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Refurbishment in construction is a general term that covers projects which could range from uncomplicated remodeling to a total overhaul of an existing structure. It is distinct because the building already exists, unlike a new build. Projects which do not necessarily alter the main impression of an existing structure and termed as refurbishment works are considerably simple compared to new buildings (Doran et al. 2009).
The bank in question, merging with its competitor has 1800 branches across the United Kingdom to be refurbished and re-branded. For the proposed project, it has asked for a proposal report showing a detailed approach to the refurbishment programme. As the project management consultant requested to provide this proposal report, the intended approach to the project will include the following:
The proposed design team structure for the project
The recommended procurement strategy
Proposed methods of communication
The methods of monitoring and reporting costs and project progress
The following assumptions are set out to avoid any ambiguities in the proposal:
The client being a financial institution has a corporate image to protect as well as re-brand
The client is an intelligent client
Security is of optimum importance since it is a bank.
The refurbishment programme is intended for improving the performance and effectiveness of the existing building. Also to deal with limitations as circulation and maximize functionality of the site and improve customer service.
Time is of the essence, since it is a financial institution it is likely to have on-going business going on.
The project is a large scale refurbishment project
The project cost will be restricted being that the client is a bank
The project will be divided around 30 regions across the country. Each region having 60 branches. Each branch will be appointed a contractor.
The refurbishment Project in all the regions will be carried out simultaneously and work will commence in phases.
Surveys are conducted to appraise the existing building to be refurbished. The surveys comprise an assessment of utilities, asbestos survey, environmental assessments and existing security facilities assessment.
CLIENTS PRIMARY REQUIREMENTS
The client's need revolves around the project management triple constraint, which are time, cost, and quality. These are major determinants of the success of the project. The requirement for quality work is due to the fact that the client has a corporate image to protect, hence the re-branding of its high street branches. Likewise, cost is a major issue, thus the restriction. The need for security and sustainable energy are also major requirements for the client.
SCOPE OF WORK
The project will include works such as an upgrade to the existing building services, upgrading the security facilities, common part will be reorganized, improved circulation of the banking hall, an improvement of the existing ICT for the bank since it is merging with its competitor, devising an alternative energy source, improvement of aesthetics and structural repairs.
STRUCTURE OF THE PROJECT TEAM
A team structure is developed to show the specialists that are required for the refurbishment programme. An organizational structure provides an outline which details the responsibilities of the project team and their interaction in the organization (Griffith and Watson 2004). The nature of the structure will grant the project manager total responsibility for the entire phases involved. If the team structure developed is not suitable time extensions or delays and extra costs can occur as a result of insufficient coordination, lack of communicant and eventually the project could go wrong (Fryer, 2011).
Appropriate structuring of the project team is very vital to the success of the project, so also the individual capability of the team members (Walker, 2002). The selection and appointment of the design team will be carried out based on criteria's as previous experience, skills, review of portfolios and endorsed performance level and competence. After the team has been selected, a detailed project briefing meeting with client is expected to hold, before the approval of the design. The project team consists of the client, Architect, Project manager, Engineers, Quantity Surveyors, CDM coordinator and Contractors.
The client here is the bank which is merging with its competitor.
It is required that the Architectural organization has offices spread across the various regions in the country where the work is to be carried out. These offices will have a head office governing all its regional offices where information will be passed for later dissemination to other regions. Te regional office is to liaise with the head office at all times for up to date flow of information. The firm is responsible for surveying, measurements, and production of drawings for every branch to make sure the designs are alike in accordance to the client's needs.
The project manager acts as a go between for all the involved parties' i.e the client, Quantity Surveyor, Architect, Engineers and the contractors. They constantly communicate with team member and liaise with the programme manager. Also, they are responsible for managing the project and checking to make sure everyone is carrying out their supposed duties. The project manager is charged with the regional levels, while the programme manager oversees the project as a whole.
2.4 THE ENGINEERS
They work hand in hand with architects in reviewing all the sites and come up with specifications for the work. Engineers in the project are made up of the Mechanical, Electrical and Structural Engineers. Since they help the Architects, it is also required that they have regional offices in all the various locations where the refurbishment work is carried out and help with any design problems that are likely to occur.
The QS is responsible for preparing schedule of rates. This is used instead of a bill of quantities or lump sum because it is the most suitable for the refurbishment project since the works are repetitive and activities against cost are identified effortlessly. Furthermore, the QS firm will be responsible for providing staff in the regions and they will confer with the contractors, Architects and project Manager to make sure that the initial budget of the client is kept within range. The Qs prepares the schedule of rates from the drawings, which the client will have to approve and afterwards contractors are invited to tender.
The CDM coordinator is responsible for ensuring all health and safety communication flows to all the appropriate parties as prescribed in the CDM regulation 2007 and also prepare or update health and safety files as well as acting as a go between the client, designers and contractors in relation to the design work . The refurbishment project is notifiable, hence the CDM coordinator is required.
After the schedule of rates as agreed with the QS and other information as the approved drawings have been provided, the contractor then commences work in his region.
