CON101 Communication in the Construction Industry Assignment 1 Fantail’s Flight Village – Method of Procurement report Contents: 1. Executive summary 2. Methods of procurement 3. Recommendation 1. Executive Summary This report has been prepared to advise the client, Jim, of the different methods of procurement available, and to advise the method we believe to most beneficial. It is based on the questions received during the initial meeting and takes into consideration concerns raised. Each of the procurement methods will describe the advantages and disadvantages for consideration. 2. Methods of Procurement Traditional (Design, Bid, Build) method Main points: - The client chooses and engages with an architect/design team to produce plans and specifications, working within the client’s budget - Once the plans are finalized and completed, they are made available to general contractors where they can bid for the work. - The bids are compared, and the client selects one. The client will establish a contract with the successful contractor to build the project. Advantages: - The client has full control over every aspect of the project. - The client directly employs the design team, meaning they will work with the client’s best interests in mind. - The process of ‘bidding’ for the work, creates competition and accountability. This can help to lower prices. - As the project has been bid for, the costings have been established at the beginning of the building process. - As this is often the most used method, it has been tested and well known throughout the industry. Disadvantages: - The client does not get to liaise with the contractor during the design phase, missing out on any expertise they have to offer. - As the client has full control, it is very time intensive. Morgan Payne #5026273 - If for any reason the project has time or cost overruns, they are the client’s responsibility. Full documentation is required before moving to the bidding stage of the project. As the bidding is very focused on ‘being the cheapest’, the client may engage subcontractors that produce poor quality work or try to find every cost variation they can. Design and Build (Turnkey) method Main points: - Client engages a single contractor. - Contractor takes responsibility for both the design and construction phases for an agreed lump sum. - Client has little input, they simply receive the key to a finished project at the end. Advantages: - The cost of the project is fixed at the beginning. They have no responsibilities for cost and time overruns. - As there is little involvement other than choosing the plan, the time commitment is minimal. - As there is a single contractor, they can make decisions quickly, resulting in a quicker completion time. Disadvantages: - The single biggest disadvantage of this method is the minimal input from the client’s perspective. This means the client has little control over design of the building. Management Approach Main points: - The client engages a construction manager at a fixed fee to organize tenders. - The risk and responsibility are delegated to the construction manager. - Client is still responsible for changes and overruns which are unexpected even after the maximum price has been agreed. Advantages: - This approach is remarkably similar to the traditional method, but often will be quicker due to the construction manager organizing the design and construction teams. So, construction is able to start before the design process is completed. - The overall project can benefit from the construction managers expertise being involved in the design process. The experience will also help in choosing the best contractors. Disadvantages: - Although engaged by the client, the construction manager is not the client representative. Because of this, they are not always working for the best interests of the client. - The price of the project is not established in the beginning, not until all subcontractors have been selected. Integrated Project Delivery Approach Main points: - The 3 main parties work together, they include; client, architects and engineers, construction contractor. They work together on all phases of the project. Morgan Payne #5026273 - As it is a collaborative process, shared risk and reward contracts are made to encourage everyone to work together. Advantages: - This approach can result in a more efficient project, meaning a higher quality of work achieved within the budget. - The efficiency can lead to a shorter delivery time. - The project can be integrated with Business Information Modelling which aids in delivering higher results. Disadvantages: - The contracts are more complex and requires higher levels of trust. - If all parties are not able to share information easily, such as a single digital platform, it can create issues with different documents and access. 3. Recommendation The project is quite different to a standard design and build project, it is large in scale and there are still many details that will need to be decided. The client has indicated that there is not a timeframe in mind and budget has potential to be negotiated. I would recommend the integrated project delivery approach. The approach will give the client sufficient input while still being able to engage directly with experts at every stage of the project. It is also clear the client has high expectations of the outcomes they would like to receive and have a budget in mind to achieve this. This approach offers the best potential to meet the key aspects of the clients brief. Fantail’s Flight Village – Stages of Building Project Within any construction project, they can be divided into 3 key stages; Design, Bid (tender), construction. We will explain the 3 stages in more detail below. Stage 1 - Design As the name suggests, this is the stage of the process where designing and planning take place. Depending on the project it may just be a small team of designers/architects. While larger or more complex projects may require engineers, quantity surveyors, town planners, landscape designers and more. The process starts with a meeting with the client. This is one of the most important meetings, as it is used to identify the client needs and wants. It is also includes discussing other aspects that can play a pivotal role in the design such as, budget, timeframe, and physical space. This is then used to create a design brief, which is used to create the foundation of the contract between the parties. The designer will use the design brief to produce a preliminary design or designs. These will all meet the brief but vary in slightly different ways. It is a way of presenting different ideas. This is also a time where specialist will be engaged to make sure consideration is given to aspects unique to an individual project. Other specialist such as a quantity surveyor may be engaged to cost the project