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Part 1 of the report describes the client's background and objectives leading into the project. It gives small insight into Motorway Service Area/s in UK. It vignettes Client's business and aspirations from the project and future developments. Work schedule and success criteria as per the client requirement has been highlighted. ..................rocurement issues have been indentified
Part 2 of the report helps in understanding the concept of procurement in construction and its importance in success of the project. It describes different, namely traditional, design and build, management contracting and partnering procurement systems as per the identified success criteria and objectives of client in part -1. On the principles, advantages and disadvantages of these systems, project objectives are such as Cost, Quality and time along with risk, client involvement, sustainability and relationship aspirations in the current and future project/s are evaluated.
Part 3 describes the process of selection of most suitable procurement system for the project. Further it justifies the selection of management contracting and strategic partnering systems. Identifies the parties required for the development describes their appointment as per the scope of work. It highlights application of opted procurement systems in three stages namely, pre construction, during construction and post construction.
Complexity and ..... of the project, the client intends to seek professional guidance to meet the project level objectives hence it states importance incorporating system management contracting system at the same time Strategic management, developing long term relations as Baytree intends to develop series of similar projects and phase - II of MSA in the near future. Strategic partnering would pay rich dividends and would go on increasing by every generation/project. This would create win - win situation to all the stake holders in the partnering.
(Masterman, 2002) states traditionally clients have been categorized as 'public' or 'private' further he sub categorizes them as experienced or inexperienced, primary or secondary.
Baytree is a privately owned, dynamic retail and leisure group (commercial), having built number of mid range hotels (one of which is located on MSA), a small number of multi sport clubs and some agricultural interests. The company also operates two other MSA in the UK. Which makes them relatively well experienced in such developments. It has also worked with contractors, suppliers appreciating quality of work and being comfortable working with them.
The firm is a prospector, continuously seek to exploit new technologies and market opportunities. It has moved from its survival and stability phase to development, hence its focus is on value creation than being known for cost efficient. The company intends to be more organized and professional in their upcoming and future developments. Hence for the first time acquired the services of a professional agency (PWF) to carry out market research as part of project feasibility study.
As a part of strategic planning the company intends to develop 2 further MSAs over the next 5 years and negotiations are underway with concerned land owners. It shows company plans similar developments in the future, hence experience and success of current project can have significant impacts.
The previous projects were developed using Design and Build procurement approach, though the projects delivered on schedule (cost and time) but the quality of construction was poor.
Also the developments were not exactly how Baytree (as an end user) had expected to be, as their involvement and most suggestions during the construction phase were not welcomed, few agreed changes proved to be too expensive.
Hence in the future developments the company intends to have quality product and involvement throughout the development stage.
On the positive front, during the previous developments Baytree identified few contractors, consultants, sub contractors, suppliers with whom they had suitable and comfortable working relationship. Company intends to work with similar or same type of parties in the future developments.
1.2 Motorway Services Area (MSA) in England (Highways Agency Website, England) (Agency)
In the UK Motorway Services Area (MSA), are places where drivers and co passengers can leave a motorway to refuel, rest, or have refreshments.
There are about 73 MSA operating in England out of which 21 are owned by and 52 are privately owned.
Operators of MSAs must comply with the requirements of Government policy and must seek planning consent from Local Planning Authorities (LPAs). The government also specifies the facilities that MSA must offer. (facilities which are mentioned in project brief below)
Baytree intends to develop motorway Services Area (MSA) located on M7 motorway, in an outstanding natural beauty at Salteroyd, Yorkshire.
Securing the required planning permissions, Baytree to purchase the land for the project from Special Scientific Interest (SSI). The project is divided in two phases I & II, phase I has to be opened to consumers by May 2010 in order to take advantage and benefit commercially from business generated by tourists travelling to countryside (Salteryod) in summers.
MSA to provide following facilities:
Phase - I
Facilities to be provided in MSA
Service Area - retail, restaurants and WC facilities etc.
