Procurement Analysis Implementation

Procurement Analysis ImplementationThe using of procurement schema follows the stages in the life of a cat. Initially, a preliminary strategy is determined. It is based on a broad exposition of objectives and is an essential step in establishing the way forwardfor the count on. It encourages the client to consider strategy early. The preliminary procurement strategy is usually developed with help from theclients adviser and possibly separate consultants.Procurement strategy organic evolution has three comp unmatchednts analysis assessing and setting the priorities of the project objectives andrequirements choice considering possible options, evaluating them and selecting themost appropriate and implementation pose the chosen strategy into effect.During strategy preparation, it may be necessary to seek specialist advice from other consultants, for example, in relation to pass judgment costs for the project. The adviser should advise the client on this. Specialist advice should besought when underdeveloped the strategy for novel or especially difficult projects. Until verbalism contracts atomic turn 18 let, the client, with help from his adviser, must systematically see to it that the strategy is on course to meet the projects established objectives. This is important because objectives sometimes change.Procurement MethodsThere argon various methods of procurement which end be broadly classified under the following headingsTraditional tendency and Build ii give Tendering Public Private coalitions / Private Finance Initiative anxiety promise grammatical gimmick Management Framework conformitysEach method has different aspects of jeopardy transfer and no one method displace be classed as best overall.Traditional ProcurementIn this method the asserter builds to a defined scope of works for a fixed price lump sum. The client retains the province for the anatomy and the project team. The contractor will be appointed normally following a offer up answer or negotiation and will sign up to a contract for the works. There be a number of standard forms of building contract available for this purpose. throw and Build ProcurementThe leaf node appoints a building contractor, as before standard forms of contract be available for this purpose to digest a completed building to an agreed cost and programme. The Contractor is responsible for mark and construction. The Contractor smoke be chosen through a tender process or through negotiation. The Client can appoint a consultant to oversee the works. Maximum risk is transferred following this method of procurement, although a technical response to stick out in order to address contract conditions can result.An alternative is to appoint a contractor when designs have been developed in order to retain control of the important elements of design and specification. The Design Team can then transfer their contractual obligations to the contractor and complete the designs on behalf of the Contractor. This process is called Novation.Two play Tender ProcurementIn this process, the Contractor is appointed on the basis of a offshoot stage tender which determines the aim of overhead and profit for each Contractor. The Contractor then works with the count on Team during the second stage to develop the designs and establish detailed costings for separate project work elements. This process will provide for a fixed price on a detailed design basis. The supplier can then enter into a contract on this fixed price basis and withal pursue the opportunity to novate the Design Team as with the Design and Build Procurement roadway as previously noted. This process requires a long second stage period in which to design and tender the different work elements and therefore a start on site would occur subsequently than normal.Public Private PartnershipsPublic Private Partnerships (PPP), particularly Private Finance Initiatives (PFI) projects be created for th e provision of function and not specifically for the exclusive provision of capital assets such as buildings. It is therefore preferable to investigate PPPs as soon as possible after a user need has been identified alternatively than leaving it until a conventional construction project has been selected as the solution. It should be noted that the tendering process in this procurement route is expensive and requires negotiation quite than competitive tendering. In comparison with other procurement routes the time from commencement of the project to attaining a start on site is substantially longer.Management contractingThis is a fast track strategy which overlaps the design and construction stages and allows early elements of the construction process to be commenced before design has been completed. The Management Contractor is engaged to manage the overall contract in produce for a fee. The Management Contractor can therefore be appointed early in the design and can advise on buildability and programming. In addition to the contract with the Management Contractor, the contracts for the individual