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Contract administration and procurement by Bruce
Spenser MSc MCIOB
Contents
Defining
the scope of the Contract
2
The key decisions.
2
Outline Plan of Work.
2
Appraisal
2
Strategic Briefing.
2
Outline Proposals.
3
Detailed Proposals.
3
Final Proposals.
3
Production of Information.
3
Tender Documentation.
3
Tender Action.
3
Mobilisation.
3
Construction to Practical Completion.
4
My Expertese.
4
Project Stages, Timings and My Fee.
5
Sample Memorandum of Agreement between us.
7
Procurement – Ensuring the Building Contract
best suits your needs.
8
The
key decisions
• Your requirements, including, for instance,
the nature and scale of the project, its
location, the budget and anticipated time-scale
and the procurement route;
• My Role
• the roles of other consultants or specialists
Which you may appoint
Each factor is important in defining the nature
of the services required. Before the agreement
can be completed or design work commenced in a
meaningful manner, some detailed information
will be required
For many projects these matters will be obvious,
allowing us
to complete our negotiations. In other
cases it will be beneficial to explore these key
matters prior to formalising the agreement.
Once the scope of the project is clear the next
step is to identify the appropriate Form of
appointment and the project specific matters
that must be recorded in the contract
The Outline Plan of Work into which the process
of designing building projects and administering
building contracts may be divided.
Dependent on the nature of the project,
preliminary studies may be undertaken
—
ranging from an esquisse design solution
for a simple brief to a business plan with
option appraisals of alternative sites and
development plan
Identification of your requirements and of
possible constraints on development. Preparation
of studies to enable you to decide whether to
proceed and to select the probable procurement
method.
Preparation of Strategic Brief by or your behalf
confirming key requirements and constraints.
Identification of procedures, organisational
structure and range of Consultants and others to
be engaged for the Project.
The next step in defining the scope of the
agreement may require yourself
or both of us
to draw up the Strategic Brief. This is
an output specification explaining in clear
terms what is expected of the project and should
be accompanied by a plan for implementing the
project.
Investing time at the beginning of a project
in developing a complete definition taking
account of all the requirements will reduce the
likelihood of changes later. The later changes
are made in a project, the more likely they are
to cost in both direct and knock-on effects.
In some cases a lot of time may be set aside,
but it is the right people’s undivided attention
that is critical, rather than the number of
hours spent. It is important to decide who
should be involved and what input is expected
from them. Using value management techniques at
the outset will help to take account of all the
stakeholders’ needs, both long and short term.
This would be an appropriate point to
consider with the client whether the project
will be organised around the RIBA Outline Plan
of Work 1998
and/or whether partnering’ or other
methods of working would be beneficial to the
project and the parties.
If services for either or both of the
preliminary work stages are required before the
main agreement is signed, we must confirm in
writing
• the preliminary services to be performed
• the fees and any other relevant matters; and
• that the preliminary services will be subsumed
into the subsequent agreement if and when the
final details of the appointment are agreed.
Commencement of development of Strategic Brief
into full Project Brief.
Preparation of outline proposals. Review
of procurement route.
Completion of development of the Project Brief.
Preparation of detailed proposals. Application
for detailed planning approval.
Preparation of final proposals for the Project
sufficient for co-ordination of all components
and elements of the Project.
Preparation of production information in
sufficient detail to enable a tender or tenders
to be obtained. Application for statutory
approvals.
Preparation of further production information
required under the building contract.
Preparation and collation of tender
documentation in sufficient detail to enable a
tender or tenders to be obtained for the
construction of the Project.
Identification and evaluation of potential
contractors and/or specialists for the
construction of the Project. Obtaining an1
appraising tenders and submission of
recommendations to the Client.
Letting the building
contract, appointing the contractor. Issuing of
production information to the contractor.
Arranging site handover to the contractor.
Administration of the
building contract up to and including practical
completion. Provision to the contractor of
further Information as and when reasonably
required.
