Embracing Design and Construct (D&C) and Sustainable Procurement in Australian Construction

Question 1

TherisingusageoftheDesignandConstruct(D&C)procurementtechniqueinAustraliaisduetoseveralcompellingbenefitsandstrategicfactors. (SengandYusof,2006)

KeyFactorsforAcceptanceofD&C

1.Singlesourceofresponsibility:

TheD&Ctechniquesimplifiescommunicationandcoordinationbyconsolidatingdesignandconstructiontasksintoasinglecontract.

Thisintegrationreducesthedangerofconflictsandmisunderstandingsthatmightarisewhendesignandconstructionarehandledseparately.

oEnhancedaccountability:Havingasinglecompanyresponsibleforbothdesignandconstructionsimplifiesprojectmanagement. Thisintegratedstrategyassuresthatthecontractoriscompletelyresponsibleforcompletingtheprojectwithintheagreed-uponrequirements,budget,andtimetable.

1. Efficiency of time

1.TimeEfficiency:

oConcurrentDesignandConstructionActivities:ThedesignandconstructionphasesmayoverlapwhenusingtheD&Capproach. Thisconcurrentstrategycanshortenthe overallprojectdurationbybeginningconstructionbeforethefinaldesigniscompleted,apracticeknownasfast-tracking. Fast trackingprojectscanprovideacompetitiveedgeinsectorsthatprioritizespeedtomarket.

Thismethodisespeciallybeneficialforcommercialdevelopmentssinceearlycompletioncanresultinfasterrevenuegenerating(SengandYusof,2006).

1.Costcertainty: Earlycontractorengagementindesigncanleadtomoreaccuratecostestimates. Thiscanleadtomoreeffectivebudgetingandfinancialplanning. FixedpricingagreementsarecommoninD&Ccontracts,providingclientswithcostpredictabilityandprotectionagainstoverrunsaslongasthescoperemainsunaltered.
SengandYusofs(2006)recommendationsandconsiderations 1.RiskAllocation: oBalancedRiskSharing:SengandYusofsuggestallocatingrisksequitablybetweentheclient
andcontractor.

Whilethecontractorassumesmoreriskintermsofdesignandconstruction,theclientmustensurethatriskisnotundulytransferredtoavoidinflatedpricesorlowerquality.

1.Clientroleandinvolvement:
Clientsshouldactivelyparticipatethroughouttheprojecttoguaranteetheirneedsandexpectationsaremet.

Thisincludesestablishingexplicitprojectobjectivesandprovidingongoingoversight.

Providingaclearprojectbrieffromthestartcanreducescopemodificationsandensurethecontractorknowstheclient'sexpectations.

1.EnsureContractualClarity: oClearlyoutlineroles,obligations,andexpectationsforallparties.Thisincludesoutliningproceduresfordealingwithchanges,disagreements,andunexpectedsituations. Incorporatingperformancemeasurementsandincentivesincontractshelpsinspirecontractorstomeetorexceedprojecttargetsforquality,time,andcost.

2.QualityControl: oIndependentReview:Whilethecontractorisresponsibleforbothdesignandconstruction,it'simportanttoperformindependentreviewsandqualitycheckstoverifystandardsandspecificationsaremet. Clientsshouldhaveaccesstotechnicalexpertise,eitherin-houseorthroughconsultants,toefficientlymanagetheprojectandaddressanydifficultiesthatmaydevelop.

Second question

TheAustralianGovernment'sSustainableProcurementGuide(2021)supportstheuseofacirculareconomymodelinmaterialandserviceprocurement,particularlyinbuildingdesign,construction,operation,andredevelopment.

Thismethodtriestoimprovethesocial,environmental,andeconomicimplicationsofpurchasedgoodsandservicesduringtheirentirelifecycle.

Circular Economy in Building Procurement

Design Phase

Maximizeresourceefficiencybyusingdurable,recyclable,andenvironmentallyfriendlymaterials.

Thisinvolvesemployingrecycledmaterialsandproductsthataresimpletodisassembleattheendoftheirusefullife(AustralianGovernment,2021).

Modulardesignallowsforeasyrepair,upgrading,andrecyclingofbuildingcomponents.

Sustainable Procurement in the Construction Industry

Introduction

Sustainableprocurementintheconstructionindustryiscriticaltosupportingacirculareconomy,whichfocusesondecreasingwaste,extendingmateriallifecycles,andminimizingenvironmentaleffects.

TheAustralianGovernment'sProcurementGuide(2021)encouragesbusinessestousetheseprinciplesacrosstheirprocurementprocedures.

Thistechniquepromotesnotonlybettersocialandenvironmentaloutcomes,butalsoeconomicefficiencyandaccountabilityforbusinesses.

Thisdebatewilllookathowconstructionbusinessesmaymakesustainableprocurementdecisionsthroughouttheprocurementcyclewhiletakingcostcontrol,social,environmental,andcorporatemanagementintoaccount.

Procurement Cycle Stages

1. Planning and Specification

DemandManagement:Evaluatethedemandfornewconstructionprojectsandlookintoalternativessuchasrestoringorrepurposingcurrentstructures(AustralianGovernment,2021). Engagestakeholderstocomprehendtheirneedsandexpectations,orensurethattheprojectisconsistentwithsocialandenvironmentalgoals. 2.DefineSpecifications. Includesustainabilitytargetsinspecifications,suchasusingmaterialsthathavebeenrecycled,improvingenergyefficiency,andreducingwaste(Testaetal.2016).

