Project Guide
For Project Managers, Consultants
And Client Departments
Edition: June 2005
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INDEX
PageIntroduction
1. / Capital Works - The Process / 1
2. / Project Management / 2
3. / The Stages (Overview) / 5
4. / Establishing the Project Organisation / 7
5. / Feasibility/Option Appraisal/Strategic / 10
6. / Outline Proposals / 12
7. / Detail Proposals / 17
8. / Production Information/Working Drawings / 20
9. / Construction/Handover / 23
10. / Commissioning Defects/Final Account / 27
11. / Post Contract Review / 28
12. / Summary / 29
13. / Appendix 1 - Sample documentation of Draft EU OJEC Notice
Available online at:
www.simpa.eu.int/eN/pub/src/welcome
www.achilles.com
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INTRODUCTION
Over the past twelve years the University has successfully undertaken a substantial programme of capital work, designed by both in house and external consultants and guidance has been issued by this office from time to time on various aspects of the construction process. The first was in respect of client briefing (November 1995) and in July 1996 the first Capital Project Guide was produced. This document was revised in January 1999, September 2000 and July 2003 and it is our aim to keep it up to date with new procedures. Estate Services has also reviewed the way University Capital Projects are managed in line with the Code of Practice for Project Management for Construction and Development (3rd Edition) from the Chartered Institute of Building.
This Project guide is intended for use by Project Managers, Architects, Quantity Surveyors, Engineers and other Consultants, as well as client departments. The document sets out in detail the stages of the construction process and identifies the people and University departments involved. It provides a useful checklist and is applicable equally to major or minor construction projects and new build or refurbishment schemes.
The guide should be read in conjunction with the Estate Procedures document published by HEFCE in October 1993 which sets out the general framework within which the University Estate should be managed. Although these procedures were designed primarily for HEFCE funded projects the Council consider that they represent good practice and recommends that they are used for all projects. Reference should also be made to the University Financial Regulations and the University Purchasing Guide.
We shall continue to review our guide regularly and also provide further detailed advice on specific areas from time to time. The latest version will be posted on Estates Website at http://www.leeds.ac.uk/estate_services/pages/07_down/cap_prj.pdf for download.
We hope you find the guide useful and would be grateful to receive any comments you may have. Please use the feedback links on our website or e-mail us at .
D R SLADDIN
Director of Estates
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1.0 CAPITAL WORKS
THE PROCESS
Estate Services undertakes a significant programme of capital works. Over the last ten years the majority of schemes has been completed on time and within budget. However the Service, like the rest of the construction industry has tended to concentrate its activities at a tactical and operational level rather than adopting a strategic approach. In addition, although “clients” have been involved in the process we know we can improve on past weaknesses where we have failed to fully evaluate the clients requirements and business plans at the briefing stage. We recognise it is vital that our methods of procurement offer excellent value for money, and match those considered the “best practice” in the industry, including sustainability and environmental criteria as set out in HEFCE guidance. Accordingly, Estate Services is structured on a multi-discipline basis and we have now extended the use of Project Management for all schemes, other than the smallest.
In 1995 in accordance with HEFCE guidance, the University published its Estates Strategy which laid out the University’s proposals for future capital and estate development over the period of 1995-2005. This Strategy was then reviewed in accordance with the University’s revised corporate plan and republished in May 2004 to cover the period 2003-2013.
The Strategy will be subject to regular reviews in the light of the University’s changing requirements as identified in the Corporate Plan. It is then used to generate the capital development programme. The programme is not site specific but merely indicates a project need, ascertained through the Estates Strategy and that capital funding will be required to resolve the specific problems. Once projects are included within the capital programme and approval has been given to the scheme proceeding, then and only then, will the formal project management process commence.
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2.0 PROJECT MANAGEMENT
Project Management may be defined as the overall planning, control and co-ordination of a project from inception to completion aimed at meeting a Client’s requirements in order that the project will be completed on time within authorised cost and to the required quality standards.