work packages be between the Management Contractor and the individual sub-contractors. A cost plan is utilised to control the development costs although actual costs cannot be obtained until the final work package has been awarded.Construction ManagementThis is excessively a fast track strategy where individual elements of the project are let before the design of later work packages or elements have been completed. The provider will appoint a Construction charabanc to manage the overall contract in return for a management fee as with Management Contracting. Also, as before, the project can benefit from early involvement of the Contractor. In this process the contracts for the sub-contractors are dictated directly between the Client and the sub-contractor and the Client will need to have a high level of involvement during the design development and the const ruction phases of the work. As with Management Contracting, the final costs will plainly be known once the final work elements have been awarded.Framework AgreementsFramework Agreements can be established with single suppliers or with a limited number of suppliers. Frameworks can allow suppliers to be brought in concert with the relevant expertise and experience which can result in savings to both parties where a number of projects are involved. These agreements can cover different forms of procurement including Design and Build, Traditional, etc. The LSC are currently developing framework agreements for consultancy services accross the country. These should be available for use by colleges by early 2008. Following on from this, the LSC will excessively be working on developing a contractors framework.London Heathrow Airport (LHA/EGLL) storage 5, United Kingdom terminal 5 is one of Europes largest and most complex construction projects. With 16 study projects and over 147 sub-pr ojects, it has encompassed a vast and hugely complex programme of works. cay DataStart twelvemonthSeptember 2002Project TypeNew terminal constructionLocationLondon, UKContract Value4.2bn boundaryPhase 1 April 2008Phase 2 2011Key PlayersSponsorsBAA, private investment, HM GovernmentLead ArchitectRichard Rogers PartnershipStrategic Planning and Design ServicesHalcrow Group LtdCost consultant ServicesE C Harris Group LtdTurner and Townsend GroupPlanning SupervisorBovis engineering science LtdStructural Tunnel and Rail ConsultantMott MacDonald LtdProject Management and Support ServicesParsons Brinkerhoff LtdCivil construction al-Qaeda and logistics deliveryLaing ORourke Civil Engineering LtdArchitectural station design consultant architectural production and brief developmentHOK International LtdConstruction managementMace LtdTechnical featuresIn addition to the of import terminal building, Terminal 5 also consists of two satellite buildings (the second of which will be complete d by 2010), 60 aircraft stands, a natural air traffic control tower, a 4,000 space multi storey car park, the creation of a sunrise(prenominal) spur road from the M25, a 600 bed hotel, the diversion of two rivers and over 13 kilometres of bored tunnel, including extensions to the Heathrow verbalize and Piccadilly Line services.This work encompasses a multitude of construction related skills including civil engineering, building, highway engineering, mechanicaland galvanising engineering, tunnelling, data trackway engineering, specialist systems technology and project logistics management.The interprets of ConstructionStage1Site preparation and enabling words first the 260 hectare site was surveyed and excavated by archaeologists. Preparation for construction then involved levelling the site, removing the sludge lagoons and building temporary facilities including roads, offices and logistics centres.Stage 2 Groundworks substructures This phase included the earthworks and the c onstruction of the foundations and substructures for the terminal basements. It also included building the drainage systems and the rail tunnels. A total of 9 million cubic meters of earth will have been excavated during the earthworks phase. A ratio of this earth was used to create the embankments for the M25 spur road and landscape the Colne Valley, while the rest is used to backfill the main site.Stage 3Major structures This phase included erecting the huge free standing jacket crown structure of the main terminal building (T5A), and its interior superstructure. It also included the superstructure and roof of the first satellite (T5B) as well as the multi-storey car park and ancillary buildings such as the energy centre.Stage 4Fit out This involved the fit out of the buildings interiors including, the building services modules (ie, power, heating and ventilation systems), the baggage system, the track transit system (people striker) and specialist electronic systems. It also in cluded the fixtures and fittings and the retail areas.Stage 5 Implementation of operational readiness Operational readiness is necessary to ensure that Terminal 5s infrastructure and systems are fully complete and tested, that staff working