Petrol Filling Station (PFS) with associated kiosk
Long Goods Vehicle (LGV) parking
Motorway slip roads - inbound and outbound
Pedestrian bridge access to Northbound site
New Build Budget Hotel (75 bedrooms)
Phase - II
Same facilities as Phase - I
Motorway slip roads - inbound and outbound
2.2 Work Schedule:
Phase - I
a. MSA on Northbound site acilities)
£ 16 M
b. Motorway slip roads
c. Pedestrian Bridge
d. New Budget Hotel
Phase - II
a. MSA on Southbound site (facilities)
£ 15 M
b. Motorway slip roads
Results of market survey carried out by PWF indicate that in the future consumers to be more concern to issues such as global warming, CO2 emission hence this would affect products or services they buy. Also environmentally sensitive developments and developers are likely to be benefited from such market/client orientation.
The project has various objectives, which can be classified as client objectives, project objectives, primary & secondary objectives, short term & long term objectives (Luu et al., 2003) Further identified objectives are classified in to primary and other objectives.
3.1 Primary Objective:
Being a commercial development opening of Phase - I of MSA by May 2010 is the first and most important priority. On time completion would help Baytree capitalize on tourist flocking in to enjoy beauty of Salteryod during the summer season, as earlier revenue may easily account for the substantial profits.
The division of project in two phases makes Time even more important. As phase II of project may start anytime once getting through the required formalities.
The budget of both the phases has been decided but various aspects such as time, quality, market conditions may fluctuate (increase) the budget. The budget for phase -I facilities is £ 16 M and additional £ 3 M for the new hotel. Budget for phase - II has also been decided, £ 15 M.
As any other client Baytree cost of the project is definitely a concerning factor. If good product delivered at good economic price, would be appreciated. In short Baytree looking for ''value for money''.
A major dissatisfaction of construction industry clients is the lack of quality and demanded value for money. Company has moved from survival to prospector stage and wants to known for its 'value' than cost efficient. Baytree need not opt for the cheapest solution but quality product. The solutions need to be competitive not only on price but also quality.
Baytree intends achieve high quality by using high quality materials, workmanships and contractors known for quality work. Quality not necessarily be related to internal areas of built form, incorporating landscape elements and adding value to picturesque natural surroundings of Salteryod.
The division of development in two phases, giving opportunity to variations and flexibility to improvise in the latter stage.
Though the development does not require any highly technical or complex structures, the development should be aesthetically pleasing.
Incorporate environmentally sensitive construction features such as.
Energy efficiency can be achieved through:
Through the design of the structure and fabric eg. Partially subterranean buildings, no earthwork disposal off site
Sophistication of service systems eg. Biomass boilers, solar panels, waste management system
Use of local materials and workforce.
Use of pre fabricated components to be used in order to minimize the pollution and disturbance in neighborhood
Durability of components can be a considerable issue, as recycling of any product conserves certain energy hence use long lasting materials is beneficial in broader perspective.
Use of environmentally friendly materials eg. wool, cotton, linen, flax etc while wall coverings such as vinyl, nylon etc which are oil based don't prove to be sustainable. (Pasquire, 1999)
3.2 Other Objectives:
For such a large developments in terms of size, complexity, technicality, finance capital it is important to make one responsible for various aspects or inform the company of best available solutions in the given context.
MSA at Salteryod is a big project with number of activities/jobs/stakeholders involved, hence risk/responsibility factor need to be considered while selecting the procurement approach.
Understanding the client (secondary-private), Baytree actively involved in their business ventures so can't concentrate on the development. Hence risk sharing (depending on scope of particular party involved), open book, developing long term good relations can be option. Also risk allocation can be defined in the form of contract documents.
During the design of procurement strategy some of the major types of risks need to be addressed.(Morledge et al., 2006)
Risks can be of various types:
External Risks: Economic, Legal or Political environments.
