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
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Summary of Scope & Project Definition

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.

According to the APMBoK 6th edition, “Scope comprises the totality of the outputs, outcomes and benefits and the work required to produce them”. Simply put, the scope is the entirety of a project, from the beginning to the end of project, what it comprises of and the benefits realised after its completion.

Scope management is the process that is used to control the outputs and outcomes and identify the benefits. “Scope management is the process whereby outputs, outcomes and benefits are identified, defined and controlled (APMBoK 6th)”  

Without scope management, a project is at risk of scope creep, whereby the project exceeds its intended criteria and therefore increasing in cost, time, disputes, quality, etc. and can ultimately cause the project to fail. 

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Instagram -@huntersparkdesign

There are 6 steps to defining a project: 

  1. Requirement management – this involves assessing, capturing and documenting the needs and objectives that are required by the stakeholders.
  2. Defining the project scope – to do this you need to confirm the key aspects of the project, such as, project objectives, deliverables, milestones, technical requirements, limits and exclusions and reviews with customer.
  3. Determining the Priorities – essentially you will need to establish what areas within the project are critical and which can be compromised if necessary. E.G. time, cost or quality. These priorities should be made clear within the development phase but can change throughout the life cycle. 
  4. Create a Work Breakdown Structure – a WBS is a hierarchical outline (map) that identifies the work elements involved in a project. This is a helpful way to plan a project because you can use it to break down the scope. It also helps manage plan, schedule, and budget as well as defines communication channels and assists in coordinating the various project elements.The lowest level in the WBS is the work packages.
  5. Integrating the WBS with the Organisation – You can use an Organisational Breakdown Structure (OBS) to do this. An OBS shows how an organisation is going to manage its work responsibility within the project.
  6. Coding the WBS for the Information System – this highlights the levels and organisational levels of the WBS, it’s work packages, and budget and cost elements.

 

The Responsibility Matrix

Using the WBS and OBS you can construct a Responsibility Matrix, RAM. A RAM is used to allocate the work packages to people, organisations or 3rd parties. A RAM can include information such as who is responsible, should be consulted or informed about certain tasks.

https://www.apm.org.uk/body-of-knowledge/delivery/integrative-management/organisation/

Thank you to the continued support on this blog series 🙂

 

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.

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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

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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.

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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

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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.

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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 🙂

Trek America 2019 Experience

On the 10th of August 2019 I was heading off to Manchester to begin my long journey to the USA, a what a journey it turned out to be. I wont lie to you, I had been in charge of organising everything so I was preparing for the worst, and to add to my anxiety quite, the weather was causing some serious delays but luckily, I managed to board the train on time… At least, that’s what I had thought! As the train pulled into Oxford Road, the conductor asked us to leave the train, 2 stops from where I needed to be and at this point it was cutting it fine with 2 hours to get through check in and security.

However, I managed to catch the plane and get comfortable for the next 11 hours. Literally was the worst experience ever, 11 hours in the same seat.

After a couple minor delays on board the Thomas Cook flight I arrived at San Francisco, and the flight overall was good. But this was where the good luck stopped, standing in the longest line in the world at customs I received an email informing me that my hotel room had been cancelled, seriously?! I immediately texted my friend that I was due to meet in arrivals and THANKFULLY she was able to get to the hotel and sort out the entire situation and I was free from customs a grand total of 5 hours later.

We stayed in the accommodation recommended by Trek America, it was expensive and not very nice but it done the job and saved us the hassle of travelling to the meeting point for the Trek as it was in the lobby. Also there was a nice American diner located at the bottom of the hotel. I wouldn’t chose to stay there personally.

I arrived a day before the Trek was due to begin and I would recommend doing this as it gave my friend and I a chance to explore San Francisco properly as you don’t get much time on the tour. We walked the Golden Gate Bridge, when we got there it was totally covered in fog, which was disheartening but by the time we walked to the other side and back again (around 4 miles) it had cleared up. We then headed into China Town for some dinner and back to the hotel for an early night before the next morning!!

Trek Day One

Starting the trek at 7:30am we met with all other campers in the lobby, there were 12 of us in total, 11 girls and 1 boy. It was a quiet start but everyone chatted and got along as we made our way to the Golden Gate Bridge. Making a quick stop there, walked to the other side and were met by our tour guide and I was glad because we didn’t have to walk back again, strongly advise wearing sun cream as I have some pretty shameful tan lines I have to admit. We then had a big drive to our campsite where we would spend the night near to Yosemite, we stopped a couple times along the way for food. The tour guide was great for accommodating stops and breaks, I never felt rushed or desperate for the toilet. That night the group cooked and cleaned at the campsite. The equipment was great, I expected old tents and dirty, old supplies but luckily we camped in brand new tents (we named ours Will Smith) with little mattresses which was a nice touch… much appreciated on that rocky ground!

