CONSTRUCTION PROPOSAL

Construction Proposal

[Name of the Institute]

Abstract

Time is an extremely significant issue in construction. Construction contracts are at their best when they commence, progress, and complete on time. Most construction contracts specify time for performance in achieving completion of the works. However, during the execution of the contract, circumstances may arise which render that completion date unenforceable. At common law, the contractor's obligation to complete the works by the specified date is removed if the employer delays the contractor in the execution of the works. When the specified completion date no longer applies, time is said to be “at large”, and the contractor's obligation is merely to complete the works within a reasonable time.

Table of Contents

Chapter 1: Introduction4

Background4

The Project Life Cycle8

Reasonable Time15

Scope of the Research16

Chapter 2: Literature Review19

Failure of the Contractual Mechanism26

Delay in Granting Extensions of Time27

Major Types of Construction29

Residential Housing Construction30

Specialized Industrial Construction33

Infrastructure and Heavy Construction35

Selection of Professional Services36

Financial Planning Consultants36

Architectural and Engineering Firms37

Design/Construct Firms39

Professional Construction Managers40

Operation and Maintenance Managers41

Facilities Management42

Construction Contractors43

General Contractors44

Specialty Contractors45

Material and Equipment Suppliers45

Financing of Constructed Facilities46

Construction Financing47

Facility Financing48

Legal and Regulatory Requirements50

Legal Responsibilities50

Mitigation of Conflicts51

Government Regulation51

The Changing Environment of the Construction Industry53

New Technologies54

Labor Productivity56

Public Scrutiny57

Economics In Construction59

International Competition66

Contractor Financed Projects72

Lean Construction73

The Concept of "Time at Large"78

The Legal Context80

Chapter 3: Methodology82

Research Methodology82

Chapter 4: Results84

Examples of "Time at Large" arguments in action84

Chapter 5: Conclusion106

References108

Chapter 1: Introduction

Background

Like the five blind men encountering different parts of an elephant, each of the numerous participants in the process of planning, designing, financing, constructing and operating physical facilities has a different perspective on project management for construction. Specialized knowledge can be very beneficial, particularly in large and complicated projects, since experts in various specialties can provide valuable services. However, it is advantageous to understand how the different parts of the process fit together. Waste, excessive cost and delays can result from poor coordination and communication among specialists. It is particularly in the interest of owners to insure that such problems do not occur. And it behooves all participants in the process to heed the interests of owners because, in the end, it is the owners who provide the resources and call the shots.

By adopting the viewpoint of the owners, we can focus our attention on the complete process of project management for constructed facilities rather than the historical roles of various specialists such as planners, architects, engineering designers, constructors, fabricators, material suppliers, financial analysts and others. To be sure, each specialty has made important advances in developing new techniques and tools for efficient implementation of construction projects. However, it is through the understanding of the entire process of project management that these specialists can respond more effectively to the owner's desires for their services, in marketing their specialties, and in improving the productivity and quality of their work.

The introduction of innovative and more effective project management for construction is not an academic exercise. As reported by the "Construction Industry Cost Effectiveness Project" of the Business Roundtable: (Au and Hendrickson, 1985)

By common consensus and every available measure, the United States no longer gets ...