and ensure it meet the contractually agreed budget. Once all parties have agreed on the preliminary design that meets all requirements of the brief, the project moves to the developed design stage. The design is developed adding consideration for Morgan Payne #5026273 spatial flow, making the building functional for people to interact. When the spatial design has been completed it is most likely this part of the design will not change as it would add high costs to the price of the project. Specialist are engaged to input their strategies, the designer will then incorporate these into the design and the end product would be the final design. The developed design then needs to be presented to the client in a way in which they can understand, in order to receive approval and sign off. The final stage is the development of a detailed design. This further refines the preliminary design and adds technical information to the project. The technical information provided in the drawings will be used by the contractors and sub-contractors to provide tenders for the work. Stage 2 - Bid (Tender) The bidding is stage 2. First the project is set up for tender and includes deciding on all the documentation and processes, identifying suitable contractors and that approach which will be used for the contract. It is then made available to either specific contractors or released to public for expressions of interest (EOI). Contractors use the information provided in the detailed design to prepare their tender quotes. They are also given opportunity to ask questions, of which answers are made public, so all parties have the same information. Once all tenders have been received the client and designer will short list contractors of which a further interview may take place. Once the client has completed vetting the contractors, a decision will be made, and the client decides which contractor to award the contract to. Stage 3 - Construction The main contractor will become responsible for the construction stage. Although the client will still be present, they have less input, as all decisions should have been made at this point. Step 1 of construction involves a mobilization meeting which take place approximately 2 weeks before construction on site begins. All parties that are involved are invited including, client, designer, project manager, main contractor, and quantity surveyor. They review the project as a whole and establish the working relationships. It is also a chance for any questions to be addressed. By the end of the meeting it must be clear all parties understand any work outside of the scope must be agreed on before work is carried out. Step 2 is the on-site construction phase, simply put this is when the construction work takes place. Many variables can affect the progress including weather, product supply, etc. It is important regular meetings take place during this step, so all parties involved are clear of their requirements. Step 3 is the pre-finish or snagging stage, this happens approximately 2 weeks from the completion of the contract. Again, the client, design team and contractor perform a site inspection where they assess any items that have not yet been signed off, not completed to specifications, substandard workmanship or unfinished work. They provide a list known as the snagging list. The contractor is then required to remediate all items on the list before any more invoices from the contractor are processed. Step 4 is the practical completion stage. A final site inspection is setup where all work is checked. Once everyone agrees that all work has been completed satisfactorily, then it can be signed off. A practical completion certificate is issued and released for the project. A period is put in place known Morgan Payne #5026273 as the defects liability period, where the client retains a fee of approximately 3-5% of the contract sum. Step 5 is the building handover stage, where the client, as well as receiving the keys also receives all documentation including, all manuals for machinery, operation and maintenance manuals, as-built drawings, producer statements from specialists and the code of compliance. Any insurances held by the contractor end and the client is able to move in. Step 6 is the final completion stage. This stage is complete when the period of time that was put in place for the defects liability is finished. The client and the contractor perform a final site inspection and the final certificate, along with the retention money is released. Fantail’s Flight Village – Design and Construction Team Client Although it may seem unnecessary to include the client as part of the team, they are the very center of the process. They also have considerable input at all stages of the project including deciding what they want, when they want it and how much money is available to achieve it. Clients Representative In the case of the client not having enough time or experience, they may choose to appoint a representative. They will ensure that all aspects of the project are completed to the clients requirements. It is common that the client may appoint the designer, main contractor, or project manager to act as the central point for things such as communication. Designer The designer will be an architect, architectural designer, or draughtsman, which may be an individual or a company. Their role is to take the brief of the client and create working drawings. They are the first person the client will engage with. Main Contractor The main contractor is the company engaged to carry out the construction works. They were most likely the company who were successful in winning the tendering process. They become responsible for running the construction site, including all health and safety requirements. The main contractor is a pivotal connection point between client, designers, and subcontractors. Subcontractors Subcontractors and specialists in their field and are engaged by the main contractor. Occasionally, the client may have specific subcontractors they would like to use, but this is not common. Subcontractors include trades such as, electricians, plumbers, painters, tilers and roofers. Site Manager Morgan Payne #5026273 The site manager is the point of contact for day to day operations, as the name suggests they are always present on site and the go to person for subcontractors that require clarification of work. Other Specialists Depending on the scope and complexity of the project, it may be required to engage specialists to meet the desired outcomes. These specialists include; Structural engineers – if the design requires engineering solutions and certification. Civil engineers – when services such as roading is required. Quantity surveyor – to calculate costings of the project. Landscape architects – to design the grounds prior to construction of cottages. Morgan Payne #5026273
