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The project delivery process shall ensure that the construction project is delivered to the client on time, within cost and up to the agreed quality and sustainability standards.
With a view of achieving greater efficiencies, City Corp wishes to innovate by adopting the Integrated Project Delivery process for this refurbishment project. The Office of Government Commerce estimates that a saving of up to 2-10% in the cost of construction may be achieved for any single project employing integrated supply team. (OGC,2007)
The main advantages of the Integrated Project Delivery process are:
Key stakeholders (eg Contractors) are involved early in the project lifetime;
Decision making is improved by the influx of knowledge and expertise of key stakeholders;
Project goals are developed, agreed upon and respected by all participants;
Teamwork leading to improved communication and no-blame culture; and
Increased effort during planning results in increased efficiency and savings during execution.
Fig 5.1 The project delivery process- Source PD 6079-4:2006
7.1 Project Initiation
The overarching responsibilities and roles of City Corp in the project is responsibility for:
making the decision to invest in the project; and
approval of the project and thereafter providing a sustained commitment to the project.
The General Manager of City Corp is hereby appointed as the Project Sponsor. The Project Sponsor shall act as a single focal point for the management of the project. The project sponsor shall:
oversees Business Case
ensure that the project brief clearly reflects the objectives of City Corp
manage the project budget,
approve major changes to the project
ensure that the appropriate in-house structure is in place to inform the project
apply to the local authorities and obtain the required development and building permit
The project sponsor shall appoint an external consultant project manager, who shall act as the principal advisor and as interface between the different consultants, the design team and main contractor and City Corp.
The main duties of the Project Manager shall be to:
define the scope of work;
prepare a comprehensive project brief which shall include firm information regarding costs, quality and performance specifications and timescale;
be responsible for the project delivery;
assist with the appointment of the different consultants, design team and the main contractor;
direct and provide the appropriate information to the consultants, design team and main contractor;
manage all the other key actions required to deliver the project, from advising on forms of contract, procurement options, managing risk, monitoring and reporting on the works as they proceed on site.
The first interaction between the project sponsor and the project manager shall be the briefing process during which the project sponsor will be prompted to make explicit the aims and objectives of City Corp This crucial stage sees the development of the construction project brief which captures the client's needs, wants, values, quality and performance standards and sustainability criteria.
The above information will be analysed in view of establishing whether the City Corp has a real business case. Once the business case has been developed, the working group shall be enlarged to include an architect, a cost consultant, a value and risk management consultant to analyse the business case:
To identify stakeholders for the project ( both internal and external)
Establish roles and responsibilities of each stakeholder
To carry out value management to identify business needs
To assess the affordability and achievability of business need
Carry out high level risk analysis and keep risk register
To set a budget, completion date and quality and performance standards for the project
identify constraints and propose project alternatives
The initiation phase is the starting point of the project and it is critical for all stakeholders of the project to reach agreement on its purpose and objectives and come up with the project brief, a document which explains purpose and need for refurbishing the building. The project brief shall be agreed and formally signed by the project sponsor , the project manager and the consultants.
A feasibility study shall be carried out as a project in its own right. The feasibility project team shall comprise of the project manager, a civil engineer, a structural engineer, a facilities engineer, an architect, a cost consultant, a value and risk management consultant, the main contractor and an interior designer.
The feasibility process shall identify and evaluate relative strengths and weaknesses of the options available to meet the project objectives and establish the following:
Building lifetime expectancy
Building structural condition reports
Identification of maintenance
Refurbishment and renovation scope requirements
Definition of project-specific quality and cost variables
Project analysis from a technical and utilisation-specific perspective
Performance and yield forecasts
Cost estimates and scheduling
Health and safety, security and fire risk
Quality and sustainability standards
Following the findings of the feasibility study, the project manager shall improve the project brief from which the project team can work up the design of the project.
