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Contract procurement has an impact on project performance in terms of costs, time and quality. During one of the briefing meetings at the pre-tender stage of a construction project, your Director has interest in collaborative procurement method and need your advice. In addition, your Director has multiple sites going on at the same time and therefore many site offices. Critically explain why collaborative procurement would be beneficial between the site offices to your Director.
Masterman, (2002) defined a procurement system as, 'the organizational structure adopted by the client for the implementation, and at times eventual operation, of a project.'
While Love (1998) adopted the definition such that,
'It is an organizational system that assigns specific responsibilities and authorities to people and organizations, and defines the relationships of the various elements in the construction of a project'.
There has been an increasing recognition that the conventional (traditional) approach to contract procurement is inadequate (Rowlinson, S. 1999). However, it has been noted that there are still relatively few procurement systems for clients to choose from. Each procurement system that is available delivers project success to a variable degree (Bowen, 1997).
In today's context, it can be seen that client's satisfaction is seen to be largely dependent on the selection of the most appropriate procurement methodology, and failure to select an appropriate procurement approach is recognized as a primary cause of a project failure (Masterman, 1996). However, which procurement route to undertake for a particular project be it building or infrastructure works depends on the objective and requirements in terms of its functionality, cost, time and quality set by the client. While the selection of an appropriate procurement system in an essential part of the building process, it is unlikely that an "ideal' procurement system that satisfies is all criteria will be available to ensure success (Winter, 2005).
There are many factors that influence the project performance and contract procurement certainly has an impact on costs, time and quality. However the procurement system will influence whether the project will be a separated procurement system (traditional), integrated procurement system (design & build and its variant), management oriented system (management contracting, construction management), or collaborative arrangement (partnering, Early contractor Involvement, ECI, e-tender). Figure 1 below shows the various forms of procurement systems.
PROJECT MANAGEMENT TEAM OPTIONS
In-house/external/in-house & external
Separated/ (2) integrated/ (3) management oriented/ (4) collaborative
Direct design & Build
Competitive design & build
Develop & construct
(3) Management Oreinted
Deep & Marine
The various procurement options available reflect the fundamental differences in the allocation of risk and responsibility to match the characteristics of different projects and client needs (Winter, 2005). When client select the type of procurement system to be use, strategic consideration must be considered especially at the stage on deciding whether to appoint a designer (architect/engineer), integrator (contractor), manager (project manager) or a group of all 3 working collaboratively.
Under this approach the client can use any of the systems from any of the other categories either singly or in combination, or even a bespoke system of his/her own making but with the choosen systems(s) being implemented within a specific setting controlled by the client.
Collaborative arrangement (Partnering) as required by the director has some benefits especially for multiple sites and with many site offices running at the same time. The benefits of time, cost and quality is explained below.
Benefits of time: several studies have indicated that by using the partnering approach the largest benefit is from the design and management processes were the flow of information between all parties helps to reduce the design times as designers and contractor understand and are more efficient in working together. It allows for faster project times as the selection process is eliminated which can be costly and time consuming. The project can have an early start on site, shorter construction times and lower risk of time overruns. However, using strategic partnering is more beneficial as it can achieve a 50% time saving it firms use the correct management procedures.
Benefit to Costs. As partnering assures certainly in the projects in terms of design and construction results in fewer cost overruns, reduce claims and litigations and the project cost also reduced. This is one of the important part of the project where saving some of the cost can add value to other important works that may be required at the end of the project.
Benefits to quality: Partnering can certainly improve the quality standards in building and there are indications that as a result, there are reduced number of defects, hence less rework is required. This is again another important aspect of the project where quality standard not only maintain but improved. Effective partnering relationships will also benefits from the R&D and innovative thinking which assist to improve productivity and quality.
As part of the pre-tender process for a contract bid document, for multi-storey building projects for various sites, you are required to write a pre-tender method statement. Prepare a pre-tender method statement that you will submit with your bid document.
Pre-tender method statement is one of the important parts in the pre-tender process. Method statement is a document detailing how a particular task or activity will be carried out. Its detail the particular risk or danger associated with the particular parts of the project. However an assessment of construction methods to be considered during the tendering is required. The objectives of preparing a method statement are as follows:
To enable managerial experience to be called upon during estimating, a demand is created for information relative to performance. Managers find it is necessary to record resources, quantities and time in order to contribute.
To enable data concerning new construction techniques and methods of handling materials to be included in an estimate. The method statement may be developed from work study data and planning cycles prepared for an alternative plant and labour situation.
To permit the plant requirements for a project to be summarized for inclusion in the contract preliminaries or plant schedule.
To ensure the output and duration of different methods and machines is realistically matched.
To give guidance to the estimator on specific on specific bill of items relating to plant and labour requirement in order that realistic rates may be built up.
In this case study, a pre-tender method statement is to be prepared as part of the pre-tender process for a contract bid document for multi-storey building projects for various sites. Various formats for method statement can be used; like a pre-printed standard format that has been designed for repetitive works for familiar design such as in this case-study.
Information that is required on method statement includes the operation or work stage. Each operation requiring analysis of plant or method should be listed in the method statement, for example excavation work, formwork, concrete handling and placing, choice of plant for lifting precast floors or erecting steelwork.
Quality of work is also required where this is directly affect methods of construction, number of man-powers and machineries. Realistic methods of construction together with constructive alternative and sequencing of operations should be outlined clearly.
The summary of plant will assist in the preparation of the preliminaries plant element where an example is tabulated in the table below.
