Assignment borehole investigation from a neighbouring site indicates a

Assignment
Scenario:

A client
organisation, HI-Rize Development 2017 (HRD 2017), have plans to extend their
property portfolio by constructing their first major office development. HRD
have not yet acquired but their possible site will be located in a major
midlands city. They have commissioned an architect, WNP Partners to produce an
outline proposal. That proposal has been submitted for outline planning permission
on the basis of the enclosed drawings.

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The site
drops 6.00m along its length in Main Street down to Ascot Road, which is
relatively level. There is no vehicle access possible except Ascot Road. A
borehole investigation from a neighbouring site indicates a sloping profile of
approximately 10.00m of sandy oil, overlaying 8.00m of clay, which is on top of
carboniferous limestone bedrock. The water table is relatively deep in the
sandy oil. The initial design prepared is for a multi-storey block providing under-ground
parking and approximately 10,000.00 square meters of office space in accordance
with the drawings. There has been no final decision of the structural frame
type, envelope design or the service level. These should be compatible with
prestigious office development.

Hi-Rize
Development 2017 Requirements:

Are a new
development company but two of their directors do have experience in running a
successful company in the past specialising in the construction of single
storey steel frame factory units. This was using the Design & Build
procurement route.

They want a
luxury office building that will fit as a head quarters for a UK based global
company. This shall include the highest specification technically advanced with
highly specialized building services. HRD have asked if new technologies are
developed during the build they would like them to be introduced into the
building design.

With
relation to the triangle of time, cost and quality their priorities are quality
first with time and cost equally second. With respect to each of their
priorities they have the following requirements:

·        
the
building is to be completed as soon as possible

·        
a
firm price is needed before construction starts

·        
the
quality level is to be prestige

HRD do not
want to retain any of the risks associated with such a project and want to
select their construction team by price competition.

 

 

 

Part 01
(A) Assignment:

Project
Management:

 

A project
manager can be described as the planning, co-ordination and control of a
project from the very start to the finish. Working on behalf of a client, they
would aim to meet their requirements of time, cost and establishing
relationships between reliable resources. This would have to include integrating,
monitoring and controlling all of the parties in the project, selecting other
options in pursuit of the client’s satisfactions with the project outcome.
Other duties of a project manager can include risk management, programming and
feasibility.

Turner
(1999) shows a five-element model of managing quality on projects as follows:

·        
quality
of the product

·        
quality
of the management process

·        
quality
assurance

·        
quality
control

·        
attitude
of the people

Product
quality and project management processes are both underpinned by assurance and
control procedures that are affected by attitudes.

 

Managing
the Stakeholders:

 

This
management is a crucial factor to any successfully delivered project. A
stakeholder is any individual, group or organisation that can be affected by this
building project. This is because they are involved in the work or can be directly
be affected through the outcomes. Managing stakeholders can secure the positive
influences on a project and minimise the effect of any negatives. Three main
steps of stakeholder management strategy:

·        
identify
stakeholder

·        
assess
their goals and interests

·        
develop
good communication management

Each
stakeholder needs to be managed differently but correctly by the client
dependant on his or her interest and influence on the project. On a scale of
low/medium/high, the stakeholders who have the ability to affect the outputs of
the project are sometimes then called key stakeholders.

·        
Local
Planning Councils, Building Authorities & Banks

·        
Sub-Contractors
& Main Contractors

·        
Architects,
Engineers & Specialists

 

Using RIBA
Plan of Works & Feasibility Study for Proceedings:

 

Using the
RIBA plan of works, this shows a good model of the many phases of a project in
the construction industry. A feasibility study is key to show the client that
their new luxurious multi-storey office block fits their purpose of business.
The procurement method for this project needs to be chosen in the design stage.
In the concept stage of RIBA, it introduces the design and specifications this
is of high importance to the build for which HRD require with their
requirements being so prestige. Next, you find the development stage in the
RIBA, as seen in the assignment brief the final decision on the type of
structural frame used has not been yet decided. There would have to be an
agreement reached for the next stage to be grasped and planning permission be
issued ahead of the project. The pre-construction phase of RIBA would then need
the prepared project to be submitted. This would enable contractors to tender
bids to be awarded the project.

Methods
of Procurement:

 

There are
different procurement routes (contracts) that offer many benefits and risks to
clients. The three top leading procurement methods in construction are

–         
Traditional

–         
Design
& Build

–         
Management
Orientated methods

For a client
to select the correct procurement method they have to select the route that
best suits their personal requirements. This is a crucial stage of each and
every project. Regarding our scenario, we will look at considering our client
needs to recognize which procurement method best fits the requirements,
experience and skills for this project.

 

Traditional
Procurement –

This method
of procurement is the most common form of construction contract. Under a fixed
lump sum where the cost is built up from a scope of works and drawings. An
architect is appointed to manage the design and cost. This route of procurement
puts a lot of risk and responsibility on the client although all the design
work would go directly through your appointed architect. The client would then
appoint a main contractor to carry out the works through bidding; this takes
place usually after the tender process. The chosen main contractor would need
to take all responsibility to all workmanship and materials, which includes
sub-contractors. The main contractor may then appoint other sub-contractors to
carry out specialized work.

