Management contracting Case Study the National Children's Hospital in Dublin, Ireland
Management contracting is a form of construction project delivery in which the owner contracts with a management contractor to oversee the design and construction of a project. The management contractor is responsible for managing the design and construction process, coordinating the work of the various subcontractors, and ensuring that the project is completed on time and within budget.
In a management contracting arrangement, the owner typically retains ownership of the design and construction documents and retains control over the design and construction process. The management contractor is responsible for managing the project and coordinating the work of the various subcontractors, but does not typically provide any construction services itself. Instead, the management contractor hires subcontractors to perform the actual construction work.
One of the main advantages of management contracting is that it allows the owner to retain control over the design and construction process while still having access to the expertise and resources of the management contractor. It can also be a more cost-effective option for owners, as the management contractor is responsible for managing and coordinating the work of the subcontractors, which can reduce the risk of cost overruns and delays.
However, management contracting can also present some challenges, as the owner is still responsible for overseeing the work of the management contractor and ensuring that the project is being managed effectively. It is important for the owner to clearly define the roles and responsibilities of the management contractor in the contract to ensure that the project is completed successfully.
One example of a project that utilized management contracting as the delivery method in Ireland is the construction of the National Children's Hospital in Dublin. The project involved the construction of a new children's hospital on the campus of St. James's Hospital in Dublin, which included the construction of a new inpatient facility and a new outpatient facility. The owner, the Health Service Executive, entered into a management contracting arrangement with a consortium led by BAM Ireland for the design and construction of the project.
The consortium was responsible for managing the design and construction process, coordinating the work of the various subcontractors, and ensuring that the project was completed on time and within budget. The project was completed in 2020, and the new hospital is now providing care to children and families across the country. The management contracting arrangement allowed the Health Service Executive to retain control over the design and construction process while still having access to the expertise and resources of the management contractor, which helped to ensure the project was completed successfully.
The construction of the National Children's Hospital in Dublin was beset by numerous challenges and problems, which led to significant cost overruns and delays. Some of the main problems that arose during the project include:
Design issues: There were numerous issues with the design of the hospital, including changes to the scope of the project and the need for additional design work. This resulted in delays and added cost to the project.
Procurement problems: There were also issues with the procurement process for the project, including the decision to award the contract to the consortium led by BAM Ireland. This led to legal challenges and further delays to the project.
Construction issues: There were also a number of construction issues that arose during the project, including problems with the installation of various building systems and difficulties with the coordination of the work of the various subcontractors. These issues contributed to the cost overruns and delays on the project.
As we can see from above the construction of the National Children's Hospital in Dublin was beset by numerous problems and challenges, including main contractual failure. Some of the main issues that arose in relation to the contracts on the project include:
Scope creep: The scope of the project changed significantly over time, which led to additional design work and other changes to the project. This resulted in disputes between the owner and the management contractor over the cost and schedule of the project.
Changes to the contract: There were also numerous changes made to the contracts for the project, including changes to the scope of work and the payment terms. This led to disputes between the owner and the management contractor over the terms of the contract.
Breach of contract: There were also allegations of breach of contract by both the owner and the management contractor on the project. The owner accused the management contractor of failing to complete the work on time and on budget, while the management contractor accused the owner of changing the scope of the work without proper compensation.
Overall, the construction of the National Children's Hospital in Dublin was a complex and challenging project, and the contractual issues that arose contributed to the cost overruns and delays on the project. It is important for all parties involved in a construction project to carefully manage the contracts and ensure that the terms of the agreement are clearly defined and adhered to in order to avoid disputes and minimize the risk of contractual failure.
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