Financial Risks: Currency conversion, Funding.
Site Risks: Restricted/ Occupied, Access, Planning, Environmental Risks.
Client Risks: Lack of knowledge/ experience, Post contract changes.
Design Risks: Inefficient consultant team, poor brief, incomplete design, inadequate coordination, complex design.
Selection of inappropriate contractor/supplier: bad track record, lack of clarity, bad and inadequate selection process, lack of capability
Construction and Delivery Risks: weather, constructability, health and safety, availability of key resources.
Contingency: Unforeseen events like natural disaster, labour strikes
Free from defects after completion:
Once completed and opened for consumers there should not be any interruptions in any business activities.
Defects would ultimately add to the maintenance cost and prove burdensome in the long run.
Aesthetically pleasing appearance / Functionality:
The project needs to be well designed and have pleasing aesthetical appearance, which could be business generating factor by attracting clients. At the same time it should not affect its functionality.
The design (built form) to be subtle and not destructing the natural beauty of Salteryod.
Whole life cost:
As any user Baytree intends lower cost (maintenance) and maximum benefits of an asset over its whole life. Also it has wider economic, social and environmental impact.
Future relationship interest:
Baytree intends to develop Phase - II of Salteryod MSA project in immediate future and the management is in negotiations with other two landowners with a view of 2 further MSA and intend to develop over the coming years.
Hence working with set consultants, contractors which have delivered would certainly be a plus point, comfort level would be higher in dealing with various aspects of projects.
Health and Safety:
Health and Safety can also be major risk on the site. Zero accidents during the construction would be a major achievement. Hence insuring the site and on site personnel is equally important.
3.3 Success criteria for project:
(Walker and Rowlinson, 2008) states that procurement choices in the future will stipulate not only some form of global warming 'footprint' measure but also CO2 reduction that footprint and carbon offset strategies.
The market research report by PWF has encouraged Baytree to adopt environmentally sensitve approach, by means of non polluting construction techniques/materials, energy efficient design, resusable and renewable energy etc.
During the developmenet process, measures to be taken not to create disutbacne to the surroudning neighbourhood. Avoid/reduce sound,air and water pollution from the project.
Phase I has to be opened to consumers by May 2010 in order to take advantage and benefit commercially from business generated by tourists travelling to countryside (Salteryod) in summers. Any delay in schedule could have significant impact loss of revenues.
Achieving quality construction:
The company has moved from survival stage to .... it wants to be known for value of its current and future products than cost efficient.
3.4 Key Procurement Issues:
Acquiring necessary approvals from various authorities:
To develop large development as MSA, approvals of various authorities required to commence the work. (eg. Highway Authority, local building authority)
Once the proposal development permissions are granted it is important to get approvals from local city councils, Building authority for individual buildings and phases of construction.
Acquiring the land:
Most important for any real estate development is land, Baytree intends to purchase land from SSI at negotiated price and only after acquiring all necessary sanctions from respective authorities for the development.
For the smooth progress of a project, finance is important.
Selection of consultants, contractors and other related expertise:
Capability of contractors to complete the work successfully.
Procuring work and materials:
Procurement of materials/work for the concerned work at the right (required) stage of construction is crucial aspect to avoid any disruption in process.
The use of offsite manufacturing of required goods and transportation of pre fabricated components.
Realty market is dynamic constantly new products and technology launched in market. Baytree as a client would want incorporate such facilities at later stage of project (MSA). Hence the system should allow such interference of client.
Part - 2
Appraisal of Potential Procurement Methods:
Procurement in construction:
The procurement concept in construction has been defined in various ways. Lenard and Mohsisni (1998) define procurement as "Procurement is a strategy to satisfy client's developments and operational needs with respected to the provision of constructed facilities for a discrete life cycle."(Rowlinson and McDermott, 1999) In recent years procurement in construction has undergone considerable transformation from lowest price to best value procurement in order to address broader policy goals related to social and environmental sustainability(Oyegoke et al., 2009).
