Road Construction for the Large Factory Site - Essay Example

Introduction: The report gives a detailed discussion of the procurement strategy followed for providing the procurement for the road project including the bridges, under the ECC (Engineering and Construction Contract). The report also contains the organizational chart according to which the procurement will be carried out along with the time-frame for the tendering process. At the end the possible risks involved in the execution of the procurement strategy are mentioned along with the solutions to the problems. Different types of contracts under the ECC are discussed briefly and some of the specifications regarding the road project are given. The choice of the procurement strategy is justified and maintained throughout the report. Background: The project involves construction of road for the large factory site; the road plan also includes two bridges. As the design phase of the project is complete the next step is to move forward and devise a procurement strategy. Selection of the procurement strategy is the very first phase for the construction of the project. Different types of Contracts under ECC (NEC3): 1. Design and Build: A design and build contract is a unique type of project delivery system used in construction and renovation projects. The client starts with the architectural design after which the tendering is done for the general contracting companies. The client awards the entire contract to a single company which is responsible for all the design and construction work required to complete the project. This system allows the client to deal with a single source throughout the duration of the contract rather than coordinating between various parties. This type of contract simplifies the work of the client. 2. Design, Build and Operate: The design build and operate approach to contracting combines design, construction and long-term operation if a facility into one single contract awarded to a single contractor. The contractor usually is a joint venture or consortium representing all the disciplines and skills required for the DBO arrangement. 3. Design, Build, Operate and Maintain: In this approach the asset is also operated and maintained by the contractor for an extended period of time of 5-15 years or more. It is most likely that the contract conditions are to maintain the asset in a certain state. 4. Traditional Approaches: In addition to these, there are several traditional approaches for a procurement strategy contract under the ECC, these include TSC (training services contract), TSSC (Technical Support Services Contract), PSC (Professional Services Contract) but these are related to provision of certain facilities and services but here an approach which has a broader coverage of construction process is required. Under the ECC, our company has been awarded the Design and Build contract. Before the start of the construction work firstly we have to select among the potential suppliers of the materials and certain services which our company cannot provide on its own. For that we will first pre-qualify certain suppliers. These suppliers will be divided into different categories according to the nature of their supplies. After that the tendering process will take place and the construction process will start implementing the procurement strategy for the Design and Build contract. Why Design and Build Strategy? In this method we being the contractor are responsible for the design as well as construction of the project. This approach is most suitable as it allows the time predictability and cost certainty. As the client you selected us as the contractor of the project for the design as well as the construction of the project, since the design phase is complete, and the design strategies followed and the final design is thoroughly checked and approved by you. During the design our company showed professionalism and proposed the best possible solutions for the design problems so you can trust us with the construction too which means the time you had to spend for the prequalification and tendering of the contractor is saved. And this aspect makes this method a fast track method best suited for the likes of construction project we are currently dealing with. The time you had to spend on the proceedings for acquiring the services of sub-contractors, suppliers and sub-suppliers is also saved as it is our duty now to do that all for you. This will make the tender list shorter than expected. Another advantage of this approach is that since we have designed the project we know the design better than anyone else so it is very easy for us to implement the design perfectly than any other organization. You being the client now have single point of contact i.e. our company and as the costs for the design and construction have already been decided so finances is not a worry now. Construction Program Tendering Process: Since the project is now in the construction phase, our company will now start the prequalification and the tendering process for the material suppliers and the sub-contractors for certain services. Prequalification The prequalification has the following stages: 1. Assessment of other agencies lists (5 days): Firstly the lists made by other construction companies should be checked. This can save time if suppliers and sub-contractors with good repute and experience are easily found in those lists. 2. Setting up the prequalification scheme(10 days): For this the following things have to be established: i. Procedures for reviewing the applications ii. Assessment criteria iii. Application forms with the required information iv. Procedures for new applications v. Procedures for reviewing ongoing status and capabilities of the service providers vi. Appeals handling procedures vii. System for managing records viii. Administrative set up for carrying out the process 3. Advertising for expression of interest (5 days) 4. Operation of prequalification scheme (12 days): Scheme operation involves: i. Assessing applications and announcement of the prequalified service providers ii. Hearing the appeals of the rejected suppliers iii. Maintaining details of the scheme Tendering After the prequalification the next step is the tendering of the final services providers of the services which our company cannot provide (suppliers and sub-contractors). The tendering process to be followed is the Competitive Dialogue Procedure. This will allow a detailed judgment of the service providers prior to selection. The time periods and the details of the tendering process are: 1. Advertising in newspapers: The advertisement is to be carried out for 18 days specifying that the competitive dialogue procedure is to be used. 2. Conduction of dialogue (12 days): A dialogue has to be conducted with the interested suppliers to identify the best solutions to fulfill the needs. 3. Submission of tenders (5days): On conclusion of the dialogue the suppliers are invited to submit the tenders. The award criteria stated in the advertisement notice must be used to evaluate tenders. 4. Return Period (40 days): A 40 days return period will follow. 5. Selection (12 days): The final selection is done on the basis of value and lowest price. 