CONTRACTS AND INTERNATIONAL PROJECT MANAGEMENT
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A The University of New South Wales, Sydney, Australia
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0 2000 A.A.Balkema, Rotterdam Printed in the Netherlands
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Contents
ABOUT THE AUTHOR
1 INTRODUCTION
VIlI 1
2 IN-HOUSE VERSUS OUTSOURCING 2.1 Introduction 2.2 In-house approach 2.3 Outsourcing - Contract approach 2.4 Public sector and private sector work 2.5 Case studies 2.5.1 Case study - Road construction 2.5.2 Case study - Contractor decisions on outsourcing 2.5.3 Case study - Outsourcing coal mining 2.5.4 Case study - Local government practices 2.6 Exercises References Bibliography
5 5 5 6 9 15 15 16 18 19 22 24 24
3 CONTRACT (PAYMENT) TYPES 3.1 Introduction 3.2 Outline 3.3 Fixed price contracts 3.3.1 Lump sum contracts 3.3.2 Schedule of rates contracts 3.3.3 Guaranteed maximum price (GMP) contracts 3.4 Prime cost contracts 3.5 Incentives/disincentives 3.6 Choice of contract (payment) type 3.7 Case studies 3.7.1 Case study - Sewer reticulation project 3.7.2 Case study - Substation dismantling project 3.7.3 Case study - Building excavation contract 3.7.4 Case study - Redevelopment of a large city park 3.7.5 Case study - Construction of a shopping centre 3.7.6 Case study - A contractor’s business
25 25 25 27 30 33 40 40 55 62 65 65 67 69 70 73 74
VI Contents 3.7.7 Case study - Local government - flooding and drainage 3.8 Exercises References
76 77 82
4 DELIVERY METHODS 4.1 Introduction 4.2 Outsourcing options 4.2.1 Case study - Contaminated sites 4.3 Traditional 4.3.1 Case study - House construction 4.3.2 Case stud