4.2 Types of Procurement Methods:
The procurement systems are the organizational structure adopted by client for the implementation and during the operation of a project. (Masterman, 2002) With consideration to project/owner objectives, success criteria and by understanding the basic principle of procurement mentioned below, potential methods are discussed further in detail.
Design & Build
Develop & Construct
Design & Manage
British Property Federation system
Following four methods have been indentified and applying the principles of mentioned methods, client objectives and success criteria/s are discussed further:
This type of procurement system is widely used in UK. Traditional approach to procuring projects involves discrete design development, tender contract award and construction delivery phases (Walker and Hampson, 2003)
Baytree can have cost assurance only if the complete design with specifications is ready before selection of contractor. If recurring changes take place the cost is certainly likely to increase.
Competitive tendering can take place on the basis of ready design and complete specifications.
High quality product can be achieved. It is generally suitable for complex and high aesthetical value project.
Serial arrangement of processes increases the time, hence it is the slowest of the procurement routes. Agreeing to this view Masterman states traditional routes tend to increase overall project time than non traditional routes (Masterman, 2002)
Opening of project by May 2012 is the foremost priority. Considering the project scope, sequential nature of system proves time consuming to meet the deadline.
As phase - II opening date is not finalized, this method could be applied to complete or some part of the project.
As contracts are awarded to individual firms, contract agreements are individually established with the client. Roles and scope of parties is well defined, hence clients interests are safe guarded.
The client involvement remains high but at the same time contracts and dealing with number of firms may prove cumbersome.
Considering the client / project objectives and issues, traditional method seems highly unlikely to suit the development.
Design and build system (D & B):
As (Rowlinson and McDermott, 1999) state the principle behind D & B and its variations is that the client appoints one organization for the whole of design and construction process. And other principle is overlap of design and construction process.
Involvement of contractor in the project at an early stage (tendering) helps but, it may create complex situation to evaluate tenders as different bids and different design solutions for the same MSA project. To be clear and fair to the bidders, the client needs (advisable) to prepare conceptual design and estimate (would require architect and quantity surveyor).
Figure: Pure Design and Build system
Baytree can have cost certainty of project at the tendering stage, which is positive point considering the size and complexity of project.
Also, if given assurance (fairness) on awarding tender use of D & B opens up competition to more than competition on price alone (Rowlinson and McDermott, 1999).
Project is expected to be delivered on allotted contract unless client changes requirements, design, unforeseen / uncontrollable events.
As designing & constructing done by one firm, the contractor may try to cut cost by using lower grades of materials and workmanship hence the quality of end product may suffer.
As Masterman suggests D & B suitable for simple uncomplicated projects and aesthetics and quality may not be highest quality (Masterman, 2002) hence it can be used for relatively straight forward works like building slip roads, parking lots.
Single contractor may not have experience and expertise in all required fields, hence the contractor may not design such elements which would affect the innovation and quality or may need to hire external agency to carry out work. This may also have significant impact on variety of choices or options which client may miss out on.
D & B is suitable for repetitive work/significant prefabrication. Considering the strategic portfolio management of Baytree, with series of similar developments coming up in near future this method could be beneficial.
D & B offers an integration of designing and construction, the two basic functions of any construction project, resulting in improved communication and co ordination(Masterman, 2002). Even study carried out Dulaimi and Dalziel (1994) of project managers consolidates the view (Walker and Rowlinson, 2008)
The overlap between design and construction could save on valuable time and completion of project achievable in given set of time.
The single point responsibility is offered to client by the contractor. This also can be considered a major risk.
In such a large project, single contractor should have capability to complete any task that arises which involves many specialized jobs.
The contractor may not agree or charge heavy for any changes that client proposes after passing the tender allotting stage, while Baytree (end user) would want to keep upgrading, to have value for money.