Trek Day Two

We were all packed up and ready to rumble at 7am for our day at Yosemite. This tour is so fast paced, without the early mornings and late nights it would be so difficult to make the most of our experience, however, I don’t think that this took away anything from our trip. Mari, our leader, worked really hard with the timescale available and the group was able to get a lot out of the time that we had. Yosemite was beautiful, but I’ve done a few hikes, this was the hardest, it was incredibly steep and hot. When we reached the top of Nevada falls it all became worth it. What a view!

So glad that we done it together, we all supported each other to the top and by the time we got back down we had all bonded a lot better as a group. We left Yosemite at 3:30pm after our 6 hour hike and returned to the campsite for more cooking and a swim in the pool/river.

Trek Day Three

This day was the longest drive that we had on the trip and it was actually not so bad. We set off in the early hours and made stops in places like Death Valley and arrived around 5pm in Las Vegas, playing games, listening to tunes, chatting, sleeping all the way there. We stayed in an beautiful hotel called the Golden Nugget. I really did not expect this to be included in the price that we had paid so I was over the moon! (But don’t drink the water in the room it’s $4!). This night was epic, we had a private party bus through Vegas, stopping at the famous sign and at the Bellagio where we watched the stunning water show, honestly this night was my highlight of the trip, it doesn’t matter if you’re not 21 you need to experience it.

Trek Day Four

This was our free day, free to explore Las Vegas and do whatever you want. 7 out of the 12 of us decided to stick together and we had breakfast (massive pancakes) and then headed into Las Vegas to explore some of the most beautiful hotels in the world, and Trump Towers. We wandered around the hotels and MnM world from about 9am-4pm and then headed back to the Nugget for a dip in the shark tank pool! For dinner we went to an all you can eat buffet, which was immense and catered exceptionally well to my vegan friend, so trust me when I say that we got our money’s worth. After exploring Fremont street that night we went to bed to start the next day.

Trek Day Five

This day we mostly travelled again but I would like I said, the journeys were always enjoyable and totally worth it. We arrived in the Grand Canyon camp site where we were split in 2 groups. One group had paid to do a helicopter ride over the top of the Canyon, but I was in the other group that didn’t want to(*afford to) do it. Mari got us to put paper bags over our heads and walked us about 2 minutes to a location where when she told us to take the bags off, we had an amazing view of the canyon. It was worth being videoed and laughed at by strangers for walking around in paper bags because it was really cool to have it appear in front of you like that but I won’t lie, I was humiliated in public.

We had plenty time for photos and posing while we waited on the others and when they arrived we ate pizza on the edge of the canyon and watched the sunset… magnificent.

Trek Day Six

This day we were woken up early to go back to the canyon before it got too hot for a quick hike. We went down the Bright Angel Trail, and it may of only been 1.5 miles but it was like a freaking frying pan, don’t even get me started on the way back up, I could hardly breathe, I abandoned my friend Iona half way down, all friendship loyalties were lost and I’m glad because if I’d of went any further down, I’d still be there today trying to walk back up. Serious applause to you, Iona.

We then had a quick stop at the museum they have there before getting the shuttle back to camp.

We were off to Colorado River! We dragged our journey out as long as we could to avoid arriving in the heat. Done a bit of a supermarket shop and arrived at the Colorado River campsite at about 6pm. We were able to swim in the river and shower before a good old salad for tea. We slept without tents this night and it was beautiful… after we had to call the police to rescue 2 camp mates that had gotten swept out by the current in the river… everyone was okay though, bloody tourists.

Trek Day Seven

Last day of the trek was so sad! Everyone was so close by this point. Not one person had a bad trip, we were all so lucky to have had such an unforgettable experience and even though it was hard with all the travelling, we made the most of the time that we had. The last day was spent travelling to LA and had a stop at a tourist spot on Route 66 before we hit Venice Beach. It was so nice to chill by the beach with an ice cream before heading to the finish point. Our final destination was another hotel, which I was thankful of after 2 nights camping! You do have to book your own room for the meeting/finishing points so we had to say goodbye to the campers who were staying else where.

Last Day

We opted again to stay in the recommended hotel as it was convenient with a free airport shuttle. It was expensive, however it was nice with a pool, free breakfast and WiFi. It may be worth a look about for cheaper though, and I would definitely stay the extra night as the campers that flew that day were a bit rushed.

I had to leave for my flight at about 4pm the day after the trip finished so I had all day really to explore LA. I’m really glad Iona suggested doing a bus tour as it meant we could start at 9am after breakfast and see lots of the city quickly. Starting at the Hollywood Walk of Fame, we got on the bus tour to Beverley Hills where we got off to use the bathrooms and explore a little. A highlight was definitely going to the Regent Beverley Wiltshire (Pretty Woman Hotel) and Rodeo Drive ‘baby’.

Getting back on the bus we finished back where we started and walked the Walk of Fame, looking out for my fave, The Rock Johnson… Got a snap of the Hollywood sign and then got an Uber back to the hotel for my free transfer to the airport. This was one of my favourite days despite not being with my team mates.

All in all, what an incredible week! It was quick but we done so much, it’s a great opportunity to see a big part of the world with a bunch of lovely other travellers. I would recommend this trip to everyone, 100%. Trek America Western Wonder from San Francisco.