AboutTime Issue 23 | Page 2

From the MD’s Desk by Sandy Kelly “Why go the Turnkey Route –Biust Faculty Buildings, A Case In Point” Time Projects will very shortly, together with its team of consultants and contractors complete and hand over three faculty buildings to BIUST, ON TIME, ON BUDGET AND OF EXCEPTIONAL QUALITY. This, after BIUST had made the initial enquiry to a select number of Botswana companies with the capability to deliver a TURNKEY, DESIGN AND BUILD solution to their requirement to construct their faculty buildings. Their decision was to follow this route as opposed to the traditional method. The traditional course is to appoint the architect or project manager who in turn, with the client appoints the other consultants, quantity surveyor, civil and structural engineers, mechanical and electrical engineers, etc. The design and documentation are developed and when progressed, tenders are called for. A contractor, usually the lowest bidder, is selected and the building commences.This is how most government contracts are procured. As is common knowledge, many of these projects suffer from delays, cost over runs and claims. Many claims are as a result of the client, either directly or through its consultants, not providing timeous or correct information. Often design changes are required on the job while development is taking place – this is very common practice. The challenge here is for the implementation to be managed so that the impact on cost, quality and programme is minimised. In a competitive low bidding contract award, the contractor usually takes advantage of this situation to eke out a claim for extra time and money. 2 Q3 2015 What BIUST wanted, and what they got, was an arrangement where their risk was limited to one responsible party. The responsibility for the information flow – programme and accuracy, rests with the turnkey contractor, in this case TIME Projects. Yes, changes to design and specification were necessary during the course of development, but because the team is committed and incentivised to deliver, there was no impact on the client.The client has received exactly what they contracted for, on time and at the contracted cost. One of the most important things to consider when procuring any project, goods or services is RISK. The turnkey route substantially limits that risk to the client. For instance, if there is a fault with the air-conditioning system, the mechanical engineer may point a finger at the air-conditioning contractor who may in turn hide behind the specification from the engineer. The client may be none the wiser, but is now subject ...on time, on budget and of exceptional quality... to the risk of a claim. It gets more complicated because the air-conditioning contractor is usually a sub-contractor of the main contractor who also uses this dispute as a reason for making his own claims for extensions of time, extra costs, etc. That risk is bundled into the Turnkey contract, so the client is immunised from any risk. And lastly, probably the most important thing to consider is, just like a football team manager – one needs to pick the right team. Whilst there may be a very promising or talented third division player, it is unlikely he will be able to perform in the big league. It will help if he is amongst other first division players in the team, but if the team is all poorly selected, they are unlikely to be able to hold their own. We consider, as is borne out by our track record, that TIME Projects has done, is doing and will continue to deliver quality turnkey developments. It is something government should consider in procuring projects. BIUST’s project internal team that chose to pursue this route should be commended as their decision has proved successful in the delivery of this very important project. They should feel just as proud as we do in the achievement.