E. Client involvement:
Client involvement is minimised in order to discourage changes which would slow down the pace of construction.
4.5 Management Contracting system:
The management contracting is generic in terms of application areas and broader organizational issues such as taking the overall responsibility for a temporary organization (Lindahl and Ryd, 2007). JCT (1987) describes a management contract as a binding agreement between an employer and a building contractor, in a situation where the building contractor plans, co-ordinates, organises, supervises and generally manages and secures the construction of the building project (Oyegoke et al., 2009)
Figure: Management Contracting
Figure : Construction Management
Fast tracking of project does not allow finalized design and quantities of MSA hence determination of final cost at an early stage is not possible (keeping in mind estimates for both the phases being decided).
Understanding the clients experience and focus on creating value client may not be too keen on this aspect.
Hiring services of management contracting consultant/firm may lead to extra costs initially but helps in reducing overall cost of project.
Also contracts awarded to different contractors to carry out various works (slip roads, parking lots, pedestrian bridge etc) unlike in D & B may prove to be expensive.
The early involvement/advice of manager could help on buildability, programme planning, materials etc. Most essential for Baytree, emphasis is on value management could be achieved.
There is scope/flexibility for change and last minute decisions to improvise quality of the product.
At pre construction stage competitive tendering and professional scrutiny allotting tender may help maintain quality standards but at the construction stage quality of construction is difficult to manage.
A professional management to help in strong organization and in depth planning of whole process design components (structures) and stages of construction which may improve efficiency consequently reduce time.
Unlike D & B, no single organization owns the responsibility for the project. Number of various contractors, sub contractors, consultant involvement may lead to complicated contractual relations and assignment of liability.
In adversarial situation there is strong possibility of transferring responsibility/s
As an end user Baytree intends to have final product to be as per their requirements. This system encourages deep client involvement at most stages of the process.
Baytree would be very concerned with the project opening date, hence would be rational with the changes (in terms of design, finishes etc) to avoid unwanted delays. But importantly they keep themselves involved in the process.
According to (Bennett and Jayes, 1995) partnering defined as:
"Partnering is a management approach used by two or more organisations to achieve specific business objectives by maximising the effectiveness of each participant's resources. It requires that the parties work together in an open and trusting relationship based on mutual objectives, an agreed method of problem resolution and an active search for continuous measurable improvements."
Fundamental components of ;partnering are: common vision, shared interest, co-operation, teamwork and win-win situation
Partnering can be categorized in two parts:
Project partnering (one project specific)
Strategic partnering (number/series of projects)
Benefits of strategic partnering go on increasing by every generation. (Bennett and Jayes, 1995)
Table : Comparison between traditional and 1st and 2nd Generation Partnering: Bennett and Jayes (1998)
First generation partnering
Second generation partnering
Sharing of profits and gains may encourage involved parties to work together and driving down of real costs.
Sharing of resources may help reduce the overall construction cost.
Resource sharing attitude does help in maximizing, productivity and quality of work.
Awarding series of contracts (forming strategic partnering) may bring in complacency which may increase the chances of hampering quality.
To gain maximum benefits it is essential to extend it to supply chain (2004)
Mutual co operation increases co ordination and communication which is essential for client. Resource sharing may help in reducing the cost.
The basic principles of partnering are trust, mutual objectives and risk sharing. Deliver win - win situation for all, reduces the risk factor considerably.
Reduced competition, dealing with only 3-4 contractors in 1st stage and with only one at second stage of tendering, contractor may exploit the situation.
One risk of partnering is that the absence of competitive and commercial tension results in the department not achieving a fair price.
The client involvement remains high, his suggestions are welcomed and incorporated in the process.
Benefits of Partnering:
Cost, quality and time the main objectives can be achieved successfully. Maximum benefits can be achieved by having long term (strategic) partnerships.
It guarantees work to the contractor and lower project cost to the client. Creating win-win situation to all the parties involved.
