- PMI or CE issued - 1 week - Quote submission - 3 weeks -Response - 2 weeks

Case Study Flashcards by Jordan Hunt

What is NEC option A?

Fully priced activity schedule

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Why was NEC Option A used?

-Cost Certainty
-Design control
-Collaborative working

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What was the client objectives?

The client’s priority was to complete all demolition, and civils works by the end of 2024, enabling construction of the new production line in 2025 and wing production by 2026.

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What is a compensation event?

An event which does not arise from the contractor but the contractor is due additional cost and programme.

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What clause relates to CEs?

Clause 60

Clause 61 – Notification of compensation events.
Clause 62 – Submission of quotations for compensation events.
Clause 63 – Assessment of compensation events.
Clause 64 – Project Manager’s assessment if the contractor fails to submit.

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CE Timeline?

PMI or CE issued - 1 week
Quote submission - 3 weeks
-Response - 2 weeks

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Whats was the value of the initial project and then the overall total?

-Jig demo - £398k
-Total - £2.4m

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How were you given delegated authority?

Written notice from the PM under clause 14.2

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What was your role in the project?

-Delegated authority role (14.2)
- Not recognised under NEC but a traditional QS role
-Assessment and certification of interim payments,
-Evaluation of compensation events
-Commercial review of contractor proposals

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What challenges were there to achieving VFM?

-No Competitive Tendering
-Incomplete Design
-Unknown Site Conditions

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What is contract negotiation?

Contract negotiation is the process of discussing, adjusting, and agreeing on the terms and conditions of a contract between two or more parties

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Advantages of contract negotiation?

-Quicker start on site
-Continued relationship
-Risk management
-Collaboration &transparency

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Disadvantages of contract negotiation?

-Commercial risk - non comp + CEs
-Design risk

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Advantages of delaying the project?

-Comp tender and cost assurance
-Reduced design risk
-Risk management
-Budget and funding alignment
-Stakeholder engagement

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Disadvantages of delaying the project?

-Delay programme and miss key date
-Unlikely that a full design would have been possible due to unknown conditions
-Market condition changes

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What option was pursued?

Contract negotiation

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What is collaboration?

Working together toward a shared goal, where individuals or organizations contribute their skills, knowledge, and resources to achieve better outcomes than they could alone.

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How did you demonstrate value for money?

-Open tendering
-Multiple subcontractors approached.
-Close discussion with contractor
-Benchmark

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How did you ensure competitive pricing?

-Open tendering
-Multiple subcontractors approached.

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How would you change the project if you were to do it again?

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-Earlier client engagement understanding their master plan to allow competitive tendering practices
- 2 stage dnb approach

What procurement route was used?

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Traditional

Why use a traditional procurement approach?

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-Cost certainty
-Competitive pricing
-Design control

Why wouldn’t you use a traditional procurement approach?

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-Time consuming
-No contractor input
-Lack of flexibility

What is NEC option E

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Cost Reimbursable Contract

Why did you suggest option E

- The scope of work is uncertain -flexibility due to changing requirements or unknown conditions -Early involvement

What are the advantages of Option E

-Flexible -Early contractor involvement -Transparency -Speed of mobilization -Shorter procurement process

What are the disadvantages of Option E

-Client take financial risk -Limited cost control -High admin burden - cost verification

Pricing under option E

The Contractor is paid for actual costs incurred in carrying out the work, plus an additional fee (usually covering overheads and profit).

How did you manage the deteriorating relationship between stakeholders?

- Facilitate Open and Transparent Communication - Realign Focus on Shared Goals -Mediate Conflicts Professionally -Monitor and Adjust Behaviours

How did you manage the deteriorating relationship between stakeholders as per the contract.

10.1 - The Employer, the Contractor, the Project Manager and the Supervisor shall act as stated in this contract and in a spirit of mutual trust and co-operation RICS Ethical guidance - transparency Sypro - communication Robust minutes and audit trail

What benefit would there be for the client to pursue this change under a competitive tender?

-Better comparison of pricing -Better value -Benchmark of programme and cost -Robust Tenders

Is competitively tendering something the only way to get value for money

-No -Competition through subcontractors -Open book approach

Open book approach?

The contractor fully discloses their actual costs

How were you able to assess and agree the 1.9m of cost without a full design

-Close relationship with contractor -Assessment through open tendering -Review against ranges of pricing methods -My own estimate

Did the price change from 1.9 once you had developed the design and site investigation?

-£1.5m for the works -£ 400K of CEs -Example - contaminated waste, investigative works,surveys

How did you advise the client on the risks and benefits of NEC Option E versus Option A in this context, I note Option 3 was to proceed with a different Form of Contract?

-We held a procurement meeting with the client for best steps forward. -We presented key benefits and risks

What construction challenges were associated with demolishing the LVER machines and slabs, and how were these addressed?

-Unknown build up on the machines, heavily reinforced slabs and unknown pile locations -Original manufacturer approached for build up including walk arounds with design team -Intrusive surveys of pile locations and slab build up -Brokk used for slab demo

Describe a situation where you had to challenge a contractor’s valuation or compensation event submission. What process did you follow?

-Challenged valuation as CE had not been agreed to date but had been included within the valuation. -The work had been done on site but had not be agreed therefore, I discussed this with the contractor and made due changes.

How did you advise the client on the implications of tendering without a full design, particularly in the Jig Demolition project

-Via a procurement report demonstrating risk -Price uncertainty - no fix priced contract -Inflated pricing due to risk allowance -Greater chance of CEs -Programme risk

What would you do differently in the future?

-Two‑Stage Dnb Tendering -Early contract engagement -Overlap between design and construction

What services went to the LVER?

-Compressed Air -Water -Elec

What had to be considered in terms of services when working on the LVER/

-Where to isolate -Mitigate disruption to factory area.

Typical infill of LVER pit?

-Stone -Blinding -Reinforcement -Mass concrete infill - dowell joints to side

Loading requirements for slab?

-I dont know exact loading but used for storage of wings and artic lorries

How did you price the LVER Removal and further works

- Removal on benchmark of something similar on a different site -Civils based on element breakdown

How did the contractor price the LVER removal?

-Based on labour rates and equipment

Why is the key issue important?

- 5x more than original CSA -Funding had to be utilised by end of 2024

How was risk dealt with?

-Risk register amended to include all associated risk with the new works

Case Study Flashcards

(48 cards)