Procurement Strategy For Redevelopment Of Racecourse At Melchester Construction Essay

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Today, there is a greater emphasis construction executive to deliver projects on time, within the budget and to the highest quality standards. Choosing the right procurement method allows for the projects to be implemented and executed as per the objectives of the client and provides direction to the project.

The Janus Leisure Plc, being a Public Limited Company needs a greater deal of financial and planning efficiency as they are liable to their stake holders and need to fulfill their business ambitions and fiscal targets.

This report is aimed at providing an assessment of the project objectives for the Janus Leisure Plc racecourse at Melchester, and composes an assessment of the various key factors and incorporates an efficient procurement approach which can fulfill the project criteria while forming rewarding working relations and archive the targets for the organization.

Part One of the report gives a brief description of the Janus Leisure Plc, and its current situation.

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Part Two: The company has set project objectives, which are discussed and prioritized according to the nature of the project. The project scenario for the Melchester race course has definitive completion deadlines for each race making timely completion the most important priority. The clientele also necessitates high quality in terms of the facilities and hospitality. The company's direct involvement and control to the project is also a key objective for the company. Cost planning is an essential consideration but may not be of paramount importance.

Part Three of the report analyses the various procurement options in the UK construction industry. The strategies are evaluated upon their compliance with the company's project objectives.

Part Four: The selection of the Construction Management procurement strategy for both the phases of construction as it fulfills all the project objects set out by the company. Using a common strategy also allows for use for the resources and construction infrastructure on site to be shared and long term positive planning can be achieved. This strategy allows for the client to have maximum control of the project, resulting in flexibility and higher gains in effect. This also results in the client having command over the quality of the project.

( iv )

The Janus Leisure Plc is suggested to establish Partnership agreements and set up a defined Supply Management Chain as the company is continuously improvising and expanding its operations. These strategies are efficient cost saving strategies and also provide a deal of certainty.

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Part One | INTRODUCTION

1.1 CLIENT DESCRIPTION

Janus Leisure group is a leading leisure group mainly engaged in hosting professional horse racing events in the United Kingdom. They have a glorious tradition of operating world class racecourses, which hold some of the most prestigious events in the world horse racing calendar.

Keeping in mind the affluent and prominent clientele who frequent these events, they are consistently upgrading their hospitality infrastructure and other facilities to provide a complete experience for their clients.

In their endeavor to archive this they currently own and operate 6 racecourses all over the country, which accounts for nearly 20% of all the races held in the UK, which earns them a distinction as one of UK's largest operators of horseracing.

Key facilities provided at the racecourses:

All racecourses are operational throughout the year and provide venues for Conferences and Banquets.

Some courses have been integrated with other facilities which add value to the core operations and generate further income opportunities for the company.

Value added facilities include:

Inclusion of an 18-hole golf course at two of their facilities,

A leisure club facility has been offered at one of their racecourse,

Another racecourse has been integrated with a branded hotel.

As a part of their continuous development effort The Janus Leisure Plc has envisaged an ambitious plan to develop and upgrade the infrastructure and facilities at its flagship racecourse at Melchester, which hosts the 5000 Guineas Stake, which is distinguished as one of the oldest classic races in the world. As well as numerous other high-profile race meeting throughout the year.

The project success will greatly depend on the efficient incorporation of the client's logistic expertise in the area of developing horse-racing courses and competent procurement and management systems.

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1.2 PROJECT SCOPE

In today's dynamic and ever so competitive business environment, there is a need for proactive improvisation in all areas of the business. There is an added necessity for strategic development in terms of facilities, hospitality and the provision of diversified business opportunities. The Janus Leisure Plc realize the importance of the continuous upgrades in the business community it places itself in and is ready to take calculated risks to achieve their business objectives and also maintain the glorious tradition of holding the prestigious horse racing events. As a part of this initiative the company has decided to undertake the redevelopment of its flagship horse-racing course at Melchester.

