Project Planning and Contractual Issues

This report discusses project planning and contractual issues in the context of a renovation project. It covers topics such as procurement strategies, relevant forms of contract, and tender documents. The report also includes a proposal for the project, approximate cost estimation, and methods for identifying and appointing a construction organization.

Project planning and Contractual
Issues

Table of Contents
Introduction......................................................................................................................................1
Proposal.......................................................................................................................................1
Project cost for conversion..........................................................................................................3
Project cost for conversion..........................................................................................................3
Procurement strategy...................................................................................................................5
Relevant forms of Contract.........................................................................................................7
Tender documents.......................................................................................................................8
Method for identification and appointing construction organisation..........................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

Introduction
The procedural step within project management in which documentation is being created
for ensuring successful completion of the project is referred to as project planning. In this
context, documentation illustrates all activities that are being needed for defining, preparing,
integration as well as coordination with additional plans (Burgelmanand Vanhoucke, 2018). The
legal binding agreement which accredit and governs duties along with rights of parties to
agreement is denoted by contract. Contractual issues denotes that when individuals fails to
adhere to obligations on which two parties have agreed on. This report is based on renovation of
Matilda Street Building within modern health as well as fitness centre. This report comprises of
proposal for project, approximate cost for conversion and procurement strategies. Furthermore, it
involves NEC as well as JCT contracts, format of tender documents and methods for
identification along with appointment of significant construction firm.
Proposal
Construction Proposal
Name of project: Refurbishment of Matilda Street building which will be transformed into
modern Health as well as Fitness Centre.
Place of Construction: West University
Project Plan: The Facilities and Estate Department of West University has projected to render
health as well as fitness centre for their students and staff. With respect to this, Design Build
can be utilised in which University can opt for hiring a company or a contract team for
delivering of construction project from initialisation to completion. This will lead to adequate
amount of control on cost.
Designs: Here, they will be constructing 3 floors which will comprise of office space, gym,
physiotherapy rooms, open class activities area along with female and male changing room. The
ground floor will cover gross area of 187.39 square meter. First and second floor 191.88 square
meter as well as 193.48 sq. m respectively. Each floor will have different areas and labs as per
the requirements.
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Ground floor plan
First floor plan
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Second floor plan
Budget: The approximate cost of the project will be around $ 67835. This is the rough idea
about money required but may vary if fluctuation within prices of commodities takes place.
Project construction will be inaugurated on: 1st February, 2021
Marketing and publicity:
 This will be carried out through the notice board present within the University which
will act as internal publicity of project.
 For grabbing the attention of various students television will be used for giving
advertisements in context of facilities which will be provided (Kerzner, 2019).
 The social media sites will also be used for carrying out marketing and publicity.
Furthermore, various real estates site will also advertise project.
 Along with this, this will be publicised through hoardings and leaflets from construction
agency in reference to restoration of Matilda Street building.
Project cost for conversion
Project cost for conversion
Particulars Quantity Price Total
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Site
preparation:
Rough stake 1 1250 1250
Clearing,
grading 3 115 345
Filling dirt 3
Quintal 70 210
Locating
corners 4 2700 10800
12605
Footings:
Steel 40
Quintal 5.5 220
Concrete 60
Quintal 102 6120
Drains 12 35 420
6760
Foundations:
Concrete 90
Quintal 115 10350
Bricks 1500 20 30000
Sand 150
Quintal 12 1800
Labour 60 80 4800
Backfill 5 40 200
Damp
proofing 12 50 600
Block 8 90 720
48470
Total cost 67835
In accordance of above mentioned analysis of cost, this can be find out that total
estimation of cost is of $ 67835 that is lower than budget. It is indicating that cost of this civil
project will be under the budget. Herein, this is important to know that this cost prediction is not
fixed that can be fluctuate in accordance of changes in rates.
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Procurement strategy
The acquisition of materials, services or supplies which are needed for successfully
operating a business or completion of project is referred to as procurement. Basically, it implies
process involved within purchasing of services or goods through distinct routes through which
design as well as construction of building can be procured. This is a planned approach that
comprises of buying of supplies of firms which takes into account various factors as well as
factors like timeline for procurement, budgets, funding, projected risks and opportunities with
respect to project (Pishdad-Bozorgi, 2018). In context of construction, this denotes services and
goods required for successful completion of a building from beginning till its completion. This
