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How should the management relationship be established between the project investor of a capital-prepaid turnkey project, who hires a project management firm, and the owner, who hires a supervision firm?

2016-06-05View Original

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Our company undertook an industrial project using the advance-funded turnkey contract model. We were the party that provided the funding (we had to commission a design institute for design work, and were responsible for procurement, subcontracting bidding, and other tasks). Due to external considerations, we were forced to hire a project management firm to handle the overall management of the project. At the same time, our company wanted to train its own staff (engineers in various specialties, project managers, etc.), while the client hired its own supervision firm. Thus, the question arises: What is the signing procedure for various intermediate process documents? (Should the subcontract be submitted to the project management unit, which would then forward it to our party and the supervision unit?) ) Such a table would have four signing entities. What is the signing procedure for completion documents? (Is the subcontract submitted to the project management unit, which then forwards it to our party and the supervision unit, and finally to the owner?) ) Such a table would have five signing entities. Another idea: What if we don’t have a project manager who meets the requirements (i.e., doesn’t hold a Level 1 or Level 2 construction engineer certificate), but we do have extensive experience in construction management? Since we are paying to hire a project management company, can we require that all completion documents be signed off by the project manager of that company? ! Based on these considerations, since we are the ones paying, we will not sign any of the process-related documents (however, such documents must first be submitted to us for review – without our signature – before they can be issued by the project management company). In other words, the intermediate documents are sent to the project management company, which then has our professional engineers confirm them (without signing, just keeping copies for record-keeping), after which they are signed by the supervisor. In this way, we are not held accountable for the various stages of the process. I would appreciate advice from those with experience in this area.
Reply #22016-06-08
What project? It’s so complicated; it’s better if you subcontract it again
Reply #32016-06-14
The design has been subcontracted, the construction has also been subcontracted, and there’s even a PMC company handling further subcontracts – so what is left for you to manage as the general contractor? I’m afraid all that’s left is to pay for the equipment and materials.
Reply #42016-06-14
Well, there’s no other way but to use this model of upfront funding for the overall project management, without any independent design capabilities; in essence, it’s what investment companies mean. A management company has to be included as well
Reply #52016-06-14
Investors, financiers, and general contractors – these are three distinct project stakeholders, and it seems difficult to coordinate them all together.
Reply #62016-06-14
Investors, financiers, and general contractors – these are three distinct project stakeholders, and it seems difficult to coordinate them all together.

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