This method
of procurement sees the client working very close with the project; this
usually leads to a high quality in work, as there is more control. Looking from
a commercial role, the traditional method of procurement has a large amount of
finances already known due to the tender processing costs being more accurate
with completed design drawings and specifications. The client could be lead
into some issues with variations to drawings and delays. As the design team
have no direct relationship with the main contractor this could lead to
miscommunication through the client. Again, a lot more risk in on the client
with the traditional method of procurement.

 

Design &
Build Procurement –

This
procurement method works with the main contractor being responsible for the
both the design and contraction phases of a project. This route of procurement
can appeal heavily to clients with the main contractor being the single
responsibility for the total project. The contractor will have their own design
team, which they will use on a regular basis although the client can have an
influence on the design and have consultants employed to propose a
specification to contractor. This would be designed and put to the client to
review and possibly negotiate.

Most of
these contracts tend to be made by fixed lump-sum fees, paid in instalments at
certain milestones of the project. The client pledges costs to the entire
project, the design costs and construction. Due to the increase in risk with
the Design & Build procurement route comes greater reward, more profit. If
something was to go wrong in this method, the risk is even higher. Any changes
to the specification can cost the client vastly in this contract with no other
competition for the work the contractor appointed can become very expensive
when it comes to change.

 

Management
Orientated methods –

This route
of procurement sees many different contractors working on one project under a
managing contractor. This managing contractor is employed by the client and
enables them to help design, programme and cost of the project. This route of
procurement can lead to some work being completed prior to the design being
submitted. Although this will speed up the completion of the project, it can
also lead to uncertainty on price, as the design is not yet fully complete. As
no contract sum is established from these early proceedings of work, the client
relies upon the QS estimate. However, endorsed by the management contractor
firstly and then firm costs are established progressively during the course of
the works. This procurement route leads to the client having to accept greater
risk because he has the responsibility financially. 

 

Recommendations
& Conclusions:

 

Due to HRD
2017 being a new company, with this their first major office development, the
orientated management method leaves far too much risk for the client due to
their lack of experience in this large kind of project. This project as well as
any other new build around this time are expected to come across some minor if
not major changes. As variations are near on impossible to miss, the
traditional procurement method scores miserably for finishing on time. HRD 2017
want to keep their stakeholders all happy and cannot have this project
finishing late, in this procurement route, it can take time to discuss and
agree variations with the design team and main contractor for the project.

Preferred
procurement recommendation for this project is Design & Build. With HRD
2017 lacking in experience for such major builds, a lot more risk is with the
design team and main contractor undertaking the construction phase and
potentially the design. As shown in the clients’ requirements, new technologies
are wanted to be installed during the construction phase. Design & Build is
the best procurement route for this requirement from the client. With this
route having all the risk with the main contractor in terms of variations, the
design and specifications would have to be clarified before the construction
phase to minimise the desires of variations.

As the main
contractors are mainly managing themselves, they are always going to look at
maximising their own profits from this project. HRD would have to be reassured
from the main contractor that they understand their desire for a very luxurious
multi-storey office building and cheap alternatives are not in the
specifications. The Client would need to issue a very thorough specification to
ensure this does not happen with the main contractor. The chosen main
contractor must have the experience, skills and knowledge to deal with the
responsibility of the main control of the design and construction of this
build.

 

 

 

 

Management
of Risk:

 

Identify,
assessing and controlling any risk is essential to a successful project.
Identifying the amount of risk a client is willing to take during the
procurement method will show the amount of time and effort that has gone into
the design and construction of a project. When starting a project effective
risk management is to anticipate events before they happen by taking a positive
approach. The quality of decision-making should be improved where possible to
potentially avoid risk, reduce the risk, control the risk and possibly accept
risk on a large project. Risk planning is required to achieve effective risk
management during any project. Each risk must have ownership that shows a clear
responsibility and accountability for that risk and its associated action. From
this stage, action can be taken to control the risk. Managing risk undertakes
the following stages in its life cycle:

1.      Identification

2.      Assessment

3.      Response Planning

4.      Monitoring & Execution

5.      Execution Verification

Whether the
project is about to begin or end, there is always change throughout the project
that can lead to more risks. As these risks arise during the project, the
manager needs to control and adapt to the risks occurring. ‘They, collectively, should have the
necessary knowledge, skills, information and authority to establish, operate
and monitor the system of internal control. This will require an understanding
of the company, its objectives, the industries and markets in which it operates
and the risks that it faces.’ The Institute of Chartered Accountants. To
manage any risk after occurrence, the right process is to go through the
project manager who is in the best position to manage each individual risk.

 

 

 

 

 

 

 

 

Bibliography:

 

https://www.apm.org.uk/body-of-knowledge/delivery/integrative-management/stakeholder-management/

https://www.designingbuildings.co.uk/wiki/Management_contractor

https://www.fenwickelliott.com/research-insight/annual-review/2013/management-contracting-jct-review

http://searchcompliance.techtarget.com/definition/risk-management

https://www.stakeholdermap.com/risk/risk-management-construction.html

https://success.clarizen.com/hc/en-us/community/posts/203996078-Risk-Management-Lifecycle

 

Appendix:

 

1.      Clients Project Requirements HRD 2017

2.      Project Programme using Microsoft Project

3.      RIBA Plan of Works 2013