I have gained appreciation of the commercial pressures that the construction industry is exposed to and how our work as structural engineers is influences by it. I have developed this understanding through working my projects London Wall Place and Key Bridge House, through graduate training, reading on the subject and taking part in the Enginuity competition. I understand that at WSP | PB there are two main ways of reaching an agreement on fee with the Client. Competitive tender, where we submit a bid i.e. fee proposal appended with CV’s of team highlighting competency of the team, similar projects we have worked on, ……… etc. against other consultants. The Projects are usually awarded to the lowest tender, but some consultants also take into account other factors like quality, experience and sustainability issues. Negotiation, where the fees is agreed following discussion between client and the company. Fee for such projects is not as low as competitive tender and there is opportunity to discuss the brief at a greater depth at an early stage. I am aware of the different types of fee arrangements consultants are involved with on construction projects. These include: lump sum, time charge and target costs. • Lump sum fee is where the consultant works for a fixed fee, agreed with the client, based on the scope of agreed work and arrangements. This is the case for majority of projects I have been involved with in last 4.5 years, including Merchant Square Development,
Mostly are large consulting firms (more than 30 employees) that offer consulting services to small and medium sized businesses. However, these large firms cannot cost effectively service this market due to high overhead and labour costs. Small and medium sized businesses usually cannot afford the high hourly fees charged by these firms. Business from this target market does not represent a significant portion of the revenues generated by these large firms which all specialize in new projects.
A basic definition for the procurement is “the way the building is realised” and “involves assembling and organising the skills and services of a team of construction professionals”. (the Construction Round Table, 1995). More precisely, the construction industry describes procurement as “a system that establishes the roles and relationships which make up a project organisation”; hence the overall organisation and communication structure for the management, administration and control of a project is established by the procurement system. (D.C.H Coles, 2010)
firm, or work directly with clients and collect the fees from these clients. If it is a salary, then it
Clough, Richard H, Glenn A. Sears, S K. Sears, Robert O. Segner, and Jerald L. Rounds. Construction Contracting: A Practical Guide to Company Management. , 2015. Print.
Cost + percent of cost is the method of payment which is related to the cost of the job, the larger the cost of the job the higher the amount of fee that is to be paid by the owner. There is a little incentive to be efficient and economical in the construction but is subjected to abuse. Cost + fixed fee is paid regardless of the variation of the reimbursable cost factor. This method gives contractors an incentive to get the job done as quickly as possible in order to recover his fee over the shortest time frame.
That to induce the Client to retain the Consultant as an outside consultant and to furnish the
Lai and Lam noted that construction projects require concise planning, and are divided between the consultant and the contractor. However, each party plays a significant part in the projects’ success. The difference between the client and the contractor; the client usually push for timely completion and would offer an incentive bonus for timely completion, however, the contractor would prefer a reasonable duration of time, therefore to avoid penalities to the contractor.
The original renovation had a budget of 5 million dollars, which included classrooms, a computer lab, student lounge, lavatories, and staff offices. The renovation is suitable for the current status of Construction Science; however the growing program will soon outgrow the building. For these reasons, I am writing a follow up memo of the topics to be included in my upcoming researched recommendation report.
I seem to have always had an underlying passion for infrastructure. That is a fact which I only came to fully comprehend during the summer. The Python Bridge, with its red snake-like abnormal shape, and Magere Brug, with its iconic drawbridge properties, are both picturesque examples of engineering done “right”. Perhaps it is that realisation of modern life being wholly dependent on engineering, which is everywhere and is always changing; perhaps it is the pressures of the ever increasing population and global warming; or perhaps it is the idea of helping to change the world around me to meet the demands of the future generations. That has driven me to hope for a challenging career which I will find personally gratifying and feel that I have given something back to the community.
With the vast and fast expansion and constructions of commercial buildings and infrastructures. a problem in the space constraints has evolved and has become one of the biggest concerns of private house owners and even the business and commercial space owners. The urban areas have been very crowded lately and still there are a lot of people from rural areas who would prefer to live in urban areas because this is where greener pastures are and where better work opportunities can be found.
3. If the contract doesn’t have applicable and similar cost in it, the contractor should propose a cost and submit to the stakeholders to get a approval, and carry out.
The price will be competitive, but appropriate. He or she will go over all the details of cost, including taxes, materials, insurance, and anything else relevant to your project. Your contractor should explain what they offer in comparison to the other guys, and should go over every day and detail of the project with you step-by-step, throughout the length of the
It is in two parts. One part is the fees the solicitor will charge for the work. And the other part entails the costs your conveyancer will spend paying other third parties, or disbursements. Ensure that your expert is able to explain and validate these two parts to avoid unnecessary charges on your side.
The growth of business consulting has coincided with the recovery of the global economy from the recession in 2009 (“Advice for Consultants). With the upturn in the global economy, companies are expanding and bringing back shelved projects, which they need help with now (“Advice for Consultants). Additionally, the presence of rapidly growing economies in the Middle East and Africa, have also contributed to the growth trend in consulting (Gutcher). However, not all consulting firms will gain equally from this growth. Businesses are continuously evolving-constantly looking for ways to cut costs and improve productivity. This has affected the consultancy business in that companies have become picky with what types of consulting they do. As a result, strategic consultancy, the most famous type, isn’t growing much. It only had an expected annual growth of 1.1% in 2014(“Advice for
The predominant image of construction is that of a male-dominated industry requiring brute strength and a good tolerance for outdoor conditions, inclement weather and bad language (Agapiou, 2002). It is interesting that people’s perception of the industry is rooted in the past, however, the real image of the construction industry is changing: robotic technologies are replacing manual labour, corporate culture is promoting gender equality, and flexible working hours are being introduced.