Modern Construction Project: Contracts, Innovation, and Effectiveness

This report delves into the intricacies of modern construction projects, emphasizing the importance of well-defined objectives, peer benchmarking, and effective contract management. It highlights the significance of achieving better, smarter, and more cost-effective construction outcomes while minimizing defects and health concerns. The report explores critical processes like defining project missions, mobilizing resources, and safeguarding them throughout the project lifecycle. Furthermore, it examines the role of peer benchmarking in evaluating performance, various types of modern construction contracts (lump sum, cost-plus, time and material, and unit pricing), and strategies for lifting pre-competitive innovation through technology and improved project management. The report also discusses the importance of pre-construction effectiveness, including risk analysis and procurement planning, alongside the need for on-site construction efficiency. The analysis concludes by stressing the importance of community involvement and the potential for high-quality construction outcomes that enhance efficiency and customer satisfaction.

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MODERN CONSTRUCTION PROJECT
By Name
Course
Instructor
Institution
Location
Date

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Modern construction project
Introduction
Modern construction projects always have a detailed and fixed set of objectives that they intend
to achieve once the project is complete. Mainly the projects are key factors to the development of
the area of target. The constructions may range from a number of impacts which include
employment creation, ability to access the related benefits by residents or locals of the particular
areas, schemes of operation and the end results after completion of the said project (Azhar et al,
2010).
A good construction project will have to undergo the following processes in order to meet its set
objectives-;
1. Defining the mission of the project
2. Mobilizing the required resource base
3. Showcasing the project life cycle
4. Safeguarding the resource base
This report is about a productive construction project which has the following set of objectives-;
 It is aimed at achieving better, smarter and cheaper modern construction projects
 Determining why carrying out peer benchmarks are critical before and during the setting
up of the construction project
 Understanding the modern construction contract
 To enhance lifting of the pre-competitive innovation

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The objectives stated above will help in answering these two ideas when setting up modern
construction projects;
 What is in the pre-construction effectiveness?
 What is on-site construction effective?
Once the project is complete, we are therefore able to identify its fitness for purpose on
durability, its durability and whether or not it is able to maintain the public confidence. It should
be noted that setting up modern construction projects is one of the ways that modern societies are
able to generate new value and creating physical assets that can be exploited to make economic
and social ends (Chan et al, 2013).
The productive construction project
Achieving better, smarter and cheaper modern construction projects.
Modern construction projects are aimed at achieving better, smarter and cheaper buildings. A
quality construction is one that has less or no defects. It should also put into consideration the
decrease in health concerns and accidents. The construction should not be affected inclement
weather in the course of the build. The suppliers should be offered larger incentives which aim at
reducing the amount of waste materials. During the construction process, there should be
reduced disruption in noise, dust and traffic in the site. Better construction projects should aim at
the massive creation of employment to the locals in the areas (Fugar & Agyakwah, 2012).

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Why carrying out peer benchmarks are critical
Peer benchmarking is a methodical process used when measuring and comparing the
performance of an institution in comparison to another similar organization. The process is
mainly to generate a fruitful ground for ideas that point to superior performances when put to
use. Once the critical factors to success are identified, they are then measured for their
performances. Peer benchmarking for a construction project can be done at various levels or
phases of the project. It measures evaluation among competitors and gives guidance regarding
the implementation of measures (Harris & McCaffer, 2013).
Some of the most recommended benchmarking sites and clubs include-;
a. Making visits to various construction projects sites
b. Exchanging of work experiences among contractors and engineers
c. Involving various top owners and managers of different construction projects.
d. Making fast and reliable transmission of acquired information (Long et al, 2011).
e. Making discussions and presentations of constructions systems and the techniques of
management involved
The modern construction contract
A contract is an agreement between two or more parties, either an organization or individuals,
meant to implement or not to implement certain actions. The said agreement must always be
enforced by law. A construction contract thus provides a legal binding between the owner and
the contractor that the specified job will receive the amount of compensation and how it will be
distributed (Love & Edwards, 2010).

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The most common types of modern contracts are-;
I. Lump sum or fixed contract – in this contract, all consumer related activities have a total
fixed price. The owner pays the contractor a specified lump sum after the work assigned
is completed. This encompasses no cost breakdown. This type of contract involves the
risk being transferred to the contractor and it is difficult to get back credit for any work
left halfway (Love, 2011).
II. Cost plus contracts – payment for the purchases, actual costs or any other expenses
accrued directly from the activities involved in the construction. Pre-negotiated amounts
which cover the builders overhead and the builder's profit must always be part of the
information contained in these contracts. This type of contract is mainly used in situations
that the scope is not clearly laid out hence the owner is the one accountable to create
some limits showing how the builder will be billing.
III. Time and material contracts – this type of contract is mainly chosen in any case the scope
of the project is not well defined. Both the owner and the builder will establish an agreed
rate either hourly or daily. It should also contain any supplementary expenses that are
able to arise during the building process.
IV. Unit pricing contracts – this is commonly used by the contractors and those in the federal
agencies. At the bidding stage, the unit prices can be set when the owner requests precise
quantities and pricing. This is done for an already determined sum of items. The owner is
thus able to authenticate that the goods and services being charged are not inflated. An
important advantage of unit pricing contracts is that the prices are able to be adjusted
either way in between the changes in scope. The owner and the contractor are therefore
able to reach into agreement whenever there is a change in orders (Winch, 2010).

