Procurement Routes in Construction

Procurement Routes in ConstructionThe main aspire of this report is to evaluate key procural issues that the knob has to consider in selecting an appropriate procural highroad for the rapid reconstruct of three hotel twist puke. We pass water analysed four kinds of procurement pathways such as traditionalisticistic procurement route, image and grade procurement route, counselling contract procurement route and twisting steering procurement route. After the analysis, we have chosen a most qualified method to meet our object lens, in terms of make up certainty, social system at heart the planned period and quality of the structure. Also, creating a light and luring environment for hotel guests in the near future. We too have considered the economic benefits as such if the hotel re-opened on clock prison term within the budgeted follow, we pot also acquire the investment costs as soon as achievable. therefrom we have recommended the deviseing and build procurement route for this project.IntroductionIn spin intentness, many factors cause the guides of the project. The right procurement route is one of the factors to strive project success richly. In order to select outgo procurement route, we have to analyse clients background, objective, project requirements, technical complexity of the project, turn of events guess (cost, time and pattern/quality) and etc.Analysis client BackgroundCinnamon ideal is a privately owned plumping hotel chain in the UK. They cleft comfortable accommodation across the UK and atomic number 18 committed to preserving their rich inheritance. They are very passionate about the outlook of their hotel edifices and they are experient at restoration of buildings. scarce they have lack of in-house executive who is either experience enough or enable to devote sufficient time in advising the re social structure of their properties. vagabond RequirementsAs the hotel has planned to reopen on the w orld-class April 2015, we have started homework for the project on August 2012 and construction impart be started on 1st March 2014. Lastly, the hotel depart be pass over to the owner latest by 28th February 2015.Reconstruct in devil phases signifier 1 Rapid reconstruction for the main areas of the hotels such as swimming pools, roofs, restaurant and guest rooms, which allows the hotel to be re-opened for business within a period of 12 months (from 1st March 2014 to 28th February 2015).Phase 2 Newly construction of some facilities such as health and fitness centre, conference and meeting, rooms dance studios. High technology multimedia system facilities with air conditioning shall also be provided for conference and meeting rooms. During construction, uncorrupted service leave alone also be provided to hotel guests.Quality of the buildings is also important. The rude(a) constructed hotel must create sparkling and luring environment that mountain be enjoyed by all hotel g uests. It has to match the existing hotel or even better which allows the precedent magnificent look to be brought back. human body requirementsDesign quality should at least match the existing hotel or even better.The favorable memorandum submitted by the tender contractor should include scope of whole kit, construction methods, programming, solicitude methods, availability of resources and costing.The material application entrust submit through pathfinder or sample and requires strict inspection and approval by client. subdueors typical design proposals require approval by client, payable to client experienced in the renovation of buildings. lymph node requires retaining the ancient architectural style- rich heritage for the external features of the hotelUsing green materials in order to lower involve to the environment. For example using green roof.Demolitions whole kit and boodle will minimize the suffering to the building when using desirable method.Maintenance pro posals should be done during the grooming time (from August 2012 to 1st March 2014).Good construction planning and planning should include safety, environmental and health issues and solution. Especially during the phase 2 constructions, the normal business of the hotel will non be affected by the construction. Hotel guests will also non be subjected to the influence of the construction.Client ObjectivesTo all over project within the budget of 120 million by choosing the best possible procurement route.To complete the building within the planned schedule.To put forward the quality of building and facilities provided, creating a sparkling and luring environment after renovation of the buildingDuring phase 2 constructions, good service must be provided to the customer.Analysis of the Procurement RouteThere are three generally accepted standard approaches to construction procurement in the UK construction industry traditional procurement design and build procurement and managemen t procurement (management contracting and construction management). Different procurement route has different approach. Hence, we will analysis the traditional procurement, design and build procurement, construction management and management contracting.3.4.1 Analysis of traditional procurement routeThe clients consultants will complete full the design in advance contractors tender. Then the tender will be usually awarded to the contractor with the lowest price.AdvantagesGood design quality collectible to design completed by clients consultants.Client will choose the lowest tender price as contractors will tender constituted on the homogeneous information given.Procedures salutary known by both partyDisadvantages enormous preparation time, due to design fully completed by clients consultants originally tender.Construction will unless start on site upon the issue of the design.Client is fully responsible for the design riskRisksLump midpoint contract will bring the cost ris k to low risk as same information given by client.As for set contract date, the contractor might have the right to claim for extensions due to design or contraction issues, therefore it is medium time risk.As design quality manage by clients consultant based on clients requirement, therefore it recoils design risk to low design quality risk.In conclusion, traditional approach is suitable for inexperienced clients or occasional construction clients and project without critical time requirements. It is not suitable for some large and complex project which requires advanced management systems, structures and skills.3.4.2 Analysis of design and build procurement routeThe design and construction is undertaken by a angiotensin-converting enzyme contractor for a lump marriage contract, which allows overlapping. Design is not fully develop by contractor before the contract is awarded.AdvantagesSingle affair point due to contractor is responsible on design and construction. previous(pre dicate) start and shorter project era due to design and construction is overlapping.Client dissolve control project cost due to lump sum basis.DisadvantagesTender need to be awarded before design fully complete.Client has the difficulty to prepare the adequate