Case Study Key Issue 1 Flashcards
KI 1
18. How would you go about re tendering.
a. I would first create a shortlist of contractors by issuing out expressions of interest and getting feedback, with the hopes of having between 3-4 tenderers. I would then issue the tender information, in this case as soon as possible, ensuring that they all had the same times, and sufficient time, in which to price the works.
- Why was a negotiated procurement route selected? What were the advantages and disadvantages?
a. A negotiated procurement route was chosen because the clients priority was speed to start construction, it was also with a trusted contractor that the client preferred, this allowed earlier onboarding of the contractor to the project.
- How was the contractor chosen?
a. Previous satisfactory work carried out by contractor and myself, locality to the region, experience delivering similar schemes
- Why was an Intermediate Building Contract selected over say a JCT D&B?
a. As the client wanted to retain control over the architectural design elements, but also wanted a standard contract for medium and regular sized construction projects, that are straightforward in nature, it contained all of the relevant clauses.
- You mention the risk was handled through effective partnership, but what were the underlying risks and what methods were put in place to combat these?
a. There was a risk that the contractor could take advantage of being the only tendering contractor and price this into the tender return. Therefore, this was mitigated by the contractor providing 3 quotes on all major packages. quotes were also interrogated in detail, and large measured items cross checked and remeasured where there was dispute.
- At what RIBA Stage was the contractor brought in to assist and advise on design of the M&E?
a. For the M&E design it was stage 3, for the rest it was stage 4.
- You mention that the costs returned were 28% higher than the cost limit - where were the biggest variances seen?
a. The MEP works constituted most of this, as additional AHU’s were added into the scheme, this further led to the addition of the plant deck (originally priced as an upper floor by the contractor), which added further price.
- What is a plant deck, and how is it constructed?
a. It is a timber structure built and resting on timber stilts which sits and spans across multiple or a single room, above the ceiling. It is used to bear the weight of mechanical and electrical plant when it is unable to be hung from the higher roof structure due to it not being structurally sound enough.
- You mention that selecting a single contractor reduces cost certainty, but what could you have done to combat this and ensure that costs were fair and reasonable?
a. I requested the contractor provide 3 quotations for the main works packages, such as MEP, joinery/carpentry, finishes, and FF&E
- What is VFM?
a. Can mean multiple things, best out of budget, best value per pound for the client
- You mention general inflation in the period being a cause for an increase in cost limit - should you not have included for inflation in the period within your estimate?
a. There was a 2 month allowance in the original cost plan for inflation, based on an assumed tender and construction period.
- How did you calculate inflation?
a. I utilized the BCIS building cost indices, using the present day and future date as two points in time, dividing the future by the present minus the future, to give me a percentage to apply to the bottom line.
- What were the VE items that reduced the costs and were any of the options proposed by you?
a. I made some minor proposals to the design team for consideration so they could then put forward and advise on. For example from experience on other schemes similar in nature with this client, I was aware that the data cabling could perhaps be substituted from CAT6A to CAT6. I noted that the contractor had proposed £13k for a banksman to be on site during construction, and proposed the question to the client and design team if there was ana alternative, to make use of the new recently erected fencing.
b. Large VE items included the change from an upper floor solution, to a simple plant deck solution to carry the weight of the mechanical plant.
- What is the risk of VE?
a. Lose sight of purpose, and start omitting important design aspects
b. Could have an impact on whole life cycle costs
- Did your cost plan originally not contain tender inflation and risk allowances?
a. At the time it was unknown when the project would be tendered, therefore 2 months of inflationary uplift was included and any addition was noted as excluded.
b. I included total contingency in the form of NRM risk allowanced at a total of 10%, as even at that time the design was at stage 3 with no more foreseeable changes.
- When you went out to tender a year later, did you advise the Client that a cost plan would need to be updated since so much time had lapsed?
a. I advised the client I should create a pre-tender estimate based on the updated design, prior to getting tender returns back.
- Option 2: Reducing scope? Is this omitting in its entirety or would these works need to be carried out at a later stage?
a. These are omitting the works altogether from the project, for example omitting cork wall boarding which was purely aesthetical, which could then be added back in future months as a client direct expense, not falling under the main project budget
- Did you advise on design elements
a. I didn’t advise on the design of the project, and I know to not do this as this doesn’t fall under my scope of services, and my companies PI cover does not cover liability for construction design.
- What is the difference between CAT6 and CAT6A?
a. The difference is the data speed that the cable can carry, this produced a saving but both cables still serve the same purpose of data transmission. it is cheaper material.
