Procurement Route Selection and Analysis

procurance Route Selection and abbreviationThe purpose of this report is to label the procural driveways of construct a new auditorium with laid-back particular propositionation technology for Heriot Watt University. The report includes defining several procurance roadways, determining the recommended procurance route for this task. This report in like manner covers the evaluation of influence factors and the authority benefits for adopting the recommended procural route.BackgroundHeriot Watt University (HWU) is planning to trope a new auditorium at the actual grass land next to HWUs park with the land sphere of approximately 1500m2. The proposed auditorium is wholeness storey with mezzanine floor with total 1950m2 raw floor argona.The trainment and the need for auditorium shall be perfect for conferences, lectures and presentations, includes the facilities as by-line200 homelike tiered seats,high specification technology,mul measuredia theatre of operations wit h air conditioning,full size interactive screen and computer determined presentation facilities,In view of the HWU top attention has decided to earn a new auditorium, the juttings procurance outline has to be formed for give the optimum balance of peril, pick up and funding for this objectify.2.0 procurance StrategyProcurement is the amalgam of activities reducen by the guest to obtain a expression (BPS, second Edition, 1990). The ends procurance strategy is established for discover the most appropriate focusing of achieving the go outs objectives and the value for m championy. The key steps in go throughing the procurance strategy as following-Finding out the real needs for the auditorium project and the projects objectivesAnalysis the procural routes for the auditorium projectEvaluating the procurance strategy and the influence factorsImplement procurement strategy and plan team take awayion and take in chargeor plectrum for the projectFinal handover for operation and review successfulness of the projectThere argon many factors argon able to influence on procurement strategy and subsequently influence on the selection of procurement route. We have listed complicate some most important factors for top guidance to moot for the procurement route.The project objectives and the clients capabilitiesHWU with a history dating back to 1821, has established one of the top UK universities. The objectives of the project be to build a new comfortable auditorium with high technology and to be able to complete within the make up limit, to the required fictional character and within the time constraints.In view of HWU is not a regular developer of whole works, the gamble to HWU for this auditorium project shall be minimized. The HWU shall be the single point of contact and indebtedness for the project during externalise and verbal expression and in the event of the building failure.During the design grade, our HWU top management woul d like to implement their interests and reliable ideas into the project. The high specification technology with special equipments would like to require some changes to the design due to the unable fixed cases. guess managementRisk management is critically important to project success. It involves identifying and assessing run a risk, assigning the rightfulness risk owners and continually managing, monitoring and reporting on key risks. (OGC03, 2007)In redact to determine the most suited procurement route, the necessary comparison of varies procurement routes such as tralatitious Route, formulate variant route, direction Contracting Route Construction Management Route, etc get out be done. chosen of any route will have its own risks. When the procurement route is determined, the specific key risks, that HWU adopts, must be managed efficiently.The redact ConstraintsThe constraints of the project atomic number 18 that avower is able to consider the possible impact on n eighbouring buildings and the potential concerns of the neighbours. They shall apply for a new entrance and temporary access to the structure site to minimize the impact to campus. The temporary access shall be reinstated to original.The ring pollution during the day time shall be limited in 75 dBA and in 55 dBA during night time.In order to raise the Environmental, wellness and safety standard for this project, we have proposed to use the precast components for column, slab and staircase. The consideration and toleration of precast components is not only greatly simplified the construction ecological succession but as well as help to reduce construction wastage with such practices.an otherwise(prenominal) consideration of reduce potential environmental impact is to adopt the inner(a) drywall partition. Interior drywall is widely used in the commercial sector to build staffs offices.With consider the above factors, the procurement strategy shall be based on the following princ iples and guidelines-The design should be fully meet the project objectives.The project should be based on a firmed price and limited time to construct. The auditorium must ready for operation by End of 2013 for the new wasting disease in Jan 2014.The contract award should be based on the companys skill and capability instead of lowest price.Selection of contractile organ intends low risk to HWU.3.0 Procurement route selection and analysisOnce the procurement strategy has been formed, the procurement route then pot be selected with consider the clients specific requirement and how the clients risks will be minimized.Various procurement routes have emerged to identify the procurement systems in current use, some more advanced procurement practices are often used currently as shown in interpret 2.Traditional Procurement RoutesThe handed-down procurement consists of the tearment of designer consultants by client before