The redevelopment for the same has been categorically divided into two phases:

Phase One:

In the First Phase, the company will concentrate mainly on the development of its various stands.

The Project objectives for the first phase are:

Demolition of the existing grandstand

Construction of a new 5-storey grandstand to include an extensive conference and exhibition centre and associated external works, which has a total area of 10,000m2. A budget of £25million has been allocated for the same.

Refurbishment of two existing stands circa 100 years old. A budget of £5million has been allocated for the same.

Provisional arrangements during construction of Phase One:

The 5000 Guineas Stake and other important races will be relocated to other courses to allow for the redevelopment of the Melchester course. The races must return to Melchester for the scheduled mid-September 2012, 5000 Guineas Stake event.

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Phase Two:

The company will undertake the construction of a 120-bed hotel facility and casino. A budget of £12million has been allocated for the same.

The hotel is expected to be operational for the 5000 Guineas Stakes event scheduled for mid-September 2013.

1.3 PROJECT SCHEDULE

The work schedule provides a brief account of the works to be done, completion deadlines and costs to be considered from the inception and planning of the project through construction and finishing.

PHASE

REQUIREMENT

COMPLETION BY

BUDGET

Phase One

Demolition of the existing grandstand

2012

-

Phase One

5-Storey grandstand with conference and exhibition centre

2012

£ 25 M

Phase One

Refurbishment of two existing stands

2012

£ 5 M

Phase Two

120-Bed Hotel and Casino

2013

£ 12 M

Figure 1: Project Schedule

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Part Three | CLIENT OBJECTIVES

The Center for Strategic Studies in Construction, based at the University of Reading, produced a report " The British Property Federation(1983)Manual of BPF system for Building Design and Construction, London:British Property Federation" has inferred from research although the modern client is better conversant with the project demands than his former counterparts, the essential construction project objectives continue to be the triumvirate of time, cost and quality. <Page 16 masteman>. Hence, there is a constant need for planning and executing the construction projects in a manner that these key criteria's are balanced.

The client's objectives can be categorized as follows;

TIME

COST

QUALITY

PRIMARY OBJECTIVES

A. PRIMARY OBJECTIVES

B. SECONDARY OBJECTIVES

FLEXIBILITY

COMPLEXITY

RISK AND RESPONSIBILITY SHARING

FUTURE ASSOCIATIONS

2.1 PRIMARY OBJECTIVES

The Aqua group guide to procurement, tendering & contract administration states the "eternal triangle";

"From a client's perspective, the COST, QUALITY AND TIME paradigm might be considered as being the highest quality, at the lowest cost, in the shortest time. Unfortunately this is not always possible and a compromise has to be sought, based on client's priorities."

THE ETERNAL TRIANGLE

TIME

COST

QUALITY

Figure 2: The Eternal triangle

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A. TIME

The Janus Leisure Plc has set completion targets with respect to each phase.

Phase One:

Time is of essence for the first phase of the project. Since the Melchester course is the flagship venue of the Janus Leisure Plc, and plays host to some of the most prominent races on the world horse racing calendar hence the completion of the grandstand for spectators is the highest priority.

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The project must be completed it time for the 5000 Guineas Stake in September 2012.

The company has set targets for the completion deadlines of the projects, failing which the company risks losing on major earnings to be made from hosting this high-profile races.

Phase Two:

The significance of timely completion of the project is further emphasized in this case as the project will take place in two distinct phases. The timely completion of the first phase will ensure the phase two smoothly and according to plans.

Looking ahead, the company has set a time frame for the second phase too and the project is scheduled for completion by September 2013.

Below are some of the key factors which may affect the time of the project:

The project demands high quality workmanship and materials, the process acquiring these materials and skillfully installing them may cause delays, thus these details have to be well planned in the design stages.

Process of awarding contracts need to be swift and centralized, the responsibility for identifying and awarding the same may be given to a competent organization.

