GRAND

S U M M A RY
Risk management
 GRAND SUMMARY

Procurement moved away from Insular (own ideas) This has been driven by several Client Procurement Strategies:
Specialization to more Integrated Project Based Function

Client looking for more Certainty of Outturn Cost

More inclined to Design and Construct; Private Finance Initiative (aka Public
Private Partnership); Design, Build, Own, & Transfer, etc
Choice of the Form of Procurement is dictated by the client’s constraints,
i.e., whether s/he has Capital Budgeting Constraint ; Maintenance of Assets
Constraints; requires the Partner’s Expertise, Management, and/or Risk
Management Capacity etc?
 Risk Management
• Risk Share – allocate risk according to parties’
management capability
• Gain share Scenarios – each party has to benefit
GRAND from savings resulting from good management of
risk
SUMMARY Partnering
• The vision is to adapt construction into the new
millennium with client and contractor working
together to produce quality schemes delivered
within Time for Completion and Budget to the
advantage of all parties
• Much of this vision will rely upon the Ingenuity
(creativity) and Flexibility of the Estimating Teams
assembled to bring these aspirations.
 GRAND SUMMARY

❖ Research indicates that Lean Production can improve production in construction.

o Initially pioneered by a large Japanese Car Manufacturers, Lean is about designing and
operating the right process and having the right systems, resources and measures to
deliver things right first time
o Lean Production focuses upon value more than on cost , & seeks to remove all non-
value adding components and processes whilst improving those that add value
o Elimination of waste – activities and processes that absorb resources but create no value
o Waste – include mistakes, working out of sequence, redundant activity and movement,
delayed or premature inputs, and products or services that don’t meet customer needs
o Primary focus is to provide a product desirable to customers by understanding the
process, identifying waste within it, and eliminating it step by step