Stage 5 - Construction

Printable version of Stage 5

5.01 Overview
OBJECTIVE RATIONALE Functional facility delivered within cost, time and quality parameters. Successfully discharge building contract

KEY OUTPUT - Completed building

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5.02 Timescales
The construction timescales will vary according to the size, complexity and location of the project. The following table indicates approximate construction periods for a range of costs, based on a traditionally procured project. Contract Value (000s) 150 200 250 300 400 500 750 Construction Period (months) 3.5 4.5 5.5 6.5 7 7.5 9

1000 1250 1500 2000

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11 12.5 15 20

5.03 Sure Start client and design guides

This Stage should be read in conjunction with Building for Sure Start: a client guide, Sections 6.2, 6.3, 6.6.
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5.04 Quality
The Design Team will specify goods, materials and standards of construction to be incorporated into the project using relevant British Standards, Codes of Practice, Agrment Board criteria and other appropriate standards. The achievement of these standards rests with the appointed Contractor. The Project Manager/Lead Consultant, through the design team will monitor quality of output on site to ensure compliance with design details and specifications.
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5.05 Contractor's programmme

A master programme will have been established during brief development at Stage 1 (1.08), including the time that the design team assesses as reasonable for the construction process. This time period will be stated within the Construction Contract documentation, and it is the contractors responsibility to arrange the progress and sequence of works, to achieve completion within this period. It is a normal contractual requirement for the contractor to develop a detailed construction programme, setting out the sequence and duration of all the different construction activities, and highlighting critical path elements associated with the construction process to ensure and demonstrate that expected delivery timescales are met (see also 5.09 below). In defining the construction period within the master programme, the client may also have identified whether there are any circumstances (relating say to financial or operational issues) whereby access to certain parts of the project will be necessary prior to formal completion and handover of the project as a whole. Any such requirements will need to be discussed and agreed with the appointed contractor (if not identified within the tender documents), as they may impact on intended progress and sequence of working. Additionally, if the client has elected to organise provision of IT and telecoms systems, ordering and payment for services can be pre-planned, working back from the projected contract completion date. A typical construction programme may look like:

5.06 Cost management

On a day-to-day basis, cost management during the construction stage will be undertaken by the Quantity Surveyor/cost consultant by: Highlighting changes in the anticipated costs as early as possible, to enable any corrective action (i.e. modifications to the design or specification) to be considered. Continuous proactive liaison between all members of the Project Team. Prompt evaluation of design variations in conjunction with a strict regime for Client authorisation (see 5.08 below). Adopting a continuous attitude of value engineering to the scope and the cost of the works. Continuous review of risk assessment on the project. Preparing detailed valuations (usually monthly) of work satisfactorily completed. The Project Manager/Contract Administrator should constantly review the operation and effectiveness of the change monitoring and authorisation system in relation to cost control.
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5.07 Cost reporting

It is clearly important to keep the Client advised on a regular basis of the anticipated final out-turn cost of the project, usually by way of a specific Cost Report prepared by the Quantity Surveyor. This would primarily address Construction costs, but may also include professional fees, statutory charges, surveys, furniture and loose fittings, Client direct orders and VAT. Cost reports will reconcile the latest forecast for the anticipated final account for each element within the agreed budget. Construction cost reports will also incorporate costed schedules of Client and Design Team variations and instructions. A cashflow forecast (month by month prediction of future construction spend) would also normally be provided, taking into account any changes in construction progress from that originally planned to that achieved.
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5.08 Change control

Sometimes variations to the scope, content or specification of the construction works are unavoidable, and will be due to either: a) circumstances on site dictating change of design e.g. soft spots in the ground, necessitating stronger foundations, b) changes or variations initiated by the client (for whatever reason), or c) as the result of the value engineering process. The deliberate introduction of late changes to incorporate new ideas or demands

for the building should be avoided during the construction phase. Design choices should have been thoroughly worked through during the outline and detail design stages. Introduction of even small changes at this stage risk delaying the project and increasing costs by a disproportionate amount. In this respect, changes should only be instigated when absolutely necessary, when any available options have been evaluated, and when impacts on cost and programme are fully understood and accepted by all concerned. All changes (or Variations) are required to be formally notified to the contractor by the Contract Administrator ONLY (only the Contract Administrator has the contractual authority to instruct the contractor to vary the contract works).

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5.09 Supply chain

In order to construct any facility, the main contractor will have to establish and co-ordinate a supply chain of sub-contractors, suppliers and specialists. Establishment of this chain will closely relate to the critical path element in the contractors programme, ensuring timely availability and delivery of main construction elements such as steelwork, bricks, windows and doors, identifying goods and materials that require long lead times, and availability of sub-contract labour at the appropriate stage in the contract.
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5.10 CDM(Construction Design and Management ) activity

In compliance with CDM legislation, the contractor will have developed the Health & Safety plan before commencing work on site, during Stage 4, Mobilisation (4.05). This will include full response to designers risk assessments as appropriate, and identification and mitigation of construction risks, and will also co-ordinate with any client procedures or requirements that remain in force during the construction period. Health and Safety should be an agenda item at all progress meetings throughout the lifetime of the project, and should cover such issues as:

Continued risk identification/mitigation Site facilities WCs, catering, etc First Aid procedures Working at heights

