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Article: Contractors' risk in Design, Novate and Construct contracts

TitleContractors' risk in Design, Novate and Construct contracts
Authors
KeywordsContractor's Risk
Design, Novate And Construct
Procurement System
Issue Date2002
PublisherPergamon. The Journal's web site is located at http://www.elsevier.com/locate/ijproman
Citation
International Journal Of Project Management, 2002, v. 20 n. 2, p. 119-126 How to Cite?
AbstractThe Design, Novate and Construct (DN&C) system is becoming an increasingly popular method of construction procurement. In the DN&C system, the contractual rights and liabilities of the design team are transferred to the contractor once appointed. This makes DN&C a very attractive procurement option for the client but leaves contractors with the problem of identifying and managing the extra risks involved. The aim of this paper is to identify these risks. The results are described of a series of interviews with construction projects managers experienced in DN&C work. These show that the major risks to contractors in DN&C are concerned with (i) the novated design team's ability to perform, (ii) the lack of design team fees allocated to the post-novation phase, (iii) the working relationship with the novated design team, and (iv) the timing of the novation. It was also found that contractors had insufficient time during the bid preparation period to check the design produced by the novated design team. © 2001 Elsevier Science Ltd. All rights reserved.
Persistent Identifierhttp://hdl.handle.net/10722/150204
ISSN
2015 Impact Factor: 2.885
2015 SCImago Journal Rankings: 1.497
References

 

DC FieldValueLanguage
dc.contributor.authorNg, STen_US
dc.contributor.authorSkitmore, RMen_US
dc.date.accessioned2012-06-26T06:02:23Z-
dc.date.available2012-06-26T06:02:23Z-
dc.date.issued2002en_US
dc.identifier.citationInternational Journal Of Project Management, 2002, v. 20 n. 2, p. 119-126en_US
dc.identifier.issn0263-7863en_US
dc.identifier.urihttp://hdl.handle.net/10722/150204-
dc.description.abstractThe Design, Novate and Construct (DN&C) system is becoming an increasingly popular method of construction procurement. In the DN&C system, the contractual rights and liabilities of the design team are transferred to the contractor once appointed. This makes DN&C a very attractive procurement option for the client but leaves contractors with the problem of identifying and managing the extra risks involved. The aim of this paper is to identify these risks. The results are described of a series of interviews with construction projects managers experienced in DN&C work. These show that the major risks to contractors in DN&C are concerned with (i) the novated design team's ability to perform, (ii) the lack of design team fees allocated to the post-novation phase, (iii) the working relationship with the novated design team, and (iv) the timing of the novation. It was also found that contractors had insufficient time during the bid preparation period to check the design produced by the novated design team. © 2001 Elsevier Science Ltd. All rights reserved.en_US
dc.languageengen_US
dc.publisherPergamon. The Journal's web site is located at http://www.elsevier.com/locate/ijpromanen_US
dc.relation.ispartofInternational Journal of Project Managementen_US
dc.subjectContractor's Risken_US
dc.subjectDesign, Novate And Constructen_US
dc.subjectProcurement Systemen_US
dc.titleContractors' risk in Design, Novate and Construct contractsen_US
dc.typeArticleen_US
dc.identifier.emailNg, ST:tstng@hkucc.hku.hken_US
dc.identifier.authorityNg, ST=rp00158en_US
dc.description.naturelink_to_subscribed_fulltexten_US
dc.identifier.doi10.1016/S0263-7863(00)00051-Xen_US
dc.identifier.scopuseid_2-s2.0-0036466939en_US
dc.identifier.hkuros66504-
dc.relation.referenceshttp://www.scopus.com/mlt/select.url?eid=2-s2.0-0036466939&selection=ref&src=s&origin=recordpageen_US
dc.identifier.volume20en_US
dc.identifier.issue2en_US
dc.identifier.spage119en_US
dc.identifier.epage126en_US
dc.publisher.placeUnited Kingdomen_US
dc.identifier.scopusauthoridNg, ST=7403358853en_US
dc.identifier.scopusauthoridSkitmore, RM=6603001101en_US

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