Construction Procurement and RIBA Plan of Work - Assignment Example

?The development of procurement systems has recently boosted and several management systems have been devised. After research it has been concluded that a comprehensive assessment of the various procurement systems has been established by Mastermann in 1994. Where the system is sub divided into mainly three systems, Cooperative/separated system, Integrated System and Management oriented system. These systems are so diverse that each of them has further categories which differ in the processes. A basic tree diagram of various procurement systems is given below and later these are discussed individually. 1. Separated & Cooperative System This system is one of the most widely used system where each party of the project namely client, designer and contractor are different and work separately. In this system each party completes it work and then project is transferred to next sequential predecessor. The system initiates with a feasibility study then detail design, tendering, contracting for construction along with construction supervision. The main advantages include the fact that it is one of the most practiced systems that’s why there are lesser problems encountered and general protocol procedure have been developed and well versed in case of problem. Another advantage of the system is that every aspect is done by an expert, hence every drawing, design and detail is developed to its maximum. Hence this produces a high quality of work done. The figure below shows each process that exists in a traditional procurement system. The disadvantage is that the system requires a lot of input and attention of the client, as his involvement in each step is detrimental. In addition due to the sequential nature of the system, extra time is required and wasted while transition from one step to another, as qualification and bids invitation for each party has to done for each step. Hence a variation is made in the systems processes which are now called as accelerated system, where feasibility, detail design, tender documentation and construction supervision, all the three works are given to single consultant. The whole construction process is assigned to single contractor, who selected from a prequalified contractors list. As a quantity surveyor I believe the system is well established and all system bugs have been eliminated. This system has better cost control as the client has to pay and perform the whole project piece by piece. But the time consumed is more hence the cost increase with time due to price escalations. In my understanding, the system can be improved if the strong effective timeline of the project is created in the planning phase which will highlight the key dates of transition of different phases and review the whole timeline for free floats and critical activities to optimize the time allocation. An accurate time allocation can be only done if the correct quantity of work is known. 2. Integrated Procurement System The reason for creation of this system was to eliminate the disadvantage of the traditional procurement system. Rather than having several parties engaged in single project, in integrated procurement system the complete project is assigned to one firm that means the firm has to design as well as construct the project. The “Design & Build” system is comes under this procurement system. The starting process of this system is that a client gives an invitation to EPC (Engineering procurement construction) firms for a project and then these firms submit the technical and financial proposal for both design and construction. In addition the contractor along with consent of the client generally come into contractual bidding of completion of project with a certain agreed duration and in a negotiated price normally lump sum. There are some modification made to the integrated procurement systems which have resulted into newer and efficient systems for both the client and the contractor. The first among which is the “Turn key” project type. In this system the client will be handed over the keys and facility under consideration will be ready to use. Under this system the contractor is responsible for each and every aspect of the project from feasibility, detailed design, approval from authorities at all stages, financing if required, construction, commissioning and then handing over as well. On the other hand the sub-category of integrated system also include the “Develop and construct” system as well. Essentially this is the same as Turnkey with a minor variation that the contractor is also responsible in development works regarding the project. This type of system is used in real estate and infrastructure projects where contractor has to develop the site as well as local area which might include making water, electricity, fuel systems, developing road networks even before the real project starts. At times when the project nature is social it requires the contractor to provide technical education and induct labour from the local area for the development of the area. The figure below shows each process that exists in integrated procurement system. The advantages of these systems are that there is minimum input from the client and client just has to engage in tendering and contract documentation of the contractor. This saves a lot of time and eliminates the possibility of disputes or conflicts within the parties of the project. The contractor is clear of his time line and makes is independent on decision making. Whereas the disadvantages of the system is that too much responsibility is given to the contractor which is risky, because if the contractor fails to do a certain task the whole project will be jeopardized and no other company will resume the left work instantly and a lot of time and resources would be wasted incase the contractor withdraw at any time. Another disadvantage is that complex projects which require high level of expertise cannot be done solely by one contractor and requires a expert review of the technical aspects. In the execution of this system there is rarely any system that keeps the check on the quality of work and supervision of the project is very important to high quality of the work and ensure every component is made according to design. There are chances that the contractor uses unfair means to make profit due to lack of checks. Lastly, for this system the management of every aspect of will always be a problem in integrated procurement system. 