L- Case Study

Question 1

How did you ensure a ‘fair and reasonable price’ was received?

Answer 1

A fair and reasonable price was achieved by scrutinising rates against industry standards. Internal data base of rates, conversations with suppliers and checks on measures were conducted to ensure the Client received a fair price.

Question 2

Why was the Client’s preference to negotiate a tender? (3)

Answer 2

1) Positive previous projects experience
2) Early contractor involvement
3) Speed of programme

Question 2

How did you advise you could ensure the tender was ‘fair and reasonable’? (5)

Answer 2

1) Checks against the PTE
2) Check against the previous projects rates, costs etc.
3) Test the market for certain elements such as MEP.
4) Request sufficient substantiation from the sub-contractors and suppliers.
5) Specialist areas such as catering equipment, lifts etc. request prices are obtained via consultants and include as a prime cost sum.

Question 3

Who led the design process and generation of the ER’s?

Answer 3

Project Manager

Question 4

Who set the budget of £16.6m?

Answer 4

Developed from early stage cost plans and design.

Question 5

Did you have an understanding of this budget’s calculation?

Answer 5

Yes, from the earlier stage Cost Plans developed.

Question 6

Apart from negotiation, did you consider any other ‘tender’ process?

Answer 6

I advised we should go competitive for cost reasons but the Client did not agree as programme was the main driver.

Question 7

How did you ensure the tender reflected the required level of quality? (7)

Answer 7

There was a schedule of quality requested issued with the tender documents as if it were a competitive tender requesting certain documentation to be returned:
1) Key personnel and CV’s for the works.
2) Hotel project experience.
3) Risk registers
4) Programme of works
5) Traffic Management Plan
6) Modern Slavery Act
7) Insurance’s

Question 7

Option 1 - On what basis did you advise the client the project would be delayed by a minimum of 3 months?

Answer 7

Working with the Project Manager we:
1) Listed out the activities required
2) reviewed previous programmes against actual time frames
3) Built a mini-programme of works should this option be viable.

Question 8

Option 1 - What was the basis of advising 2% inflation increase?

Answer 8

Delaying the tender period for 3 months would mean the mid-point of construction would be delayed by 3 months. Reviewing the BCIS All in TPI I recalculated the inflation forecast, increasing costs by 2%.

Question 9

Option 1 - How could you keep the contractor engaged in the process? (2)

Answer 9

• Piece-meal the tender process
• Involve them in the design (& pay the a fee to advise)

Question 10

Option 1 - Did you consider an ECI with the contractor as part of this option?

Answer 10

No. I have learnt this could be an option next time.

Question 11

Option 1 - How did you calculate the professional fee increase?

Answer 11

I had vision of the appointment documents and fee build up for each consultant. I estimated the additional time required for the delay and multiplied it by the day rates stated in the appointments.

Question 12

Option 1 - What is the build up to the £25-£30K increase?

Answer 12

1) Interior Design team - £10,000
2) Architects - £5,000
3) PM - £3,500
4) QS - £4,000
5) Catering - £2,000

Question 13

Option 2 - If you omitted this works, was there any enabling works that could have been retained in the package?

Answer 13

Yes - we could have retained screed works, partitioning works and some elements of the MEP first fix. This was considered but deemed to carry too higher risk of abortive works should these change.

Question 14

Option 2 - How would you propose to tender this work as a separate package?

Answer 14

Propose a competitive tender process to local specialists over a single stage design and build or traditional tender.

Question 15

Option 2 - Was opening the Hotel without the restaurant and bar a realistic option?

Answer 15

Yes - the Client stated as long as their are guestrooms, a check in area and F&B space. The Hotel could open.

Question 16

Option 2 - What are the disadvantages of running a project with contractors working concurrently? (6)

Answer 16

1) Disruption
2) Reduced access
3) CDM regulations and Principal Contractor.
4) Each looking out for their own selves.
5) Blame game
6) Delays

Question 17

Option 2 - What were the positive aspects of this option? (2)

Answer 17

1) Competitive tender process would have brought about best price for the restaurant and bar works.
2) Higher quality of finish if specialists brought in.