Feasibility study report
The preferred option
Project outline schedule
Improved project brief
The design work will be contracted out to Designtech Ltd, a design firm having an entire design team, comprising of architects, civil and structural engineers, mechanical, electrical and plumbing and fire- protection consultants and a quantity surveyor. In addition Designtech Ltd intends to include in the design team acoustical consultant, cost consultant and interior designers for the refurbishment work.
Designtech Ltd shall be responsible to interpret and develop the project brief shall define the project's requirements and develop a design which meets all the project requirements, including budget and timescale., prepare room data sheets, obtain project sponsor's sign off of the design at appropriate stages, advise on materials selection, provide space planning services, advise on furniture/equipment selection, prepare construction drawings and specifications.
At handover Designtech Ltd shall assist in ensuring that the works are complete and that the project's needs have been met, and shall continue its involvement through the Defects Liability period, and the final resolution of defects.
7.3.1 Outline Design
The outline design process shall come up, one month, as from the date the contract is allocated, with a design concept, a preliminary schedule and a cost budget against the project brief developed during the feasibility stage. The output from the outline design process should allow an application to be submitted to the local authorities for the development and building permits.
7.3.2 Schematic Design
The schematic design gives graphic shape to the owner's program. It is an overall design concept that illustrates the key ideas of the design solution. It is imperative that the project team understand the importance of this phase, during which the core group develops project goals and measurement criteria, to serve as a road map for successful project outcomes.
A rough estimate of the project's probable cost shall be produced at this stage. Cost planning and scheduling shall be taken to a stage that gives a very high confidence that cost and time projections will be achieved to allow the setting of firm budgets for the project
The schematic design process shall therefore aim at developing the outline design further such that the scope, budget and schedule of the project can be fully developed and agreed. Enlarged scale drawings and detailed elevations and plans shall be provided with necessary detail to prepare clear and coordinated description of all aspects of the project.
Designtech Ltd shall communicate the design proposals to the project manager through various types of drawings-plans, elevations, sections, freehand sketches, and three-dimensional isometric graphics for approval before proceeding any further
If available a three-dimensional scale model of the entire building and a Computer-generated walk-through simulation shall be made available to the project sponsor.
Enlarged scale drawings and detailed elevations and plans
7.3.3 Detailed Design
The detailed design process is the stage where detailed working drawings and specifications required by the main building contractors and sub contractors to renovate and refurbish the building is prepared.
Designtech Ltd and the consultants shall work in close and intensive collaboration to develop the required documentation which consists of the construction drawings and specifications. These two components of the construction documents complement each other and shall generally deal with different aspects of the project.
The construction drawings for the project shall consist of
architectural construction drawings;
structural design drawings;
M & E construction drawings;
Interior design drawings.
The Construction drawings, which are dimensioned drawings shall consist of floor plans, elevations, sections, and various large-scale details and shall indicate the layouts, dimensions, type of materials, details of assembling the components, colours and textures, and so on. Construction drawings shall be used by the contractors to prepare a detailed cost estimate of the project at the time of bidding from sub contractors.
The construction contracts between City Corp and the main contractor shall include a clause which shall require the main contractor to carefully study and compare the construction drawings and the specifications before starting any portion of the project and to report any inconsistencies promptly to Designtech Ltd for necessary improvement actions.
architectural construction drawings and specifications;
structural design drawings and specifications;
M & E construction drawings and specifications;
Interior design drawings and specifications.
7.4 Selection of Main Contractor
The success or failure of a project rests on the skills and experience of the main contractor who can complete a project on time and under budget, saving time and money. But the main contractor can also be responsible for long delays and cost and schedule over-runs. To achieve the project objectives as effectively and efficiently as possible, it is critical for City Corp to carefully select a main contractor. Four major project delivery methods have been analysed in view of choosing the most appropriate project delivery method for this refurbishment project.
