Danielle-Louise Reid - 1103533 Procurement Report regarding works at Templars Park Scout Campsite, Aberdeen Integrative Studies 2 Due

23rd April 2013

The aim of this report is to evaluate different procurement strategies which could be used for the project, and give a recommendation based on the evaluations for the best strategy to use. The procurement strategy will determine both the method of procurement and the form of contract. The project, to be undertaken, is for the Aberdeen Scout Movement. The works to be carried out on the existing White House at Templars Park Scout Campsite, will consist of improvements to the existing buildings and internal renovations to meet the requirements of the brief and clients needs as outlined below. A budget of 100,000 has been set for the project. Brief; The works must comply with the standards set in BS8300:2009 The Client will be inexperienced in all aspect of construction Clients Needs; Time certainty construction must start before the design is complete Cost certainty the client is a publically funded body therefore there will only be a set budget for this project Value for money must be achieved and proved via the procurement process A competitive tendering process to aim for the best deal overall, not just cost wise Fixed price tender is preferred There are three main types of procurement strategy to consider; Traditional, Design and Build and Management Contracting. Traditional Procurement The Traditional Procurement route is a well-established strategy and it is constantly being refined. In this strategy, the client appoints a team of consultants comprising of an architect, engineers, and surveyor etc to prepare a number of components used to deliver the project. Traditional is favoured by many inexperienced clients due to it being seen as the least risk approach as there is a level of certainty about design, cost and duration of the project. There are variations of Traditional Procurement which we can consider for this project; Accelerated and Sequential. In relation to the Templars Park project, Sequential Traditional is suited to the clients needs in some but unfortunately not all ways. There is a level of cost certainty using this strategy because the project us designed by the appointed contractor for a fixed sum (lump sum). This meets the clients needs, not only for a fixed price tender and a set budget, but due to the clients inexperience they would be at an advantage is the contractor is in charge of the projects design. This strategy also offers time certainty which is achieved at the outset of the project when the initial plans are made. The fact it is design-led also lends well, as the client will be able to have a direct influence, facilitating a high level of performance and bespoke quality in the design. There is one substantial disadvantage about this strategy; the design process is separate from the construction, and full documentation is required before the contractor can be invited to tender for carrying out the work. This will result in a loss of programme (time) certainty as the documentation stages can be particularly long. An alternative Traditional strategy could be used for this project; this would be the Accelerated Traditional strategy. The main difference, being that the design only needs to be substantially complete before the contractor can be invited to tender.

This will adhere to the clients need to be able to start work on site before the design stage is complete. The disadvantage of this though, is that that due to the design being incomplete there will be a loss of cost certainty, which is vital for the client in this project due to the restrictions on budget. Overall, Traditional procurement is not a suitable route for this project in relation to meeting the clients needs. For a similar project, where the client is a property developer, therefore privately funded, this would be suitable as it meets the criteria to begin on site before completion of design stage. REDO Design and Build We can define the Design and Build procurement route as an arrangement where one contracting organisation takes sole responsibility, normally on a lump sum fixedprice basis for the bespoke design and construction of clients project (Masterman, 2002). The tender documents outlining the employers requirements basically the needs of the client, including the specification, scope for services required and contractors proposals are prepared by the consultants employed by the client. This is important as any employer requirement that is not directly specified by the client in the statement of requirements provided in the tender documents will constitute a change or variation to the contract (book purple building procurement). Changes or variations will affect the overall cost of the project therefore any measures should be taken to avoid their occurrence. As outlined in the Procurement for the Built Environment lecture series by Rod McLennan, the Design and Build approach is suitable for; Clients whom may be inexperienced and/or not wanting close involvement Those desiring cost certainty Fast track projects, and; Simple buildings where aesthetics is not a priority There are 3 variations of Design and Build Procurement which we can consider for this project; Direct, Competitive and Develop and Construct (Novation). In Direct Design and Build, a client approaches a single contractor for a quote to design and build a bespoke project. The client will be provided with a firm price commitment by the contractor, so long as no changes or variations are introduced post this stage. This is made possible due to the fact that the contractor deals with the design and therefore has professional involvement from the initial stages. Similarly, this route is favoured by the Government for publically funded bodies, such as the Aberdeen Scout Movement, as it allows fully integrated team to work together on the project from the beginning (reference website). Keeping on the path of the project team, the client has single point responsibility this basically means the client need only report to contractor and this significantly reduces the need to commit resources and time to communicate with the contractors and designers separately. This is advantageous to the client as due to their line of work, they may not have the time or money to deal with more than one of the team. Again, adhering to the clients needs, the design process and construction process can overlap meaning an earlier completion can be achieved. Disadvantages of Direct Design and Build for the client are that if any changes are made to the project scope, there will be an expense, and this can have a devastating effect on the budget. This can be overcome so long as the consultant and client work closely together during the initial stages to clearly and concisely fine the employers requirements. There is also a lack of competition using this method

because prospective contractors are not bidding on the same design which makes this route unsuitable for the project in question. Another variation of Design and Build is Competitive. This route is particularly suited to a client who has strong ideas regarding the type of building required i.e. the function of the building and the accommodation and spatial requirements. This method is suited for moderately complex buildings which suit this project due to the high importance of all the work carried out having to comply with BS8300:2009. One major benefits of this method is the competitive pricing. This is achieved due to contractors all bidding on the same design produced by the design team pre-tender. This route, alongside Direct Design and Build are far quicker than Develop and Construct mainly due the employment of the contractor and the tendering stage being cut. Cost certainty can be achieved with this route if no changes or variations are made as the contractor will offer a lump sum contract for a fixed price. Again, adhering to the clients needs, the design process and construction process can overlap meaning an earlier completion can be achieved. The third variation of Design and Build is Develop and Construct (Novation). This method combines aspects from both Traditional Methods and Design and Build. This route has the major advantage over the previous two that the client appoints the designers to prepare the concept design before the contractor assumes responsibility for completing the detailed design and construction of the project. This gives the client a great deal of control over the design of the project. The contractor is then used at the construction stage to provide expertise regarding choice of final proposals and materials, and perhaps buildability. The main concern when adopting this Procurement route is that there is no guarantee that the Novated consultants will be able to establish a good working relationship with the contractor. The same as Competitive, cost certainty can be achieved with this route if no changes or variations are made as the contractor will offer a lump sum contract for a fixed price. Again, adhering to the clients needs, the design process and construction process can overlap meaning an earlier completion can be achieved. Overall, referring to the advantages and disadvantages listed above, Design and Build has proved to be a suitable Procurement route to take. Alongside that, it has been clearly established that a Design and Build contractor has a legal duty to provide the employer with a building that is fit for purpose. This is a significantly higher duty than that assumed by an architect under a Traditional strategy, where the requirement is simply one of due skill and care (purple book). Particularly Competitive Design and Build, would be suitable for the project at The White House, Templars Park as it meets the clients needs of cost certainty via offering a lump sum fixed price. Time certainty has also been achieved as the design stage and construction stage can overlap. This route also encourages competition, which will achieve value for money alongside fitness for purpose, as mentioned over which will overall produce a quality building. Management Contracting In Management Based Procurement, a management contractor is engaged by the client to manage the whole of the building process and is paid a fee for doing so. The construction manager bears all responsibility for the construction works without actually carrying out any of the works. It is also a fast track strategy, and the work will not be entirely complete before the first contractors start work. Work in Management Based projects are completed by not one single contractor

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