Report on Procurement Process for Holiday Development

Report on procural Process for spend Development1.0 IntroductionThis report has been prep atomic number 18d to discuss the procurement options for sale to All Star Property Development for the proposed vacation development in Tring.2.0 Project Details2.1 Gener every last(predicate)yThe project comprises the provision of a holiday development comprising in expenditurey holiday lets, club house and shop. Work to complicate modular unit accommodation, with all fixed fittings, furniture and equipment include indoors the induce including kitchen units and appliances.All loose furnishings and furniture go away be fling off to the client following completion and handover over the project.2.2 BudgetThe formula compute is currently approximately 2million.2.3 ProgrammeThe project programme anticipates completion may 2011 with a construction period of approximately 11 months.The employs ar therefore expected to commence June 2010.An excelerated programme would be considered for an early arising for Easter 2011. aspirationThe radiation diagram is at a RIBA stage C.The consequence of the radiation diagram development is subject to discussion and the procurement route clear-cut upon but, is currently envisaged that it will be beyond RIBA work stage D in order to achieve the programme stated above.Procurement Methods collect to the budget, it is felt that the procurement routes suitable for this project areTraditional stick out and Build3.1 TraditionalThe design and construction are mainly deemed to be separate activities. Full documentation is necessary for tendering purposes, including that from specialist sub asseverators where appropriate and competent date is needed for the preparation of this.The method of reimbursement is commonly expected to be a lump sum basis. The procurement method can only be used in a wide range of situations including a measurement or make up plus contract.In theory, therefore should credible toll consequence on constru ction make ups in a lump sum contract, however, woo increases can result due to a client changes, inadequate design and poor declarer per human bodyance.Advantagesi) Tenders are on a like for like basisii) Scheme fully pre-designed and contractiii) Early committedness to priceiv) Provides contractually checkerd prices for valuation of variations, cost control and analysisv) Standards are easier to controlvi) Direct employer relationship with causations.Disadvantagesi) long procurement timeii) Split responsibility between construction and designiii) Limited fortune transfer.3.2 Design and BuildA method where the contractor is responsible for undertaking both the detailed design and construction of the work in return for a lump sum price. There are variations on this option depending on the degree to which initial design is included in the clients requirements.The uttermost of control over the design is restricted erst the contract is let since the contractor assumes respon sibility once appointed. Some of the pretend associated with this can be mitigated by a lesser extent by the novation of the original design team. The design and construction can generally proceed in parallel resulting in the overall programme time macrocosm shortened.Client changes in design specification can be do during construction although are more ambitious to accurately agree on costs.Advantagesi) Transfer of risk to contractor (but not usually all risks)ii) Design is in argument (unless two-stage see later)iii) Maximum overlap of design and constructioniv) Construction expertise available for designv) Early commitment to maximum pricevi) less(prenominal) construction information essential from client.Disadvantagesi) Tendering expensive to contractorsii) Design not fully developed at tender stage, incertain of final exact details until construction completediii) Best designer is not necessarily vanquish builder and vice-versa (unless client team is novated)iv) Design liability can be hold inv) Standards can be difficult to controlvi) Variations can have greater consequence on costvii) Normally only the minimum is provided to satisfy the Employers requirementsviii) Premium for assumption of risk payable.3.3 Variants on Procurement ProcessThere are refinements or variations on the procurement options described previouslySingle stage selective tendering devil stage selective tenderingNegotiated tendering3.3.1 Single stage selective tenderThis form of tendering occurs when the client wishes to obtain the most competitive price for the project. This method will only be successful where the design is substantially complete for the font of contract being proposed, ie. design and build or traditional as any incomplete elements of the design will lead to post contract variations and additional costs.In using this method, the client seeks tenders usually from three to sextet pre-selected competent contractors issuing detailed tender information, whethe r it be performance specifications for a design and built route or full detailed bloom of quantities for a traditional route. Tenders are returned and assessed under competition, with a contractor being selected on the basis of who best meets the evaluation criteria.Advantagesi) Most competitive price achievedii) The client retains greater control of design andiii) Increased cost certainty at signing of contract.Disadvantagesi) The contractor is not able to share its construction expertise at the design stageii) Increased programme requirements to puzzle the full design in advance of tender andiii) likely cost increases and variations are likely where the design is incomplete or erros have been made in design.3.3.2 Two stage selective tenderingTwo stage tendering is best suited where the client requires a competitive price but in particular requires early contractor involvement. The client will issue tenders with limited preliminary information (usually preliminaries, provisional sums, early work packages) and a register of pass judgment for the areas where the design is incomplete. Tenders are returned and assessed under competition, with the contractor being selected on the basis of who best meets the evaluation criteria. As the works progress, the schedule of rates is sued to complete the pricing of the design.Advantagesi) Allows early startii) Allows the contractor to have infix into design and construction techniquesiii) Greater programme certainty as risks and place early andiv) Can build trust between client and contractor.Disadvantagesi) Possible increase in construction costs due to lack of competition on tenderingii) A risk to programme if negotiations fail to meet targetsiii) Less cost certainty if early site start is preferred.4.0 Evaluation of Procurement MethodsThe chosen procurement method is determined by the Clients approach to apostrophizeProgrammeDesign and build grapheme4.1 priceCost is a decisive component with the client seeking cost certainty at an early stage.However, a fixed price not the only factor as value for specie, scope for variations and accountability are feature in selection.4.2 ProgrammeAs stated in section 2.0, the completion is required for May 2011 with a start on site date of June 2010.presumptuous RIBA work stage typical lead-in periods for tender document preparation, tender, contractor selection and mobilisation for the various procurement options are given under1. Traditional 6 months2. Design and Builda) single stage 5 monthsb) two stage 3 months4.2 Design and Build qualityWhilst the quality of the design and the building works is view as important, achieving value for money will remain fundamental.An evaluation matrix based on comment of All Star Developments expectations is attached at appendix 1CostTimeQuality5.0 RecommendationBased on the evaluation matrix the following ranking is achieved1. Design and Build2. TraditionalAs cost certainty is paramount a single stage process is recommended.