Hence, TIME is of paramount importance to be considered for the strategy of achieving the objectives of the scheme and efforts must be made to integrate the various design and construction processes in each phase.

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B. QUALITY

Phase One

Horse breeding and racing has traditionally been associated as a leisure pursuit and sport of the affluent strata of society. Melchester, which is the flagship course of the company plays host to some of the oldest and celebrated meetings in world horseracing.

Phase Two:

The proposed hotel also has a similar clientele for the second phase as well hence the requisite level of quality will remain of high standards as phase one.

Below are some of the key factors which will influence the quality of the project:

The major patrons for these events may include numerous royals and business honchos. This clientele expects a luxurious experience while at the racecourse. As horse racing is a leisure activity there needs to be a high level of hospitality and other

Since the facility will be operational 365 days a year, high performance and durable materials should be used.

The materials and fitting must be easy to maintain and replace without disrupting the everyday activities of the facility.

The refurbishment of the 100 year old grand stands needs to be undertaken as a restoration project, great care and skilled labor shall be employed to achieve the desired quality objectives for the same.

Hence, the project is especially demanding in terms of the requisite QUALITY of construction and refurbishment.

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C. COST

The Janus Leisure Plc is an experienced client, who has successfully completed similar projects. Hence, the company is capable of estimating a budget that maybe required for the various schemes in the projects. However there are numerous additional factors which may lead to the anticipated budget to vary.

Both Phase One and Phase Two will have similar considerations of the cost objectives due to the similar standards of construction required.

Below are some of the key factors which may affect the cost of the project:

Since the project will be essentially used by affluent clientele owing to the nature of the sport the company has set high quality and performance standards for the project. Most of these high end services and products may greatly affect the overall budget of the project.

There is a definite time frame in which the project needs to be complete. To achieve this essential goal there may be a bonus cost involved or the use of additional resources/labor which may affect the budget as the time factor is of greater importance.

The company needs to identify the sustainability options to be used on the project, and the investments need to be made to obtain certain certifications and the long term returns for the same.

Specialized/skilled contractors may have to be considered for works such as restoration, the cost for the same has to be duly considered.

Thus we can conclude that COST and finances need to be well planned and all measures to ensure, effective use of capital must be made by all the parties involved. However, considering the prestige of the company and the nature of business, there is a higher emphasis on achieving quality and time targets, hence cost can be flexible and not of overriding importance.

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2.2 OTHER KEY OBJECTIVES (SECONDARY OBJECTIVES)

A. RISK AND RESPONSIBILITY:

In the general sense, as a private sector venture, the primary objective of the company to achieve the "bottom line" idea of constraining costs and capitalizes on profits and business development. The company has a vast experience of successfully handling projects of this genre. The company realizes the potential benefits of effectively controlling the project objectives for greater returns, and is ready to take the responsibilities and calculated risks associated with the projects financial planning and execution.

B. FLEXIBILITY

Since the project is categorically divided in two distinct phases, there is an increased need for flexibility in terms of the design and execution of these independent phases.

Although the two phases are independent of each other in terms of project objectives, they will exercise influence on each other in terms on time and cost. The progress and success of phase one will greatly influence the parameters of phase two.

C. COMPLEXITY

The project is not essentially complicated in terms of design or technology. The Janus Leisure Plc also has a vast experience of executing similar projects.

The major challenge would be the blend of the two construction phases, and achieving the long term objectives of the project.

D. FUTURE ASSOCIATIONS

As part of the companies endeavor towards continuous improvisations there is a need to form long term business relations. It is key, for the company to form a spirited team from all areas of construction sector.

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Part Three | PROCUREMENT METHODS

The International Commission on Building (CIB W92) during its 1997 meeting defined the procurement process as;

"A strategy to satisfy client's development and/or operational needs with respect to the provision of construction facilities for a discrete life cycle."

Furthermore, Masterman J.W.E talks about the advent of the recent changes in procurement requirement and construction practices. It states the need to accept that the new procurement systems have evolved to encompass not only the design and construction of projects but also their finances, operations, facilities management etc.

