Wednesday, February 10, 2016

Engineering services for construction - Construction of "turnkey"

Engineering services for construction - Construction of "turnkey"

Widespread in engineering awarded contracts "turnkey". They suggest instructed the company-executor (contractor) of research and development, supply of necessary equipment and construction of industrial sludge other objects from the design stage to the delivery and installation of equipment. In fact, engineering services in construction ( "turnkey") - a kind of general contractor's activities, its higher level. It is based on a systematic approach to the implementation of the project on the basis of an optimum combination of features and the efforts of all participants in the investment process. The contract involves a fixed price and construction time for a given level of quality. In addition to these basic obligations, the contract may include additional requirements of the customer, for example, technical assistance during the development of the complex and the elimination of its full capacity, assistance in the training of specialists to work on the future of the object, etc.

In the practice of conducting the construction, there are three main types of contracts:

1) In the case of contracts with subcontractors in the contract directly with the subcontractors firms process control construction industry takes on directly to the customer, creating a special unit for the period of construction with the involvement of professional managers. The contractual relationship the customer and contractors are very complex and are reflected in numerous contracts. The financial responsibility of each artist is limited to the scope of its subcontracting. Therefore, the implementation of the project in terms of an independent subcontract there is the possibility of deviation of the actual parameters of the object under construction on the initial data (the planned cost, schedule, quality level);

2) If the contract with the general contractor functions of the organizer of the construction process, as well as full financial responsibility for the final result, are assigned to any artist, usually a company that manufactures construction and installation work. With its broad powers, it forms part of subcontractors in view of the previous experience of cooperation. Form of the contract with the general contractor to the unification of efforts of participants of construction, their interest in carrying out all the work, the search for mutually acceptable and mutually beneficial solutions, and therefore to optimize the production process indicators. In this form of contract design phase it retains a certain autonomy and is not included in a single system of financial responsibility for the final result. Errors in the design documents, discovered in the course of work, can delay construction; inaccuracies in projects and lead to the rejection of the actual cost of the planned. Therefore, this form of organization is also virtually impossible to enter into contracts with fixed cost and timing of construction;

3) The contract "turnkey" is a system of a single financial responsibility for the project as a whole, which is turned on and the design. It gives an opportunity to minimize construction time and cost, and, most importantly, promotes compliance with these conditions. Organization of construction of this type of contract allows you to make the design process continuously. The result is a feedback system, ie timely detection of shortcomings in the project, their surgical removal and the constant updating of the project during its implementation. The possibility of combining design and construction conditions which are laid in the system of the production process, significantly reduce the duration of the investment cycle. As a project manager, coordinating the activities of all parties in the investment process, with full power and full measure of responsibility to the customer can be a design and construction, design or purely advisory and management firm. In the construction industry with a predominance of modern technologies are more likely to control the design engineering firms, as they, along with the management of the construction process are competent to deal with the involvement of the latest industrial technologies.
Project Manager features include:
• Provide advice to the customer;
• choice of designers and contractors;
• organization and development of pre-design works Designing jobs;
• preparation of documents for the conclusion of contracts;
• execution of contracts for the supply of products;
• planning, network diagrams and schedules;
• control over the cost, timing and quality of construction; the facility to operate.
Thus, the project manager coordinating virtually all aspects of project implementation activities.

Agreement "turnkey" to differentiate "light" and "heavy" contracts. The first group includes those in which the transfer of a facility to the customer should not conclude contracts for the transfer of management and production experience, to the second - the situations in which the relationship with the customer provide for the continuation of a management contract or license agreement on the "know-how".
Since the mid 60-ies of the scope of work of "turnkey" is continuously growing and by now it has become the dominant type of contract in the industrialized countries. However, it should be noted that in recent years, firms in countries such as India, South Korea and Turkey are taking a stronger position in the international construction of "turnkey", as They are more competitive in conventional construction projects through the use of cheap labor.

Benefits Agreements "turnkey" are, first of all, is that they provide an opportunity to acquire not only specific technical and managerial skills, and the cost to the customer cheaper than self-fulfillment of all the work.