The Differing Perspectives Of Commercial Parameters
For the developer, their focus is on commercial reality. This means great importance is placed on value management, but more so in the later stages of the project. They are hesitant in believing they will gain value for money under any contract if they tender too early. From their perspective, by tendering for a D+C contract later in the process, they can have more time to resolve the brief and have the opportunity to divest risk whilst staying in control of the overall outcome of the project.
For the builder, this ideally means better integration of early contractor involvement (ECI). The real challenge is to agree on contractual arrangements which allow for the positive considerations of the contracts early enough in the process of working with the design team to achieve really significant project outcomes.
The resolution: A clear brief is needed from the developer, with defined expectations for all parties and a clear process for managing the documentation and delivery of the project. It would be advantageous for all involved with the project to understand the D+C procurement method specific to the project, and their roles and responsibilities under this form of contract. In doing so, the architects and consultant team can better understand the commercial parameters of a project and deliver more for the developer. The consultant team and builder can then work in a more integrated and collaborative manner to deliver a robust documentation package, more reflective of brief and budget.