Project Delivery System: Analyzing 3 BHK House Renovation

This project delves into the intricacies of project delivery systems, specifically within the context of renovating a three-bedroom-hall-kitchen (3 BHK) house. The assignment begins with an introduction highlighting the growing popularity of house renovations in Australia and the significance of project delivery systems in achieving desired outcomes, including cost optimization and waste reduction. The project specification outlines the background, emphasizing sustainable development and the adoption of the Design Build delivery system. A literature review explores various delivery models, such as Design Bid Build and Design Build, with a focus on the benefits of the Design Build approach. The project then justifies the selection of the Design Build system, emphasizing its advantages in terms of communication, resource utilization, and innovation. It also highlights the roles and responsibilities of team members involved in the renovation process, the types of payment contracts, and the importance of quality and service delivery. The project provides a comprehensive analysis of project delivery systems and their application in house renovation, offering valuable insights for students studying business development and project management.

PROJECT AND PROGRAM DELIVERY
SYSTEM

TABLE OF CONTENTS
Introduction..................................................................................................................................1
Project Specification and Background ........................................................................................2
Literature Review.........................................................................................................................2
The selection of Optimal Project Delivery System .....................................................................4
Justification for Selected Delivery System..................................................................................5
SWOT Analysis...........................................................................................................................5
Risk Mitigation ...........................................................................................................................6
Inter-relationship between roles and responsibilities of involved members................................7
Types of payment contracts.........................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

Introduction
Everyone desires a house of dreams with all the necessities of life to sustain the standards
of living. A house is an important benchmark in an individual's life to have a respectable position
in the society and among the peers with complete support to the family. House Renovation is one
of the procedures to restore and refurbish the physical structures in better manner. This is
refereed to as sustainable modified changes in order to bring creativity and uniqueness by
accessing to the structural stability via optimum possibilities. It is the combination of smaller
stages which leads to attain the desired outcomes. Herein, a renovation procedure mainly
depends on the project delivery system to reach the potential in terms of cost optimisation and
minimum of waste generation (Nicholas and Steyn, 2017). In recent times, the renovation
projects in Australia is becoming quite popular by maintaining the aesthetics and culture of an
individual's taste. There is a great deal to buy properties and invest a substantial amount,
however the Australians are also ready to convert their house into dream homes through
renovation and interior designing.
In regard to this, the project delivery system is the platform which supports the owner in
achieving the expected outcomes in regard to the renovation works of a house. This model is
useful for designing, implementing and supervising the entire operational activities while
renovating a home. This also involves the financial planning, services related to the maintenance
and following the activities under a legal framework to give authenticity. It is thereby
demonstrated that there are two variables that has been used to maintain the accountability.
These are as follows: owner's extent in direct financing for completing the project and next is
extent of integration of various service providers (Mesa, Molenaar and Alarcón, 2016). It has
been noted that the owner has the largest control and autonomy in the project delivery system.
Each step in this delivery system is investigated which result in cost minimialisation with proper
allocation of resources available to bring the concrete changes.
Additionally, this project is based on renovating a three BHK (bedroom-hall-kitchen)
house by implementation of a desired project delivery system to establish a systematic order in
fulfilling the client's requirements. Moreover, it will include a literature review on the typical
delivery models and other related conceptual features to understand the significance of
renovations. It would pave the path to better assessment of available resources including
manpower, raw materials, financial aids etc. This will further put insights on the methodology
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part to be developed for attaining the delivery systems. Moreover, it will also highlight about the
type of payment systems used in completion of this project. Its utility is imperative in completion
of a project delivery system. There is description about the roles and responsibilities of the team
that is going to complete this renovating task for a 3 BHK house. Lastly, this will be
emphasizing on the need of quality and delivery of services to manage the sustainability factor in
effective manner.
Project Specification and Background
The background is in simpler terms where a three BHK house is undergoing to be
renovated by understanding all the key aspects of this process. In regard to the above, it is mainly
due to onset of indoor pollution levels due to unnecessary purchasing of materialistic objects.
