Community Church Refurbishment Procurement Methods MC - Report Example

The Village Hall Name Institution Date Task 1: Procurement Routes and Form of Contract In construction, an acquisition route is described as the network of relationships created between clients, their consultants as well as construction companies. The creation of such relationships is usually for the purpose of enabling the achievement of a building project. Building contractors should be able to differentiate procurement routes and select the one that is suitable for their building project depending on the risks and cost constraints (Lupton, Cox & Clamp 2009, p.1). This report presents various procurement routes that the Bury Port Community Council can consider a selection of the most appropriate procurement route for the building project. There is also a discussion of a suitable contract for the procurement route. 2. Procurement Routes There are various procurement routes available for Bury Port Community Council to choose from including traditional and modern procurement routes. However, the most appropriate for selection depends on nature as well as the scope of the proposed construction work. It also depends on the apportionment of the risks, responsibility for design, coordination of work as well as contract awarding (The National Archives 2011, p.4). The committee can select from the following discussed procurement routes; 2.1 Traditional Methods This approach involves the client accepting the appointment of consultants for the design, contract administration as well as cost control (CRC Construction Innovation 2006, p.3). The client also agrees that the contractor takes the responsibility of undertaking the construction works. The contractor also has the role of sourcing the workers, sub-contractors, materials and suppliers (The Chartered Institute of Building 2010, p.5). The client may take the role of selecting some of the sub-contractors to work with the contractor. In these situations, the contractor can take full duty or part of it on the subcontractor’s performance. When the contractor takes part of the responsibility, then there must be collateral between the client as well as the sub-contractor. In the traditional procurement route, a contractor is selected through competitive tendering or appointed through negotiation or even partial information. The traditional approach is limited by the design and construction that can run parallel. Even though it allows start early work on the site, there is less certainty about costs. 2.2 Design and Build Methods Procurement Methods In this approach, the client appoints design and cost consultants since one does not have the expertise. The contractor may take the full or partial duty to plan and undertake the work and also appointing consultants. The arrangement may be for making the overall design as well as construction or for the development of design and information production by the client’s consultant scheme design (Juliana, Ramirez & Larkin 2005, p.143). Appointment of the contractor is either through a competitive tendering process or by agreement negotiation. Agreement for design and build with one contractor is called Single Direct Design and Build. Where there are several contractors, it is referred to as Competitive Design and Build. However, the later takes a longer time but produces a better design with the certainty of costs and timing (Lupton, et al., 2009, p.1). In the design-build procurement, when entering the design and build contract, the client requires the contractor to make an appointment of some or all of the consultants through the process of novation or consultant switch. The agreement made between consultant, client and contractor is complicated. There are also terms of the contract between the client-architect and the contract architect and this complicates the approach more (Icon.Net Pty Ltd 2004, p.13). 2.3 Management Procurement Methods These involve the management contracts and the construction contracts entered into by the client and the contractor. Management contracts require the client to begin with the appointment of consultants who will prepare the drawings of the project as well as the project specification (Queensland Government 2015, p.1). Selection of the management contractor is through tendering and interviews and paid based on services schedule, management fee as well as prime costs. The management contractor manages the work execution and does not have a direct involvement in undertaking the construction work (Icon.Net Pty Ltd 2004, p.14). The performance of the construction work is in parts by the work contractors appointed by the management contractor. The management contractor may also accept the role of design liability in some of the procurement arrangements. The works contractors report directly to the management contractor. There is good coordination of the project, flexibility and leads to a better operational efficiency as well as speed. When the management contractor takes full duty for design and construction, the approach is referred to as Design, Manage, and Construct. The approach is characterized by a procurement method led by a contractor (Lupton, et al., 2009, p.1). However, it can also be architect-led. When the architect undertakes the small works without the involvement of the contractor, it is also regarded as a procurement method. The approach requires high expertise and experience to set up and manage the operations. Many of the architects do not possess these skills and it’s difficult to get a competent one. Construction management contracts, on the other hand, are drafted by the client and have a lead designer who takes the responsibility of the entire design (Ellison 2016, p.1). There is a construction manager with the duty of managing and coordination construction work. The client takes the responsibility to direct the project and enters into the contracts of trade needed when building the project. In this procurement route, the client takes a direct and contractual the responsibility for all the contracts of trade (Tsirogiannis & Misko 2009, p.1). The construction manager has less accountability for costs and time, hence, the client taking the greatest risk. 3. The Suitable Procurement Route for Bury Port Community Council The Bury Port Community Council should adopt the management methods of procurement. Specifically, a construction management contracts is a suitable procurement route for the project. The construction requirement of the village hall coincides with the construction works that will be undertaken on the site using this procurement route. The village hall requires substantial refurbishment and extensions to include a small library, computer facility, and youth club. The financial needs of the construction work require close monitoring so as complete the project and extend the contract by adding stage lighting when funds are available. The collected funds for the project are in excess. Therefore, efficient management of the resources through close monitoring by the client will help complete the intended construction works for the village hall on time. The construction management contracts type of procurement route involves the client taking full responsibility for drafting the whole construction design (Ellison 2016, p.1). By adopting this procurement route, the committee at Bury Port Community Council as the client will appoint the building manager to take the responsibility of managing as well as coordinating the construction work. The committee will be able to direct the structure of the village hall by entering into arrangements of business that may be necessary for the project execution. Through a direct control and responsibility of the contracts of trade, the committee will be able to actually account for the costs and time of completing the renovation of the village hall and other small projects proposed. 