3/19/2003cven 349 - maxwell1 forms of organization presentation: 05-02 march 19, 2003

3/19/2003 CVEN 349 - Maxwell 1

Forms of Organization

Presentation: 05-02March 19, 2003

3/19/2003 CVEN 349 - Maxwell 2

RAT #05-02-1 Take out a sheet of paper, put your

name on it and … Take 2-minutes to list the 4

primary risks assumed by design engineers.

Pass papers to the aisles and front.

3/19/2003 CVEN 349 - Maxwell 3

Purpose: Introduce Students to the various

ways to organize to reduce risk exposure.

3/19/2003 CVEN 349 - Maxwell 4

Learning Objectives: Students should be able to list

and/or describe the three basic forms of ownership.

Students should be able to sketch and annotate the basic forms of project organization.

3/19/2003 CVEN 349 - Maxwell 5

Traditional Organization

Lack of a contract between A/E and GC causes most of the conflicts. Owner is “caught” in the middle.

3/19/2003 CVEN 349 - Maxwell 6

Design Build

Insulates the Owner but Owner has little control.

3/19/2003 CVEN 349 - Maxwell 7

Traditional Owner Contractor

Owner hires a General Contractor to supervise Subs and Suppliers.

3/19/2003 CVEN 349 - Maxwell 8

Variation on Traditional

Owner hires a CM to advise him in managing Subs.

3/19/2003 CVEN 349 - Maxwell 9

Owner hires a CM to Run the Construction

3/19/2003 CVEN 349 - Maxwell 10

New Methods will require New Organizations.

How would you Organize this?

Traditional?

Design Build?

Partnering?

3/19/2003 CVEN 349 - Maxwell 11

PAT #5.2.1 Take out a sheet of paper and … Individually, take 1 minute to

Sketch a Design/Build project organization.

As Pairs, take 2-minutes to compare and discuss.

As Teams, take 2 minutes to discuss why you might use this in a “fast tracked” project.

3/19/2003 CVEN 349 - Maxwell 12

Three Basic Forms of Ownership

Proprietorship – An Extension of a Person and terminates with that person.

Partnership – Several Persons but terminates with the Death of a Single Partner. General Partnership – Everyone is Involved Limited Partnership with Managing General

Partner Corporation – A Legal Person with Indefinite

Life, with owners having Limited Liability

3/19/2003 CVEN 349 - Maxwell 13

Corporations may be: Publicly Traded – Stock Exchange Closely Held – Usually a Family Sub Chapter S – Usually Family

Members or Circle of Friends and Associates. I think that the Texas Professional Corporations are treated as Sub Chapter S’s.

REIT – Real Estate Investment Trust Joint Ventures

3/19/2003 CVEN 349 - Maxwell 14

What you have to consider when you pick an ownership form.

Taxation Issues Risk and Liability Issues Capital formation Continuity of Organization Administrative Flexibility Legal Restrictions

Taken fromHalpin Chapter 5.

3/19/2003 CVEN 349 - Maxwell 16

PAT #5.2.2 Take out a piece of paper and… Individually, list the three forms of

ownership and which one would your use to start a micro brewery.

As Pairs, take 2-minutes to discuss your solution.

Turn in your individual answers.