From Baytree's perspective, upcoming similar types of projects can have scope for continuous improvement. Cost, quality and time can be improved considerably.
Concepts such as profit sharing may be motivating factors while open book system maintain clean records and avoid discrepancies.
Benefits to Client:
Due to assurance of workload, job security may create complacency in contractors and client may not achieve 100% results.
Partnering may not give competitive edge in terms of cost and technology as competitive tendering is eliminated.
Part - 3
Procurement Strategy Selection:
5.1 Selection Process:
The use of appropriate procurement method can be decisive factor on overall success of the project. (Bennett and Grice, 1990) Once the client identifies its objectives and success criteria use of Bennett and Grice matrix can help identify suitable procurement methods for the development. (appendix)
Baytree has time, cost and quality as main objectives at the same time aspire to use sustainable methods of construction.
5.2 Justification of selection:
Baytree is a successful and dynamic retail group, as a company policy it has decided to have professional approach in ongoing and future projects. Despite having developed similar kinds of projects the company doesn't have time and resources to get involved in a construction project. Hence to guide them through the complex and complicated process, involving number parties and contracts, giving responsibility for smooth functioning is needed. Management contracting can take up the responsibility and coordinate smooth functioning of project. (*It should be noted that competitive tendering to take place only where Partnering system is not applicable/possible in the project)
At the same time phase - II and similar projects coming up in the near future the company intends to have lean construction process. Understand the working and ... of parties involved, similarly the other way round which would develop high compatibility, comfortable working. This could be achieved through strategic partnering.
5.3 Application of Selected Procurement Strategy:
A. Pre construction stage:
a. Selection of Management contractor:
Selection of management contractor is the first priority to programme the overall project. Hence while selecting the MC his relevant experience, track record, his support staff, ability, work load should be considered.
b. Preparing Brief (role of Management Contractor):
Understanding the client's aims and objectives for the project. Preparing the project brief, developing the conceptual drawings and estimates with the help of clients architect and quantity surveyor respectively. This would help convey project scope to interested parties.
Advising on required/new approvals, rules, regulation regarding the project. Eg. the disposal/supply of material is subject to greater commercial incentive, or in Land Fill Tax (UK), disincentive.
Identification of sensitive areas surrounding the site and measures required to protect them.
It is important to decide the ratio or conditions about pain and gain sharing principle as it can be one of the biggest criteria for forming strategic alliances.
Breaking down the project in to various sub phases according to their functions eg. inbound and outbound access roads, parking lots, restaurants, pedestrian bridge, hotel, petrol filling station etc.
On the basis of urgency, complexity, cost, size, use of materials, labour requirement, time requirement of mentioned functions; preparing work schedule and prioritising the work.
Establishing access, clearing the land is the most important to carry out any development.
Building parking lots, petrol filling station, restaurants would be second in the priority list as its development would start generating money.
As the schedule for the Southbound carriageway is not finalized, fast track construction of pedestrian bridge may not be as crucial as other elements. (easrly construction may be important in case steel prices are likely to go up in the future, this is where long term planning and expertise of Management contractor play crucial role)
d. Identify of parties:
Prepare report on required materials, contractors, suppliers in the neighbourhood, in addition to short listed parties by Baytree from the previous projects.
For development of MSA at Salteryod, following have been identified:
PWF (feasibility study)
Specialist dealing with environmental equipments/fixtures
d. Selection of contractors/suppliers:
The ability of company to do the job rather than winning the job.
Experience of the firm in related field, its present capability, professional resources and support facilities, work load, its approach towards environment and sustainability, health and safety record.
e. Developing Partnerships:
Considering phase - II and 2 MSA projects in the near future, developing strategic relations with concerned parties. Eg. common/repetitive works such as excavation, sub structure, super structure, parking lots etc. Pasquire (1999)
Partnerships to be extended beyond main contractor, to the sub contractor and supply chain. eg. Specialist who fix solar panels, waste management firms, sustainable urban drainage system firm partnering with such firms would be helpful as every project is to be sustainably developed.
