Case Study Level 2 Flashcards
How did you calculate the IPMS2 measure? Or how did you satisfy yourself the measures were correct if undertaken by others?
The measures for each store came from the Client’s Site Area Report, a database providing area measures for all stores in their portfolio.
These measures are undertaken, checked and maintained by the Client’s Estate’s Management Team, consisting of MRICS surveyors. Therefore, I did not re-measure or check these as part of my role.
You mention funding having been obtained before your start, does this mean the budget was also set (based on available funds or did that happen afterwards)?
Yes, for the closure stores the budget had been set based on available funds.
Did you appraise the Estate Manager’s scope of work for completeness?
The scopes were produced following learnings and outputs from the previous rollout.
I had a session with the estate’s manager to understand the scope. In hindsight, I would have challenged these further as they did not account for works outside of the store footprint, such as flats above or outbuildings which were part of the client’s lease.
How did you transfer minor variables under Design Development Risk?
I defined minor variables within the tender documentation as items which are found in a typical store but can vary in quantity or volume. For example, debris or rubbish in un-used meeting rooms or stock areas which needed to be cleared. The contractor would take on the risk of this flux within their fixed price, as a win-some loose-some approach in relation to these items.
That said, I defined some abnormals as exclusions from the fixed costs. For example, asbestos and refrigeration units. These were to be reviewed on a store by store basis.
How long did the regional competitive tender take?
I determined a timeline of 6 weeks from preparing tender documentation through to award
1 week - preparing tender documentation
3 week - tendering period
2 week - tender analysis period
How many contractors bid for each individual store, based upon a split geographical location?
My chosen solution did not entail a bid per store, it was a bid per region. So in that respect, the 9 regions were grouped into 5 tendering events.
Event 1 - London & South East - 4 contractors
Event 2 - Wales & South West - 4 contractors
Event 3 - Northern England & Scotland - 4 contractors
Event 4 - Central & East England - 5 contractors
Event 5 - Northern Ireland - 2 contractors
So, most contractors tendered for 2 or 3 events. The Ireland based contractors tendered for the 1 Event, Northern Ireland.
How were you able to determine the 31% saving?
By taking the average cost per store of the previous rollout and then the new rollout, and calculating the percentage difference.
You mention in your case study and ‘weaknesses’ in the presentation about your fee. How did you model this to the client?
I produced a fee proposal based on this option, and also a fee proposal if the rollout was to be carried out following the processes and tendering strategy of the previous rollout, to utilise as a comparable fee.
I presented this to the client, explaining that the overall fee was more cost effective, but also provided better value in terms of the cost of the whole process.
You mention about your fee being increased during the earlier stages of the project, and highlighting this to the client. Why would a higher fee in earlier stages be important for the client?
Well, for two reasons.
It was important for them to understand from a project cash flow perspective.
But also to understand my scope of services, in that my involvement and time spent was heavily structured towards the earlier stages of the project.
You mention about your fee. How did you model the fee to the client, what was the build up of that like?
I presented my fee proposal in a structured format, outlining a breakdown of the services I would provide into activities.
The fee model was based on an hourly rate for each activity as my company has a pre-agreed hourly rate with this client for our services.
As a comparable fee, I put together a fee proposal for if the rollout was to be carried our following the processes and tendering strategy of the previous rollout.
This demonstrated the overall fee was more cost effective, but also allowed my client to understand that my services would be more heavily structured towards the earlier stages of the project.
You say there is a pre-agreed rate with this client, what does this hourly rate include?
The hourly rate adopted and agreed by the parties will typically compromise an average of our hourly rates according to our salaries and overheads.
But exclusive of VAT.
