Case Study - Key Issue 2 Flashcards
How did you know the contractors OHP would be above market rate?
Through initial conversations and my market knowledge?
What was included in the budget?
Following the ongoing issues with the budget and the client’s key requirement for viability, low cost was the main driver. The second driver was for completion in 2026. The third driver was for a high standard of living.
Why would option 2 reduce the ability to have any earlier start on site?
In comparison with a two stage where works can begin on site during the PCSA period.
Why did you advise on a negotiated tender process?
Ability to procure the clients desired contractor.
What we’re the advantages and disadvantages negotiated tender?
Advantages
- Allow the client engage preferred contractor to build a relationship for the future.
- potential for shorter tender process which could lead to an earlier start on site
- Identification and mitigation of risks.
Disadvantages
- No competition
- If relationship broke down then the project would need to be re-tendered.
- knew the contractor carried an above market.
Why did you advise on a competitive single stage tender?
It would allow the client to receive a competitive price as early as possible.
What are the advantages and disadvantages of single stage?
Advantages
- alignment with clients requirements for a competitive price.
- enter into a fixed price contract as soon as possible.
Disadvantages
- Lack of understanding of the project complexities so risk may be priced in.
- Lengthy tender period.
Why did you advise on a competitive two-stage tender?
To allow the client to secure an element of competitiveness whilst developing the stage 4 design with contractor buildability input to de risk the project to obtain a better price.
What were the advantages and disadvantages two-stage?
Advantages
- Allow for a PCSA so tender offer might be better.
- Greater variety of choice between tenders to understanding alternative methodologies.
- Early contractor input into the design and buildability
- Overlap tendering and design which might mean an earlier start on site.
Disadvantages
- lengthier than negotiated due to multiple tender returns to assess.
- lack of cost certainty until the second stage.
Why was negotiated discounted?
Lack of competitiveness and high OHP was a risk to the budget which did not align with the client’s requirements.
Why was a PCSA required for the project?
Constraint city centre site with complex interfaces with neighbouring assets.
Why was Two stage preferred to single stage?
Allow for PCSA to de risk the project prior to agreeing a contract sum.
Opportunity for earlier start on site due to shorter tender period and potential to instruct works under the PCSA.
What was the driver of the procurement route?
- Cost due to key issue 1 and viability
- Time due to viability and student go live dates.
- Buildability to de-risk the project.
