Topic 14 - Consultants Selection in Construction Projects

Contracts and Specifications ARE 459
Consultants’ Selection in Construction Projects
Outline
 Consultants’ Selection Methods

 Direct selection method
 Competitive fee selection method
 Design competition method
 Comparative selection method
 Factors Affecting Consultants’ Selection
 Firm background
 Past experience
 Technical resources
 Management capabilities
 Financial stability
 Quality assurance
 Innovative capabilities
Dr. Mohammad Hassanain 1

Consultants’ Selection Methods

 Proper selection of parties by the owner has a significant
effect on the time, cost and quality of any project.
Once financing has been arranged, the next step for owners is
to select the consultant (A/E) to represent the owner in many
services, such as:
 Observing the progress of work, and recommending contract
compliance.
 Interpreting contract documents, and resolving disputes.
 Modifying the contract documents, if necessary.
 Reviewing the submittals, and performing inspections of the
work.
However, what are the different consultants’ selection methods?

3
 There are several methods for selecting consultants in

construction projects.
1. Direct selection method:
 The owner selects the consultant based on personal

knowledge, previous experience and recommendation
of former clients.
 However, this method is subjective.
 The main disadvantage of this subjective method is that

newly established consultancy firms may encounter
less demand for their services.
4

2. Competitive fee selection method:
 The owner selects the consultant based on the amount

of fee demanded by the consultant for the needed
services.
 The main disadvantage of this method is that it requires

a clear definition of the project scope (needed
services), which the owner sometimes can not provide.
3. Design competition method:
 This method requires a knowledgeable owner who can

properly evaluate architectural/building systems design.
 The main disadvantage of this method is that the owner

could end up selecting an incompetent and an
inexperienced consultant, which would result in costly
design errors.

4. Comparative selection method:
 The owner compare the consultants on the basis of

several criteria depending on the type and size of the
project.
 These criteria include:
 The reputation of the consultant organization.

 Resumes of the key personnel.
 CAD capabilities.
 Project control capabilities.
Factors Affecting Consultants’ Selection
 There are multiple factors that should be considered

in selecting the appropriate consultant for any project.
 These factors include:

 Firm background
 Past experience
 Technical resources
 Management capabilities
 Financial stability
 Quality assurance
 Innovative capabilities

Firm Background:
 Reputation and references: Reputation is the most

significant indicator on the firm background. This can
usually be accomplished by checking the references of
the firm, and the key individuals of the firm.
 Compliance with requests: The degree of willingness

of the consultant to comply with the requests of the
owner, in changes and modifications of the design
documents in previous projects, is of high importance to
the owner.
Firm Background:
 Service fee: The method of compensating the

consultant in previous projects is important to the owner
to consider in the selection process. The satisfaction of
the owner in dealing with the consultant in terms of the
method and amount of payment is also important in the
selection process.
 Current engagements: The consultant’s current

workload would have an impact on the completion of
additional new work. The owner should obtain first-hand
information on the amount of work that the consultant is
currently performing.
10

Past Experience:
 Type of projects completed: Past experience in the

same line of work is necessary to ensure that the
consultant is capable of completing the new work.
 Size of projects completed: Past experience in the

same size of the project is necessary to ensure that the
consultant is capable of completing the new project.
 Years in business: Firms that have long experience in

the same type and size of work are much more
competent to undertake and complete new projects.
11
Technical Resources:
 Total number of technical and administrative staff:

Adequate number of technical staff will provide the
required knowledge and skills to accomplish the
assigned tasks.
 Quality and experience of key personnel: Academic

qualification and professional certification of key
personnel in any firm reflect the image and reputation of
that firm.
12

Technical Resources:
 Design capability: The quality of the design sets the

standards for the project. Proper, error-free design
would positively reflect on the life cycle cost of the
project.
13
Management Capabilities:
 Number and experience of management staff:

Effective management and leadership of the firm provide
motivation to accomplish tasks efficiently.
 Maintaining relations with clients: Maintaining

relations with clients provides means for executing the
projects in hand, and securing more projects in the
future.
14

