Managing Risks - Department of Public Works and Services

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Some General Principles (cont’d) Every project is different Size and complexity Mix of new construction/expansion/renovation Single project or staged construction/ turnover Schedule/budget pressures Number of construction/operation interfaces Financeability issues and constraints Effort required to identify and manage risks not always dependent on project size or value 4
Some General Principles (cont’d) 2007-2008 Market Conditions: Contractors, consultants and suppliers had surplus of work No time or willingness to review significant non-standard contract terms at time of tender No desire or need to tender on a project that appears aggressively or unfairly weighted in favour of owner 2009 Market Conditions: Receiverships, projects “on hold”, shortage of work But contractors, consultants and suppliers are now more knowledgeable than before about risks and thus risk averse 5
Page 1 and 2: Managing Risk During Pre-Tender Sta
Page 3: Some General Principles Managing pr
Page 7 and 8: Some General Principles (cont’d)
Page 13 and 14: Project Development Process Often i
Page 15 and 16: Project Development Process (cont
Page 23 and 24: Procurement Strategy (cont’d) Sel
Page 25 and 26: Risk Transfer Shifting the risk CON
Page 27 and 28: EPCM vs. Design-Bid-Build Approach
Page 29 and 30: Summary of Design-Bid-Build Some Ad
Page 31 and 32: Construction Management (CM not “
Page 33 and 34: Construction Management (CM “at r
Page 35 and 36: Design-Build / Design & Construct O
Page 37 and 38: Turnkey The “turnkey” arrangeme
Page 39 and 40: P3/ D-B / EPC / Turnkey Common Them
Page 41 and 42: Design-Build Relationship (Typical)
Page 43 and 44: Some Disadvantages of Design-Build
Page 45 and 46: Some Contractor Considerations D-B-
Page 47 and 48: Public-Private-Partnerships (cont
Page 49 and 50: Procurement Process Issues Disputes
Page 51 and 52: Procurement Process Issues (cont’
Page 53 and 54: Procurement Process Issues (cont’
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Procurement Process Issues (cont’
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Summary - Procurement Process Issue
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Managing Risks < Bid Closing (cont
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Performance Guarantees Heart of the
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Performance Guarantees (cont’d) K
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Performance Specifications (cont’
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Consequential Damages “Neither pa
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Managing Risks < Award (cont’d) I
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Project Example: Roadwork Custom D-
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Practice Tip Three R’s for identi
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Managing Risks - Department of Public Works and Services

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