On the other hand keeping in mind local suppliers, contractors who specifically operate in Salteryod region would not have any influence in other parts of the country, hence developing partnership with them would be futile.
f. Awarding Contracts:
Ofori and Chan (1999) argue that contractual agreements, between clients and contractors on environmental issues, could help to achieve sustainable construction (Fergusson and Langford, 2006)
Although client wants to work with parties involved in their projects, there are few works for which contractors (concerned parties) need to be commissioned. The works for which past contractors are not carried forward, those works are to be used competitive two stage tendering.
Once the contracts are awarded involving them in the design process to help speed up the construction process.
Repetitive contracts to be awarded by nature of work. (Works break up)
Slip roads / parking
Specialist jobs (fitting of solar panel, biomass plant, water recycling system fitting, sustainable water drainage system)
Role of management contractor
Procuring required designs (arch. drawings), materials, equipments, labour and various site requirements at present to avoid any delays in construction, basically coordinating project level activities. At the same time planning for the future.
Getting the necessary approvals from the concerned departments for various sub stages of construction. Intimating client about any change of regulations from concerned authority/s.eg, UK energy incentives and Land fill tax benefits
Informing Baytree about latest trends and products in market and incorporating their suggestions and changes.
Developing project level partnerships. Eg. local contractor, supplier, transporter
Keeping check on schedule of work and cost overruns. Prioritising work, such as establishing access to site.
Open book system between the partnerships developed in pre construction and construction stage helps in maintaining records and regular audits by contract manager drastically reduces chances of discrepancies and builds trust which is very essential for success of partnering.
Establishing environmental sustainable day to day activities on site. Accurate project planning to have minimum possible time for contractor on site, which can substantially reduce the project cost
C. Post Construction:
Most problematic situation arises at the time of maintenance time, as the strategic partnering binds the client and other party by invisible/understood contract between finish and commencing of new project. Hence approaching the party for maintenance work would be relatively easier and cheaper.
There can also be legally binding contract up to 5 years, which would safeguard client's interests.
As the project likely to finish on time and achieve all the other objectives. The terms and conditions laid down for pain and gain sharing, at the pre construction stage are to be delivered. This may be additional bonus all the stakeholders involved in partnering.
According to Office of Government Commerce (2007), partnering offers good potential to enhance the value for money of construction. The effective way for a successful project delivery through Partnering lies in the fact that all the parties involved in the project are committed to focus and achieve the goal and make the alliance work.
Saving 30% in parteneship helps achieving three main objectives successfully
Baytree is already a successful and dynamic group having high ambitions of expanding their business and be market leaders in health and leisure sector. Hence their future plans need to be considered while development of MSA at Salteryod.
The approach and success of this project would be a stepping stone and mark a new beginning for Baytree. It would play decisive role in shaping of the future plans.
As a secondary client, getting involved in tedious construction process also may not deliver high quality product. Hence involving professional (management contractor) to coordinate and plan the development would be advisable.
Baytree coming up with series of such developments in the near future, means repetitive type of work with almost similar requirements suggests long term relations (strategic partnering) with stakeholders forming a team and would pay rich dividends with every future project. This would create win - win situation, a most desirable situation for all the stakeholders.
Successful implementation of these two systems would help achieve objectives such as cost, quality and time along with sustainable development which Baytree aspires to achieve.
At any stage during the development process the client should not try to undermine the principle of partnering. The client should not be tempted to go back to competitive tendering process being part of partnering team. Similarly other stakeholders in the team should keep upgrading their abilities with changing environments and maintain the competitive edge.
Successful completion of this project with this system, would definitely increase in understanding, cooperation and trust amongst the stakeholders. Hence further projects may be carried out purely by partnering system.