Procurement systems in the United Kingdom are broadly classified classified as shown in the illustration below:

SEQUENTIAL / TRADITIONAL

SINGLE STAGE

ACCELERATED

PURE (DIRECT) D&B

DEVELOP AND CONSTRUCT

NOVATED

TURNKEY

SYSTEMS FOR THE DESIGN AND CONSTRUCTION OF BUILDING PROJECTS

DESIGN AND BUILD

MANAGEMENT ORIENTED

MANAGEMENT CONTRACTING

CONSTRUCTION MANAGEMENT

DISCRETIONARY

PARTNERING

Figure 3: Various Procurement systems in the United Kingdom

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3.1 SEPERATED PROCUREMENT SYSTEM (TRADITIONAL)

This is the conventional system of procurement. It follows a sequential project delivery system

DESIGN STAGE

COST PLAN

TENDER DOCUMENTS

TENDER ( COSTS ESTABLISHED AFTER DESIGN COMPLETED)

CONSTRUCTION (COMMENCES ONLY WHEN DESIGN AND COSTS ARE KNOWN

Figure 4: Time-line graph for various stages in a Traditional Procurement System

The traditional system of procurement may perhaps not be the optimum system of procurement for the Janus Leisure Plc. Since it has the following limitations in achieving key project objectives, as demonstrated below;

Time: The traditional system does not allow for the integration of Design and construction, and valuable time is spent on completing all the project drawings and specifications before tendering and construction takes place. It is not able to provide a swift start and overlap of the design and built process. Hence, it is not able to satisfy the paramount project objective, TIME.

The accelerated system of procurement may present a solution. However in the case of Traditional Accelerated procurement there is still a great deal of delay and it also lacks in providing cost and quality certainty.

Quality: The project requires a considerable amount of skilled and specialized labor for the targeted quality and restoration of the 100 year old stand. This procurement system does not allow for the contractor to be involved in the conception stage. This result in lack of inputs from the contractor and these details may be overlooked, affecting the overall quality of the project.

Risk and Responsibility: In this arrangement there is no involvement of the client in the construction phase. As an experienced client the Janus Leisure Plc. Would like to be involved in the execution of the project

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3.2 INTEGRATED PROCUREMENT SYSTEM (DESIGN AND BUILD METHOD)

COST PLAN

TENDER DOCUMENTS

TENDER DOCUMENTS

DESIGN DEVELOPMENT (BY CONTRACTOR)

CONSTRUCTION (COMMENCES AFTER COST ESTABLISHED BUT BEFORE DESIGN COMPLETED)

Figure 5: Time-line graph for various stages in a Design and Build Procurement System

The integrated procurement system was devised as an immediate solution to tackle the shortcomings of the traditional (sequential) procurement arrangement.

According to MASTERMAN "the term 'Design and Build' has almost been unanimously interpreted and defined as being:

An arrangement where one contracting organization takes sole responsibility, normally in a lump sum fixed price basis, for the bespoke design and construction of a client's project"

The architect's handbook of construction project management (mm and David Langford) further describes the D and B as one characterized by the single point responsibility of the contractor to client, the key prospect of a unitary approach, with the advent of overlapping and integration of the design and construction phases.

Design & Build can be theoretically divided into three main categories:

A. NOVATED: Where the initial design is carried out by the employer's design team who are then novated to the contractor prior to completion of the building contract.(Hawkswell Kilvington, Construction bulletin2002)

B. TURNKEY CONTRACTS: A construction contract in which the price is fixed at the time the contract is signed. As a result, the construction company is held responsible for exceeding the budget ( Farlex financial dictionary 2009)

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C. PACKAGE DEALS: This strategy is used where the client desires speedy construction at an affordable price. Package deal implies that the client can virtually buy the building package off the shelf.

