Gamestown is a Unitary Authority which aspires to achieve city status in North West of England. Authority has proposed a community sports hub facility and new state of art development as part of a larger regeneration scheme. The characteristics of client of given scenario are considered bellow. Its particularity affects the choice of most appropriate method of procurement. (Masterman 2002)
Unitary Authority is a type of local authority that has a single tier and is responsible for all local government. So the project will be a publically funded. So it will be needed to ensure that the expenditure of the taxpayer's money is safeguarded. (Masterman 2002) In other words public accountability should be ensured.
The client may have some previous experience in dealing with construction industry to develop similar but small scale projects in order to achieve city status. So client may have a fair bit of knowledge and understanding of construction industry. Expertise knowledge in management and control of authority can be used in project by continuously involving in during the life of project.
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The purpose of the proposed project is sport, leisure, health, education and lifelong learning to increase the health and well-being of the local community. So clearly there is no commercial aspect of the development. The premises will be used to undertake community activities of the region. The expenditure on construction represents a small proportion of their annual turnover. (Masterman 2002)
The basis of procurement system selection is the identification of the factors which influence the procurement selection process. Other than the client characteristics it depends largely on identification of selection criteria to reflect clients' and project objectives. (Masterman 2004)
Client for the given scenario is the Unitary Authority of Gamestown. It is a type of local authority that has a single tier and is responsible for all local government.
Any type of a client has three basic criteria on his agenda, which are time, cost, and quality. Client wants project to be high quality, at the lowest cost and finished in the shortest time period. But this is not always possible and a middle ground has to be sought, based on the clients prioritises. Hence prior to decision on any procurement selection, it is important to identify the possible client requirements which affect the particular procurement selection. (Ashworth 1996)
Capital budget to cover the development cost is estimated to be 35 million pounds inclusive of all external works. It will be funded by public funds and profit will not be expected from the development. Completion of the project within estimated cost will be a prime concern, because it is a publically funded project.
Increasing the likelihood of low price will be a good option for the client than searching for extra funding. To achieve this, price competition could be incorporated in the procurement system which is to be selected. Competition on price is an important factor that should always be seen among the other criteria for competition (Turner, 1997).
Choice of procurement system to be largely based on desired allocation of risk between different groups or team. Allocation of risk between the client and the contractor can have a fundamental effect on choice of procurement system. (Masterman 2002) The risk of finance for a client can be identified as an important risk factor especially in relation to the cost requirements of the client.
Completion date of the project is to be critical due to conditions in place in relation to the funding which has been acquired for the project. Planning and designing time, tendering and evaluation time & construction time are the main three time periods which has a significant effect on the duration of the project.
The availability of time for planning and designing is an important factor. Because planning and designing process can have a significant effect on the total outcome of the project. Choice of the procurement system is influenced by the availability of time for planning and designing works, which the client likes to allow. (Ashworth 1996) In given scenario project should be constructed to the highest aesthetic standards. So considerable period of time should be allocated to planning process to design a high prolific facility.
Always on Time
Marked to Standard
The tendering process is for the selection of contractor for a particular project. The time taken for tendering process is different from each project and the evaluation process also consumes the considerable time from the total process. The facility in given scenario needs to be in high quality standard, so workmanship will be important. So time allocated to select the proper contractor should not be curtailed. According to required tendering option procurement system should be selected.
Total construction time is a majorly consequence of design. If design is less complex less time and fewer resources will be used for construction. If contractor is on site for long period of time costs for the client will be high. So time that contractor is on site should be minimized. (Ashworth 1996) Early start of the project can be considered to finish the project before a certain date. Also the speed of construction can be increased in order to meet the deadlines. Use of an appropriate procurement method will be crucial to adopt above concepts. In the given scenario combining design and construction will be an excellent option to consider in order achieving the deadline of the project.
Client may need to add new requirements for his project which comes under extra work and variation. The procurement system should facilitate the incorporation of those changes easily in a quick time to the project either it is design, tendering or construction stage. This will be also important for the given project. Authority may emerge with new requirements on the process and contractors should be able to respond to them as soon as possible.
Quality is a difficult factor to measure because standards may vary subjectively. Quality of the project is based on the average costs resulting from additional materials, workmanship and design concepts (Ashworth 1996). Qualitative standards are expected for the given scenario.
