Pre-project Peer Reviews In Gmp/lump Sum Contracts

摘要

Purpose - A "pre-project peer review" (PPPR) is conducted by a construction company or CM-at-riskrnfirm to mitigate or reduce project risks prior to committing to a guaranteed maximum price (GMP) orrnlump sum. The purpose of this paper is to find out the common PPPR practices that may affect thernoutcome of a GMP/lump sum contract and to provide guidelines to the construction industry for PPPRrnimplementation.rnDesign/methodology/approach - A survey was administered to the top 400 constructionrncompanies listed by Engineering New-Record that also includes the top 100 construction managementrnfirms. The closed survey method was used. Respondents were asked to select from multiple answersrnto each question. The survey preparers worked on the predetermined answers carefully to ensure thatrnrespondents are comfortable with their selections. For some questions, respondents were allowed tornprovide their own answers in addition to the selection.rnFindings - Even though conducting formal PPPRs is not common practice in the industry, thernresults confirm the necessity and importance of this process in GMP or lump sum contracts. The otherrnfindings provide information about the current practices related to PPPR implementation. Forrnexample, more companies prefer conducting PPPRs on an informal basis; the PPPR team in mostrncompanies is composed of professionals in the local office with day-to-day responsibilities; the cost ofrnPPPRs is included in the budget as part of overhead; and finally, a follow up process to PPPRs isrnconducted by many companies and is considered to be a critical by even those companies that do notrnconduct PPPRs.rnOriginality/value - A literature survey indicates that there are no published studies related tornPPPRs. The study reported in this paper fills this gap.