Procurement Type 2

Design and Build 

The procurement process ‘Design and Build’ is an integrated procurement process, meaning that the design and construction phases can overlap. Differing from the traditional process (described in my last post), the responsibility of the design and the construction lies mainly with the contractor as opposed to the client. The client and the contractor are tied together through a single contract however the client may hire a project manager to protect their interests. This type of procurement system would be reimbursed through a fixed lump sum or a GMP (Guaranteed Maximum Price). The risks undertaken in a design and build contract are carried by the contractor which usually safeguards the client. This route is good for time constrained projects because the design and construction phases are integrated.

 

There are 4 Design and Build options:

1. Develop and Construct 2. Novated Design and Build 3. Package Deal 4. Turnkey

  1. Develop and Construct

Where the client appoints the design team and the detail they achieve varies as the contractor is responsible for the development of the design, going into more detail before submitting bid proposals. Design normally progressed to outline planning stage and possibly to full planning approval point and then the client can invite competitive tenders based on a detailed project concept. This process still requires one organisation to take responsibility for design and construction of the project

  1. Novated Design and Build

Client appoints consultants to carry out the conceptual design and tender document. Once the contractor has been appointed, the client transfers the design team to the successful bidder to carry out the detailed design. The contractor takes on responsibility for the design work carried out to date, sometimes together with the original design team. The consultants’ fees are normally predetermined by the client. Some designers resist this practise because the contractors and consultants may have a conflict of interests.

  1. Package Deal

A package deal is used for repetitive projects whereby projects are relatively simple. The client would need to be relatively flexible. You would gain a complete ‘off the shelf’ product but it would probably be quite a standard design.

  1. Turnkey

A contractor is responsible for overseeing absolutely everything and at completion it would just be a case of handing it over. This is used in more complex projects and is also known as EPC.

Design and Build Advantages
  • The client has only to deal with one firm, giving single point responsibility
  • Benefits from the contractor’s experience during design
  • Friendly relationship between the design team and the construction team (not adversarial as in traditional)
  • Price certainty before construction starts, provided the ERs are adequately specified and changes are not introduced
  • Reducing the project duration by overlapping design and construction phases.
  • The total cost may be reduced by reducing changes to minimum due to early collaboration between designers and constructors
Design and Build Disadvantages
  • Difficulties in preparing comprehensive brief or set of ERs.
  • Client commitment to a concept design at an early stage; often before the detailed designs are completed.
  • Bids are difficult to compare different design solutions, proposals and programmes.
  • No design evaluation: unless consultants are appointed
  • Client changes can be expensive: no BOQ, no competition
  • Design liability is limited by the standard contracts available.
  • Quality may be compromised as the client relinquishes control to the design and build contractor.
  • Total cost may be increased due to higher risks transferred to contractor
close up photo of dog wearing sunglasses

Photo by Ilargian Faus on Pexels.com Thanks for Reading!

Blog Challenge 2.1 -Renovation Update

6 Month Renovation Update

In May, my family and I were given the keys to our new property in the South of Scotland. This was such a big opportunity, especially for me as it was something I had never done before. My mum and dad had renovated a couple of smaller properties in the past but this one was going to be a learning curve for us all.

We are now 6 months into the project and to follow on from my blog challenge that I did back in May, I am now doing another challenge to celebrate. I will upload this blog every Friday for the remaining 3 Fridays in November to mark our 6-month point!

img_9977

VICTORIA HOUSE PROJECT

This first blog is just a recap of what I had outlined in the beginning and comparing it to what we have actually achieved so far. Starting with…

The Bathroom

Here are some pictures of what I was aiming for in regard to the bathroom, I got a lot of my inspiration from Pinterest.

This slideshow requires JavaScript.

After we moved the position of the door, I really stuck to the green and white colour palette, but I decided to keep the original wooden boards around the edge of the room after I found a picture with something similar and thought it looked really nice. We did tile a small part of the wall behind the shower, just for practicality really. I incorporated a small line of patterned tiles to break it up slightly, if you look closely you can see a little shiny blue tile that has a little swirl in the middle which was the main reason I chose those tiles because I thought it was fair cute.