3. Management Oriented Procurement system To fill the lapse present in the integrated procurement system, the system of management procurement is introduced. The main focus of this system is the management of each phase of the project (Design and construction). The process of this system starts when a client hire a management consultant for the entire project. Hence now this management consultant selects most suitable designer to carry out the complex designing of the project. In similar way each party of the project is an expert and best in what it is commissioned to. Each component of the project is subcontracted to each specialist subcontractor who is in contractual agreement with both the client and the management consultant. In essence the work of the management consultant is to manage every aspect of the project by him and call the client when important decisions are made. As there are majorly three phases involved in a construction project hence the management expertise and dynamics of each are different. Therefore the management procurement systems are subdivided into further systems namely a) management contracting system, b) construction management c) design and manage. In management contracting system the contractor is hired to manage and supervise the construction processes but will not be responsible for the actual construction as that will be done by subcontractors which are experts in their respective field. This system makes the management contractor as a consultant and consequently a team member of the client. Therefore the sub-contractor under this system is in contract with the management contractor. Next is the construction management, this is entirely the same as management contracting but with a slight difference that the sub-contractor in this case is in contract with the client directly and the job of the management contractor is to supervise the construction process. The figure below shows each process that exists in Construction management and Management contracting procurement system. Lastly the “Design & Manage” system, under this the management contractor is responsible for the work all in all. The decision of sub-contracting certain work or performing it them self is purely the decision of the management contractor. It happens at times that the contractor does not specialize in a certain area and hence requires a package contractor. In this system the management contractor is part of the project team. The figure below shows each process that exists in Design and Build procurement system. The foremost advantage of the system is that it requires least input of the client and at the same time the quality of work is not scarified. In addition due to proper procedures and coordination the time period for the construction and commissioning can be reduced and optimized. The main advantage acquired from this system is the high quality of work in lesser time, but it is highly conditional to the fact that the management consultant is highly skilled and has sufficient experience to handle similar projects. Because if the management consultant fails at a certain task this will jeopardize the whole project. As a quantity surveyor I believe that the management oriented system is one of the best choice when going for large complex project, as there will be a large number of work activities, quantity of materials to be procured and check for quality and proper resource allocation is very important. For which the client needs assistance on every aspect. Hence the management contractor provides it. Hence I believe that the expertise of the contractor will decide the success of this system and for which I believe the selection procedure of the management contractor is important and his project experiences and portfolio must be examined in detail. Role of the Quantity Surveyors in a Traditionally Procured construction project The first time when the Quantity Surveyor (QS) is consulted in a traditionally procured construction project is during feasibility phase of the project which comes under the Preparation part A of Appraisal. This stage is detrimental for the initiation of the project. In this stage the QS formulate a general BOQs and costing of the project is done accordingly. This cost then decides whether the project is financially feasible or not. Then it is Design brief in which the QS have to give a brief of the cost requirements and quantities for work items according to the design brief. The Next stage is of Design where the QS is responsible for detailed estimation and preparation of cost plan according to the designed components and specification. This is covered in Design development stage under the RIBA Work Stages. Then the major work of the QS starts in the Pre-Construction phase where the QS is responsible to produce the detailed break up of BOQs, and all related Tender Documentation. Then once the tender has been floated into the market and bids have been made by the Contractors it is the responsibility of the QS to check the filled BOQs and the quoted prices within them and provide his recommendation of the quality of the bids. Whereas on the other side the QS engaged with the contactor is required to inform the Project Manager about the requirements of all resources in the Mobilsation stage of the construction phase. Later, during the stage of construction and practical the QS is responsible for development of Interim Payment Certificates and other payment certificates against which the contractor would claim the money for the work done. The QS of the consultant would check the IPC and other certificates for any errors or extra charging. Quantity Surveyors on both sides are responsible for the estimation and control of cost during the construction phase. They are an aide to the project manager as they provide him with the progress of the project with respect to quantity of work done against pending work, the progress of the work with respect to cost spend against remaining cost. They also forecast the requirement of resources (materials, manpower, machinery and money) so that they can be procured well within time. The appendix contains an extract from the RIBA outline of the work plan. Lastly after the completion of the project in the Post Practical completion stage, the Quantity Surveyors are responsible to calculate the control estimate of the project where they calculate the profits/ losses made by the contractor and finally provide the performance report of the project completed along with their recommendations of improvement of the systems and procedures which caused issues during the project so lessons can be learned and rectified next time. References Royal Institute of British Architects (2007). RIBA Outline Plan of Work 2007. UK: Royal Institute of British Architects. 1-3. Rosli Abdul Rashid, Ismail Mat Taib , Wan Basiron Wan Ahmad, Md. Asrul Nasid, Wan Nordiana Wan Ali & Zainab Mohd Zainordin (02/15/2007). EFFECT OF PROCUREMENT SYSTEMS ON THE PERFORMANCE OF CONSTRUCTION PROJECTS. Malaysia: Department of Quantity Surveying Faculty of Built Environment Universiti Teknologi Malaysia. 1-13. Ashworth A (2001) Contractual Procedures in the Construction Industry, UNITEC, New Zealand RIBA Royal Institute of British Architects. (2007). Work with an architect. Available: http://www.architecture.com/UseAnArchitect/GuidanceAndPublications/WorkWithAnArchitect.aspx. Last accessed 28/04/2012. Chitkara K K (2005): Project Management - Planning, Scheduling and Controlling – Tata McGraw Hill, New Delhi Appendix A Read More