People in Australian continent are moving towards the new and flexible novel approaches to
maintain and safeguard the sustainable development which has become the need of the hour via
adopting to design build delivery system, minimalism aspect, tiny house concepts, etc. (Kibert,
2016) This also highlighted the usage of chemicals and other harmful substances that is over
burdening the planet in an unsustainable mode. Thus, renovating a 3 BHK house is the project;'s
aim to be fulfilled by using a project delivery system to complete it in systematic order with time
and cost effectiveness.
The project delivery system to be used is the Build Design which has become the most
adopted system for residential designing projects or renovating a specific area. It is among one of
the cost effective methods which assist the owners and the builders to cost cutting without
spending any substantial amount and receiving the same amount of results. The entire project
focuses on bringing changes in an environmental friendly manner to promote sustainability by
using the organic materials and minimal use of furniture and other commodities. Additionally,
the focus is to promote the build design delivery system. It has been examined that this system
has been in constant demand by all walks of people because of its varied range of benefits and
collaborative nature of working practices.
Literature Review
Renovations are in trend in the existing structures, especially in context to the residential
make overs. There is a sense of achievement when an individual is taking this step to bring
concrete and transformational modification at the societal levels. For the same, the Project
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Delivery Systems are the catalyst to make it successful in the real time. This system has been
defined as an extension for the improvements to be made either internally or externally by re-
designing the components with financial assistance. It has been demonstrated recently the project
delivery systems have not only gained attention by improving the current residential areas but
also took a more collaborative and in sync approachability for the jobs to be done in ethical
manner.
According to Salcedo Rahola and Straub, (2016), Design Bid Build (DBB) is one of the
traditional approaches used for designing and constructing the several aspects in any project of a
company. It is indeed a long process where each stage consisted of meeting another professional
like architect, quality specialist and more to understand the different aspects of renovating any
existing property. Alongside, there is a need of a long list of professionals such as civil engineer,
landscape architect, safety and fire engineer and others to give a set of guidelines during the
initial phase. Here bidding method was involved which was time taking with risk factor.
However, Jensen and et.al, (2018) stated that this method is feasible to bring all the changes in
more developed and organised manner by understanding the features through hand made
drawings, specifying the technical aspects included etc. for better results.
It was also seen by Mosleh and Thom, (2017) that currently people are adopting the
Design Build (DB) which is due to its easy accessibility and convenience attached to finish the
tasks. This is refereed as an expertise continuity in maintaining the performance with persistence
of all the tame players. Herein the focus is to bring innovation by flexibility in gaining insights
and rigid in finishing it within the specific time duration. Additionally, Nicholas, (2016)
elucidated that the collaborations that has been initiated in this system has helped in overcoming
the gaps between the builders and designers who now see the structure as a single commodity.
The foremost advantage is the improvements in the integration of the given components while
constructing or restoring the property. Henceforth, this has bee widely adapted especially by the
Australia's population who are becoming socially aware regarding the sustainability factor
required in the housing sector.
However, there are few more types of project delivery tools such as Build-Operate-
Transfer (BOT) method, Industrial Project Delivery (IPD) etc. According to the studies
conducted by Rumane, (2016), it has been found out these other forms are also user friendly and
reap benefits. However, there are few obstacles which put the success rate to a stop in terms of
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monetary gains and overall brand image. Dunphy, (2018) described that BOT has been defined
as the interferences of a third party which is in building infrastructure by using the operations
and the maintenance of the facilities through special concessions. This is restrictive in nature and
has few drawbacks that delay the processing and affects the quality and delivery of products to
the clients or customers. Thus, its been modified and has been used in accordance with the public
private partnership or the private and private division of powers.
With respect to this, Pishdad-Bozorgi and Beliveau, (2016) clearly demonstrated that
Integrated Project Delivery (IPD) is among the social system where the people are in alliance to
increase the value and worth by focusing on minimising the waste and imp[roving the overall
efficiency through proper allocation of designing, implementing and monitoring stages while
renovating or constructing. Moreover, there has been always a comparison between the Design-
Bid-Build and the Design Build conceptual frameworks. Park and Kwak, (2017) critiqued that
Design-Bid-Build is a complex process to be implemented since the owner must work under
separate contracts involving the construction and the designing as well. This take more amount
of time and causes unnecessary delays. Thus, the collaborative Design Build is the prominent
tool in the renovation business to mark its first impression by providing better results.