Design innovation and reliability is a major section in understanding quality of a project. The architect, as the owner's representative, is responsible in design innovation and reliability and construction management. (Ashworth 1996) In the given scenario state of the art development require a good design innovation and reliability. So a direct relationship should be given with the architect with the client.
Various procurement paths give different relationship and patterns of responsibility to the participants. Clients should consider which path gives them the most acceptable pattern. The one way of allocation of responsibility is design team and contractor are separately and directly responsible to the client, but responsibility for the whole project is divided between them. Other way that responsibility can be allocated to a contractor for the whole project. (Ashworth 1996) Either method can be used in the scenario.
Accountability of the project is important in this scenario because project is funded by public funds. It is necessary to justify why a particular course of action was taken. In essence it does not simply have to do the right things, but having to explain why a particular choice was made in preference to others that were available. (Asworth 1996)
Project cost and funding method
Degree of flexibility
Payment Modality of the project
Appraisal of potential procurement methods
"A procurement system is the organizational structure adopted by the client for the implementation, and at times eventual operation, of a project."(Masterman 2004) Correct choice of the suitable procurement system will lead to project success.
This part of the report is used to describe the different procurement methods and suitability to given scenario.
In this method client will develop a design with the help of consultants and client will select a contractor to do the construction, and consultants will monitor the construction on behalf of client. The main feature of this method is the separation of design and construction. This has caused a sequential of activities to be followed by each other. This system is one of the most common methods of procuring a construction project.
When considering the scenario this will not be an ideal procurement solution to meet client and project objectives. The sequential nature of this method will require long project duration period, but in the given scenario client needs to meet the strict time target in short time period.
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But on the hand of cost of the project it will be certain in advance. So the authority can be certain about the funding required for the project. Also the client will have full control over the design quality. So the aesthetic value of the project can be ensured. But buildability of the design may questioned because contractor will not be involved in development of design.
Full competition over the contractors to obtain the bid will make things more transparent and this will be an important point for the authority which uses public funds.
Other than above common pros and cons fallowing issues may occur. Fragmented nature of process may lead to poor communication between parties. Also if design is not completed before construction client may be vulnerable to claims. Proper measures should be taken to avoid above problems.
Design and Build
In this method design and construction of the project is integrated. Contractor will be responsible for design and construction of the project on behalf of the client. Contractor will act as the single point of contact to client. Contractors will be given performance specification which would be used by the contractors who bid.
With this system construction can be commenced with limited design information. This will allow time savings in project duration rather than traditional method. As like in the traditional method cost is certain in advance. But in this method time also can be certain in advance. Because contractor knows his capability and he can assure of time taken to complete his own design. This will suite requirement of meeting strict time target of the given scenario.
Even though contractors experience can be incorporated in this system, design may suffer due to less involvement of client in the design process. So aesthetic appearance of the building may not meet the requirement needed.
Since the authority may have significant experience in construction project it is not required to transfer the whole responsibility to contractor. Instead authority should try to use past experience in achieving the project success.
In Management contracting client employs a management contractor to administer the whole construction process and work packages are given to separate work contractors. Responsibility for design and production are partially integrated. The main characteristic of management contracting is work package contractors will contract with the management contractor.
Several work packages can be executed individually at the same time by different work contractors, reducing the project duration significantly. So this method can be used for projects of complex nature which has sequential work critical deadlines. The given scenario meets most of these requirements. So this method could be a good option for the project.
Client will be able to maintain the aesthetic value of the project with the help of the consultants. So client of the given project can maintain proper aesthetic value of the project.
As like in design build procurement construction can be commenced with limited details of design information. But in this system cost relatively uncertain in advance. Relating to the scenario this could be disadvantage because authority cannot be uncertain about the amount of funds required for the project.
There will be no direct relationship between client and the trade contractors who actually carry out the work. So there is less insensitive of work contractors actively involved in value added construction techniques. In relation to scenario authority will miss out the opportunities to curtailing client expenses without compromising quality of work.
This is much similar to the management contracting procurement method. In this method client employ a construction manager to administrate and coordinate construction work. But client will have a direct contract with the work package contractors while construction manager will not have any legal contract with the work contractors.
The direct contract with authority and trade contractors will enable to explore methods reducing costs while maintaining the same quality to give best value for client's money.
This is much suitable for technically simpler projects where speed is important. But the client should have enough experience on construction projects. The authority of the scenario should have enough experience on construction projects. So it will not be an issue with the authority. But the project is somewhat complex than an ordinary project. So concerns will be arise on that section.