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Lifting pre-competitive innovation
Improving productivity through innovation can be performed through the following ways -;
 Using technology – improving the level of engagement of the industry with new
technologies such as robotics and even off-site fabrication
 Improving supervisory and project management skills
 Allowing enough time for planning and innovation
Pre-construction effectiveness
It involves carrying out initial planning and engineering with an aim of defining the project, its
likely issues and analyzing impacts of the costs. Increasing effectiveness of pre-construction is to
equip the owner with these ensuing deliverables-;
 Analysis of risks
 Procurement plan
 The lists of equipment
 Design basis
 The plan of execution
On-site construction effective
It can be used for purposes including education, healthcare, residential and commercial
applications. It involves putting into practice the planning, design as well as the assembly of
building materials at the location

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Conclusion
Modern construction projects are aimed at offering superior and high-quality construction
processes. This often leads to reduced time for delivery hence improving efficiency and customer
satisfaction. Community involvement from the owner to the locals who will benefit from the
completed projects is an important part of the process. With all the objectives discussed above
fully considered, the owner is able to reap greatly from the projects

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References
Azhar, S., Nadeem, A., Mok, J.Y. and Leung, B.H., 2011, August. Building Information
Modeling (BIM): A new paradigm for visual interactive modelling and simulation for
construction projects. In Proc., First International Conference on Construction in Developing
Countries (Vol. 1, pp. 435-446).
This is a presentation by the named participants during the first international conference
on construction in developing countries. They discuss different several techniques in order to
decrease the construction projects costs while increasing the quality and productivity meant to
reduce the delivery time of the construction project.
Chan, A.P., Scott, D. and Chan, A.P., 2013. Factors affecting the success of a construction
project. Journal of construction engineering and management, 130(1), pp.153-155.
The authors wrote a journal on construction engineering and management basically
discussing the factors affecting the success of a construction project. They discussed detailed
reports on these factors that either influence the projects positively or negatively and what to do
to overcome the negatively affecting factors and also how to build on those that affect the
projects positively. The main idea is work on factors that may lead to a successful completion of
the project.
Fugar, F.D. and Agyakwah-Baah, A.B., 2012. Delays in building construction projects in Ghana.
Construction Economics and Building, 10(1-2), pp.103-116.
This is a journal on construction economics and building that investigates the causes of
delay of building construction projects. The country of target is Ghana. The investigation is

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meant to determine the causes that are most important considering the key participants in project
-; the contractors, owners and other consultants. Delays may prevent completion of the project
within the stipulated time and thus the authors discuss how to reduce or avoid them.
Harris, F. and McCaffer, R., 2013. Modern construction management. John Wiley & Sons.
This is a literature writing on the modern construction management written by Harris, F
and McCaffer. They discuss modern methods of managing a construction project. The roles
played by the project managers in ensuring the whole project idea yields the intended purpose is
well discussed in the article. The authors realized that in order to successfully complete a
construction project, the managers must go extra miles from the just the project management and
reflect that planning and proper coordination of relationships are equally very important for
consideration.
Long, N.D., Ogunlana, S., Quang, T. and Lam, K.C., 2011. Large construction projects in
developing countries: a case study from Vietnam. International Journal of project management,
22(7), pp.553-561.
This is an article on international journal of project management pointing to various large
construction projects in the developing countries. The report picked a case study of Vietnam as
one of the developing countries. All the developing countries put into use the modern
construction projects requirements and thus we are able to learn what they do that makes them
achieve the good results that are recognized worldwide.

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Love, P.E. and Edwards, D.J., 2010. Determinants of rework in building construction projects.
Engineering, Construction and Architectural Management, 11(4), pp.259-274.
This is a journal on engineering, construction and architectural management
discussing the various determinants of rework in building construction project. They discuss how
important and necessary it is to control the projects and manage them to achieve efficiency and
the required quality at the least possible costs. Delays are usually categorized as one of the
most common problems that leads to a lot of negative effects in projects and that may cause
rework hence the authors discuss several ways to reduce them.
Love, P.E., 2011. Influence of project type and procurement method on rework costs in building
construction projects. Journal of construction engineering and management, 128(1), pp.18-29.
This article from the journal of construction engineering and management talks of
different types of projects and their procurement methods. All this are on the costs of reworks in
construction projects. The author tends to analyze consequences, both direct and indirect, and
then discusses them within the article.
Winch, G.M., 2010. Managing construction projects. John Wiley & Sons.
The author discusses better ways of managing construction projects with a view of
ensuring quality work. The author describe what the project managers perform and how well
they are required to do it. It is basically a literature on the bulky role construction project
managers play to ensure the whole project idea becomes a success. Presenting a specific and
detailed list is presented and when incorporated in the construction project it will enhance the
ability of the project manager to increase the chances of having a successful project.