T01-006 : COMPLEXITY OF PROJECT AND IMPACTS ON PRELIMINARIES OF CONSTRUCTION PROJECT AT TENDER STAGE

METHODOLOGY

REFERENCES

INTRODUCTION & PROBLEM STATEMENT RESULTS AND DSCUSSION

CONCLUSION

OBJECTIVE

Preliminaries and contractual matters are in fact the risks that deal with non-trade

elements.

To establish reliable Preliminaries i.e. accurate, reasonable, conclusive and yet easy to be priced by Contractors

Reliable Preliminaries are crucial. The finding suggests the Preliminaries items to be broken down into smaller items and adopt several sum approaches for accuracy reason. Preliminaries are imperative in nature, thus expected to be comprehensive, easy to understand, practical and effective.

Project Cost

Construction Cost

Preliminaries < 10%

Bills of Quantities

Preliminaries

Trade Bills

•  Information •  Instruction •  Obligation

Competitive cost Without risking project performance

Project Constraints

Complexity Direct costs

Indirect costs

Underestimation of price would lead to abandonment of the project, possible lawsuit and

contract difficulty. Overestimation would overshoot the allocation and deferment of the

project (Azman 2013).

LITERATURE REVIEW

Theoretical Analysis

Synthesized

Complexity Uncertainties

CONCLUSION

PROBLEM STATEMENT

Establish Gaps

OBJECTIVE

RESULTS & DISCUSSION

Preliminaries Uncertainty Complexity

Risks & Problems

To Arrive

Contractors are facing a great deal of arbitration, exaggeration of risks and unseen problems to arrive to a competitive price.

Lump Sum Quantity

Lump Sums

Provisional Sum

•  Ability to anticipate present & future risks - experience •  Miscalculation, not competitive / cost overrun •  Large lump sum creates larger inaccuracy •  Broken down into smaller items •  Indirect costs require sound anticipations

Time-base

One-off Researchers’ findings related to costs are crucial

Complexity is part of the uncertainties exists in the construction project and directly influences the Preliminaries at Tender Stage.

(Turner et al. 2013)