The Project Manager, acting on behalf of and representing the Client has the duty of providing a cost effective and independent service. He or she co-ordinates and manages different disciplines and expertise, to satisfy the objectives and provisions of the project brief from inception to completion. The service provided must be to the Client’s satisfaction, safeguard his interest at all times, and give consideration to the needs of the eventual user of the facility.
In his/her dealings with the Project Team, the Project Manager has an obligation to recognise and respect the professional codes of the other disciplines which make up The Team.
Project Management starts by gaining an understanding of the Client’s objectives and by providing the expertise to allow the Client to define more precisely what is needed and how it can be achieved. In this way Project Management can influence the decisions on the type of facility required, its use, architectural concepts, construction time scale and cost criteria, including ‘cost in use’ throughout the lifetime of the project.
In consequence, recognition and control of risk is critical. All projects go through two distinct phases. The first of these, feasibility, involves site acquisition and site conditions, financial viability, funding, planning permissions and a number of “what if” scenarios, and, the second phase involves the important commitment to proceed. The objective of Project Management is to anticipate and reduce the effect of risk arising from phase 1, rather than dealing with it as it arises and after phase 2.
Figure 2.1 illustrates the relationship throughout the project between the “scope for change” and “the cost of change”.
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By considering all relevant matters in detail at the earliest stage the Client can establish a comprehensive project brief, and thereby highlight the parameters of cost, time, quality, functional capability and specify the contractual aspects and applicable agreements. The importance of this brief cannot be over-emphasised, as it constitutes the key reference document for the project. Therefore it is essential for the client to commit adequate time and resources to its preparation. It should also be subject only to minimal change once the detailed design commences and after the scheme is ‘frozen’. There should be sufficient details and enough information to allow the Professional Team (Design Team and consultants) to finalise conceptual design.
The Estates Board has now agreed that for all major projects a Project Manager will be appointed (either internal or external), who will be responsible for the management of the project and will ensure that the scheme is adequately designed, complies with the client brief, comes in on time and is within the budget.
The following requirements were also applicable as at June 2005: -
· For work over £3.8M approximately Works Directive 93/37/EEC shall apply.
· For projects of 1,000 sq m or more, the Energy Performance Directive 2002 shall apply.
· Attainment of BREEAM ‘Excellent’ or ‘Very Good’ ratings shall be considered as early as possible.
· All Estate Services Contractors are assessed for compliance with Constructionline, CHAS, Employer’s Liability Insurance and Public Liability Insurance (£10M). This vetting is undertaken by Estates Procurement section.
· For minor schemes, Estate Services’ Design Office may undertake projects; or if work involves minimal or insignificant design input, schemes may be processed through Estates’ Asset Maintenance Teams.
For all supply or services EC purchasing thresholds shall apply) currently £154K approximately) with procurement via OJEC, etc.
The following requirements are applicable to tenders or quotations: -
£5k–£25k value - 3 written quotations
£25k-£50k value - 3 formal tenders
£50k-£154k value - minimum of 3 formal tenders*
*For values greater than £100k it is usual to obtain 6 formal tenders*
In broad terms, the Project Managers’ duties will be based on the RICS Project Management Memorandum of Agreement and Conditions of Engagement, Third Edition, Published in September 1999 including additional Item 17 as follows: -
17.1 Included in the fee should be a continuing project management service pre and post practical completion to manage the following aspect of the clients’ occupancy of the completed building
17.1.1 Manage and co-ordinate the appointment of interior designers/furniture layout designers who will order and place furniture, both fitted and loose into the completed building.
17.1.2 Ensure that the furniture and client fit out is completed within an agreed programme and to work with the University in-house staff with regard to furniture.
17.1.3 To manage and co-ordinate with University staff, the move of the University staff and departments into the building, including staff belongings and equipment.
17.1.4 To co-ordinate the installation of signposting within the building in addition to the statutory signage in the contract.
