Case Study / Submission Flashcards
What current challenges is Covid and/or Brexit bringing to projects such as the Elmgrove School?
Covid-19 - Forced business’ online as such meetings at the time of Elmgrove contract negotiations was also online & much of the communication via electronic means which made it difficult at times to build repore with client team. (During 2nd lockdown) - added pressures of juggling family life around work.
Covid - Impacts on business planning on workforce locality & availability.
Enhanced working H&S so extended programmes. More realistic & detailed contingency & back up plans in event of a change.
What is the project value of the works that are part of the case study, the commencement and completion dates?
Contract negotiations Oct-Dec 2020
Commencement on site Dec 2020
Completion March 2021
Contract value to Econ Group £635,101
LADs £2k per week
What was the scope of the enabling works part of the contract?
Cut line to existing building
Removal of tarmac
Temporary weathering at cutline
Noise, vibration & dust monitoring
Temp paths & hardstandings
How long were you involved in this project? Is it August to December or August to March 2021?
I was involved from Aug - March 2021.
I led the pre-contract negotiations as well as the post contract QS role on behalf of my client Econ
Give me an example of some clauses that were amended in line with the framework that you refer to. What implications did this have for your client?
ESFA amendments - refered to payment provisons - these conflicted with the MC’s payment provisions which referred to their early payment scheme (Framework within 28days - EPS upto 90 days)
MC Amendments - Site conditions clause - made s/c responsible for all below ground conditions, incl but not limited to services, ground conditions,contamination. Deemed s/c had carry out ground investigations & deemed to have taken risk for any unforseen ground conditions.
This caused implications as Econ not undertaken any investigations, soil report issued only identified 4 samples. Nothing in tarmac areas to understand if any any coal tar / leaching. Econ allowed & priced based on 100mm depth.
Reference to unforseeable ground conditions /contamination - did not relate to numbered documents - this was requested and amended.
Tell me about your involvement in site activities.
Not based on site but did undertake monthly site visits for valuation & variation pricing purposes between Jan - March 2021
Key issue 1 - Give examples of other clauses amended by the main contractor that you are referring to in the case study
Payments - ESFA 28 days vs MC 90 day
Responsibility of design - needed to be removed as temporary works by MC. No other design responsibility. (Props designed by MC)
Set off clause - added ‘with notice’ and under this subcontract only (instead of any subcontract with the main contractor)
In your summary you state that “this was deemed a significant financial risk”. Tell me more. What would be a typical financial risk associated with a demolition contract? Explain.
My client was undertaking a 3 other projects for the same MC at the time, the nature of demolition and asbestos removal is considered high risk due to working around live services, connected live buildings and high haz risk of asbestos.
When discovery of unknown asbestos - whcih can often be found in dark ground beneath slabs / buildings (difficult to pre-survey) - this can incur high costs for testing, sampling, watching brief and removal works, thus if a dispute of costs on one project this could have a significant impact on the cashflow of my client - thus it was important to limit this risk to each project.
In option A, you state that the financial risk was deemed high. What was the amount at issue here? (Your report is silent on values).
As above - value of contracts across the other 3 projects was approx £700k at the time as such any set off clause that would have been used could have been for a significant value (Value of variations where unforseen asbestos / contamination discovered elsewhere were £50k+) as such potential set off was perceived as a potentially high figure which would have a significant impact on my clients cashflow and profit margins.
Warwick - £300k
A another - £200k
Preistfield - £200k
Tell me more about typical issues / risks that this “with prior notice” option would cover. How does this limit financial exposure to your client? Explain.
Original drafted clause was ‘without prior notice’ and across any other contract - I proposed clause was deleted in its entirety for the above reasons however MC was not willing to remove and compromise was to agree at the same presedence set on other projects ‘with prior notice’.
I explained this was not recommended on the basis it does not remove the risk of set off - it merely limits to current contracted project and adds with notice - earlier awareness of a potential set off.
Key issue 1 - Contract clauses - explain what the other clauses were & reasons for advice
My scope of services for my cleint was based on principle they wanted to Minimise commercial exposure, protect cashflow & profit for my client
Key issue 2 - were there no other options here?
1- Walk Away
2 - Request MC take responsibility
3 - Accept risk on basis it was included in ITT documentation & liase with stat authority as requested by MC ……… However, this would have put my client at risk of accepting responsibility for a live stat auth service and thus potentially a very high financial risk if anything damaged or an issue up / down line (no sight of condition reports until prompted).
I undertook a very high level risk management matrix to demonstrate likihood of risk (5/10) due to heavy machinery, severity due to no. fed properties and impact due to cost & program impact … this was deemed a high risk.
Where did you demonstrate CA / DR competency
Managed MCs expectations by explaining my clients position and why deemed a high risk.
Took time to understand MCs goals & concerns with amendments raised
Where did you demonstrate Client care competency
took time to understand Econ’s expectations & requirements as well as their client the MC to be best informed of both sides.
Explained where my competency limitations lay in terms of live service experience and that further research required which I undertook to understand Thames Water guidance on heavy loads.
Where did you demonstrate H&S competency
Shared knowledge from previous experience on working around live servies on site to explain importance of clearly marked services whether live or isolated so can be clearly identified on site.
Review of CPMP to identify who responsible for stat auth services and how MC had planned works was in line with Econ’s proposals.
Understanding of vibration & noise impact on adjacent school where working at cut line.
Clear RAMs to be explained to all ops prior to commencement
Where did you demonstrate ethics competency
Maintained proffessionalism, acted with integrity & respect at all times despite MC rude and unproffessional dealings and pressure to execute subcontract (maintained calm and collected whilst explaining why my client needed to review subcontract and requested additional docs)
HIgh level of service in a timely manner
Where did you demonstrate construction competency
Understanding of sequence of works & therefore program - asbestos surveys - results - HSE notice - asbestos removal- demolition soft strip - demoliton - peel slabs back carefully with WB in case of dark ground asbestos.
Live services implications on a building site & risks to operatives.
Risks of open trenches to be backfilled immediately after removal of obstructions in the ground.
Where did you demonstrate Quantification & Costing competency
High level cost analysis of potential risks to Econ across other projects if values offset across projects - approx 40% of workstream in Q1 of 2021 was with this MC.
Further cost buildups of monitoring costs, asbestos removal, obstructions in the ground post contract
Where did you demonstrate contract admin competency
Post contract - issue of early identfication of any commercial risks- ie. Variation. Valuations on a monthly basis
Other site activities at Barton Court - based on site - site H&S audits, s/c valuations & variation inspections, progress photos for reports & valuations.
Where have you had experience of other construction works
Hartsdown & Barton - Groundworks, piling, steelframe, cladding, brickwork, w&d, M&E, internals
St Georges School - Modular construction
Giles Lane - Modular bathroom pods & refurbishment
Where did you demonstrate Contract practice competency
Set off
Payment provision - check JCT Standard BC s/c here
CW
Review of all documents incl review of standard clauses vs amendments
What type of asbestos was found within the buildings ?
White Asbestos - Chrysotile
Ceilings / pipe insulation