Sequence of operations
Plant and labor
Excavate over-site to reduce levels and remove to tip
70 x 100 x (ave.) 450mm = 3150 m2
Excavate using hydraulic power shovels. Load excavated material direct into 8 cubic metre capacity lorries cart away to top
Excavate using hydraulic backactor, track mounted 360 deg slewing machine laoading direct into lorries hymac 580 or similar
Site strip to commence after taking initial grid of levels
Cat. 951 crawler tractor
3150/40 = 79 man-hr
Excavate pad and strip foundations
300 mm of strip foundation bases say 200m3
Excavate shallow foundations using Rymac 580 as before and load direct into lorries
On stripping factory areas the excavation work to the factory area commence
Concrete strip and pad foundations
100m3 ready mixed concrete
Ready mixed concrete to be discharged direct into foundations. Site access via hardcored formation
On fixing of bolt boxes to 6 pad foundations, concrete work may commence
4 to 6 bases
Erect steelwork and roof cladding
Contractor to prepare central area of floor slap with oversite hardcore for crane during erecation
Bases to be checked by steel-work contractor, prior to erection and leveling of bases to receive steelwork bases on one bay of portal to be complete prior to erection of steelwork.
The content and description of the pre-tender method statement for the proposed construction of multi-storey building is outlined below.
This method statement is prepared for the construction of propose multi-storey building project located at the site location indicated in site map. Before any work is commenced, the contractor shall confirm in writing to the engineers that the relevant site and survey works is true and accurate record of the condition of all properties, lands and crops inspected. The contractor shall clear the whole area with the boundary lines as shown in the drawing and shall exercise care and attention to ensure all the clearing activities and operation is confined with the boundaries and no damage is caused to any property or vegetation outside the boundary.
Where appropriate, the engineer shall arrange surveys to be carried out, in conjunction with the contractor and owner of the land, of all the condition of all properties, lands and crops which may be affected by the works. The sites includes the "work areas" and "borrows areas", if any, indicated on the drawings and includes such other areas of roads, footpaths and lands which, in the opinion of the engineer, are necessary for the execution of the works. The contractors shall confine his constructional operations within the site, or such other areas of land as may be negotiated, and shall instruct his employees not to tre-pass.
The contractor is to provide offices for the exclusive use of the Resident engineer. The location shall be determined by the contractor within the contract area and agreed by the supervising officer. Provide and maintain water, lighting and power supply and pay all the charges in connection therewith. The contractor also shall provide and maintain all necessary sheds and stores and remove the same from the site on completion of the works.
The contractor shall comply in all respects with all local road traffic regulations concerning the road site access, the warning light and guarding of the road works. The contractor shall construct and maintain diversion ways wherever the works will interfere with the existing roads, footways or other ways over which there is a public or private right of way. Before any work in or affecting the use of site access and main road is commenced, the contractor's proposal method of working shall be agreed with, and confirmed in writing to, the engineer and the highway and police authorities.
Materials and distribution
Unless specified to the contrary, all material shall be in accordance with the relevant British Standard (BS) and Code of Practices (CP). Should alternative requirement be provided by a BS and no one alternative be specified elsewhere in the contract, then before proceeding to execute the works or to order materials, the contractor shall give notice requesting further specification of such matter. The contractor shall submit list of suppliers from whom he propose to purchase the material for the execution of the work. If required by the engineer, the contractor shall submit to the engineer test certificates and samples furnished by the supplier or manufacturer of any material or article indicating compliance with the requirement of the contract. Materials shall store in the manner as to preserve their quality and condition to the standards required by the contract.
The contractor shall carried out all sub-structure works including earth work in such manner as to prevent erosion or slips, and limit working faces to safe slopes and height, and shall ensure that all surfaces have at all times sufficient gradient to enable them to shed water without causing erosion and to prevent ponding. The contractor shall provide and maintain all necessary temporary access roads and temporary drainage and shall divert and reinstate permanent drainage system. The purposed alignments and levels of temporary access roads shall be submitted to the engineer for approval prior to their construction.
All super structure works such as ground beams, flooring and roof trusses shall be constructed in accordance to the design given by the engineer. The contractor shall supply and install all open mesh and steel plate flooring and structural members necessary for the support of flooring, walkways, staircases, hand railing, ladders etc. shown in the drawing unless otherwise stated.
Before interfering with access to any property, the contractor shall provide satisfactory alternative arrangements. The contractor shall take necessary precautions to avoid causing any damage to roads, lands properties, trees and other features and during the currency of the contract, shall deal promptly with any complaints by owners or occupiers.
Mechanical and electrical services
The tenderer shall allow in his tender for providing a suitably qualified engineer with at least ten years working experience on similar installation to coordinate the civil, mechanical and electrical details and to advise the engineer of any changes. The specification covers, but is not necessary restricted to, the provision of an electrical supply, instrumentation, lighting and power for the complete works. This include construction, performances, installation and testing of electrical equipment such as electrical ducting, opening pockets, cable wiring, transformer cables, and termination etc. for both works on the site of the proposed new power supply to the building.
Overall working program
The contractor shall provide the overall working program of the construction activities and to keep updating and reviewing for time to time the progress of the works, including the financial status, the material, manpower and other related works. Where required by the contract, the contractor shall provide record progress photographs taken as and what directed by the engineer.
Health, safety and welfare of work people
The contractor shall be responsible for the safety of all persons engaged in the execution of the work and shall take such safety precautions as are generally accepted as good civil engineering practice, including the provision of first aid equipment and personal trained in its use. The contractor shall appoint a "safety officer" who is responsible for safety inspection at the construction site.