6. Notification Period (10 days): All the tendering parties are notified about the outcomes and 10 days cooling period is allowed. 7. Award of Contract and de-briefing of unsuccessful parties 8. Final Announcement: The final announcement of the award of the tender is made and within 48 days of the award of contract. Outline of the Specifications and Quantities: The outline of the specifications and the quantities of different materials for the construction of the roads including the bridges is as follows: Sr. No. Description and Specification Unit Quantity 1. Cleaning and Grubbing of top soil, cutting, removing and disposing of all materials such as trees, bushes, shrubs, stumps, roots, grass, weeds, top organic soil not exceeding 100 mm in thickness, rubbish etc and disposal of the cleared materials. Hectare 20 2. Earthwork in excavation necessary for construction of roadway/shoulder/verge/median etc. in all types of soil. m3 11000 3. Construction of Sub grade and Earthen Shoulder satisfying the requirements of minimum soaked CBR value of 7 with approved material obtained from borrow area with all rolling and watering. m3 10000 4. Providing and Filling in median with approved available material with all compaction, watering and ramming etc. m3 8000 5. Construction of Granular Sub-Base by providing machine crushed close graded black trap aggregate of Grade-I, spreading in uniform layers with motor grader on prepared surface, mixing by mix in place method with rotavator at OMC and compacting with vibratory roller to achieve the desired density. m3 22000 6. Providing and Laying Wet Mix Macadam with clean machine crushed black trap aggregate, premixed with water to a dense mass on a prepared sub grade/sub base to template in uniform thickness and consolidation with power toad roller of 8 to 10 ton capacity in stages to proper grade and camber, rolling with protecting edges, lightening, guarding, barricading etc m3 20000 7. Providing and laying single coat of low viscosity bituminous primer coat over granular surface/water mix macadam with bitumen of grade 80/100 @8 to 9 kg/10 sq. meter using self propelled sprayer equipped with self-heating arrangement, pump, compressor and spraying bars with nozzles having constant volume or pressure system. m2 80000 8. Providing and laying dense graded bituminous macadam with 100-120 TPH batch type HMP producing an average output of 75 ton per hour using crushed aggregates of specified grading, premixed with bituminous binder (60/70) @ 4.25 per cent by weight of total mix, transporting the hot mix to work site, laying with a sensor paver to the required grade, level and alignment, rolling with smooth wheeled, vibratory and tandem rollers to achieve the desired compaction. m3 7500 9. Providing and applying evenly tack coat with liquid bitumen(80/100) content of 2.0 to 2.5 kg/10 m2 on subsequent layer of DBM. m2 80000 10. Providing & laying Asphaltic Concrete with 100-120 TPH batch type hot mix plant producing an average output of 75 ton per hour using asphalt grade of 60/70 @ 5.0% of the weight of the total mix with specified aggregate sizes, transporting the hot mix to work site, laying with a sensor paver to the required grade, level and alignment, rolling with smooth wheeled, vibratory and tandem rollers to achieve the desired compaction. m3 3500 11. Providing and laying of plain cement concrete of P.C.C. M15 grade below man hole, catch pit, footpath, guide wall, retaining wall and other structures as per drawings. m3 1400 12. Providing and laying Dry Lean Concrete (DLC) of M 15 grade below cycle track and footpath and compacting the same with 8 to 10 ton vibratory roller. m3 6000 13. Construction of unreinforced, dowel jointed, 150 mm thick M25 grade plain cement concrete pavement in conformity with the lines, grades and cross sections shown on the drawings. The work shall include furnishing of all plant and equipment, materials and labor and performing all operations in connection with the work. This also includes contraction, expansion, construction and longitudinal joints. It shall also includes joint filler, keys, caulking rod, debonding strip, sealant primer, joint sealant, dowel bar and tie rod. For construction of road TRIMIX vacuum dewatering system shall be used. It should be broom finished. m3 8000 14. Providing and laying of cement concrete of RCC M 25 grade for man hole, catch pit, retaining wall and other structures as per drawing. m3 6000 15. Providing and laying hot applied thermoplastic road marking compound in approved color and shade for road marking on bituminous/concrete road surface in edge line 150mm wide 2.5mm thick using fully automatic extrusion machine and using pre-melter for melting thermoplastic Material including cleaning the surface of all dirt, dust, and other foreign matter, demarcation at site/pre-marking, finishing and managing the traffic control etc. The thermoplastic compound shall be of approved color and shade. Marking to be done as per specifications, detailed drawings and as directed.(Yellow) m2 4000 Procurement Strategy: In DBO the Contractor operates the asset over a compliance period primarily to prove the contracted assumptions. The contract strategy for this can be one of two approaches, with the choice largely being down to length of the operating period. If a relatively short operating period is required then the D&B element of the project could be encompassed as a section of the whole of the works within the ECC with the operating period being a second section. Payments for the design, construction and operation would follow the chosen ECC payment option. If the operating period was a considerable length of time then it may be preferable to enter into two contracts, ideally at the same time, one to D&B under ECC and the other to operate under TSC. The assumption here is that no further design is required in this period which is the case with our project as the design phase is complete, though of course this could be provided on a subcontracting basis if required. Since the project magnitude is not very large therefore the Design and Build approach is good, if the magnitude would have been larger DBOM approach would have been used. But being the consultant as the design work is already complete we will now enter the construction phase and complete the project as soon as possible. The following flow chart shows the design-and-build organization for the project. The flow chart shows the organization and the list shows the procurement pathway with special reference to material procurement. Figure 2 Procurement (material) management The procurement for the project will be provided according to this plan and will be have double checks mechanism to ensure quality and efficiency. Conclusion: The design and build approach will be used for procurement management under the ECC contract. This approach is very good for short termed contracts like the one in this case where the design work is complete and the construction phase is also not very long. The procurement management will be double checked to ensure efficiency and quality. References Derek H. T., Walker, Hampson K. (2002) Procurement Strategies: A relationship-based approach, Wiley-Blackwell Bhimani A., Horngren C. T., Datar S., M.,(2008) Foster G. Management and Cost Accounting: Prentice Hall Read More