Establishperformancerequirementsthatcompelvendorstoshowtheircommitmenttosustainabilitythroughcertificationsorhistoricalperformance.

Supplier Selection and Tendering
Assesssuppliers'sustainabilityqualifications,particularlyISO14001accreditationforenvironmentalmanagementsystems(Walker&Brammer,2009). Assessvendors'CSRpractices,includinglabor,volunteerism,andethicalsourcing.2.BiddingProcesses: GreenTendering:Putsustainablesuppliersfirstbyaddingenvironmentalandsocialfactorsintobiddingpapersandevaluationmethods(Preuss2009).

Encouragecollaborationwithvendorstocreateinnovativeandsustainablesolutions.
1. Contract Management

2. SustainableContractClauses: -

Establishkeyperformanceindicators(KPIs)forsustainabilityandcompelcontractorstosubmitregularreports(Loosemore,2015). Continuousimprovementinvolvesanalyzingperformancedataandcollaboratingwithsupplierstoimprovesustainableoutcomes.

1. Resource Management:

Increasematerialefficiencywithsolutionssuchasjust-in-timedeliveryoron-siterecycling(Adamsetal.,theyear2017). Reducethecarbonfootprintinbuildingsbyimplementingenergy efficientproceduresandequipment.

2.Wastemanagement:

Developandimplementwastereductionpoliciestoencouragethe reuseandrecyclingofconstructiondebris(Yuanetal.2011).

Usecirculareconomyideastodesignfordisassemblyandmaterialrecovery.

End-of-Life and Redevelopment

Whendecommissioningabuilding,considersustainabledeconstructionandmaterialrecovery(Crowther,1999). Prioritizethereuseandrecyclingofmaterialstoreducewasteandpromotea circulareconomy.

Redevelopmentopportunities: Adaptivereusecanextendthelifeofbuildingsandreducethedemandfornewconstruction(Langston,2011).

Environmentalremediationinvolvesremovingcontaminantsandpreparingthesiteforfutureusage.

Integrating Cost Management, Social, and Environmental Aspects

Cost Management

UseLifeCycleCosting(LCC)foracomprehensiveevaluationoftotalownershipcosts,includingbuilding,operation,maintenance,anddisposal(Kibert,2016). Conductcost-benefitevaluationstojustifyinvestinginsustainablematerialsandtechnology,whichmayincurgreaterupfrontcostsbutreducelong-termexpenses.

2.Financialincentivesincludegovernmentgrantsandsubsidies.

Usegovernmentgrantsandsubsidiesforsustainableconstructionprojectstocovertheinitialexpenditures(AustralianGovernment,2021). Usetaxincentivestopromoteenergy-efficientandenvironmentallyfriendlybuildingpractices.

Social Aspects

1.CommunityEngagement:

o InclusivePlanning:Involvelocalcommunitiesinprojectplanningtosatisfytheirneedsandexpectations(Aapaoja&Haapasalo,2014). Conductsocialimpactevaluationstoidentifyandreducenegativeeffectsonthecommunity.

2.Prioritizehiringlocallaborandsupplierstoboostthelocaleconomy(Hill&Bowen,1997). Investintraininganddevelopmentprogramstoimprovetheabilitiesoflocalworkers.

Environmental Aspects

1.ImplementEnvironmentalManagementSystems(EMS)andobtainISO14001certificationtomitigateenvironmentalimpacts(Darnalletal.,2008). Implementsustainablesitemanagementstrategiestoreducetheenvironmentalimpactofconstructionactivities.

2.Aimforcertificationunder-recognizedgreenbuildingstandardssuchasLEEDorGreenStartoachieveexcellentenvironmentalperformance(Reedetal.,2009). Includestepstoprotectandpromotelocalbiodiversityduringbuildingandoperation.

Corporate Management

1.CorporateGovernance: -Createandimplementsustainabilitypoliciestodriveprocurementdecisionsandprocedures(Epstein&Buhovac,2014).

EthicalStandards:Maintaintransparencyandaccountabilityinallprocurementactions.

2.StakeholderCommunication: -Reportanddisclosesustainabilityperformancetostakeholders,includingshareholders,employees,andthecommunity(Freeman,1984). IntegratingCorporateSocialResponsibility(CSR)programsintobusinessoperationscanimprovecorporatereputationandstakeholdertrust.

Sustainableprocurementintheconstructionsectorisacomplexstrategythatmustbecarefullyconsideredatallstagesoftheprocurementprocess.

Constructioncompaniesmaygreatlyimprovetheirsustainabilityperformancebyintegratingcostmanagement,social,environmental,andcorporatemanagementcomponents. Thisnotonlyreinforcestheidealsofacirculareconomy,butalsoimproveslong-termeconomicviability,socialequality,andenvironmentalresponsibility. ThesuggestionsintheAustralianGovernment'sSustainableProcurementGuide(2021)giveasolidfoundationforattainingtheseobjectives,ensuringthattheconstructionindustrycontributespositivelytosocietyandthe environment.

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