Traditional or Design-Bid-Build
The traditional design-bid-build delivery method is one of the most commonly used delivery methods but it is not very collaborative and leads to designers, contractors and subcontractors all working against each other to maximize their profit. The architect receives different sets of drawings that have not been completely coordinated with each other. This prevents design firms from working together and creating one, cohesive design for the building. At times, the different parties have only their interest in mind and are unwilling to help each other because they are worried about liability and risk.
The main disadvantage to the design build contract is that the client has little control over the project. The main contractor is responsible for both design and construction. Changes made by the client during design can be expensive, because they affect the whole of the Design-Build contract, rather than just the design team costs. This type of contract shifts most of the risk to the contractor therefore tendering is more expensive.
The client appoints designers and a contractor separately and pays the contractor a fee for managing the construction works. This approach often means that design and the start on site overlap, with the design and tender packages becoming available 'just-in-time' to suit the construction programme.
There is less cost certainty at the outset, because construction tends to start ahead of completion of all design stages and at a point when many of the work packages have yet to be tendered. This often means adjustments are made to the design and specification of works packages later in the programme to keep the project within budget.
The Integrated Project Delivery method
In an Integrated Project Delivery method, the client, the architect, and the main construction contractor all sign one contract. This contract ensures that all parties share the risks and rewards of the project.
Having one contract allows everyone to work together as a team and make decisions on what is best for the project rather than what is best for their company.
Communication is one of the largest contributing factors to the success of a project delivered by an integrated delivery method. Collaboration is the foundation for IPD. As a result, it can only be successful if the participants share and apply common goals.
With IPD, more decisions and changes are made in the beginning of the process so when it is time to start building the project, the design is practically complete with little need to make changes.
The cost benefits of an IPD delivery method does not necessarily mean that the owner will end up paying less for the building. The cost savings incurred by using an IPD delivery method can be used to deliver a higher quality building to the owner.
Bringing everyone on earlier in the project allows the team to come up with a more accurate cost model early on and therefore make more effective decisions
All key players, the Project Sponsor, the Project Manager, Architect, main-contractors and possibly sub-contractors, are brought on at the very beginning of the project. Bringing everyone on early allows everyone to have input into the design at an early change.
Integrated Project Delivery is an innovative solution, uniquely distinguished by highly effective collaboration among the client, the architect, and the main constructor, starting at early design and continuing through to project handover. Having everyone work as a team and always think of what is best for the project is a great benefit of IPD. Furthermore the indoor workroom environment pertaining to ambient temperature, light, noise, air quality and ergonomics is regulated by The Occupational Safety and Health Act- 1984. Therefore City Corp wishes to maintain complete control over the project to ensure that the provisions of the OSH Act are complied with.
After discussion with the project manager and the consultants, the project sponsor has decided to allocate the refurbishment contract to a main-contractor who adopts the Integrated project delivery method. The main contractor will be appointed early to ensure full participation at the initiation stage. Where the main contractor subcontracts a part of the construction work, the key function of the main contractor shall be the overall management of construction. This includes coordinating the work of all subcontractors, ensuring that the work done by them is completed in accordance with the contract documents, and ensuring the safety of all workers on the site.
The mobilization process shall involve preparation of the construction site to ensure that work can start in the best possible conditions and the initial mobilization of resources, i.e. plant, material and labour to carry out the refurbishment work. Mobilization shall also involve arranging the logistics of getting the resources to the site, setting up the site and setting up all associated support infrastructure. It might be necessary to place a contract for advance or preparatory work, e.g. soil investigation or decontamination, before the main mobilization process can begin.
Mobilization is generally the responsibility of the main-contractor but as it is IDP management system, all parties including the project manager and the consultants shall be involved. Responsibilities for making the necessary arrangements shall be set, and individual plans should be prepared. The plans shall be integrated to ensure that resources arrive as and when and where required. The project management control processes shall be applied to each of the mobilization sub-processes.
