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case study to be up .

Question 2.3 Procurement
Background Information

BC Consultants Limited (BC) is one of the largest quantity surveying consultant firms in Melbourne. You are a junior quantity surveyor employed by BC. Your boss has successfully bid a consultant service contract from CTU Developers Limited (CTU), which is one of the largest local developers’ firms. The proposed development is to be located near South Yarra. It comprises a giant size 2-storey retail podium (approximately 10000m2 gross construction floor area) and 44-storey office tower (approximately 115000m2 gross construction floor area). CTU wishes that the proposed development shall become another landmark building in Melbourne.

Problem to tackle:

CTU is keen to complete the project as soon as possible. It doubts whether employing a traditional procurement method (i.e. lump sum contract with fixed price and quantities) is a good option for facilitating early completion of the development and good quality of work. CTU had never used Design and Build and Management Contracting. This prompts CTU to seek advice from BSS on the pros and cons of employing: [1] Lump sum contract with fixed price and quantities; [2] Design and Build and [3] Management Contracting as the procurement method for the development.

You are the representative of the BC. Prepare a report (with a covering letter) advising CTU the positive and negative effect of the above procurement methods on the following issues;
??overall project time;
??quality of design and work;
??other essential matters (such as financial implications, contractual and project administration responsibilities of the contractual parties) which also require clients’ attention.

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