THE PRACTICE OF CONSTRUCTION


Fagenentreprise
Hovedentreprise
Totalentreprise


             
Organisational arrangement for construction projects vary from project to project. The decision on the organisational set-up is typically based on the project characteristics such as like type of client, complexity of the project, aesthetic require-ments, function ability, level of prefabrication. Also long term historical changes between the market segments have influenced the attitude to organisational alternatives. For instance the above mentioned shift from new industrialised, large-scale building projects towards smaller, more individual building types (and renovations) -meant a significant chan-ge in the demand for qualifications and roles to be attended to by the participants in the construction process. Such developments have created more trend based criteria of the selection of organisation form.

It is important to understand the client's different legal and practical position in relation to the selected contract model. To summarise there are three typical ways for the arrangement of the organisation of the building process:

  • fagenentreprise (traditional contracting - individual trades)
  • hovedentreprise (general contracting)
  • totalentreprise (design and build contracting)

Fagenentreprise

On the other hand this set-up is considered to require the most detailed project design and planning, since each individual contractor is only responsible for his own work. This makes the interface between the trades very critical. Historically the individual trades contract (the traditional contract) was dominating as organisational structuring of projects up till approximately 1960.

Figures 9 and 10 show the structure and process of the traditional form of separate trades contracting. The number of entreprenør of course varies from project to project depending on the size and the complexity of the project. The contractors are all separate trades like carpenters, bricklayers, floor layers, and electricians. As equal legal parties all trade contractors have also equal status in respect to communication with the client. Within his contract each contractor is entitled to appoint subcontractors to carry out a part or the whole of its contract.

The client or his representative is responsible for the co-ordination of each individual trade in respect to time and progress. The direct contract between the client and the contractors allows the client a direct and substantial influence on the output, since it is directly involved in vital decisions on materials and construction details. On the other hand this set-up is considered to require the most detailed project design and planning, since each individual trades contractor is only responsible for its own work. This makes the interface between the trades very critical. Historically the individual trades contract (the traditional contract) was dominant as organisational structuring of projects up till approximately 1960.

Figure 9 Contractual relations between the parties Fagenentreprise


Hovedentreprise

From around 1960 the general contracting arrangement gained increased importance, and this form is illustrated in figures 11 and 12. This development was caused mainly by the need for a clearer path in respect to legal responsibility and communication between the contractor and the client.

Figure 10 - Process, finctional ans communicational relations between the parties - Fagenentreprise

Furthermore the technological consequences of the industrialisation reduced the relative significance of some specialists trades in relation to the expansion of the general contractors field of activity. The best-known example is given by the emergence of the precast concrete panel greatly minimising the role traditionally played by the bricklayer.

Figure 11 - Contractual relations between the parties Hovedentreprise…

Figure 12 - Process, functional and communicational relations between the parties - Hovedentreprise

A substantial difference in comparison to the individual trades contract here only one contractor, the hovedentreprenør, relates directly to the client (and his representative). All other contractors have a status as underentreprenør to the hovedentreprenør, with whom all legal, technical and managerial topics formally must be handled. Likewise the main contractor, carries all responsibility in relation to the client for the work of the subcontractors. The design is carried out by the design team nominated by the client. For legal reasons the tender documents are fairly detailed, since they are the basis on which the actual construction takes place.


Totalentreprise

The design and build contract is the industrialised building approach in its purest form, and is illustrated in figures 13 and 14. With this set-up the client leaves maximum responsibility and decision making to the totalentreprenør (design and build contractor). The principle aims at minimising the costs spend on the design phases of the project by letting the contractor's constructability view influence the design and planning concepts. As shown the design team is nominated directly by the totalentreprenør.

Basically the client only specifies the overall functionality, the level of quality and a deadline for the finished product. On the other hand the client must also be capable of analysing the tender-proposals from the design and build contractor in order to decide whether he actually achieves the desired result within these.

Figure 13 - Contractual relations between the parties - totalentreprise

Since it has little or no influence during the actual construction process the formulation of the contract becomes crucial in respect to its legal as well as practical consequences. As described earlier the design team has regained some of the previously held position in the building process. This has led to a hybrid practice of design and build contracts where the client makes the initial direct contact to the architect and engineer for a preliminary conceptual dialogue. Following that the client can make a contract with a design and build contractor in the normal fashion. The intention of integrating the parties in the design team is to give the client a direct influence on the project as opposed to the design and build contract.