The bath suite that we chose was a P-style bath, mum and dad wanted a free-standing bath, which I liked but I preferred the P-style because I just felt it fitted the room better and was cheaper! Win, win.

The Bedrooms

At first, we believed that the bedrooms were all going to be plain magnolia with the original skirting boards and doors painted white. We mostly have stuck to this, but we are going to wallpaper one wall now.

bedroom

The Chosen Wallpaper

Additionally, due to the actual struggle of stripping the really thick, embossed, floral wallpaper from the middle bedroom, we decided to leave one wall covered. After painting over it I am soooo glad we decided to leave it because it blends in so nicely with the room, it’s so subtle and just adds a bit of a feature to the room.

This slideshow requires JavaScript.

Now most of the work upstairs is complete, bar a bit of painting and wallpapering to do, we moved to the downstairs…

The Kitchen

Whilst we were working upstairs, we were waiting on the plans coming through for the downstairs. If you have read my blog 6-months ago you will have seen the draft plan I made for the changes to the layout of the house, where we planned to knock the kitchen wall down to create a kitchen/diner, I also planned on creating an ensuite upstairs but we decided against it because it just took up too much space and made the bedroom sizes quite awkward. We have put an additional toilet room downstairs in the utility.

ensuite 1

Currently, we have had the planning permission accepted and the wall knocked down with a supporting beam in place. As well as this, we have bought the kitchen from Homebase, French Shaker style in an eggshell blue colour.

It’s going to look lush when it’s built, just waiting on the boiler to be installed before we assemble the units completely.

img_0534img_0553

The Utility/Lean-to

We settled on bricking up the porch and put in a back door and window, so it’s came together well. Next to the porch is the utility room and like I mentioned previously, we decided to use the space to install a small toilet and sink area. In the remaining space, we have a couple extra kitchen units to put in.

80c9e8f4-ef52-4449-bff1-370a4c2a7b8aimg_0885

Sitting Room

This room needs very little work, we have been using it as a bit of a storage room until we complete some more of the work downstairs.

Overall, we have completed most of the major work, except the boiler which should be done in the coming weeks, and then we just have painting and decorating left to do! On Friday I will be uploading my next blog which reviews our budget. Thank you for reading this update, there are more pictures in my website gallery and on my Instagram page: @huntersparkdesign

banner

Golden Gate Bridge Example

Simplified Business Case for the Golden Gate Bridge

This weekly upload is going to be a study blog, written to help me revise my course, Project Management BSc. Hopefully, it will also create a good overview for anyone else looking to study the same thing.

This slideshow requires JavaScript.

In response to my last post, I wanted to share a rough draft of a simple business case. Using my University’s description of a business case, I have tried to come up with something similar, referring to the Golden Gate Bridge. I haven’t addressed all the key elements of a business case here, because I either struggled to find any research on that specific part or I wasn’t confident enough with my answer. If anyone does have any good feedback, that would be helpful. However, this is just my take on a quick task, nothing serious, perhaps as my course matures, I will be able to return to it and extend it a bit further.

Strategic Case: A solution is needed to connect the almost 2-mile gap between Marin County to San Francisco as there was no way round at the time.

Options Appraisal:

  Option Cost
1. Do nothing Minimum
2. Build a Bridge (recommended) Maximum
3. Invest in Boats Average

Expected Benefits and Disbenefits:

Option Benefits Disbenefits
Do nothing Saves cost, saves resources No direct link between Marin County and San Francisco Bay
Build a Bridge Direct link between Marin County and San Francisco Bay, opens up employment (on construction and between the 2 areas), more roads leading to less congestion. High cost, high risk construction, disapproval from business owners and civic leaders, ruin the view of the bay, obstruct ships, requires maintenance
Invest in Boats Increased access across the bay, increased revenue and employment for the shipping business Requires maintenance, will not allow car access between the 2 areas

Financial Case:
Engineers estimate of $25-30 million to construct.