call for cranky, and the bear downment of a contractor on the other side after afflictive. The construction project is managed by HWUs project management with no concurrent sequence works that have to top by following each other as brief, design, fractiousing construction.The traditional procurement route is varies in Traditional Sequential route and Traditional speed route. Traditional Sequential route means the Contractors bid will be submitted based on the consummate design documents and completed ships boat court documents as normal. Traditional Accelerated route has requested the client to shoot the contractor earlier on the basis of partial information by negotiation or in competition. The contractor is able to be gnarly in the project as betimes as possible. The contractors experience, knowledge and existing materials and equipments give the bounce be considered in the final design.Design Build Procurement RoutesThe DB procurement route has changed the traditional sequence of work. It requires HWU to develop the tender documents that will send to possible contractors for go away and return their design plan and relevant terms. DB has met the clients intend for a single-point of responsibility in an set out to reduce clients risks and stop the overall costs.DB is allowed the design and construction works concurrently to reduce the total project time when compared with traditional routes. DB is as well firmed the overall price prior to construction with low cost risk, so that HWU will not necessary to expend commodious resources to closure elaboration.DB is varies in several types such as Turnkey, Package deal, Design build, contract construct.Turnkey is adopted the DBs principles and extended the contractors responsibility to include the committee and fit-out of facility, that same as EPC (engineering, production construction). The contractor has been placed with responsibility, risk and might and the client has the least risk in all procurement routes.Develop Construct is adopted DB with two-stage tendering and novation for give the client greater control over both design and cost. The client will has the higher risk among DB routes. resuscitate to Figure 3 Risk distribution among DB routesManagement Procurement RoutesConstruction management is a construction managing director who constitute by client to advise the client on a fee basis. The client has to involve into contracts with numerous contractors that requested the client is experienced and has to be totally involved with faster response to decisions. Construction management is normally suitable for complex building project.Management catching apprize be defined as a management contractor appointed by client will advise client on the platform and buildability. It requires the client a good whole step brief and relies on a good quality project team. There are higher risk on the uncertain actual cost and total construction duration when compare with DB route. See below Figure 4 Risk analysis bet ween Client Contractor.Other Procurement RoutesThere are other aspects of procurement routes such as Prime contracting, Partnering, Public-Private Partnerships (PPP), etc.Partnering is a procurement philosophy that will ensure the cooperating working between client and contractor and the problems can be solved over adversarial attitudes and practices.Partnering, Prime contracting and PPP procurement routes are mostly suitable for major and huge projects. In view of build the auditorium is a small project, it is recommended that these complex procurement routes are unsuitable or unnecessary.Procurement Route SelectionIn view of build a new auditorium is able to consider as a straightforward small project, we suggest that the Design Build procurement route shall be adopted.DB procurement route has considered and minimized the clients risk. Refer to the Figure 5 Summary of Client Risk in distribute Procurement Routes.The client has to lift to loss control for the project and to avo id a very high price rate, the Turnkey and Pachage deal are not recommended for adoption in this project. Hence, we are suggesting to adopt the Design and Build to this project.DB is a more refined form of a pile deal which obtained recognition from the JCT in 1981 with the publication of the JCT Standard Form of build Contract with Contractors Design (CD 81). Figure 6 is shown the procedure of DB project.By chosen the DB procurement route, HWU knows the total financial commitment primaeval in the projects life, and also knows that HWU does not introduce changes during the course of the works. DB has apprised the direct negotiation and contact way between the client and the contractor. This has improve the communication lines and enabled the contractor not only to fully respond for the contract but also to adapt more promptly to meet the clients needs.The contractor is responsible for the whole of the design and construction of the building. Responsibilities are not expose betw een designer and builder so that the client finds himself looking to divorce parties in the event of a building failure. (BPS, second Edition, 1990)4.0 The Advantages and Potential benefits of DB routeWhen the DB procurement route is chosen for the project, HWU starts out on a path to success by adherence to the objectives, time, cost and quality requirements of the project.Wider Choice of DesignBy invited three or more contractors to tender for this project, different with the traditional route, more designers will provide wider idea and design intend, HWU has the wider choice to select the best design that has fully understood and achieved the project objectives. Before HWU top management have decision to choose the contractor, they can input their concerns and comments to the design rather than request changes during construction stage. When both HWU and contractor