Level 3 - Kew Procurement Report Flashcards
What is a procurement and tendering report?
The purpose of the report was to advice the project team on the most appropriate form of construction procurement
And summaries the key principals, advantages and disadvantages of the procurement routes under consideration
What procurement routes were considered?
Traditional
Single Stage D&B
Two Stage D&B
MC
CM
What were the clients key requirements?
Key priority was to have a functional building that gained planning approval
Time – they wanted cost certainty at the point of appointing the contractor
Programme – they wanted programme certainty
Quality – they was willing to compromise on quality as long as the targeted sales values could be achieved (£1,200/ft²)
Cost – Wanted to achieve good value and cost certainty was important, was willing to sacrifice quality to achieve better value
Why did you advise a single stage D&B not 2 stage?
Cost certainty was the Clients key priority and with 2 stage cost certainty wouldnt be achieved until after the contractor was appointed at the end of the second stage.
During that time, I was seeing a trend in jobs in the office on 2 stage projects where contractors were manipulated the process. After winning the project, contractors where taking a less aggressive line in terms of securing the best possible price from sub-contractors
How would you advise the Client maintains as much control as possible of the Quality of the project using a D&B procurement route?
Very robust set of ER’s
CMT - Client Monitoring Team
What is Novation?
Both rights and obligations are transferred to a third party
What is Assignment?
Only rights and transferred to a third party. Obligations stay with the original party
What are the benefits of using CM?
Time - You can overlap design and construction
Quality - Client keeps control over the Design
Cost - Savy clients can use CM to avoid paying design development and inflation risk
Its a much more hands on procurement route so more suitable for experienced Clients
What tendering Strategies are you aware of?
Selective
Open
Nominated / Nominated
What is a PCSA?
Documents the services that the contractor is to perform before entering into contract
Whats included in a PCSA?
Design Services
Advise on buildability and construction
Obtaining prices for packages of work from subcontractors
Evaluation of tender returns and agreed selection with the employer
What are the advantages of selective single stage tendering?
Ensures only capable firms submit tenders
Client gets a lump sum cost for the works
What are the advantages of two stage tendering?
Early contractor involvement
Encourages collaborative working
Potential earlier start on site
Greater client involvement in selecting the supply chain
Contractor can help to identify and manage risk
What are the disadvantages of two stage tender?
Cost certainty not achieved before construction starts
Additional pre-construction fees
Contractors can take advantage of the second stage negotiation - increased cost
Risk that potential parties cant agree the contract sum and works need to be retendered
Why was a single stage tendering strategy advised for Kew Riverside and not two stage?
Based on the market at the time and achieving cost certainty for the client when appointing the contractor
Market – I discussed with the market (contractors) and there were contractors willing to tender on a single stage
Cost – with a single stage route the contractors would be bidding for the works in a competitive environment
Cost certainty would be achieved at the end of the tender process which mitigated the risk of cost escalation during the second stage of a two stage process
Cost - During that time, I was seeing a trend on 2 stage projects where contractors were manipulated the two stage process. After winning the project, contractors where taking a less aggressive line in terms of securing the best possible price from sub-contractors.
Risk – there was a risk when using a two stage that an agreement could not be made during the second stage negotiations
