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.