2.00  Design & Tender - The cost base for this category is the construction and design portion of the contract value

2.01

Technology Selection

The risk that changes in equipment selection and/or specifications could affect the design requirements (room sizes, space requirements, power supply, cooling requirements) and could lead to increased costs.

2.02

Owner's Project Management Team Experience

Risk that, during design phases, the Project Management Team does not have sufficient experience to design and manage the procurement model. Risk of inadequate information flow within the Project Team. It is assumed that under DBFM, IO will be included in the Owner's Project Management Team.

2.03

Sign off by user groups incl. F.F.&E./I.T.

Risks that user groups wish to revisit the design of their program space. Risk that approvals for F.F. & E. and I.T. components are not forthcoming. Risk that this could result in delays in the design process and ultimately delay the issue of the tender.

2.04

Incomplete RFP Tender Documentation

Risk that the RFP tender documentation is not complete. This will result in increased addenda and could give a sense of uncertainty to bidders, resulting in reduced tolerance to risk resulting in higher tenders.

2.05

Uncoordinated Information

Risk that tender documentation is uncoordinated. This will result in increased addenda and could give a sense of uncertainty to bidders, resulting in reduced tolerance to risk resulting in higher tenders.

2.06

Financial capability of Proponent

Risk that proponent does not have the financial resources or experience with the procurement model. The likelihood of an one of the entities or joint-venture partners of the proponent becoming unable to fulfill its contractual obligations are greater under the DBFM model, due to the number of parties involved and the complexity of such a financial arrangement. Under the traditional model the components would be procured separately, thereby posing no risk to the other parties.

2.07

Tendering Competition Available - GCs

Risk that the lack of pre-qualified or interested general contractors results in smaller than expected number of tenders. This could result in higher tender prices.

2.08

Tendering Competition Available -Subtrades

Risk that lack of pre-qualified or interested subcontractors results in smaller than expected number of tenders. This could result in higher general contract tender prices.

2.09

Scope Changes by Owner - During RFP

Risk that scope of work is changed by the Owner during the RFP process. This could lead to a lack of confidence in the whole process. A reduced tolerance for risk exhibited by the tenderers could result in higher tender prices

2.10

Contract Award / Commercial Close Delay

Risk that award of contract is delayed.

2.11

Financial Close Delay

Risk that Commercial Financial Close is delayed.