L- Case Study Flashcards
How did you ensure a ‘fair and reasonable price’ was received?
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.
Why was the Client’s preference to negotiate a tender? (3)
1) Positive previous projects experience
2) Early contractor involvement
3) Speed of programme
How did you advise you could ensure the tender was ‘fair and reasonable’? (5)
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.
Who led the design process and generation of the ER’s?
Project Manager
Who set the budget of £16.6m?
Developed from early stage cost plans and design.
Did you have an understanding of this budget’s calculation?
Yes, from the earlier stage Cost Plans developed.
Apart from negotiation, did you consider any other ‘tender’ process?
I advised we should go competitive for cost reasons but the Client did not agree as programme was the main driver.
How did you ensure the tender reflected the required level of quality? (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
Option 1 - On what basis did you advise the client the project would be delayed by a minimum of 3 months?
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.
Option 1 - What was the basis of advising 2% inflation increase?
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%.
Option 1 - How could you keep the contractor engaged in the process? (2)
- Piece-meal the tender process
- Involve them in the design (& pay the a fee to advise)
Option 1 - Did you consider an ECI with the contractor as part of this option?
No. I have learnt this could be an option next time.
Option 1 - How did you calculate the professional fee increase?
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.
Option 1 - What is the build up to the £25-£30K increase?
1) Interior Design team - £10,000
2) Architects - £5,000
3) PM - £3,500
4) QS - £4,000
5) Catering - £2,000
Option 2 - If you omitted this works, was there any enabling works that could have been retained in the package?
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.
Option 2 - How would you propose to tender this work as a separate package?
Propose a competitive tender process to local specialists over a single stage design and build or traditional tender.
Option 2 - Was opening the Hotel without the restaurant and bar a realistic option?
Yes - the Client stated as long as their are guestrooms, a check in area and F&B space. The Hotel could open.
Option 2 - What are the disadvantages of running a project with contractors working concurrently? (6)
1) Disruption
2) Reduced access
3) CDM regulations and Principal Contractor.
4) Each looking out for their own selves.
5) Blame game
6) Delays
Option 2 - What were the positive aspects of this option? (2)
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.
Option 2 - What was the build up to your estimate of £7,500 per week for the prelims? (9)
- 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)
Option 2 - What is the build up to your advised £60K of professional fees?
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.
Option 2 - You advised a specialist fit out contractor would be more expensive, but would not this give a better quality product?
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.
Option 2 - In your Appendix B, you have a risk allowance of £41,267 – how was this calculated? (2)
This was an amount added to cover costs that cannot be predicted. This was to cover mainly employer change risks and design allowances.
What are the 4 types of commercial risk NRM1 identifies in a Cost Plan?
1) Design Development risk
2) Construction risk
3) Employers change risk
4) Employer other risk
Option 2 - Why did the client not wish to proceed down this route?
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.
Option 3 - Can you explain to me what is a Defined Provisional Sum?
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.
Option 3 - How did you calculate £955K for the Prov Sum?
Via the estimate from the existing PTE for the space.
Option 3 - What were the ‘residual risks’ you advised to the client?
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.
Option 3 - How did you ensure the quality of the contractor’s works for the provisional sum works? (3)
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.
Achievements - Talk me through how you gave good client care on this project?
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.
Achievements - How would you engage differently with the client in future?
Encourage the PM and myself to speak more regularly with the Client and request more answers in writing rather than just verbal.
Achievements - What could you have learned from the sister hotel in London?
I have learnt, more lessons should have been learnt from this sister hotel. More liaison between teams should have occurred.
Achievements - How would you have managed a lessons learned process? (2)
1) Workshops
2) Design Team Surveys
Achievements - What information would this have given you for this project? (4)
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.
Achievements - How did you act ethically? (4)
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.
What were your key achievements?
