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Alton Powell APC > Case study > Flashcards

Case study Flashcards

1
Q

Level 1 - Case Study

What are the maximum NEC3 time-scales for Compensation events if the Contractor notifies the PM?

A
  • Contractor has to notify the PM within 8-weeks becoming aware
  • Contractor loses entitlement to make a claim if they fail to give notice
  • PM has to instruct Contractor of decision within 1-week of being notified
  • Contractor has 3-weeks to submit quotation or revised quote dependant on PM response
  • PM has to provide response within 2-weeks
  • PM can make their own assessment and inform Contractor within 3-weeks of initial response
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2
Q

Level 1 - Case study

How does this sequence differ if the PM was to notify the Contractor?

A
  • There are no initial time-bars apply
  • The PM should notify and instruct the contractor to submit their quotation when they become aware
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3
Q

Level 1 - Case Study

How long did the PM on your project have to respond to the contractor’s quotations and is this always the case?

A
  • Two-weeks
  • It depends on the conditions of the contract
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4
Q

Level 1 - Case Study

What would happen if the PM failed to respond to the Contractors Quotation worth £176K on your project?

A
  • The quotation & programme would have been deemed accepted
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5
Q

Level 1 - Case Study

What are the advantages of NEC over JCT?

A
  • Encourages Partnering
  • Simple language
  • Forces rolling final account, avoids negotiating large amount of CE’s at the end
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6
Q

Level 1 - Case study

What are the key differences between NEC3 & 4?

A

NEC4 includes changes such as;
1. Terminology
- Employer > Client
- Works Information > Scope
- Gender neutral
- Risk register > Early warning register
- Employers risk > Clients liabilities

  1. Value engineering provisions to Options A&B
  2. Programmes accepted a week after prompt notice if no response is given
  3. Changes to fee percentage
  4. Changes to valuations provision
  5. Time based process to settling final accounts
  6. New contracts
  7. New secondary options
  8. Changes to X-clauses
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7
Q

Level 1 - Case Study

Why was Option A used on your project?

A
  • I wasn’t involved in the selection of appropriate standard form, however,
  • in my experience as the project was refurbishment works, it was beneficial to group activities and it offered simplified payment process.
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8
Q

Level 1 - Case study

What are the pitfalls of using Option A?

A
  • No provision for part payment
  • Can impact cashflow
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9
Q

Level 1 - Case study

How is the risk of no part payment overcome?

A
  • Divide the activities into bitesize portions
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10
Q

Level 1 - Case study

Why did you not utilise Option C?

A
  • No cost certainty is offered
  • Target cost can be exceeded
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11
Q

Level 2 - Case study

Why was the shorter schedule of cost components not used in agreeing the CE?

A

It was pre-agreed to use tender rates or pro-rata rates where applicable.

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12
Q

Level 1 - Case study

You say you would instruct the contractor to provide several sub-contract prices next time one element accounts for such a large portion of the project, why was this not done initially?

A
  • Turn around time between 2nd stage appointment and submission happened really quickly and there wasn’t much time.
  • There was a lack of communication
  • It is something I will take forward and consider next time
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13
Q

What clauses relate to damages and sectional completion?

A
  • Sectional Completion - X5
  • Damages - X7
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14
Q

Case Study

Why was a 2-stage tendering process chosen?

A
  • It was thought that programme could be secured by getting on-site early whilst the design was being finalised
  • Design would benefit from contractors input
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15
Q

Case Study

Did you advise on other potential tender options?

A
  • I advised the client to consider a competitive single-stage
  • To achieve value, cost and programme certainty from the outset
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16
Q

Case Study

Competitive single-stage doesn’t give the buildabilty advice to the design

A
  • No it doesn’t, but it wasn’t needed as the design was complete prior to the 2nd-stage and;
  • We were installing a like-for-like system, utilising existing pipework routes
17
Q

Case Study

What other tender strategies offer programme benefits and buildability advise?

A
  • Negotiated tender
  • Construction management
  • Management contracting
18
Q

Case Study

How do these alternate tender options differ from a 2-stage?

A
  • They’re single stage
19
Q

Case Study

You mentioned that you considered a traditional procurement route as this would likely obtain competitive tenders, why only likely whats a scenario whereby it wouldn’t obtain a more competitive tender comparatively to a 2-stage?

A
  • Due to fluctuating market conditions, there are no garauntees that significant savings could be achieved
20
Q

Case Study

What information did you ask the contractor for in their 1st stage tender?

A
  • Preliminaries Charge
  • Design Fees
  • OHP
21
Q

You mention re-tendering the mechancal sub-contract to get more then one price back, how did this effect programme seen as this was the key driver?

A
  • It impacted the programme postively
  • Hence why it was the chosen option
  • It mitigated any delays incurred whilst awaiting additional funds
22
Q

What in-house data did you use?

A
  • Benchmarked rates
  • Previous rates
23
Q

Case Study

How is it possible for other cost data to be applied to this project?

A
  • I would rebase the data to the current time and location
  • Make small allowance as the environment was highly sensitive
24
Q

How did you check the rates for the building elements within the tender?

A
  • Benchmark rates
  • Pricing books such as; Spons
  • Previous tenders
24
Q

How did you check the rates for the building elements within the tender?

A
  • Benchmark rates
  • Pricing books such as; Spons
  • Previous tenders
25
Q

And if there’s any anomalies that what would you have done?

A
  • Low/High/Missing: Scope clarification through tender queries
  • Liaise with consultants in regards to me missing items
  • If it is an oversight on my part, I would inform the client and discuss how best to deal with this risk
26
Q

You’ve spoken about some of the considerations, as such was cost alone the main driver, was anything else taken into account in the tender, apart from what you’ve mentioned?

A
  • The 1st stage of the tender the criteria was split 70/30 in favour of quality
  • This was because of the listed fabric and the secure environment, some elements were specialist
27
Q

When you received the quotes and costs back from tenders, how do you check that they are value for money?

A
  • Analyse them in their own right and against my pre-tender estimate
  • My PTE is built up of benchmark rates, previous tenders
28
Q

Why was a NEC3 contract used?

A

It was back-to-back with a TSA

Alton Powell APC (21 decks)

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