Therefore, it is important to understand that Design Build is the latest trend to initiate the
project under the roof of support, mutual trust and coordination in bringing positive results to the
clients.
The selection of Optimal Project Delivery System
Optimal Design Delivery System is imperative to bring concrete changes for any project.
There are several benefits that has made the people to adopt such delivery systems with several
benefits such easy connectivity, better utilisation of resources and optimum levels of resources
utilisation. It is desirable to understand that any delivery system is essential to deliver the
expected results within the stipulated time frame. Design Build (DB) will be an apt selection for
optimising this renovation project. It is one of the most effective methods for restoring the
existing structure under the same team who might have worked together. Such system led to
instant outcomes due to open channels of communication, lack of barriers either geographic or
demographics, completion of work on time and providing with the innovative and customized
services or products.
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Furthermore, this 3 BHK home needs a renovation to become more sustainable and
environmental friendly by keeping in mind about the minimal aspects. There are attached
complexities with renovating such quality, delays or speed for completion of tasks, flexibility
and costings. However, DB has scored the maximum in curbing all these complexities' and
completing the tasks on time with securing the highest scores in the balance score card when
compared with other delivery systems. The DB is the most effectual system to deliver the
completion of tasks on given time with best of the innovation. In this method, both the architect
and designer work together to bring something new and unique. This saves time of the client
who gives the requirements and specifications about the modifications to be done on the 3 BHK
to the design build team. Such system gives a more controlled environment for the professionals
to work together without creating any chaos or issues.
Justification for Selected Delivery System
This Design Build is important for completion of project due to its wide range of
advantages. There is high levels of chances that this delivery system has positive effects on the
longer term by enhancing the overall maintenance of the house. This delivery system is pivotal to
bridge the gaps that leads to delays and uncertainties in context to the communication, quality
and overall management among the team members. Additionally, it is also beneficial in total
accountability in relation to the scheduling of the entire renovating project. There is also focus on
gaining results rather than excuses.
Moreover, this system of delivery for a 3 BHK will be successful when architects and
designers together to think and act like builders. It will provide the client with better value based
engineering tactics to maintain the quality levels. Nevertheless, its rapid delivery is one of the
prominent principles that DB has been adopted by many companies and individuals as well. The
single responsibility source is useful in laying the foundation of sustainable solutions and better
strategic planning. Thus, this Design Build strategy is a unique methodology which encourages
collaboration and flexibility to give customer centric results for enhanced levels of profitability
as well as productivity.
SWOT Analysis
This is the strategic framework that recognises the strengths, weaknesses, opportunities
and threats of a model, individual or organization. It enables in framing a plan to understand the
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overall progression in current scenarios. The following is the SWOT of Design Build Delivery
System.
Strengths: This system helps in single point responsibility which impact the communication as
open and reliable. It has also supported in building team work which in turn aids in faster
delivery with enhanced levels of qualitative work. Nonetheless, it assists in 10 percent of
reduction in the overall costings of the project.
Weaknesses: This is based on a team work spirit and henceforth, all the members must be in
sync and mutual trust to work. However, it is sometimes difficult due to presence of different
perspectives and technical knowledge. Moreover, this do not promote involvement when
members are not in equal passion and commitment for performing the tasks.
Opportunities: With collaboration from all the professionals in equal ratio, this acts as an
important podium to make the clients understand about the features that have been used in
designing and building of new and existing buildings as well. Additionally, it helps in assessing
the entire procedure into step by step stages to complete the project.
Threats: There is no “I” in this type of delivery system and thus, it might act as driving force to
make people insecure about others' participation. During critical situations, there might be a
possibility of decentralization of power and authority. Moreover, there are other delivery systems
that has still contribution and are preferred by the customers' to finish the project.
Risk Mitigation
This is an important part in performing the tasks mentioned in the Design Build Delivery
System in which the focus is on delivering the qualitative outcomes. The focus is on mitigating
the effects of any uncertain or challenging issue (Martens and Chang, 2017). In this regard, this 3
BHK project is going to face several challenges that might have an adverse impact on the overall
development. There is always prevalence of several other delivery systems with loyal customer
base. This acts as important setback which affected this system with an expectation. However, it
is also crucial in mitigating the effects by making this system more robust and singular in nature.
