION SECTOR CONSTRUCTION CONTRACTS Dr
CO-OPERATION IN CONSTRUCTION SECTOR CONSTRUCTION CONTRACTS Dr. Judit Gyulay – Dr. Zoltán András Vattai BUTE Department of Construction Technology & Management

2. Construction Industry
CONSTRUCTION AFFAIRS
Construction Sector
Construction Industry

3. TYPICAL DELIVERIES OF CONSTRUCTION INDUSTRY
erecting new buildings - reconstructing existing buildings - remodeling existing buildings - extending existing buildings - demolishing existing buildings

4. FEATURES OF CONSTRUCTION PERFORMANCES
immovability of product - performance exposed to weather - transport of great volumes - environmental charges/effects - high exposition

5. STAKEHOLDERS OF CONSTRUCTION PROJECTS
Client (Investor) - Manager (Engineer) - Designer (Acrhitect) - Contractor (Craftsmen) - Bank - Authorities (Community)

6. PROCUREMENT POLICIES CONTRACTUAL RELATIONS (PROCUREMENT SYSTEM)
„Traditional”
Client
Designer
Contractor
Sub.
Sub.
Sub.
Sub.
Sub.

7. PROCUREMENT POLICIES CONTRACTUAL RELATIONS (PROCUREMENT SYSTEM)
„Turn-key”
Client
Designer
Contractor
Sub.
Sub.
Sub.
Sub.
Sub.

8. „Construction Management”
PROCUREMENT POLICIES CONTRACTUAL RELATIONS (PROCUREMENT SYSTEM)
„Construction Management”
Client
Designer
Engineer (Manager)
Contractor
Sub.
Sub.
Sub.
Sub.
Sub.

9. „Management Contract”
PROCUREMENT POLICIES CONTRACTUAL RELATIONS (PROCUREMENT SYSTEM)
„Management Contract”
Client
Designer
Engineer (Manager)
Contractor
Sub.
Sub.
Sub.
Sub.
Sub.

10. PROCUREMENT POLICIES CONTRACTUAL RELATIONS (PROCUREMENT SYSTEM)
„Main Contract”
Client
Main Contractor
(Manager)
Designer
Contractor
Sub.
Sub.
Sub.
Sub.
Sub.

11. - Contract of works - Agency Contract - …
TYPE OF CONTRACT
- Contract of works - Agency Contract - …

12. Design - Management - Accomplishment - Supply - Service - …
SUBJECT OF CONTRACT
Design - Management - Accomplishment - Supply - Service - …

13. RANGE OF CONTRACT
Main contracting - General contracting - Co (-general-) contracting - (Sub-) Contracting - Service / Supply - Representation (agency)

14. Contractor - Client - Subject - Deadlines - Offset
ESSENTIAL DATA OF CONTRACTS
Contractor - Client - Subject - Deadlines - Offset
Who - Whom for - What - What time - What price

15. FINDING CONTRACTUAL PARTNERS „PROCUREMENT”
– Free-hand (based on trust) – Tendering (competition) = Public = Restricted (invited) = Direct negotiation

16. SPECIFYING DELIVERY (DETAILS)
„TRADITIONAL”
Preparation
Design
Procurement
(contracting)
Accomplishment
Clear details: known technical, technological, time and budget specifications at contracting

17. „MANAGEMENT” SPECIFYING DELIVERY (DETAILS)
Preparation
Design
Procurement (contracting)
Accomplishment
Change- and risk management have essential role

18. Lump-sum (fixed price) - Unit price - Cost + fee
OFFSET OF CONTRACTUAL DELIVERIES
Lump-sum (fixed price) - Unit price Cost + fee
Timing of offset of deliveries is also a price-forming factor („cost of financing”)

19. „APPENDICES” OF CONTRACTS
Referred standard contractual schemes, sets of regulations (FIDIC, VOB, …) - Technical documentation (plans, specifications, budgeting, …) - Referred technical standards (quality- and performance expectations)

20. ENGENDERING A CONTRACT
- Written contract (e.g. by FIDIC, VOB, …) - Oral agreement (with precedents) - Implied contract (?!)

21. PUBLIC PROCUREMENT
Controlled mainly is the Client - Purchase on public funds - Strictly controlled procedures - Specific risks elements - Price raising effects (!!!)

22. PUBLIC PROCUREMENT
~20 % of building deliveries - Periodicly „changing” conditions - Balanced contracts - Precise (in-time) offset - Highly exposed investments