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37
The Private Practice
Spring 2013
5
as well as a site that appears
to be completely clean every
morning, need to be guaranteed.
Get the design firm to provide a
proposed program and staging of the
works so you can accurately measure
the impact of the refurbishment on
your practice.
Get the right contract
in place
One of the main areas of risk
during your practice set-up is the
construction side. Unexpected
variations, inexperienced contractors
in the medical industry and non-
compliance with current codes and
accreditation schemes are main factors
that could jeopardise the successful
completion of your practice fit-out.
The contract must clearly describe:
· Thescopeofservicestobeprovided.
· Thetimeframeduringwhich
services will be provided.
· Therespectiveparties'rights
and responsibilities.
· Thefeescheduleandotheritems
that define the nature of the
relationship between the owner
and development team member.
Establish the fee arrangement with
the designers and contractors, or with
the design and construction firm, that
will lead the process for you. The most
common fee arrangements are:
· Fixed fee structure: Here a
company quotes a fixed price for the
entire project.
· Hourly billing: Hourly rates are a
flexible method of payment when
the exact project scope is not
fully defined.
· Percentage of construction cost:
This payment approach ties the
compensation to total
construction costs.
Fixed-price/lump-sum design and
build has proven to be the simplest,
quickest and most cost-effective
method. By using a company with
both design and project-management
capabilities, you will have only one
point of contact throughout the
project. As well as being managed
under the same roof as the fit-out is
designed, costing will be presented to
you in a fixed-price contract, so you
know exactly what the cost is before
you start. This eliminates variations
and cross-responsibility disputes
­ two things you definitely want to
avoid in the quest to smarten up
your practice.