The collaboration is maintained by constant communication between the members and the clients
to maintain the credibility. It also supports in building mutual respect and trust to maintain the
relations and there will be no issue of insecurity or jealously among the team members.
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Inter-relationship between roles and responsibilities of involved members
It is important that all the individuals working in a team must be amiable and share
cordial relations to maintain the delivery and quality of services. There are several people
involved in renovating this 3 BHK house in a stipulated time to attain the objectives in
convenient modes.
Architect: This individual assists in understanding the design specifications in terms of the entire
layout and structure type. The focus is on the residential architecture, which is considered
amongst one of the types and are mostly refereed as the domestic architecture. The involved
professional helps the remodelling by furnishing details about the building codes, regulations in
regard to the zoning, materials use and more. Here, this project requires this architect to design
and plan the entire setup in more sustainable manner via adopting the eco friendly techniques.
The aim is to bring a clear demonstration about the modifications to be feasible and viable.
Interior Designer: This is the client's dreams of renovating this house into transformational ways
such as use of organic materials, discard of non environmental friendly products and more to
sustain it on loner run. However, the interior designer is going to give wings to his desires and
the specifications regarding completion of tasks. These have the ability to comprehend the
blueprints so that all the legislation and policies have been followed in proper ways. Moreover,
they have the skills' set and knowledge about the legal codes, policies and regulations regarding
inspection. It also involves asthethical based products to bring a more authentic component to the
renovation of this house.
Quality Specialist: This has an ability to bring sustainability in terms of effectiveness and
bringing transformational changes in the existing situations with cost effective strategies. In
context to this project, the focus is to mingle with other professionals to seek and give advice in
terms of work allocation, budgeting, finance planning etc. for better results. The prime focus is to
maintain the qualitative aspects of this project to manage the changes in quicker modes. Along
with, this specialist must have knowledge about the materials handling and the management of
risk to understand the cost efficiency. It would be beneficial in gaining insights about any
unregulated scenarios or unforeseen financial risks.
Consultant: This plays important role in connecting with the other members to interact freely
and also laid the pavement to be clear of any confusions, delays or errors. The consultant help in
estimating the overall budgets' and resources availability like total amount of manpower required
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and other administrative practices to set up a fixed schedule finish the tasks. Moreover, there is a
unified focus to manage the deadline and the scheduling to understand the issues and obstacles in
better ways.
Lastly, these four are the key principal members who run the operations in smooth
manner and avoid any mis management or mishandling of products while renovating the house
of 3 BHK. The agenda is to complete the tasks in sound and coherent manner and bringing better
outcomes with the best possible methods and techniques. Moreover, their responsibilities are
inter dependent and thus it leads to a democratic management style to discuss and analyse the
components before each stage of this project's delivery system.
Types of payment contracts
Contract may be defined as a legal biding agreement that governs and recognises the
rights and duties of the parties which are involved in the agreement. Payment contract is an
agreement or a legally binding document that exits between the two parties, the borrower and
lender. A payment contract should include the information which is related to the when and how
payments will be made by the borrower. A payment contract should be written as per the matters
which are agreed by the contracting parties. It is essential to have the payment contract between
the two parties so that any sort of conflict is to be avoided by the two parties involved in the
contract. Contract payment is may also be defined as a payment which is made under the formal
contact of services and goods. According to Muhlestein, Saunders and McClellan, (2017) design
and building contract is mainly designed for the construction projects where a contractor carries
out the construction and design work. Design and building project vary in different scales but
normally DB contract is generally useful where a detailed provision is needed. Depending up on
the needs and desires of the customer the payment contract varies form building to building. As
per the views of Crama, De Reyck and Taneri, (2016) there are various types of payment
contacts which are based upon the payment types and structure types. Cost plus contracts, It is
the type of contract which involves the payment for the actual purchases, costs and other
expenses which are generated directly from the activities of construction. In cost plus contract
must contain the information related to the pre-negotiated amount like certain percentage of
labour cost and material cost which covers the contractor's profits and overhead. Cost plus
contracts includes the multiple variations which are:
Cost plus fixed fee
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Cost plus fixed percentage