brief.After the tender has been awarded, changing of design can be expensive for the client.RisksLump sum contract will reduce the cost risk to low risk.Design and construction can be overlapping therefore it is a low time risk.Design and build contractor is responsible for the design, if clients design requirement is not distinctly indicated, then whitethornbe it is a high risk for design quality.Therefore Design and build approach is suitable for all clients including inexperienced or client requiring cost certainty and fast track projects. Not suitable for complex or high quality buildings.3.4.3 Analysis of construction management procurement routeConstruction anxiety, in which the design is developed by the Employers c onsultants and construction commences before the design is complete. A fee-earning consulting Construction Manager works for the Employer to define and manage several go aways Packages, each representing a work or functional aspect of the project.AdvantagesShorter overall project duration clearness of roles, risks and relationships for all participantsClient requires late design transform easily due to contact awarded by different packageDisadvantagesClient doesnt have control on cost. accept a good quality project aggroup to manage the project.Needs effective control of time and information.Risks positive cost will only be known until the populate package is awarded, so cost risk is medium.Because job is awarded by individualist package, so does not has the main organisation to overall control the construction time. Therefore time risk is considering as medium risk.Project done by individual specialist contractors to reduce the design risk to low risk.Construction focus appr oach is suitable for experienced clients, fast track projects, complex building and not suitable for project requiring cost certainty.3.4.4 Analysis of management contracting procurement routeManagement Contracting, in which the design is developed by the Employers consultants and construction commences before the design is complete. A Management Contractor is appointed early to let elements of work progressively as a serial publication of trade or package contracts (called works packages). As with Construction Management, the final examination cost can only be determined when the last incase has been let.AdvantagesOverall project duration shorterClient requires late design change easily due to contact awarded by different packageWork packages let competitivelyDisadvantagesPoor cost certainty, client will only know the final price till the last package been awarded.Need a good quality project team to manage the projectNeed a good quality brief to every works contractor, if not th e case, contractor may not make client requirement.RisksActual cost will only be known till the last package is awarded, so cost risk is medium.The total construction duration is a consequence of package selection. Therefore time risk is considering as medium risk.Project done by individual specialist contractors to reduce the design risk to low risk.Management contracting approach is suitable for experienced clients, fast track projects, complex building, and fairly large project. It is not suitable for project requiring cost certainty.ConclusionNo procurement route is best suited in all circumstances. We can only base on the key elements and to select a most suitable procurement route. Time within planned schedule, cost certainty and quality of the building are the key elements we need to consider in this project. twain traditional and design and build can achieve clients objective of cost certainty. Management contracting, construction management and design and build can achieve clients objective of time within planned schedule. Management contracting, construction management and traditional can achieve clients objective of quality of building.Based on to a higher place analysis, out of 3 key elements we only can choose two most important elements as following-Cost is the first consideration. Both management contracting and construction management procurement routes, the cost can only be known till the last package is awarded. But due to client concerns for cost overrun, they want to know the cost before project start. So both routes are not recommended.Time is the here and now consideration. Hotel must be re-opened on 1st April 2015. As only 12 months is given for phase 1 construction and the opening before the tourist season has a great impact on the hotel business, therefore traditional is not suitable for fast track construction. Design and build is well suited to warrant maximum price contracts and design and construction overlapping. This will invo lve considering return on capital investment, the likely benefits to operational efficiency or income flow. So we are not considering using traditional in this project.Quality of the building is the third consideration. It is generally felt in the construction industry that quality is the first thing to suffer in design and build contracts. However, the evidence does not support this. Quality of the building is the result of how we management the construction serve up. There is no correlation between procurement method and perceived quality of the product.After consideration, we will recommend design and build procurement route for this project. The appointed contractor is responsible for the design, backup and construction of the project, based on the client project brief and requirements through lump sum cost. So the speed of construction is faster and the client will know the costs of the project earlier. Whether the quality of building can be achieved, it is depending on how well our project requirements have been defined and delivered. Project manager will be responsible for co-ordinated design and construction programme. This may considerably reduce revisions after contract award and minimise possible interferences. All team members must build up well communion channels, to solve the problem as soon as possible when construction is going on.ReferencingJohn Murdoch and Will Hughes (2008), Construction Contract Law and Management, one-quarter editionSchool of the Built Environment Herriot Watt University (2012), Procurement Contracts problem 2Option ADiscuss the liability of Alexander Contractors to the Employer for the surplus costs that the Employer had to incur as a consequence of being demand to employ a more expensive tenderer to carry out the construction project.Discuss the Clerk of Works power to issue a commissioning as detailed in the given scenario and its implications on the loss and expenses incurred by the Contractor.Detail the pos sible claims with respect to the given scenario, the main facts that can be included in the claims and the contractual provisions available to substantiate the claims accord to the JCT Standard Building Contract With Quantities 2005 Edition (JCT SBC05) Revision 2 2009.If you were the Contract Administrator prepare a report outlining your assessment of the Contractors claim including the process you have followed, the pertinent issues of the dispute and the contractual provisions relevant.