Manual Handling COSHH(Control Of Substances Hazardous to Health) Hazardous substances Electrical safety Confined spaces During the construction period the contractor will be assembling information for inclusion in the buildings Health and Safety file to be submitted to the client/building user at Handover.
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5.11 Handover procedures

When building works are complete to the satisfaction of the Contract Administrator, the Contract Administrator will issue a Certificate of Practical Completion. This formally signifies that the construction activity associated with the site as complete and the building fit and safe to occupy and use. The ownership and responsibility for the building (in terms of security, insurance, safety, energy costs, etc) then passes to the client. It also marks the commencement of the Defects Liability Period (DLP normally 12 months), during which the Contractor remains responsible for remedying defects that occur within the building and its systems. In some cases a partial handover may be carried out. On larger projects with phased completion, part of the building may be declared fit for occupation and thus handed to the client, whilst other areas remain in the contractors possession as building work continues. If the construction works run to programme, the handover date will be either at or before the Date for Completion stated in the contract documents (if there have been legitimate delays, this date will of course be later) and in anticipation of this the Contract Administrator, accompanied by the Contractor, will compile a list of outstanding or unsatisfactory works (snagging list). Such works should be completed prior to the formal handover, although certain specific items may be addressed later,

by agreement. In addition to dealing with any outstanding or unsatisfactory works, the Contractor will also be required to demonstrate that all the buildings mechanical and electrical installations are safe and functioning as required (these include heating/ventilation systems, electrical (power and lighting) installations, gas and water installations and specialist items such as fire alarms, emergency lighting and security systems). This is normally undertaken by the relevant specialist subcontractors, together with the appropriate services engineers, and is dealt with in two phases: Testing Testing is important, to ensure the newly installed equipment is in a safe condition and functioning correctly. Testing should thus be undertaken as a formal exercise, accurately recording: Plant, section and installation under test. Manufacturers reference number where applicable. Date, time, duration of test (and weather conditions if appropriate). Test results with itemised readings including records of all other checks and tests. Commissioning Follow satisfactory completion of testing, systems should be run so that they can be regulating and adjusting to meet the design requirements. Commissioning is particularly important in modern heating systems where sophisticated controls are likely to exist to manage the operation of heating plant to meet not only room temperature and comfort requirements, but also environmental criteria associated with energy consumption. Lifts, fire and security alarms and cameras are other systems that will need proper commissioning. There may also be requirements to train the client or building user in the operation of the buildings systems. As well as satisfactorily dealing with the building and its systems, the Contractor would normally be required to provide specific building-related documentation at handover. This would include: Operating and Maintenance manuals Operating and maintenance (O&M) manuals should be produced for the building and all equipment within it. A typical O&M manual should include: Description of Design Intent & Operational Policy Commissioning Documents and Reports Manufacturers Operation/Service & Maintenance Manuals Manufacturers Spares List & Ordering Procedure Operational & Maintenance Routines Line Diagrams of Plant Control Systems Schematic Layouts locating Valves, Switches etc.

 Schedule of Installed Equipment Description Working Drawings for each main item of plant/equipment, showing safety features etc. Emergency call-out service - personnel & telephone contacts Copies of all charts posted elsewhere in building List of tools, keys and any special requirements Guarantees, Test Certificates & Reports Insurance & Inspecting Authority Certificates & Reports List of Record Drawings (drawings separately available) Record drawings Upon completion, the design team should produce sets of record drawings showing the building and its installations as actually built, incorporating all design/construction changes that have occurred during the projects lifetime. Safety File The operating and maintenance (O&M) manual will also form the basis of the buildings Safety File. Provision of a Safety File is a requirement under the CDM Regulations. The file will be assembled taking relevant parts of the O&M manual, together with details of risk assessments carried out over the lifetime of the project and mitigating actions taken. It will also include details of special measures needed to manage risk in the operation, maintenance and occupancy of the building. This file will subsequently evolve as future alteration/refurbishment work takes place. In this respect the file will represent a works history for the building and allow hazardous situations to be identified immediately at the start of future work programmes. As the completion and handover date approaches, this should trigger client arrangements in respect of future building operation and service delivery, staff appointments and training, working arrangements with other stakeholders/service providers, Planning for this should have been incorporated in the early stages of development, at Brief Development stage (see Section1.8 Programme above).
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5.12 Trouble shooting

WHAT CAN GO WRONG Slippage to Contractors Programme RISKS Delay to project completion WHAT CAN BE DONE ABOUT IT Contractors best endeavours Reconsider master programme Quality/value for money risks Revisit/Re-engineer designs/specifications Potential for costs

Issue of major/ untimely/ numerous variations/ changes

arising from extension of time Potential for costs arising from extension of time

Minimise changes at this stage Implement rigid change control policy

Delays to project completion Failure in Supply Delays to project Chain operation completion. Costs or quality compromised

Ensure contractor has robust supply chains in place for material/labour taking account of programme critical path issues. Health & Safety Health and Safety Ensure Health and Safety plan compromised related incidents-major is in place, implemented and incidents may suspend regularly reviewed works Ensure Health and Safety HSE involvement aspects of pre-start procedures are fully considered. Required quality Early establishment of required not achieved standards Appropriate checking during construction Critical path element to handover. Requirements should be co-ordinated well in advance with all documentation certificates, O&M manuals etc available. Early placement of orders. Liaison with services providers

Testing and commissioning failed/ incomplete Nonavailability of statutory services