The relationship between the agency construction system and project management
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To enable the agency construction system to function effectively, two issues must first be clarified. First, to prevent the \"contracting-out system\" from being distorted during implementation, all parties involved in the construction process should first understand what this system entails ； The second is how to address the long-standing issues in funded projects, namely \"prolonged construction periods, endless investment demands, and lack of quality assurance.\" Given the current situation in the construction market, it is necessary to divide the project management system into two phases, using the \"approval of the preliminary design\" as a boundary, with an emphasis on implementing this system during the execution phase. During the implementation phase, it is necessary to take the target responsibility system, risk claim system, and performance guarantee system as the guiding principles to implement dynamic control over the construction process ； **As the client, it entrusts a professional social project management agency to replace the traditional management model in which the construction command team is responsible to the user entity, thereby having the construction agency take responsibility for **, ensuring that the investment funds are effectively controlled ； During the implementation phase, the user unit shall be responsible for the external environment surrounding the project construction, including the provision of resources such as land for construction, water, and electricity ； The construction contractor may carry out activities such as design, supervision, and bidding agency on its own, but it is not advisable for it to take on construction and procurement tasks itself, in order to enhance its ability to fulfill obligations and transfer risks appropriately ； **To ensure the proper use of state funds and prevent unauthorized losses, the investment management department is responsible for tasks such as selecting the construction agencies, reviewing and approving the design and changes to project functions, managing construction funds, and conducting inspections of completed projects. Construction market and the agency construction system Theoretically, the construction market should work as follows: the client first specifies the functional requirements for a construction project, while the contractor, acting as the supplier, submits a quote to meet those requirements; once the client approves this quote, a construction contract is established ； In fact, the main aspects of construction projects are quite special and complex. For example, in a water conservancy project, the local authorities, as the end-users, specified the functional requirements for the construction project ； But without construction funds, it requires **capital inflow; as a result, the ownership (by the financiers) and the right to use it (by the users) become separated. Currently, there are **two ways to make contributions. One approach is to provide assistance to local areas in the form of capital injection, with the local areas still establishing construction units as independent entities that require such funds ； Another approach is that, with the implementation of **reforms to the investment system**, funds can be invested in non-operational **investment projects**. The investors act as the funding party, while local authorities serve as the users, working together as the demand side for such projects; they then entrust specialized social project management organizations to handle the establishment of the project teams. To distinguish it from the traditional command structure in which local **departments form a construction unit as an independent client, we refer to the latter as the agency construction system. Therefore, the agency construction system has the following characteristics: 1. The capital provider is **, while the demand side is separated into the user and the capital provider. 2. The constructor is a specialized social project management entity, referred to as a construction agent. Reposted from Project Manager Salon: http://www.pmsalon.net/viewthread.php?tid=3889&extra=page%3D1 Last edited by laiqi on 2009-3-30 20:46]
The relationship between common construction management models and the agency construction system Project management system The project management system is further divided into project management services and project management contracting. When the owner entrusts a professional project management firm to provide consultation and services regarding its project management activities, this is referred to as project management services ； When the owner entrusts a social project management unit to exercise all the project management functions typically carried out by the construction party, this is known as project management contracting. This model is similar to the agency construction system, except that it is the owner who holds both ownership and usage rights, in place of separate owners for ownership and separate users for usage rights. Theoretically, just like the project owner, the construction contractor can also entrust a social project management firm to handle project management ； But in reality, since the construction agency itself is the project management unit, there is no issue of further delegation; therefore, it can be understood that the construction agency system is a special form of project management. In **the project constructions in which I have been involved, the project management system, as compared to the traditional command-style approach, addresses the issue of \"there is only one lesson, no second chance to learn\" thanks to the involvement of specialized professional project management agencies ； However, in addressing the issues of \"prolonged project timelines and endless investment demands,\" the author believes it offers no real help. It is recommended to adopt the project construction agency model to address this issue, that is, the **investment authorities entrust specialized social project management firms to carry out the functions of the project owner. Construction supervision refers to the management of construction projects carried out by a supervision agency, which is entrusted by the project owner, in accordance with relevant laws, regulations, and rules governing construction, as well as the approved project documents, construction contracts, and supervision contracts. In fact, it is a special form of project management service. At present, the construction supervision system is in use during the construction phase, while it is not yet fully developed for the design and bidding phases, which is why it is less commonly applied. After the implementation of the project construction agency system, since the agency itself is a professional social project management entity, it is generally not necessary to involve a supervision unit. However, the supervision unit can continue to provide project management services or consulting services to the project owner in the construction market ； It can also act as a specialized social project management entity as an agency builder to provide such construction management services. “\"Turnkey\" model A construction management approach in which the project owner undertakes all the construction tasks. It is a fixed-fee system; other than that, it is quite similar to the project management contracting system. Given the high risks associated with the lump-sum fee system in the \"turnkey\" approach, it is no longer appropriate for specialized social project management agencies to act as the main contractors for construction ； It is generally more reasonable for construction enterprises of a certain scale to carry out such projects, but how to ensure the service life of these projects under this model is worth discussing; therefore, the author believes it is not suitable for public welfare projects. EPC Contracting Model: A management approach in which the project owner entrusts all tasks related to design, preliminary procurement, and construction of the project to a single entity. This model can reduce the risks for the construction entity by transferring part of those risks to the participating units; therefore, whether it is a project management system or a construction management agency system, the construction entity can adopt such a management approach to mitigate construction risks.
Last time, a friend talked about the current issue of project construction on a commission basis. Recently I came across an article like this, so I’m sharing it with all of you friends
The current system of entrusted construction is something in between nothing. I provide consulting services in Jiangsu for two companies on construction projects, in the areas of municipal and building construction. It seems to mainly involve handling various construction approval procedures on behalf of the owner, issuing tenders on behalf of the owner, and managing the finalization tasks on behalf of the owner. All those who introduced me to them were either owners or similar to EPC general contractors. In fact, there is still a significant gap between their work methods, mindset, management approaches, goals, and scope of work, and those of EPC general contractors.
It can only be said that the current system is not yet fully developed and needs improvement
I feel that the agency construction system and the BOT model are similar – in both cases, tasks are delegated to others for political or economic reasons. However, in practice their forms change, mainly due to the imperfect laws and regulations in this area