After Practical
Completion
Administration of the building contract after
practical completion. Making final inspections
and settling the final account.
25 years in the industry.
A Master of Science in Building Surveying, A
Chartered Builder,
an
assessed Building Surveyor within the Faculty of
Architecture and Surveying of the Chartered
Institute of Building
an accredited Energy Assessor.
The following expertise which ensures a project
which achieves the client’s needs at the best
possible cost:
-
Value Engineering
-
Risk
Management
-
Sustainable Construction
-
English Contract Law – Specialising in JCT
contract (Building Contracts)
-
Party Wall Surveyor
-
English and Scottish Building Regulations
-
English and Scottish Planning, Conservation
and Listed Building Law
-
Construction Technology
-
Computer Aided Design
-
Project Management and People
-
Building Pathology
-
Construction Economics
-
Professional Indemnity Insurance
-
Full
plans building Control applications -
including Energy calculations - SAP
accredited
Procurement, which is
the activities undertaken by a client when
constructing or refurbishing a building, goes
naturally through a number of stages:
Pre-contract
Tender
Construction Phase
Post Contract
Procurement must address
statutory requirements:
Construction Design and
Management Regulations – the statutory health
and safety requirements of the contract.
The Housing Grants,
Construction and Regeneration Act 1996
Environmental Protection
Act
Procurement must meet
the needs of the client and is dependent on the
following drivers:
Cost
Quality/Functionality
Time
These drivers are
inter-related, conflicting and sacrificial and
must be weighted and prioritised.
Procurement must reflect
the uniqueness of each individual client.
The procurement process
must minimise risk and place risk with the party
must able to bear it.
There are three main
procurement methods:
Traditional or
conventional –
The design process is
separate from the construction process thus full
documentation is in place before the appointment
of a contractor by invited tenders. This applies
to sub-contracts also.
Adequate time must be allowed for this
process
The client appoints a
professional consultant (a contract is required
between the client and the consultant) and has
full control of the design and specifications
etc via the agent – (we are able to act as your
consultant or agent. This also ensures the
compliance with CDM).
The agent will be responsible for
quality, measurement, variations, payments etc.
As long as the
pre-tender processes described above are
utilised there should be a certainty of cost.
Variations (to be
avoided) are allowed usually at a predetermined
labour and materials rate.
There is a set date for
completion (which may need to be revised due to
occurrences stipulated in the contract)
The contract may be lump
sum, measurement or cost plus.
The client risk is least with lump sum.
DESIGN AND BUILD
Here the contractor
would be responsible for the design and
construction of the work generally for a lump
sum payment.
The client stipulates their requirements
which should be matched by the contractor’s
proposals.
Construction and Design may proceed
simultaneously and thus the project may be
foreshortened.
The contractor could be
selected by tender, analysis of the cost and
that the proposals meet the clients needs.
There is a reasonable
certainty of costs but not if alterations to the
agreed design are ordered.
Valuations and payments
are in the hand of the contractor.
Again there is a set
date for completion (which may need to be
revised due to occurrences stipulated in the
contract)
The risks lay largely
with the contractor as long as sufficient
attention has been paid to checking his
proposals against the client requirements.
MANAGEMENT CONTRACTS
The management
contractor undertakes to manage and administer
small works packages through contractors
accountable to him.
He is not liable for the defaults of
these contractors as long as he adheres to his
contract.
Drawings and
specifications are required, a programme and a
cost plan.
The client is paying for
the expertise and experience of the management
contractor – this is similar to bringing the
contractor onto the management team.
CONSTRUCTION MANAGEMENT
The construction manager
undertakes as above (Management Contracts) but
the client directs the project and the contracts
are directly with him.
PARTNERING, PFI – not
applicable here
These can be further
sub-divided into various methods of tendering:
Open (open to any
contractor)
Single Stage selective
(contractors selected by ability, order book,
excellence etc) – contractor has no input into
design
Two Stage – as above but
contractor inputs into design at first stage
Serial Tendering – for
phased work – not appropriate here
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