The Design and Build method satisfies the following project objectives;

Time: Since the construction can proceed on site with limited design drawings and information. This saves valuable time spent for tendering and essentially the design and construction stages can be interwoven.

Cost: This method provides a degree of cost certainty, as the project objectives are set well in advance.

Repetition of Design: There is a degree of repetition on the following accounts;

The company has a long history of building and operating horseracing courses, a similar layout for the same can …

The company already owns a branded hotel and thus has a recognized pattern in terms of the design and quality requisites.

The Design and Build method has the following shortcoming with respect to the project objectives;

Single Point Contact: The client can benefit from a single point of contact with the contractor, but this greatly

Flexibility: This project demands great deal of flexibility. The Design& Build procurement system does not allow for flexibility in terms of design or specification changes. Making changes to these parameters at a later stage may prove very costly for the client.

Quality: This method has not been know for archiving the best outputs in terms the quality of the materials and installations.

Client Control: The client has virtually no control and involvement in the execution of the construction on site, therefore there is an increased need for the client to provide a precise and comprehensive brief to the contractor. To ensure this the client may need to appoint a team of technical advisors which may consist of architects, engineers and quantity surveyors.

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3.3 MANAGEMENT ORIENTED PROCUREMENT SYSTEMS

DESIGN (COMPLETED AFTER CONSTRUCTION STARTED ON INITIAL WORK PACKAGE)

COST PLAN

TENDER DOCUMENTS (BASED UPON EMPLOYERS REQUIREMENT- NOT FULL DESIGN)

TENDER (FOR APPOINTMENT OF MANAGEMENT CONTRACTOR)

TENDER DOCUMENTS (FOR WORK PACKAGES)

CONSTRUCTION (COMMENCES BEFORE DESIGN COMPLETED AND COST ESTABLISHED)

Figure 6: Time-line graph for the various stages in a Management Oriented Procurement System

MM -In today's dynamic business environment, clients are continuously seeking a tactical edge over their competitors. There is an increased demand for ensuring early commencement and completion time, and a greater control over projects costs and higher standards of functionality and quality than those achieved using the conventional procurement methods.

According to Masterman JWE, "the introduction of management contracting was the result of changes which had occurred since the early 1960's in respect of:

The diversity, complexity and standardization of building techniques;

The growing prominence of the subcontractor;

The growth in the size of projects, demand for tighter time and cost targets and for a more unified and purposeful management of total process."

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A. MANAGEMENT CONTRACTING

Masterman JWE has adopted the following definition for management contracting;

"Management contracting is a process whereby an organization, normally construction based, is appointed to the professional team during the initial stages of a project to provide construction-management expertise under the direction of the contract administrator.

The management contractor employs and manages work contractors who carry out the actual construction of the project and he/she is reimbursed by means of a fee for his/her management services and payment of the actual prime cost of construction."

CONSULTANTS

ARCHITECT

QUANTITY SURVEYORS

ENGINEERS

EMPLOYER

MANAGEMENT CONTRACTOR

WORK CONTRACTORS

FIGURE 6: Showing flow of information and contract arrangements between the various parties involved in a management contracting strategy.

CONTRACT

INFORMATION

MONEY

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The Management Contracting method satisfies the following project objectives;

Time: Management contracting was essentially devised as a fast track construction strategy.

Sidwell, A.C.(1983)'An evaluation of management contracting' , Construction 'management and economics, 1, 45-46 research which compares management contracting with the conventional procurement approach states "…Management contracting allows an earlier start to be made on site and resulted in speedier completion of the project."

Flexibility: Management contracting allows for a great deal of flexibility in terms of design to the client.

A study on the flexibility effectiveness of this method by Barnes states "…the risk of delay was reduced as a result of the systems flexibility and ability to be able to accommodate and overcome difficulties and changes".

Buildability: One of the major advantages of this system is the involvement of the management contractors from a very early stage of the project, by which they are effectively able to advise on the suitability of the proposed components with respect to the time, market availability etc.(aqua)

Price Risk: The work packages are comprehensively completed in terms of design and specifications before being tendered, and this tendering process usually occurs close to the execution of that item on site. Hence, this eliminates the necessity for tenderers to include a premium on pricing risk.