in the terminal are properly dexterous and that all the necessary operational procedures for Terminal 5s opening day on 27 March 2008 are in place.Phase 2Construction for the basements for the second satellite building (T5C) and additional aircraft stands commenced in 2006. However, the main building structure will not be completed until 2010.Procurement Strategy AdoptedT5 AgreementFrom the outset BAA recognised that the risk associated with such a huge and complex infrastructure project required a fresh approach to construction management.Research conducted by BAA into major construction projects highlighted two discern areas that seemed to undermine progress cultural confusion and the reluctance to acknowledge risk.In a move to prevent Termin al 5 from suffering from costly delays and budget over-runs, BAA developed a unmatched and bespoke commercial partnering agreement with contractors and suppliers called The Terminal 5 agreement.A contract based on dealing and behaviours, it was designed to expose risk rather than transfer it to other parties.Advantagesa)UK construction best practice is expected as a minimum standard on, and in light of this the project has had to ensure key milestones are met on time, on cost and to high quality and safety standards.b)An incentive scheme encourages teams to work unitedly in order to find the most efficient way of achieving these milestones.c)Through the agreement BAA accepts that it carries all of the risk for the construction project.d) Focus on managing out the cause of problems, not the effects if they happene) Work in truly integrated teams in a successful, if uncertain environmentf) Focus on proactively managing risk rather than avoiding litigation.g)With the burden of accou ntability lifted, those working on T5 can do so innovatively and positively. While traditional arrangements can result in a highly unproductive culture of blame and confrontation if something goes wrong, h)Under the T5 Agreement a premium is placed on delivering solutions and results.I)Many of the suppliers involved in Terminal 5 were brought on-board at the earliest stages of the provision process. This enabled completely integrated expert teams to work together to identify potential problems and issues before designs were finalised and fabrication and construction began. As a result the teams of suppliers and consultants are in a position to add value whilst calculating safe solutions within the time, quality, cost and safety targets.j)UK construction best practice performance on Terminal 5 is expected as a minimum standard. In light of this, the project has to ensure key milestones are met on time, on cost and to high quality and safety standards.k) BAA only has a direct contra ctual relationship with First horizontal surface suppliers, of which there are around 60. It is the First Tier suppliers who are responsible for the appointment and management of Second Tiersuppliers or subcontractors. In doing so they too are expected to operate within the spirit of the T5 Agreement.The English national bowlful project at WembleyKey Facts about WembleyThe stadium will be used primarily for football and rugby league yet will also, after adaptation, be capable of hosting major international athletics events. The project is expected to cost 757 million and is scheduled for completion early in 2006. The football game Association is contributing 148 million to the project andcommercial lenders have provided debt facilities of 433 million. The public sector funders are providing 161 million (120 million of lottery silver from Sport England, 20 million from the Department for CultureMediaand Sport and 21 million from the London Development Agency) to the project. The stadium will be owned and operated by Wembley National Stadium check,a wholly owned subsidiary of the Football Association. Profits from the operation of the stadium will be used by the Football Association in accordance with its objects for the benefit of football. Starting five years after the stadium opens, Wembley National Stadium Limited will donate one per cent of its turnover each year for distribution to sports education and other projects.Key FeaturesWith 90,000 seats, the new Wembley is the largest stadium in the world with every seat under cover. This capacity is disordered into 3 tiers of seating, with the lower tier holding 34,303 spectators, the middle one 16,932 and the upper one 39,16514 The stadium contains 2,618 toilets, much than any other venue in the world.15 The stadium has a circumference of 1km (0.6mi).2 At its peak, there were more than 3,500 construction workers on site.16 4,000 separate piles form the foundations of the new stadium,2 the deepest of whic h is 35m (115ft).2 There are 56 km (35 miles) of heavy-duty power cables in the stadium.2 90,000m (120,000cuyds) of concrete and 23,000 tonnes (25,000 short tons) of steel were used in the construction of the new stadium.2 The total length of the escalators is 400m (mi).2 The Wembley Arch has a diameter greater than that of a cross-channel train.1718