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2.2.4 Traditional Approach Advantages

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It should be noted that the prime advantage of employing the Traditional Contracting approach is that it provides much more confidence about the Project being handed over by the designated completion date than with almost any other approach to construction work, provided always that a competent Contractor has been selected. This is because there is far less likely to be uncertainty about the work content, since the Detailed Design drawings will have been finalised, thereby allowing fully detailed bills of quantities to be produced. That combined level of information enables the Contractor to determine the labour and construction equipment resources very accurately, right from the time of preparing the commercial bid. The foregoing reference to the completion date is in regard only to the construction activities. It is not to say that the overall time-frame for Project completion will be quicker than with the EPC route. This is because, under the Traditional route, the Detailed Design work has to be completed before the Contractor can commence the construction activities. That is not the same case with the EPC approach.

Having a Detailed Design completed ahead of the commercial bidding phase should also ensure that delays and additional costs due to unexpected design changes in the implementation phase are very much reduced. This may well be the reason why the Traditional Contracting approach to implementing construction Projects today still has greater prevalence than any other construction Project implementation method. This can be seen by researching on the Internet to see how various governments around the world handle the implementation of construction Projects, typical of which is the South Australian government's preferred contracting strategy.1

Practical Risk Management for EPC / Design-Build Projects

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