Cost plus with Guaranteed Maximum Price and Bonus Contract
Cost plus with Guaranteed Maximum Price Contract
As illustrated by Halac, Kartik and Liu, (2016) another type of contract is Cost plus with the
Guaranteed Maximum Price contract. This contract is used when there is no clear definition of
the scope and it is the responsibility of the owner to establish certain limits how much a
contractor will be billing. Owner has to be aware of the cost plus contracts as they are difficult to
track and also need more super vision. It was also sated by the author the Unit price contracts is
also the type of payment contract which is most commonly used by the builders and federal
agencies. In this contract, unit price can also be set during bidding process if the owner requests
the specific quantities and pricing for already determined amount of unitized items. When the
unit price is provided, owner can easily verify and understand that he is been charged with
uninflated prices for the services and goods which are been acquired. As per the views of Chen,
Klastorin and Wagner, (2015)Time and material cost contracts is also the contract which are
used suitable or preferred if the scope of the project is not clear or the scope is not properly
defined. Contractor and the owners need to establish an agreed daily rate or hourly rate which
also includes the additional expenses which could rise in the construction process. In this
contract cost must be classified as markup, indirect, direct and overhead and which needs to be
included in the contract. Arve and Martimort, (2016) stated that another payment contract type
which can be used in for design and building is fixed price contract or lump sum contract, it is
the type of contract which involves the fixed price for all of the construction related activities, it
also includes benefits or the incentives if the project is finished early. This contract also includes
the penalties if the projects is finished after the fixed date. It is the kind of contract which is
usually preferred when the scopes are clearly defined and the schedule are clearly reviewed and
both the parties have agreed upon. Payment contacts helps in putting the legal binding agreement
between owner and the contractor, the kind of job which is executed will receive certain amount
of compensation or how will be the compensation will be distributed with in the parties involved
in the contract. Payment contacts plays an essential role between the two parties as design and
budding projects are expensive so both the parties have to take precautions in order to sign a
payment contract and has to choose or sign a contract which is suitable for both the parties.
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According to the views of Bernardi and Hennessy, (2016) out of the various payment
contracts for building and design it is vital for both contractor and the owner to choose a contract
which should prove beneficial for both the parties which are involved in the contract. The terms
of the payment should be clear and easily defined which can help in the mutual consent for both
contractor and the owner. A selection of the payment of the contract should be selected on the
basis of considerations of the financial terms, programmatic factors, performance, time, etc. It is
essential for both the parties to select the optimal payment contract which should be ease for the
both the parties. Owner and the contractor should go through various types of the contracts of
payment and should choose one which will prove optimal for the both the parties. It was
illustrated by Chen and Lee, (2016) the payment contract which will prove optimal for both the
parties will be Time and Material contract will be suitable for building and design as it is the
contact which can be used by the contractor and the owner when the scope of the entire project is
not clear as it may lead to confusion within the payment so this contract can be used buy both the
parties which are involved in the contract. Contractor and the owner is establishing hourly and
daily rate as a payment method which also includes other different expenses which may arise
during a renovating process. Within this method an owner can put time period for the project to a
contractor which is to met by the contractor and amend it any how. This is one of the reason for
being this payment contract type an optimal for both the parties. As such contracts are especially
useful for small scale projects and when a contractor can make a realistic guess about the project
that how long it can take in order to complete a project. So, this is a payment contract type which
will be suitable for both parties which are involved in the agreement.
As per the view of Chapman and et.al., (2017) time and material contracts are suitable for
the project because as in the building and designs scopes of the project are not clearly define as
owner can make change in the designs at any period as owner wishes so this type of contact can
be suitable for contractor and the owner. This type of contract can be beneficial for the owner as
it minimises the risk of the owner as owner can set a specific project duration for the contractor
which a contractor has to meet so this helps is minimising the risk of the owner. As, renovation
is not a huge project like constructions where the can't make a realistic guess about the duration
of a project but contractors can make a proper guess how much a renovation of the 3 bedroom
house would take. So this payment contract type will be suitable for the owner of the house.
Also, in this contract owner and contractor can establish hourly and daily rate i.e. owner can pay
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