Question 18

Option 2 - What was the build up to your estimate of £7,500 per week for the prelims? (9)

Answer 18

• Commercial Manager (£500 per week)
• Additional site management (£2,000 per week)
• Additional site labour and operatives (£1,750 per week)
• Hoist (£500 per week)
• Skips and waste (£750 per week)
• Accommodation (£1,000 per week)
• Cleaning (£450 per week)
• Welfare (£250 per week)
• Health and Safety (£300 per week)

Question 19

Option 2 - What is the build up to your advised £60K of professional fees?

Answer 19

Predominantly:
- Design team fees to split out the works into separate packages
- Re-design works for interior design team
- PM and QS fees for additional tender process
- Allowance for consultation with specialists when splitting the work packages.

Question 20

Option 2 - You advised a specialist fit out contractor would be more expensive, but would not this give a better quality product?

Answer 20

Potentially - I advised the quality of the Contractor for the Hotel works was high on the previous project so the risk of increased costs would be unnecessary.

Question 21

Option 2 - In your Appendix B, you have a risk allowance of £41,267 – how was this calculated? (2)

Answer 21

This was an amount added to cover costs that cannot be predicted. This was to cover mainly employer change risks and design allowances.

Question 22

What are the 4 types of commercial risk NRM1 identifies in a Cost Plan?

Answer 22

1) Design Development risk
2) Construction risk
3) Employers change risk
4) Employer other risk

Question 23

Option 2 - Why did the client not wish to proceed down this route?

Answer 23

1) The risk of having two contractors on site could hamper the progress of the priority works to the guestrooms and welcome space - the client could still open with the ground floor space and guestrooms available.
2) The additional costs to be incurred with a separate tender process including additional fees and additional prelims - 20% more than PTE.

Question 24

Option 3 - Can you explain to me what is a Defined Provisional Sum?

Answer 24

A ringfenced allowance in the tender documents for specific works that is not yet defined in enough detail for tenderers to accurately price but described in sufficient enough detail for a Contractor to allow for these within their programming, planning and preliminaries.

Question 25

Option 3 - How did you calculate £955K for the Prov Sum?

Answer 25

Via the estimate from the existing PTE for the space.

Question 26

Option 3 - What were the ‘residual risks’ you advised to the client?

Answer 26

1) Increase in scope of works - cost and programme
2) Time limitations making the Contractor aware of the revised design to suit programme.
3) Quality of the end product may lack should programme be rushed and forced.

Question 27

Option 3 - How did you ensure the quality of the contractor’s works for the provisional sum works? (3)

Answer 27

1) I treated this as a mini tender exercise - requested proof they have market tested the works prior to the submission.
2) Brought the Contractor in early to ensure they have a good understanding of scope.
3) Ensured the design information was to a level that would mean adequate quality.

Question 28

Achievements - Talk me through how you gave good client care on this project?

Answer 28

1) I was clear with the next steps in the process.
2) I ensured records were taken of recommendations and feedback from Contractors.
3) I was open and honest with the Client.
4) I made sure all relevant stakeholders were informed and any implications explained to them.

Question 29

Achievements - How would you engage differently with the client in future?

Answer 29

Encourage the PM and myself to speak more regularly with the Client and request more answers in writing rather than just verbal.

Question 30

Achievements - What could you have learned from the sister hotel in London?

Answer 30

I have learnt, more lessons should have been learnt from this sister hotel. More liaison between teams should have occurred.

Question 31

Achievements - How would you have managed a lessons learned process? (2)

Answer 31

1) Workshops
2) Design Team Surveys

Question 32

Achievements - What information would this have given you for this project? (4)

Answer 32

1) More cost data
2) More awareness of the Client to manage them better
3) Defects from the project in London.
4) Programme issues raised in London.

Question 33

Achievements - How did you act ethically? (4)

Answer 33

1) Ensure I understand the Clients objectives and requirements.
2) Inform the Client of any potential scope change requiring a change to the proposed professional fees.
3) Act within the scope of my service.
4) Issued reports appropriately.

Question 34

What were your key achievements?