Case Study Flashcards

1
Q

What is the scope for WHBG?

A

Split into two zones, firstly north section is strip out and refurbishment of existing office space to be used by the LPO team, with the south section (warehouse) being made suitable for a lost property area including infilling existing maintenance pits, installing roller racking and static racking as well as installing a processing office within the warehouse itself.

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2
Q

You mentioned a previous consultant created the budget, how would you review a previous consultants budget?

A

I would look at quantities, rates and review them against the design information given, I would also look at assumptions and exclusions also included within the OCE.

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3
Q

What design information was available to you at stage 1?

A

Architects GA plans (existing plans, proposed plans, demolition plans)
Architects Area schedule
Architect Stage 1 Report
Structural Engineers Stage 1 Report
MEP Engineers Stage 1 report

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4
Q

Was the design information that was given to you enough to provide provided at Stage 1 enough to do a full order of cost estimate elementally?

A

Yes as I liaised with the design team to answer any queries that I had regarding the works, I made sure that the design teams were happy with the assumptions I made during this process too e.g. type of floor finishes

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5
Q

Did you complete a stage 2/3 cost plan?

A

Yes I did, I just did not include it within the timeline.

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6
Q

You mentioned that the project is an NEC option A, how did you make the NEC option A a design and build contract?

A

Within the Scope, it was mentioned what part of the works the contractor was to design (as per clause 21.1)

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7
Q

So why wasnt another Contract considered for West Ham Bus Garage, like JCT or another NEC Option

A

Firstly, it had to have been an NEC contract due to the framework agreement using NEC only, and option C didn’t offer much cost certainty as well as the clients procurement team being against the use of that option.

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8
Q

Do you think option A was the best option for your client?

A

Yes, it offered cost certainty was there while with option c it was not.

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9
Q

If you wanted to amend an NEC contract, how would you go about that?

A

You would include Z clauses within the contract, they are incorporated through the contract data

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10
Q

How did you manage change on this project

A

We used a web based project management system called Sypro for change management, this included logging all early warnings, instructions and compensation events.

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11
Q

What is an early warning?

A

The early warning process is a mechanism for both parties to identify potential problems to the project.

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12
Q

Who raises an early warning?

A

The contract emphasises that both Parties are obliged to notify the other as soon as they become aware of a matter that could affect time, cost or quality.

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13
Q

What is a compensation event?

A

Compensation events are events which are usually not the fault of the contractor and change the cost of the work, or the time needed to complete it. As a result, the prices, key dates or the completion date may be reassessed, and in many cases the contractor will be entitled to more time or money.

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14
Q

Can you give an example of a compensation event?

A

Instruction to change the scope
Exceptionally adverse weather conditions
Conditions that could not reasonably have been foreseen.

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15
Q

What if a compensation event is not raised within the time frame?

A

Contractor would not be able to recieve a change in prices or completion date if a compensation event is not raised within 8 weeks of first knowing about it. However this does not apply if the project manager notifies the compensation event.

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16
Q

Is this framework two stage tender route different to a normal two stage?

A

I would say yes as it allowed tfl to procure a contractor through direct award, if the framework wasnt used, it would have had to have been competitively tendered, therefore time was saved in using the framework.

17
Q

What is Value for Money

A

VFM is achieving the best possible outcome using the resources expended

18
Q

How did you control vfm between the feasibility budget issued by the contractor and the final contract sum

A

Liaising with design team and contractor to understand any changes, also ensuring that 3 quotations were received from each subcontractor.

19
Q

What are liquidated/delay damages?

A

Genuine pre estimate of loss that is incurred by the client, which the contractor will incur if the project is delayed

20
Q

Liquidated/delay damages and QSing

A

we are not allowed to advise on the amount of delay damages, it is outside our area of competency

21
Q

What are the timeframes for a compensation event?

A

Either the Contractor or Project Manager notifies a compensation event (contractor has to do this within 8 weeks of first becoming aware of this).

The Project Manager then has 1 week to reply to the notification of a compensation event, or a period of time to which the contractor has agreed with. The PM must issue an instruction to the Contractor to submit quotations.

The Contractor submits quotations within 3 weeks of being instructed to do so by the PM.

The PM then has 2 weeks to either notify accept the quotation, instruct the contractor to submit a revised quotation or instruct that the PM would be making the assessment.

22
Q

What happens in an early warning meeting?

A

Those who attend should make and consider proposals for how the early warning can be avoided or mitigated, seek solutions that will bring advantage to all those affected, deciding on actions and who will own the actions and decide whether matters can be removed from the EWN register.

23
Q

What if a Project Manager fails to reply to notification of a compensation event by the contractor.

A

If after 1 week the PM fails to reply to the notification, the contractor must notify the PM of that failure, if a further 2 weeks has gone by without the PM replying, the CE is treated as accepted.

24
Q

WHBG - Why was the contract sum 15% below budget?

A

Budget Included a contingency allowance of circa 10% which was set by the client.

25
Q

WHBG - You say you had did a PTE 3% above the contract sum agreed, what was the PTE value?

A

The PTE excluding excluding client contingency was 2.74m.

26
Q

WHBG - How was the budget set?

A

The 3.18m budget was set using my Order of Cost Estimate, so it was orignally at 3.18m.

We then incorporated some VE opportunities and these were implementend, meaning that at PTE the cost was circa 150k below the original budget, so it was 3.03m

27
Q

WHBG - How were damages calculated on the project if client extension charges were £25k/week?

A

Damages were calculated not just on the lease charges themselves, but:

Lease Extension charges
Additional design fees
Additional legal fees
Additional storage costs

28
Q

WHBG - If time most important factor why select NEC Option A?

A

Firstly, an NEC contract had to be used as per the framework agreement. Cost certainty was still an important factor therefore Option A was the best option.

Also from a procurement authority standpoint, any other option e.g. Option C would have been risky.

29
Q

WHBG - How could the first option have been genuine knowing that extension charges likely

A

It was genuine as just because they would be overrunning the lease, doesnt mean they would still be in their, could have used a temporary facility which wouldnt have been perfect but would have possibly worked

30
Q

WHBG - Why two stage? How does this save time? Where is the cost competition?

A

Two stage firstly because that is how the framework is set up.

The time saving would have been realised through the direct award mechanism, which ultimately meant that no tender process would have been agreed.

Cost competition was achieved through an open book tender process and the adoption of the requirement for 3 quotations per package.

31
Q

What’s the difference between public sector and private sector procurement?

A

Budgets - usually fluid for private sector clients whereas they are fixed for public sector projects.

Motivation - public sector has to ensure value for money and public money is being spent correctly.

Funding barriers - certain amount of money to be spent within financial year for public sector entities, whereas private sector no barrier is imposed