|
Many contractors have seen the delivery of their services change. One of these changes is the increase in design–build projects. In this article we’ll explore PCL’s ingredients to a successful design–build method of delivery.
Founded in 1906, the PCL family of companies has grown to be the largest general contracting organization in Canada, as well as one of the leading contractors in
North America.
As a major builder, PCL has been exposed to almost every format of contractual delivery. Clients consult the organization as to the advantages and disadvantages of
each contractual format, and PCL in turn develops the process that is most beneficial for that client.
Many clients believe that the design–build process may be the most expedient way to meet the needs of a construction project. In a design–build relationship, PCL assumes total responsibility for both the design and the construction phases. This gives the client a single source of responsibility from start–to–finish, resulting in a shift of risk from the client to the contractor.
Also, because design and construction are part of a unified system, it is an efficient "fast track" process. While design is still under way, construction is implemented in phases, making it a more cost effective approach to construction than the traditional linear method.
PCL works intimately with clients, architects, designers and engineers to help meet project design and construction requirements. This cooperative and innovative approach makes each project a partnership, not an individual achievement. Some of the advantages of this partnership include simplified lines of communication, improved coordination between the contractor and client, and fewer claims.
The design-build method of delivery is growing so popular that some of PCL’s highest profile projects have been design/ build, including the $140–million National Trade Center in Toronto, Ontario; and the $200–million Hawaii Convention Center in Honolulu, Hawaii.
What is PCL’s strategy in terms of risk management? When PCL first entered the design–build market, it relied on project insurance policies to protect its contingent
design liability. As PCL’s portion of the design–build market grew, it resulted in more exposure and, in June 1996, PCL began looking for a comprehensive design liability program. After investigating several programs, PCL chose the Contractors Design Liability program from CNA/Schinnerer.
According to Gordon Maron, PCL’s Vice President of Finance & Administration, "We have the required management processes and controls in place to manage the risks of design–build construction, and have taken responsibility for a significant amount of errors that can arise from the process. What we need, however, is a partner to share the high end exposure. CNA/Schinnerer is that partner. They have the corporate values, credibility and reliability we need to move forward in this growing market."
The CNA/Schinnerer program has conducted two risk management seminars for PCL on issues such as contract language, negotiation and risk control. For information on the CNA/Schinnerer design liability program, call (301) 961-9800.
This information is provided by Victor O. Schinnerer & Company, Inc. as the program administrator for the CNA Professional Liability Insurance Policy for Design Professionals. The CNA/Schinnerer Program is the Commended Program of The American Institute of Architects and the National Society of Professional Engineers.
In each issue of Constructive Comments we answer questions on important contractor issues. Do you have a question you would like answered? Please submit all questions to: Attention: Constructive Comments, at info@schinnerer.com or fax to 301-951-5444.
This article is taken from Constructive Comments, vol. 1, num. 1. The contributing editors are Michael C. Loulakis and Owen J. Shean, shareholders in the Washington D.C. area law firm of Wickwire Gavin, P.C. They can be reached by phone at (703) 790-8750, or by fax at (703) 448-1801. E-mail can be sent to bmoison@wickwire.com.
|
