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System: Procurement Traditional Design & Build Build Operate Transfer Pjt. Mgt. Consultant
System: Procurement Traditional Design & Build Build Operate Transfer Pjt. Mgt. Consultant
System: Procurement Traditional Design & Build Build Operate Transfer Pjt. Mgt. Consultant
TRADITIONAL
System
Concession/consortium finance, Detailed design & construction construct, operate, maintain the procured under one contract (single facility within agreed duration. At the manangement) end, the facility transfer to principal (host company/govt.) at no cost
Structure
PROCUREMENT
TRADITIONAL
Singular Management Familiarity - better job coordination (Dteam- same framework for many projects Cteam) - proper job coordination -reduce conflict Flexible Price open tendering Flexible -easier implementation of change Fast Tracking - no bidding period Certain Cost -owner knows total cost before construction begins
Reduce Responsibility of public sector Team of Expertise (govt.) eg: financing mech for - high level job coordination infrastructure -reduce conflict Flexible -easier implementation of change Fast Tracking - designing & construction can be overlapped Economy Growth -attract foreign direct investment -create oppurtunity for local private sector Performance/Efficiency - tech.transfer (international) -quality Performance/Efficiency - experts vast knowledge, idea, experience -quality High Responsibility -owner -firm not responsible for performance, safety, time, cost Conflict of Interest: favoritism Long term achievement -success depends on substantial revenue generated during operation phase
Advantages
High Responsibility -owner -handle design team, construction team Conflict: contractor-designers Time Consumption - 4 phases cannot be overlapped due to separate contract of design & construction
Disadvantages
High Transaction Cost - currency exchange Mass Funding needed - not suitable for small projects