Figure 1 Design Team organization Chart
DESIGN TEAM (ARCHITECTS,QUANTITY SURVEYORS,ENGINEERS)
3.0 PROCUREMENT STRATEGY
The most suitable procurement strategy is selected based on some aspects which include the requirements of the client, the scope of the work, allocation of risk, the design responsibility and the price base (Masterman 2002). Holt (2011) listed four main procurement strategies, they are:
Traditional Procurement method
This method requires tht the client has the expertise and resources to manage contract of the contractors and the project design team. Here, the design process and quality can be controlled, since the design has to be produced completely before the tender process begins. There is certainty of cost when appointing the contractor, though the contractor is at low risk. This method best suits longer programmes.
Design and Build
Here, risk is transferred to the contractor for developing design and delivering construction. The client's control of the quality of design and cost risks is reduced and there is only one point of design and cost risks. However, this procurement strategy is best suited for short programmes.
This procurement strategy best suits short programmes and the client is liable for risks, hence risks are not transferred to the contractor. The client has total control of the design and there is no cost certainty for this procurement strategy.
It is similar to management contracting, in that the client has total control of the design, retains risk, there is no cost certainty, and most suitable for shorter programmes. The construction manager here liaises with subcontractors but is not contractually responsible.
3.1 PROCUREMENT REVIEW CRITERIA
Before selecting the procurement strategy for the refurbishment of 1800 bank branches, the client's requirements are put into consideration. The criterion's used for reviewing the procurement strategies for the client is based on the following (Turner 1997):
The quality of design and construction being of utmost importance to client
Clients need to be certain of price
The need for flexibility to control variations
The project being a large scale refurbishment programme
Completion time not being a major issue since business continues
3.1.1 SELECTED PROCUREMENT STRATEGY
The traditional procurement method is the most suitable for the refurbishment project. It makes use of remeasured contracts based on approximate quantities i.e. schedule of rates. This means there is cost certainty, which is particularly important to the client being a financial institution. Since the schedule is produced before the work begins, the bank can continue its business during the refurbishment work as the schedule will facilitate coordination. Turner (1997) also explains that the traditional procurement strategy is the most appropriate for refurbishment projects seeing as minimal changes will be made to the original design and structures, there is cost certainty, the client can be assured of getting its quality requirements through competitive restrictive tendering and some risk will be shared, even though the client will be largely responsible.
METHODS OF COMMUNICATION
Communication is a vital part of construction projects as a result of the various parties involved in a project. With several branches spread across the country, the communication system required for the refurbishment will be wider to ensure effective delivery of work. Methods of communication depend largely on the size and complexity of the project (Dainty et al. 2006).
Methods of communication could be either formal or informal, depending on the degree of control (Emmitt et al. 2003). Throughout the stages of the work, from inception to completion there will be need for effective communication. This could be through meetings at the inception stage, drawings at the design stage, Software's or use of ICT.
METHODS OF COMMUNICATION FOR THE REFURBISHMENT PROJECT
The refurbishment programme which will cover 30 regions for the 60 branches to be refurbished at the same time as will require a consistent, timely, and accurate methods of communication. For the entire life cycle of the project, information will be disseminated either face to face or electronically via (Emmitt et al. 2003).
Software's e.g. Primavera, PRINCE 2, Microsoft (Power point, excel)
Electronic Bulletin boards
Local Area Networks (LANs
Metropolitan Area Networks (MANs)
Wider Area Networks (WANs)
5.0 PROJECT MONITORING AND COST PROGRESS REPORT
Key Performance Indicators (KPI's) provide timely warning signs and provide information to make knowledgeable decisions and minimizes uncertainty (Kerzner 2011). For the purpose of this project, KPI will be employed to monitor the refurbishment programmes so as to control any variations in cost that may occur and for making improvements (Watson et al. 2011).
5.2 SETTING UP KPI
Key Performance indicators will be implemented in seven stages as depicted in Figure 2. It provides an essential means for monitoring the project and reporting cost progress.
Figure 2 SEVEN STAGES OF DEPLOYING KPIs (Watson et al. 2011)
7. Measure Again 1.Decide what to
6. Take Action 2.Collect Data
5. Analyze 3. Calculate
4. Report KPIs
5.2.1 Stage one
This stage involves deciding what to measure in order to monitor and report cost and progress of the entire refurbishment project. This will project indicators such as the construction cost and time, predictability of cost and time, satisfaction of the client with services of the project team and safety.
5.2.2 Stage Two
Data will be collected from the clients, contractors, and suppliers existing files.
5.2.3 Stage Three
Individual KPIs will be calculated using an appropriate technique, which follows the rules prescribed by KPI working group.
5.2.4 Stage Four
The report result of each benchmark in this stage will need to be either fed backward or forward in order to achieve results.
5.2.5 Stage Five
Results are here analyzed and subsequently applied.
5.2.6 Stage Six
Action is taken in aptly and will be in direct relation to the problems which are measured in stage one.
5.2.7 Stage Seven
Activities which have been noted are then re-assessed again, as this is a continuous process. It is cyclic in nature just as the Deming Cycle which continually Plan, do check and act.