Long Project duration: As mentioned above, the factors pertaining to the flexibility, buildability and price risk management, allows this procurement strategy to be used for projects of long duration.

The Management Contracting method has the following shortcoming with respect to the project objectives;

Cost: This strategy provides very modest price certainty

Client role and control: The client is not in capacity to allocate the contracts, hence loses significant control over choice of contractors and suppliers who he may feel fit for the project.

Additionally, the client is required to give the design team a comprehensive brief of the project and must commit adequate resources to the project before the project can begin.

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B. CONSTRUCTION MANAGEMENT

According to The construction Round Table's business clients guide to using the construction industry, Thinking About Building[16], defines this system as "the method where the management service is provided by a fee based consultant, a specialist construction manager or a contractor where all construction contracts are agreed between the client and the trade (package)contractors."

CONSULTANTS

ARCHITECT

QUANTITY SURVEYORS

ENGINEERS

EMPLOYER

CONSTRUCTION MANAGER

TRADE CONTRACTOR

Figure 8: Showing flow of information and contract arrangements between the various parties involved in a Construction Management contract.

CONTRACT

INFORMATION

MONEY

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The Construction Management method satisfies the following project objectives;

Time: Construction management allows for a great deal of efficiency in relation to overall project duration owing to the following characteristics:

The construction work is allotted as work packages undertaken by various separate work contractors. The work contractors can commence work on site as soon as the design drawings and specifications are complete and a successful tender is appointed for the particular work package. This allows for the overlap of the design and construction on site.

The construction managers scope of responsibility includes time management, programming and monitoring the design activities and thus insures the information delays are minimized.

There maybe a great deal of preordering and procuring the critical materials and components by the client, which prevents interruption.

There is an involvement of construction manager from the design stages. As a result unnecessarily complicated work and overlapping between various work contractors operations is avoided.

Quality: The construction round table's guide(1995) to the building process, Thinking about building, London: The business round table, suggests that" a 'prestige' level of quality can be achieved when using this procurement system". The presence of a capable and experienced construction manager, who implements the right quality control procedures during the construction stage can ensures works of standards that are expected from the contractors.

Cost: The tendering of independent work packages ensures maximum completion among the tenderers.

Since the company will enter the contracts with the work package contractors, this allows the company to directly have command over the costs and the overall finance of the project.

Flexibility: Provides design flexibility to the client and allows the client to make changes in the design and strategies at a later stage without having to pay a premium.

This system allows for an incompetent/ non-performing construction manager to be replaced with ease, as they are not associated with any of the contractors executing the work packages.

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Client experience: This method is recommended for clients, who may have experience in similar projects. Janus Leisure Plc's proactive management will significantly help in the way the project is conceived and executed.

The Construction Management strategy has the following shortcoming with respect to the project objectives;

Cost: The costs may escalate and the project might become financially instable in the case that the company does not demonstrate proactive involvement in the operations.

The project cost may also be unpredictable incase the client fails to procure precise design drawings and estimates from the design team at the time of tendering the work packages.

Un-accountability of the Construction manager: In most cases, the construction manager largely remains unaccountable for any liquidated damages as per the contract of engagement. In case of non performance the client only has the option to replace the manager.

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3.4 DISCRETIONARY PROCUREMENT SYSTEMS - PARTNERING:

Partnering is fast developing as a new approach in the procurement strategy. The partnering approach is widely applicable when the client has various projects of a similar nature and there is a demand for continuous improvements in terms of time, cost and quality.

Today there is an enormous change in which construction projects are conceived and planned, there is an increased need for strategic collaborative efforts. Partnering has been introduced as administrative and cultural framework into which any procurement system can be incorporated. The incorporation of this strategy can allow the client to merge the appropriate procurement strategy and merge partnering arrangement setting by the client, to combat the shortcoming with respect to performance and relationships in the other procurement systems. Hence ensuring the selected system acts beneficially.