Management Capabilities:
 Time management: Proper use of time management

techniques such as bar-chart and scheduling networks
would assure completion of projects on time.
 Time overrun in previous projects: Delayed projects

would reflect negatively on the consultant firm’s
reputation and selection for future projects.
 Cost overrun in previous projects: Projects that were

under-estimated by the consultant would cause
financial difficulties to the client. Such difficulties would
limit the selection opportunities for future projects.
15
Financial Stability:
 Economic constrain or amount of claims from

previous projects: Claims resulting from the
consultant’s professional work affect the selection of
the A/E for future projects.
 Amount and duration of professional indemnity

insurance: The amount and duration of professional
indemnity insurance provide assurance to clients in
case of future claims on projects.
16

Quality Assurance:
 Quality of work: Quality of work depends on the

level of professionalism, time management,
teamwork effectiveness, knowledge and reputation.
 Quality scheme: pertains to the uniqueness of a

particular aspect in the design of the project.
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Innovative Capabilities:
 The methodology followed for delivering

innovative work: The consulting methodology is an
approach through which skillful consultants use their
special knowledge and expertise to the benefit of
their clients.
 Awards received by the firm: Firms that receive

recognition for their projects stand a high chance for
being re-selected in future projects.
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Conclusions
 The services provided by the consultant firm have a

significant effect on the time, cost and quality of the
project.
 Therefore, the selection of consultants should not

be based only on the amount of fee.
 The selection process should consider the several

factors mentioned earlier, due to the impact of the
consultant’s role on the success of the project.
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Contracts and Specifications ARE 459

Consultants’ Selection in Construction Projects

 Consultants’ Selection Methods

Dr. Mohammad Hassanain 1

Consultants’ Selection Methods

However, what are the different consultants’ selection methods?

Consultants’ Selection Methods

 There are several methods for selecting consultants in

1. Direct selection method:

 The owner selects the consultant based on personal

 However, this method is subjective.

 The main disadvantage of this subjective method is that

Dr. Mohammad Hassanain 2

Consultants’ Selection Methods

2. Competitive fee selection method:

 The owner selects the consultant based on the amount

 The main disadvantage of this method is that it requires

Consultants’ Selection Methods

3. Design competition method:

 This method requires a knowledgeable owner who can

 The main disadvantage of this method is that the owner

Dr. Mohammad Hassanain 3

Consultants’ Selection Methods

4. Comparative selection method:

 The owner compare the consultants on the basis of

 These criteria include:

 The reputation of the consultant organization.

Factors Affecting Consultants’ Selection

 There are multiple factors that should be considered

 These factors include:

Dr. Mohammad Hassanain 4

Factors Affecting Consultants’ Selection

 Reputation and references: Reputation is the most

 Compliance with requests: The degree of willingness

Factors Affecting Consultants’ Selection

 Service fee: The method of compensating the

 Current engagements: The consultant’s current

Dr. Mohammad Hassanain 5

Factors Affecting Consultants’ Selection

 Type of projects completed: Past experience in the

 Size of projects completed: Past experience in the

 Years in business: Firms that have long experience in

Factors Affecting Consultants’ Selection

 Total number of technical and administrative staff:

 Quality and experience of key personnel: Academic

Dr. Mohammad Hassanain 6

Factors Affecting Consultants’ Selection

 Design capability: The quality of the design sets the

Factors Affecting Consultants’ Selection

 Number and experience of management staff:

 Maintaining relations with clients: Maintaining

Dr. Mohammad Hassanain 7

Factors Affecting Consultants’ Selection

 Time management: Proper use of time management

 Time overrun in previous projects: Delayed projects

 Cost overrun in previous projects: Projects that were

Factors Affecting Consultants’ Selection

 Economic constrain or amount of claims from

 Amount and duration of professional indemnity

Dr. Mohammad Hassanain 8

Factors Affecting Consultants’ Selection

 Quality of work: Quality of work depends on the

 Quality scheme: pertains to the uniqueness of a