4. Form of Contract The most suitable form of contract for adopting by the village hall committee is the managing contractor type of standard form contract. The village hall refurbishment is not a residential building, and the managing contractor type of contract is appropriate for the non-residential construction sector. In this case, the commonly used managing contractor contact is known as the Managing Contractor design and construction management. It is a construction contract that involves a negotiated General Service Contract (GCS) (Australian Procurement and Construction Council 2014, p.39). The reason for selecting this form of contract for the Burry Port Community Council is because it matches the procurement route that they are going to adopt in the construction project. The committee will select a construction management contract, and therefore, the Managing Contractor Design and Construction Management Contract is the appropriate standard for contract suitable for this procurement route. 5: Task 2: Terms of Contract So as to implement the changes to the agreement proposed by the local environmental health department, the village hall committee needs to negotiate and change the initial contract to include the new changes for works to cut the sound transmission from the structure or ensure complete banning of all noise events from the continuing project. According to the Queensland Government (2015, p1), the managing form of the contract requires the client to prepare the project brief together with the budget estimate as well as the completion time. The standard for contract allows for flexibility when new decisions needed made regarding the project execution. To accommodate construction works that will cut the noise transmission from the structure; the managing contractor should work together with the client in revising the project brief and refining the design to include the new requirements as per the budget and time constraints (Queensland Government 2014, p.33). After making the amendments, the Managing Contractor will submit the Guaranteed Construction Sum Offer to the committee (GCS). After accepting the GCS, the council will allow the Managing Contractor to proceed with the design as well as the documentation and management of the construction. Various conditions of a contract are available for the managing contractor when executing the agreed amendments and the remaining part of the building work. Regarding noise, disturbance and nuisance control, the managing director will take the steps to reduce noise and prevent fleeing of any material from the construction site on the property as well as roads next to the site (Queensland Government 2014, p.34). By entering into this contract, the managing contractor guarantees that there was an assessment of the Site for potential disruption, delays, suspension and any extra costs that may be required in undertaking the additional work. The extensions are necessary to accommodate the costs and time for performing the contractual terms due to potential noise nuisance. There are provisions for inclusion of an allowance of accounting for any requirements of operation on the construction site in the tender documents (Queensland Government 2014, p.34). The delays, suspension, disruption or any extra costs, including an alteration of working hours and methods requirement due to the Managing Contractor compliance with the clause will require various measures taken. The managing contractor must sign that there will be not claimed and guarantees the client and in this scenario, the committee, that there will be no claiming for any extra amounts or time extensions from the principal (Fox 1998, p.13). Additionally, the managing contractor should warrant that there will be no frustration of the contract. The MC will also indemnify the client against all expenses, damages and costs sustained by the principal due to the neglect or defaulting of the MC in compliance with the clause. These terms and conditions will provide a solution to the committee on how to include the new design amendments to the original construction contract between the client and the client. References Australian Procurement and Construction Council, 2014, Building and Construction Procurement Guide: Principles and Options. Sydney, A4. CRC Construction Innovation, 2006, Procurement Routes: An Overview, Curtin University of Technology. Ellison, M, 2016, Project and construction management, Construction Law, Available from: < http://www.constructionlawmadeeasy.com/projectandconstructionmanagement> Fox, P, 1998, Federation Square: Managing Contractor Agreement, Office of Major Projects, Vol.1. Icon.Net Pty Ltd, 2004, Building Procurement Methods Report, Research Project No: 2006-034-C-02, CRC Construction Innovation. Juliana, C., Ramirez, A., & Larkin, B, 2005, Construction Management/Design-Build, Lorman Seminar. Lupton, S., Cox, S., & Clamp, H, 2009, Which Procurement Method? Contracts and Law, 4th ed. Queensland Government, 2014, Managing Contractor – Design and Construction Management, Stage One with an option for Stage Two: Negotiated Guaranteed Construction Sum, Conditions of Contract, Vol.2. Queensland Government, 2015, Managing contractor, Forms of Contract, Department of Housing and Public Works, Available from: The Chartered Institute of Building, 2010, A Report Exploring Procurement In The Construction Industry, Available from: < https://www.ciob.org/sites/default/files/CIOB%20research%20-%20Procurement%20in%20the%20Construction%20Industry%202010_1.pdf> The National Archives, 2011, Select a Procurement Route, Government of UK, Available from: < http://webarchive.nationalarchives.gov.uk/20110118095356/http:/www.cabe.org.uk/files/free-schools-procurement.pdf> Tsirogiannis, N., & Misko, M, 2009, Relationship contracting: the managing contractor model, Project Insights, Clayton UTZ, Available from: Read More