Figure 9: The three fundamental characteristics of partnering aqua

The Construction Industry Board (CIB) 1998 Fact sheet on partnering, London, has defined partnering as;

"Partnering is a structured management approach to facilitate teamwork across contractual boundaries. Its fundamental components are mutual objectives, agreed problem resolution methods and an active search for continuous measurable improvements."

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There are mainly two variants of the Partnering arrangement:

Project Partnering: Mainly project specific and the arrangement may be terminated after the completion of the project.

Strategic Partnering: Used for long term relationships and the association maybe used for a series of projects spread over time. May also be used for maintenance contracts.

Benefits of partnering for achieving the project objectives:

Has proven to be greatly beneficial in achieving the primary project objectives Time, Cost and Quality.

Sharing of ideas and resources leads of better innovation and development for all the participants.

Tendering costs are reduced as the contractors who are involved in the partnership are guaranteed the work packages to be carried out.

Following maybe the limitations in the partnering process;

Majority of partnering arrangements fail due to the lack of mutual co-ordination, trust and there must be a time frame and patience to achieve these goals in the long term.

Potential for lack of accountability and disagreements regarding risk and gain sharing.

Considerable effort is needed to form the partnerships, and in case the client may change the company priorities, this may cause the partnership to weaken.

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Part Four | RECOMMENDATION FOR PROCUREMENT STRATEGY

4.1 SELECTION OF PROCUREMENT STRATEGY

The selection of an appropriate procurement strategy is the key to the success of the project.

The main challenge in the redevelopment of the Melchester race track is the amalgamation of the two different phases which are envisaged by the client.

In retrospect, after considering the goals of the Junus Leisure Plc with respect to the offerings of the various procurement systems in the UK. It is recommended that the Construction Management procurement strategy may be the most appropriate for both phases of the redevelopment of the Melchester race course.

Both projects should be conceived and planned positively as the client has envisaged both phases as a long term strategy to boost business objectives and gain points over the competition.

Planning positively ahead allows the client to form strong teams, this maintaining continuity between both projects.

The client gains the advantages of partnering and long term relations while securing the client by allowing flexibility to replace non performing contractors and suppliers at any stage.

Allowing considerable savings in time and documentation as client can have two stage contracts wherever applicable with performance criteria.

Additional saving in time and costs as there may be significant infrastructure on site set up for construction works and this can be continued for the second phase works as well.

The main constraint for the Janus Leisure Plc is time, there are defined deadlines for the completion of both the phases;

This strategy allows for the overlap of design and construction, hence the design and allotment of various work packages are in sync with the construction activities on site.

The incorporation of an experienced construction manager to the project ensures better time management and monitoring progress of contractors.

Unnecessary complications in the construction stage are avoided as the construction manager works in tandem with the design team from the conception stage.

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There is a need for high standards of quality of workmanship and materials;

Since the Janus Leisure Plc will be directly appointing the work contractors they can ensure the most appropriate and skilled team is assigned to achieve the level of quality required. Their vast experience and relations of the company will aid in this selection.

High quality materials need to be carefully selected and planned in all aspects, the involvement of clients team, design team and the manager will ensure all there items are procured efficiently.

As a private enterprise, achieving maximum cost efficiency is a key for the Janus Leisure Plc;

The involvement of the client's team allows for great deal of accountability and planning for the financial aspects of the project.

The company due to their direct involvement in the awarding of contracts can ensure transparency in the tendering system and get the best competitive price and services.

Janus Leisure Plc would like to retain power and control of the project objectives hence ready to accept almost entire risk and responsibility;

The construction management strategy allows the company to retain control over all the matters pertaining to the project control objectives, this process is further aided by supervision of the construction manager.