$35 million in bank bonds granted

Bank of America President Amadeo Giannini, who provided a crucial boost by agreeing to buy $6 million in bonds in 1932. https://www.history.com/topics/landmarks/golden-gate-bridge

pexels-photo-2068975.jpeg

Photo by Alexander Mils on Pexels.com

Risks of Building the Bridge:

  1. Hazardous working conditions – impacts the workers and their family’s health and wellbeing
  2. There was risk of insufficient funding after the Great Depression – may cause the bridge to remain uncompleted, or could lead to a delay in the project
  3. Earthquake – after the 1906 San Francisco earthquake there would be worries of insufficient measures to avoid bridge collapse, which would incur additional costs and endanger lives.

Time Scale:
Drawings for the bridge were submitted in 1921 and were passed in 1933. Building work was completed in 1937.

Benefits realised after one year “June 30, 1938: During the first full fiscal year, the Golden Gate Bridge serves 3,892,063 motor vehicles, carries more than 8,000,000 passengers, and in excess of 400,000 pedestrians walked the sidewalks (GGBHD Annual Report FY37/38).”

According to http://goldengatebridge.org/research/GGBTraffToll.php, the toll for the bridge was 50 cents each way in 1937, so according to above study, in the first year the bridge would have roughly earned $1,946,031.50 in it’s first year.

img_0110

If you have any tips on how to improve this, please let me know!

OTHER SOURCES

http://goldengatebridge.org/research/dates.php

http://goldengatebridge.org/research/GGBTraffToll.php

https://www.history.com/topics/landmarks/golden-gate-bridge

Project Planning

This weekly upload is going to be a study blog, written to help me revise my course, Project Management BSc. Hopefully, it will also create a good overview for anyone else looking to study the same thing.

Tuesday 1st October – After our first two weeks at university which was 5 days a week, we finished the first module and completed an exam in Network Diagrams, which I have uploaded a sample for on my Project Management page. Now, we attend classes 1 day a week which is split into 2 halves, before lunch we study The Business Environment and the second half we learn about Planning and Control. I found that both topics, this week, connect and have compiled what I have revised from the lessons into 1 fact-sheet for this week.

An Introduction in Project Planning

img_0110
A link to personal experience (my trip to America) – What would an outline for the business Case look like for the San Francisco Golden Gate Bridge look like? This is a question I will answer in my next post, so stay tuned!!

Why Do We Plan?

  1. To evaluate options for delivering the project
  2. To obtain commitment
  3. To facilitate effective communication
  4. To provide the basis for effective project monitoring and control
  5. To prepare for the unexpected
  6. To respond to compulsory requirements

Strategic planning is a big part of the concept phase, during this phase, the viability of a project is determined, and the preferred solution is highlighted. Moving on to the definition phase and the strategic plans become more detailed, where elements such as budgets, schedules and resources are confirmed.

Characteristics of Good Planning (APM 2008):

  1. Plan is owned by Project Manager and team.
  2. Plan is agreed by sponsor / approved at gate review.
  3. Sufficiently answers the planning questions to satisfy the organisation that it should continue the project.
  4. Provides the basis for a successful proposal in a tender process.
  5. Provides the basis for successful management of project implementation

The Business Case

The business case is a type of plan that lays out the main reasons for undertaking a program/project, it assesses all other options and gives evidence as to why the proposed solution is the best. It also outlines all other expectations hoped to be achieved by the completion of the project, the risks and costs that need to be considered.

It outlines the value of the work needed and its main purpose is to gain funding and assurance from the organisation.

The business case is typically started before the start of the project life-cycle and is progressively defined throughout the concept and definition phase.

If There Are Multiple Investment Options -How do you Choose?

Usually, the organisations vision for the future will influence their decision. Strategic investments can be encouraged by competitors within their industry, therefore making it necessary to invest to keep up or it is needed to keep their business aligned with their business strategy.

neon signage

Photo by Ivan Bertolazzi on Pexels.com

network diagram2

You can use a Network Diagram to help define your Plan in the Definition Phase, See Previous Post for more information on a Project Life Cycle 🙂