MindMap Gallery Risks in the early stages of general engineering contracting projects
The risk mind map on the early stage of the general engineering contracting project can clearly understand the various risks that the project may encounter, including contract risks, contracting risks, etc. It helps the project team to fully understand and prepare for these risks at the early stage of the project.
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Risk considerations in the early stages of general engineering contracting projects
Comparison between general contracting model and traditional contracting model
The risk of inaccurate requirements of construction units
The demand documents proposed by the construction unit are an important basis for the design work. The design unit completes the scheme design based on the demand documents and prepares technical specifications, design drawings and other documents. The construction unit prepares the construction plan based on the demand documents and design documents. If the needs of the construction unit change significantly during the implementation of the project and the design needs to be adjusted again, it will cause greater cost risks and, in serious cases, affect the project's construction period. For example, a certain scientific research building project did not fully implement the spatial layout and functional requirements of the scientific research office area during the planning stage, but only prepared requirements documents based on subjective experience. After the start of the project, the construction unit is still allocating scientific research office areas and collecting requirements, and is constantly adjusting the interior decoration and water and electricity engineering design drawings. Due to the late finalization of construction drawings, the project's secondary structural and mechanical and electrical engineering construction has been delayed. Not only did it affect the project schedule, but it also caused expense claims from the general contractor.
In order to avoid risks caused by inaccurate requirements, construction units should carefully prepare requirements documents during the project planning stage and implement various functional and technical index requirements. They should not blindly start the project construction process when the requirements are not yet clear.
Risks of inaccurate contract scope
The contracting scope of general contracting projects generally includes survey, design, construction, procurement, handover, etc. If the project has special requirements, it is necessary to clearly define the contract scope in the early planning stage. For example: (1) Whether survey work is included; (2) The issue of dividing the interface between different bid sections; (3) Whether partial projects such as earthwork, foundation treatment, slope support, fine decoration, and outdoor engineering are included in the contract scope Internal issues. Taking a science and technology park project as an example, the construction unit requires the general contractor of the indoor fine decoration area to be responsible only for the base construction of the ground, walls, and ceilings, as well as the reservation and embedment of water and electricity projects. During the construction process, the construction unit also required that the fine decoration of public areas (lobby, corridors, stairwells, elevator halls, public toilets, etc.) be included in the scope of the general contract. During the completion settlement audit stage, it was found that the settlement quotation for this part was very confusing because the public area responsible for fine decoration by the general contractor and the reserved fine decoration area had been changed several times and the interfaces were unclear. The settlement audit unit had to spend a lot of energy to conduct on-site inspections of the actual construction conditions and record them in detail, and then the interface divisions were clarified after joint confirmation by the construction unit, the general contractor and the fine decoration subcontractor. Accordingly, the settlement price falsely reported by the general contractor was reduced by several million yuan.
It can be seen from the above cases that the risks caused by unclear interface separation cannot be underestimated, and problems and risks cannot be left to the settlement stage to be resolved. The construction unit should reasonably and clearly define the interface division between the different contractors of the project during the project planning stage, and make clear agreements in the general contract.
Risks of poorly planned contract terms
The general contracting contract is the core document that governs the division of powers and responsibilities and the principles of risk sharing between the construction unit and the general contractor during the project implementation process. Planning the terms of the contract is crucial. Take a large-scale electromagnetic shielding room and ancillary facilities project that participated in the audit as an example. Considering that the project has complex design, high quality requirements, high confidentiality requirements, sufficient funds, and the tight construction schedule requires simultaneous design and construction, the construction unit The terms and conditions of the general contract contract stipulated a lump sum rush fee, which required all necessary management and construction measures to be taken to ensure the realization of the construction period objectives.
During the actual construction process of this project, due to the tight planned construction period, sufficient labor force needs to be arranged in advance, and the confidentiality review and other measures of the project are very strict. When various types of work teams enter the site, a large number of work delays are inevitable; due to the rush to complete the work, If necessary, the project adopted measures such as night construction and three shifts, and used as many types of mechanical equipment as truck cranes, lifts, and hanging baskets as the working surface permitted, resulting in a higher Machinery costs. During the settlement stage, the general contractor proposed that the rush fee was much higher than the original expectation and requested that the rush fee be recalculated in accordance with the construction period quota for compressing the construction period. However, since the contract was agreed in advance, the final settlement audit still calculated the rush fee according to the amount agreed in the contract terms after negotiation.
If the project does not agree on the rush fee in advance in the general contract, it will easily lead to the risk of claims. During the project planning stage, the construction unit should analyze and predict project demand as comprehensively as possible and design contract terms in a detailed and reasonable manner. For those that really need to rush work or have other special requirements, the goals that the general contractor is required to achieve and the corresponding cost compensation should be clearly agreed in advance in the terms of the general contracting contract to avoid disputes in later settlements.
Risk of unfair contract terms
As mentioned above, the construction unit should be as thorough as possible in contract planning and transfer risks reasonably. However, the construction unit should not transfer all the risks that should be borne by itself to the general contractor because it is in a dominant position. Otherwise, the contract may not comply with the principles of fairness and good faith, which may affect the smooth implementation of the project and cause legal risks. The general contractor should also use reasonable techniques and methods during the contract negotiation process and try its best to strive for fair and feasible contract conditions.
Risks during the tender stage
The bidding and bidding work of a general contracting project is a critical stage of the entire preliminary work. Any omissions or errors may lead to huge risks and hidden dangers. During the bidding process, the construction unit shall reasonably, legally and compliantly prepare the bidding documents, the bidding control price (minimum bid) and the main terms of the contract to be signed on the premise of fully considering various risk factors, and organize all parties in an orderly manner in accordance with regulations. tendering work.
The general contractor should pay attention to the following aspects when bidding: (1) Background investigation of the project and construction unit, including the approval status of the project, the credit status, financial strength and influence of the construction unit, etc.; (2) Bidding documents Analysis work, including the bidding scope of the project, restrictions in the bidding documents and special requirements of the construction unit, etc.; (3) Analysis of contract terms, including various goals of the project, division of powers and responsibilities between the parties to the contract, risk sharing principles, payment conditions, other implicit conditions, etc.; (4) Project cost-benefit analysis, including project cost forecast, profit forecast, risk forecast analysis, etc.; (5) Competition analysis and bidding strategy analysis, including analysis of one’s own situation, strengths and weaknesses, Competitors' situation and advantages and disadvantages, formulating bidding strategies, etc.; (6) Summarize the above analysis and prediction results, correctly prepare bidding documents according to the established strategy and complete the submission work according to regulations.