Since this system allows for the company to choose the various work contractors and consultants, the company can form long term collaborative relations with these companies. This will greatly benefit in co-operation for future projects as well.

Flexibility is one of the key concerns of the clients, as the design will take place in two distinct phases;

There is a great deal of flexibility for the client as the designs and contracts are assigned by the client's team.

The increased need for flexibility also in the case there are circumstances during phase one which necessitates changes in phase two of the project.

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4.2 PARTNERING PROSPECTS

As established in the client profile, the Janus Leisure Plc aspires towards dynamic improvisation to all its existing facilities and targets also to set up new business ventures in a bid to expand their existing portfolio. Hence there is an increased need for establishing long term business relations with suppliers, contractors and consultants which will prove mutually beneficial to both the parties.

The Janus Leisure Plc can implement project partnering with some of the organizations. Since the project is in two distinct phases there is a possibility that the company may require the services of the company in both the phases.

The company may require the services of organizations such as maintenance firms, supplier of regularly needed items and other companies. For this continuous association the company may have strategic partnering agreement. These will normally last for a period of 3-7 years.

4.3 SUPPLY CHAIN MANAGEMENT

In addition to partnering now a day's corporate organization are looking for effective networks for their services and supplies for construction activities. This value addition greatly helps Janus Leisure Plc's ambitions towards continuous development.

The team representing the Janus Leisure Plc for their development must form effective teams with

4.4 THE PROCESS

DESIGN TEAM

ARCHITECT

STRUCTURAL ENGINEER

QUANTITY SURVEYOR

FACILITIES MANAGER

SPECIALIST CONSULTANT

M&E ENGINEERS

LANDSCAPE ARCHITECTS

The success of the project will greatly depend on the accurate execution of the chosen procurement system and allocating roles and responsibilities.

CLIENT REPRESENTATIVES

TEAM OF INDIVIDUALS WITH CONSTRUCTION INDUSTRY EXPERIENCE

CLIENT

JANUS LEISURE PLACE: BOARD OF DIRECTORS

CONSTRUCTION MANAGER

VARIOUS WORK CONTRACTORS/SUPPLIERS

CONSTRUCTION SITE ACTIVITIES

SAFETY OFFICER (HSE)

QUALITY CONTROL ENG.

SITE MANAGER/ SUPERVISOR

CONSTRUCTION PERSONNEL

Figure 10: Process diagram for the procurement system showing the flow of information and contract arrangements

FLOW OF INFORMATION

CONTRACT

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4.5 ORGANIZATIONS TO BE COMMISIONED

Janus Leisure Plc will require commission the following organizations for the execution of the redevelopment of the Melchester race course;

CLIENT TEAM

Janus Leisure Plc will need to appoint a competent team which may include individuals with relevant experience in the construction industry and advisors from the company who have overseen the previous similar projects of the company. This team will report to the board of directors and will be responsible for supervising the work, communicating with the design team and tendering and allocating contracts on behalf of the company.

CONSTRUCTION MANAGER

The construction manager is appointed as the advisor in the pre-construction stages and will subsequently be responsible for managing the works on site.

The construction manager is appointed after a careful selection process after interviews with client and his team. The management fee is paid for the total management services, expressed as a percentage of the total project cost and will be compensated adequately if the project does not proceed to the construction phase.

DESIGN TEAM

The following organizations will form the design team, which will be responsible for preparing the design drawings and specifications for the various work contracts;

ARCHITECT: The architect

STRUCTURAL/CIVIL ENGINEERING:

QUANTITY SURVEYOR:

MECHANICAL AND ELECTRICAL ENGINEERS

SPECIALIST CONSULTANTS:

INTERIOR DESIGNERS:

FACILITIES MANAGER:

CONSTRUCTION MANAGER:

HEALTH AND SAFETY CONSULTANTS:

LAWYERS:

FINANCIAL INSTITUTIONS:

SUPPLIERS:

VARIOUS WORK CONTRACTORS:

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INSURANCE AGENCIES: