Type of paper: Report

Topic: Procurement, Design, Sports, Risk, Route, Customers, Project, Construction

Pages: 6

Words: 1650

Published: 2020/09/17

Report writing for the re-development project

Introduction 3
Objective 4

Recommendation 7

References .8

Executive Summary
Project title is: The Craigmount Community Park.
The foundation of the assignment is: the redevelopment of the Craigmount Community Centre to a local community park.
Purpose of the assignment is: to offer local community a place to enable a diverse community involvement and interaction through delivery of a prestigious community sports hub facility and a new state of the art development including leisure, health, education and lifelong learning facilities to increase the health and well‐being of the local community.
Financing sources are: initiator’s funds, bank loan, sale in advance.
Total amount of investment is: estimated at £36 million.
The site is located within an urban residential and commercial area with adjusted buildings and a shopping centre. The proposed site will require the demolition and refurbishment of a number of existing structures, as well as a number of new constructions as follows:
Construction of a new health and fitness centre including two squash courts, two swimming pools, conference facilities, and a medical practice and pharmacy adjacent to the existing library. This will require the demolition of the existing boiler house adjacent to the existing sports hall;
Refurbishment of the existing sports hall, dance studios and café;
Major renovation and extension of library and ICT facilities and teaching facilities, including replacement of the existing mechanical services installations.
The following external facilities will also need to be carried out as new constructions:
Walking and cycling paths;
External sports areas including artificial pitches;
Skateboarding and BMX cycling facilities;
Community Park and playgrounds.
The chosen project will be inspirational. Its cost is appropriate as well as the period for construction. Factors as time and cost are very important because the Customer is extremely worried about potential project postponements and excess of expenses beyond the budgeted payments. Price confidence is the most important. Worth for money bearing in mind the existing economic environment is crucial as well. In case any of factors isn’t met sufficiently, the project can be jeopardizes. Technically the project is going to be of medium complexity, because it requires implementation of water delivery system, natural gas supply, heating system and canalization. This concerns only utilities. However, in general there also will be procurement of all raw materials necessary for the construction of centers. Refurbishment expenses of facilities and equipment include the repair and room design (which includes the cost of materials, equipment, workers’ wages, and designer’s fee) and purchase of necessary furniture, interior items, sports equipment. Risks are always present and can be external (problems with suppliers, getting allowances, some legislation restrictions, etc.) or internal (like problems with staff or other operational risks). In order to mitigate potential risks the appropriate strategy should be applied.
The activity of the Craigmount Community Park includes the development of training programs on sports, cultivated in the city, promotion of a healthy lifestyle, together with the department of sport and fitness programs, advertising and production of promotional items (customer acquisition), planning for rehabilitation of athletes, in conjunction with the department of sports and recreation programs, development of working documentation for athletes, in conjunction with the information and methodical department and organization of service (schedules coaches sport, training gyms to work, etc.).
The task of the assignment is to provide the Client with the most appropriate procurement route. Therefore, after conducting deep analysis of available procurement routes, clients’ requirements and necessary resources, it was decided to follow Design and Build procurement route. It is worth to mention that no procurement route suggests a key to all concerns, so there is constantly a concession. Considering the fact that each procurement route can provide with pros and cons, the Design and Build procurement route can assure the advantage of earlier beginning of building process, which can lead to the reduction of the general project order schedule – from initiation to completion. Secondly, a lump sum can be gained prior to the design is finished. The company cooperates only with one organization in order to be responsible formerly the design and build agreement is rewarded. Also, the company can be in contact with the contractor and available expert sub-contractors and providers untimely in the design course to obtain a more matter-of-fact build-able result. Given the fact that contractors can design expert basics at a lower price in comparison with qualified consultants, Design and Build procurement route provides with the opportunity to decrease overall expenses. Finally, applying Design and Build procurement route will ensure the capability to take on a two phase procurement method and to elaborate the project group to the Design and Build service provider.
Design and Build procurement route is used when time and expenditure confidence are necessary at the beginning. In addition, construction of the Craigmount Community Park is purposeful rather than influential due to its further various community participation and interaction. This type of procurement route is one of the procurement routes supported by the government intended for publicly-invested ventures, since it permits a totally included team to elaborate jointly the project at the outset. In case the design is assured to be concentrated and implemented in the parts significant for the employer, the buildings will be delivered for the highest price for money and completed at the best quality level. Additionally, it is crucial that the employer’s demands are provided in the agreement in a way that supports the company.
Procurement work is the basis of commercial activity in the trade, since commercial operation essentially begins from it. To get the best deals for large purchases an open tender should be held. The method of procurement as a two-stage tender is often resorted when the customer is not willing to immediately articulate requirements for the subject of the competition. A closed competition involves only suppliers specially invited by the customer. The procedure for the selective competition occupies an intermediate position between open and closed competitions and consists of two elements: the collection and selection of applications for participation in the competition; competition among selected candidates. Request for quotations’ method is used for the acquisition of the standard (production) of goods, works and services for which there is a mature market. If competitive procurement methods do not lead to the conclusion of the contract, or there is an urgent need for the purchase, the customer is limited to the negotiation with potential suppliers. The main method of procurement of services is a request for proposals. This procedure is also applied in cases, where the customer is known for the purpose of purchasing, but not well understood ways to achieve it, and he wants to seek solutions to their problems from the supplier.
Defining the criteria of the project helps in choosing procurement route of construction works / services as the most suitable way is the one that distributes the risks between the customer and the contractor in the most suitable way for the customer. The choice of an appropriate procurement route depends on the relative importance of the procurement criteria. The most common procurement routes are considered to be traditional, design and build, management contracting and construction management. Each of the methods has its own strengths and weaknesses with respect to each procurement criterion.
The main advantage of the Design and Build procurement route is reduction of the time since construction could begin before the completion of the detailed design. In addition, the exact cost of the project is known prior to the design, and by hiring the same company for design and construction, it is possible to achieve some savings by increasing the amount of contractor’s work. Design and Build procurement route considers contractor’s ability of employment of personal internal designers to plan the construction, or it can hire advisor designers, or the contractor is able to engage customer’s designers to finish the design project (choosing between innovation or consultant control). Design and Build procurement route is applicable to any customer, but in the case of complex projects, D & B contractor must have the necessary qualifications and preliminary specifications of the customer should be detailed and precise.
While creating the Craigmount Community Park, the Client is going to face some risks. Operational risks are risks associated with various disorders in the delivery of services. In this case, it is a disease of the main trainers or failure of exercise equipment. If the coach is sick, then his sickness will have to abandon this type of service. As a result, the losses will be incurred in the form of payment of the purchased tickets for this sport. But, forming a staff such that for each sport there will be 2 interchangeable trainers, operational risks associated with the disease coaches will be minimized. It is possible that all sports equipment can be broken at some circumstances (for example, the roof leaks, and all equipment will turn iron into a pile of rusty metal). Although the probability of this risk is very small, it is still necessary to monitor the status of sports equipment and facilities, i.e. halls. Particular attention should be paid to the fire safety of the building.
Commercial risks are risks associated with the implementation of services, in this case, sports (reduced demand). The company must diligently as possible to attract consumers by promoting a healthy lifestyle through sports and physical culture. And also to reduce the commercial risks it is necessary to form a network service, to maintain an appropriate pricing policy, shape public opinion and identity, as well as to promote sports facilities.
Financial risks are risks caused by inflationary pressures, currency fluctuations, and so on. These risks can be reduced only through an effective system of financial management.
Force majeure risks are the risks arising from unforeseen circumstances (from the change of political course of the country to strikes and earthquakes). Measure to reduce them is the work of the company with sufficient financial strength.
Building and Construction Authority (2014). Public Sector Standard Conditions of Contract for Design and Build. [pdf]. [Online]. Available from: <http://www.bca.gov.sg/PSSCOC/others/4_DB_Contract.pdf>
Cost Reimbursement Contracts (n. d.). [Online]. Available from: <http://staff.fit.ac.cy/eng.ls/Skevi/ACEC438/ACEC438%20Contract%20types%20presentation.pdf>
CRC Construction Innovation (2008). Report: Building Procurement Methods. [pdf]. [Online]. Available from: <http://www.construction-innovation.info/images/pdfs/Research_library/ResearchLibraryC/2006-034-C/reports/Report_-_Building_Procurement_Methods.pdf>
Designing Buildings Wiki (2014). Procurement route. [Online]. Available from: <http://www.designingbuildings.co.uk/wiki/Procurement_route>
Kerzner, H. R. (2013). Project Management: A Systems Approach to Planning, Scheduling, and Controlling. New Jersey: Wiley.
Millman, S. (2013). Design and Build Procurement: Cutting Through the Misconceptions. [Online]. Available from: <http://www.fgould.com/middle-east/articles/design-and-build-procurement/>
The National Archives (n. d.). Procurement routes. [Online]. Available from: <http://webarchive.nationalarchives.gov.uk/20110118095356/http:/www.cabe.org.uk/buildings/procurement/routes>

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