The construction work shall begin immediately after the mobilization stage. City Corp's project team comprising of a project manager, the architect, a cost consultant, a Civil Engineer and a value and risk management consultant shall ensure high level scrutiny regarding construction contract administration
Before the start of the construction phase the project manager shall make arrangements for pre-start meeting and during the construction process he shall:
hold regular site meetings to monitor the progress of the works;
monitoring the performance of the Contractor
ensure that project is within budget, schedule and quality standards;
Report progress to project sponsor;
Problems are anticipated and resolved; and
Risks are properly identified and controlled
The main contractor shall have the major responsibility in planning and execution the works an he shall have his own inspection process to ensure that the work of all sub-contractors is progressing as indicated in the contract documents and that the work meets the standards of quality and workmanship.
Shop drawings generated by sub-contractors shall be submitted to the main contractor, who shall review and mark them "approved" and then submits them to the architect and structural consultant for review and approval.
Throughout the course of construction, the project manager, architect, and contractor meet weekly on site to report on the construction track submittal status, budget, and schedule and to resolve field conflicts and drawing discrepancies.
The CDM safety coordinator shall ensure that the main contractor's and sub-contractors' health & safety plans are in place and shall ensure that they employ a safety and health officer, if required by legislation.
Contractor rolling schedules
A&E site observations
Letter of substantial completion
Signed-off permits (final inspections)
The commissioning process shall involve the commissioning, testing and approving of all the electrical, mechanical, and control systems of the project. The output from the commissioning process shall be the electrical, mechanical and control systems operating to specification and all necessary testing and approval documentation in place.
The specific deliverables from the commissioning process shall be defined as an output from the detailed design process and shall be set out in appropriate specifications and in the construction contract.
The commissioning process shall be carefully scheduled and the schedules shall be carefully integrated with the construction schedule.
Adequate time shall be allowed for the commissioning process. The time allowance shall be reviewed regularly, and especially at control points.
The main contractor shall agree the detailed commissioning processes with those members of the project team responsible for specifying the commissioning requirements. As appropriate, the main contractor, the architect, the interior designer shall be responsible to oversee the commissioning process on behalf of City Corp.
When the Construction works are nearing their end and handover of the project to the Client is imminent, the following stages will be progressed.
The contractor will prepare a testing and commissioning method statement and a detailed commissioning programme which will indicate when each test will occur allowing the client to attend.
Completed commissioning report
The handover process shall involve the transfer of the refurbishment project from the project manager to the project sponsor. The output of the handover process shall be the refurbished building satisfactorily transferred to the project sponsor with all defects satisfactorily cleared. The handover process shall be fully discussed, agreed and documented between the project manager and the project sponsor. The handover process shall include the handover of all necessary operating and maintenance documentation and schedules.
Adequate opportunity shall be provided for the project sponsor to become familiar with the facility, and adequate training should be provided. The requirement for familiarization and training shall be identified as part of the detailed design process and shall be included, as necessary, in the construction contracts.
The handover process shall allow for the joint inspection of the completed facility by representatives of the project sponsor and the project manager. Any omissions or defects shall be agreed and recorded.
A schedule for rectifying any defects shall be agreed and documented between the project sponsor and the project manager. Where a defect is the responsibility of a main contractor, the main contractor shall be notified using the contract administration procedures set out in the construction contract, and the contractor shall be then responsible for remedying the defect in accordance with that contract.
The project manager shall ensure that the following are completed and undertaken;
the Facilities and Maintenance departments are informed about the completion and handover date of the project
training is arranged regarding the operation of mechanical and electrical systems.
training or briefings are arranged for the cleaning staff on any risks they should be aware of or methods of cleaning new materials e.g. floor finishes.
the operation and & maintenance manuals and Health & Safety file are made available
Where defects are outstanding at completion the architect shall prepare a snagging list.
The defects shall be prioritised as immediate ( within 24 hours), urgent (within 2 days),
within one week and within one month. The architect shall agree on a programme of work with the contractor to clear the defect.
Certificate(s) of occupancy