agree with the amendment, the contract is ready to award accordingly.Time Cost conservationDB saves time and cost for the client, HWU, when it is providing the opport unit of measurementy to achieve innovation in the delivered facility. Time and cost nest egg result from the ability of the design-build team to fast-track the project by overlapping the design and construction phases of the schedule. Because the HWU does not need to provide a full set of biddable construction documents, cost savings are also associated with design.Reduced Risk with lesser involvementDB allows the client, HWU, to avoid being placed directly between the architect/engineers and the contractor. HWU does not take on significant risk because of avoid the position on direct involvement.Even more importantly, the contractor will take the responsibility for design errors and omissions under DB route, and HWU is able to relive the major sub judice and managerial responsibilities. From HWUs view, the DB is a tool to fix many problems associated with the traditional route of contracting for design and construction separat ely and sequentially.We have also compared the procurement routes as shown in Figure 7.5.0 The disadvantages of DB routeA disadvantage of DB is that the contractor whitethorn use an existing building system or modular building form so that the contractor can reduce design time and save their own design fee, may lack aesthetic appeal. By chosen the DB procurement route, HWU is able to be advised of some serious failures among building systems and shall undertake careful research before award the contract.There is no self-sufficing architect and consultants to advice and to protect HWUs interests, is another disadvantage of DB route. In order to avoid a blind monitoring, HWU can employ an agent to carry through this role on behalf. The agent shall supervise the works from brief, tender stage to design and construction stage, until handover the completed project to HWU, to make sure that the contractors proposal and works are complied with the required objectives and standard.Next, once HWU issued the contract, it will be pricy for HWU to change the design, materials or works. HWU has to finalize the requirement before the tender and has to eventually amend and confirm contractors proposal before sign the contract.Finally, HWU shall be aware of the responsibility for high quality risk. Some contractors concern with simplifying construction activities are able to lead to a reduction in design quality, as a result, it makes design and build inappropriate for this project in which high specification technology is required. Hence, HWU shall write clearly into the brief for the quality requirements.6.0 The alternating(a) Procurement RouteIn case of the client has more concern on the cost control and changes of design and function, we have propose the Traditional Accelerated route as the choice procurement route.As mentioned early in clause 3.1, Traditional Accelerated route has allowed the client to appoint the contractor earlier on the basis of partial informat ion by negotiation or in competition.The two-stage tendering will be used to appoint a contractor as early as possible to the project. During the beginning(a) tender stage, the design may not be completed and the tenderers will submit a price based on the available information. Until the 2nd tender stage, the additional design information will ready and the packages are finally priced. The client may comprise negotiation with the contractor (winning tender from 1st stage). When the price agreed, the client can award of the contract as traditional lump sum contract to contractor for commence the works.By compare with the traditional single-stage tendering, the benefit of Traditional Accelerated route to the client areShorten the tender period and quicker start on site worksDesign stage can extend to construction period, may not requested to complete for tender package.By select the Nominated Sub-contractor, the quality is able to control by the client.The contractor can consider the ir experience to the design and their existing or extra resources to this project, that they may have a lower price package.The traditional accelerated route is suitable for our client who is not required much experience and the quality and buildability may also achieve the requirement.The client has to consider the risks during 2nd tender stage that the contractor may not meet the clients requirement. This can be resolved by spend more time to get alternative contractor involve and seek the agreement.7.0 Demonstration of procurementResearches on Selecting Project Delivery Systems found that DB projects are delivered 33.5% faster than projects that are knowing and built under separate parties. The researches also showed that DB project are constructed 12% faster for construction stage and have a unit cost that is 6.1% lower than traditional projects. (PDS 1998)8.0 ConclusionThe Design and Build is the recommended procurement route to HWU for this auditorium project. In order to ach ieve HWUs expectations and vision of delivery of the project, HWU is also to be an integral part of the design process. A well completed auditorium project with DB route will include HWU in the initial design process of programming and schematic design, and will include HWUs involvement not only in design stage meetings but also in the further interim reviews of the design, construction, functionality and even aesthetics at divers(a) steps along the design and construction process.DB has its ability to consider all relevant factors that would influence the desirability of the project. The best value selection of DB procurement route provides for the consideration of both cost, time and other more subjective factors such as project management, quality control and team reputation.