Modes of Engagement
This type of contract is well suited for projects where the quantum of work may be uncertain at the beginning of the project (For example, for underground pipe laying work where we don’t have exact data on the underground strata, utilities etc.)
In such contracts, Serenity shall be paid based on the quantity of work executed as per unit rate of each item contracted with the client. Hence, in case of any change in BOQ quantities we shall be paid at the same agreed unit rate.
This is a win-win situation for both Serenity and Client, because neither we would bear loss of money for excess and extra items and at the same time client saves money on unused quantities in the BOQ.
Since, in an item rate contract, each item is quoted, it is easier for clients to analyze various bids, and make a choice. The variations in quantities during execution, can be assessed easily and paid for. Even works for extra item can be worked out from the contract to certain possible extent. The billing and measurements process is faster.
Generally this is the most preferred type of contract for building construction where client pays us on a monthly basis, based upon the actual progress made, and the rate decisions made during the contract agreement.
This is a project delivery system adapted by Serenity Projects wherein both the design and construction scope is taken up by our team entirely. In this process, Serenity Projects becomes your one-point contact for all needs. It eliminates the need for a coordinator to be placed by the client, to program manage work from multiple vendors.
Design & build, relies on a single point of responsibility contract and is used to minimize risks for the project owner and to reduce the delivery schedule by overlapping the design phase and construction phase of a project. DB with its single point responsibility carries the clearest contractual remedies for the clients because Serenity as a DB contractor will be responsible for all of the work on the project, regardless of any situation.
The traditional approach for construction projects consists of the appointment of a designer on one side, and the appointment of a contractor on the other side. The design–build procurement route changes the traditional sequence of work. It answers the client’s wishes for a single point of responsibility in an attempt to reduce risks and overall costs. It is now commonly used in many countries and forms of contracts are widely available.
Under Serenity’s DB Mode of Engagement, management is structured so that the project owner works directly with our Single Point of contact, which in turn, coordinates with various subcontractors. Our in-house Architects contribute to design–build projects in one of several ways, with varying degrees of responsibility.
- Architect as employee of Serenity: The in-house architects works for Serenity. These architect still bear professional risk for their work.
- Architect as a subcontractor: In such arrangements, the architect is one of the many subcontractors on the team led by Serenity, from amongst the panel of Architects empaneled by Serenity.
- Architect as second party in Serenity-led integrated project delivery (IPD): The architect and contractor work together in a joint venture, both coordinating the subcontractors to get the project built. The building owner has a single contract with this joint venture. Serenity leads the joint venture. This method is used where project owner has a recommendation for his own Architect, while still not willing to program manage Serenity and his Architect as separate parties. The architect bears the same risk as they do in the traditional approach but has more control in IPD.
Our professional, transparent and flexible program management & project management approach helps us to work professionally with external Architects and give a unified experience to Project owners.
We believe that time is the most valuable resource and it cannot be compromised on. Thereby, Serenity Projects has adapted the Cost Plus Contracting method to create a win-win situation for the client as well as themselves. A cost-plus contract, also termed a cost reimbursement contract, is a contract where a contractor is paid for all of its allowed expenses, plus additional payment to allow for a profit. Cost-reimbursement contracts contrast with fixed-price contract, in which the contractor is paid a negotiated amount regardless of incurred expenses.
A cost-reimbursement contract is appropriate when it is desirable to shift some risk of successful contract performance from the contractor to the buyer. It is most commonly used when the item purchased cannot be explicitly defined, as in research and development, or in cases where there is not enough data to accurately estimate the final cost.
Apart from the fixed contractual rate, a reward will be awarded to Serenity for on-time or before time delivery, and a penalty for late completion.
A cost-plus contract is often used when performance, quality or delivery time is a much higher concern than cost, such as in premium projects. Final cost may be less than a fixed price contract because contractors do not have to build buffers in the price to cover their risks, especially when the ability to estimate costs is low.
In an alliance contract, the owner, contractor and designer are all parties to one project agreement. Project development is driven by a co-operative board of management made up of representatives of the parties, with a mandate to deliver the project in accordance with agreed goals and alliance principles. Even here, a reward will be awarded to all Stakeholders of the project amongst Serenity, for on-time or before time delivery, and a penalty for late completion.