17.1.5 To co-ordinate the lock suiting of the building by the University locksmiths.
17.1.6 To co-ordinate the appointment of independent consultants to carry out a post contract review within one year of practical completion.
The Project Manager’s duties will obviously vary with individual schemes, but it is envisaged that the schedule of services could embrace all or most of the following: -
2. 1 Schedule of Services
1. Site selection;
2. Analysis;
3. Agency valuation, funding and relocation (where appropriate);
4. Legal services;
5. Consultant appointments, including those through Framework Agreements;
6. Procurement options
7. Brief Design, quality and control;
8. Reporting of project meetings;
9. Programming;
10. Capital Budgeting;
11. Contractors appointment
12. Construction, economics and financial management;
13. Cashflow;
14. Local Authority and planning approvals and other approvals;
15. Contract procedures;
16. Contract management;
17. Building management, commissioning and maintenance;
18. Tenancies and fitting-out.
For further information on the application of Project Management to Construction and Development reference should be made to the Code of Practice for Project Management for Construction and Development, Third Edition 30 September 2002, published by the Charted Institute of Building.
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3.0 THE STAGES OF A PROJECT
3.1 Establish Project Team
This includes defining the roles, responsibilities and allocation of tasks for all those involved in Working Groups, Project Sponsorship, Client liaison Design and Project Management.
3.2 Feasibility/Option Appraisal/Strategic (RIBA Stage A)
At the outset, some fundamental questions should be settled. Do we need a project? Is the problem that is being tabled a real issue? Is there a real business opportunity to be grasped? Have we got a brief? What other options are available?
The activities at this stage focus upon defining the business need and its objectives. It brings together client needs with the business strategy to answer the key questions - do we need a project?
The feasibility stage explores the full range of options that could meet the need and objectives identified and determines the preferred solution. It questions is construction the right answer; or can we solve the problem by reallocating resources or changing the way we do things? When all other practical alternatives have been exhausted and not before, construction may then be considered, including the possibility of new build and/or refurbishment.
3.3 Outline Proposals (RIBA Stages B, C)
Once the preferred solution has been identified (via the option appraisal/feasibility route) the design team will be formally appointed in accordance with the procedures outlined in Section 6.1.
At Outline Proposal stage, the scheme will be developed sufficiently to determine a general approach to layout, design, construction and costs (both initial capital and operational costs may be relevant) in order to obtain the approval of the client and as set out in the accompanying report.
The physical and environmental impact of proposals should also be taken into consideration, including operational and performance data.
This stage will also include the completion of the brief and decisions on particular proposals, including: general arrangement, appearance, constructional method, outline specification, planning, the method of procurement, safety and sustainability aspects.
3.4 Detail Proposals/Final Proposals
(RIBA Stages D, E)
At this stage the detailed information is collected in respect of room data and detailed engineering requirements. We develop the design together with our consultants to see how the elements of design fit and work together and sufficiently to predict cost, construction, safety, radiation and fire, environmental and operational performance. We also consider different methods of procurement before we proceed to the detailed production information stage.
3.5 Production Information Stage
(RIBA Stage F, G)
At this stage, the architects and other consultants take the scheme to full working drawing stage and bills of quantities are produced by the quantity surveyor. It is vitally important at this stage that the scheme is adequately designed so that when the project starts on site the contractor has sufficient information. It is essential, therefore, that the time allowed in the programme is adequate for the consultants to design the scheme in sufficient detail.
3.6 Tender Action (RIBA Stage H)
Tenders have to be obtained in line with the University’s Purchasing and Financial Regulations and based on the procurement method chosen by the Design Team. Any re-tendering or post-tender negotiations must also be in line with these requirements.
3.7 Construction - Building it as Planned
(RIBA Stages J, K)
The construction stage brings together all the previous design, planning and consultation work. In other words, what finally gets built is exactly what everyone has agreed to. No change should occur once the contract has gone on site. (Note - any changes should be avoided after the detailed design has been produced). Changes at this stage could have serious implications for cost and programme.