has to be approached in a strategic manner so that efficiency can be attained for project. It relates
to process for considering as well as designing apt way for delivery approach and model to
market in context of peculiar project. For this there are different routes and depending upon the
objectives which have to be attained, respective route can be chosen. They are shown below: Traditional Procurement: This is also referred to as design-bid-build in which client
appoints as well as manage consultants who are liable carrying out services associated
with cost control, design along with administration of contract (What is Procurement
Strategy in Construction?, 2016). With respect to Matilda Street building, a complete
document has to be formulated which will set out activities that have to be accomplished
before ITT (Invitations to tender) are being sent. In this context, design is conducted by
consultants and client will have direct control on designs through which desired standards
for quality can be attained. Basically, this is a single-stage project in which consultants
works for development of design in partnership with their clients. After this, contractor is
appointed with respect to lump-sum construction contract. Design and Build: This initialise with appointing main contractor for designing as well
as construction work. It is liable for giving a client with single point of liability in order
to deliver project. They proceeds from outlining plans, elaborated specifications or
designing of concepts (Patanakul and et. al2016). Thereby contractor might tender with
respect to complete design along with construction responsibilities for development of
information which is being furnished in ITT by design team of clients. This may impact
design obligations of contractor which comprises of liabilities for designing which will
diminish or negate conception of contractor being a single point of susceptibility for
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designing and its construction. The client will lack direct control over enhanced facets of
design thereby quality also and can take benefits from expertise of contractor's in
buildability. Management Based Procurement: With respect to this, project is being constructed by
different contractor who are hired as well as managed by management contractor. They
can be appointed on basis of determinate fee that will be paid in percentage (Oliveira,
Ribeiro and Macário, 2016). This involves three forms of procurement, they are
illustrated beneath:
 Construction management: It is procurement route where tasks are
constructed through wide range of trade contractors. They are narrowed to
client but are being managed via construction manager who acts like an
agent for their client, administers as well as co-ordinate work contracts.
Construction manager can be appointed by West University in design
process through which appropriate proposal can be developed.
 Management contracting: This comprises of when work is being carried
out by number of distinct work contractors which are contracted to as well
as managed by management contractor. It reimbursed amount that is paid
and it is in percentile.
 Prime contracting: It is a kind of procurement where clients enter within
long term relationship with their contractors who furnish individualistic
point of contact for supply chain for delivering projects. This is basically
utilised for publicly funded projects.
 Private Finance Initiative: They are forms of PPP (Public Private Partnerships) which is
procurement route that is being preferred by government construction strategies for
carrying out central projects (Procurement route, 2020). Basically, here an identical
contractor is appointed for building up, designing as well as operating project for
delivering services as per demands of public sector. In this, contractor is responsible for
financing the project along with this, they will lease this to their client for time period on
which they have agreed on.
The PFI (Private Finance Initiative) can be used by West University as in this single
contractor will be appointed who have expertise within designing, construction, facilitates
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management as well as funding capabilities. They deliver assets which encourage allocation of
risks which can be managed through which cost efficiencies as well greater certainty for success
can be attained. Along with this, it can be attained on time and cost is also fixed as per the
contract.
Relevant forms of Contract
The formal agreement for repair or alteration of building or structure for construction is
referred to as contract. In other words, it implies legal or mutual binding agreement which takes
place among distinct parties depending on conditions and policies that are being illustrated
within the document form (Guida and Sacco, 2019). In context of construction, the contract
lucubrate a crucial piece of document which outlines scope of work, duties, risks along with
rights of both owner as well as contractor.
Joint Contract Tribunal (JCT): It is a design and build contract which is deliberated for
its usage within construction project. This is liable for producing standard forms of contracts for
projects related with construction, appropriate guidelines as well as standard documentation that
can be utilised by construction industry in UK. This comprises of appointing contractor for
designing of project and construct this. JCT contracts are liable for facilitating process associated
with construction of buildings which set out responsibilities to each party involved within
construction process along with their obligations. This makes it evident that what work has to be
carried out by whom, when it has to be done and how long will it take. It is one of the leading
forms of contracts in UK. It can be utilised by West University for having a clearly defined
requirements. In addition to this, it renders two key services, they are: minimise cost of
transaction while entering within contract and furnishing benchmark provisions within standard
contract form.
New Engineering Contract (NEC): It is a formalised system that is being created by
Institute of Civil Engineers, UK and is liable for drafting of documents for construction purpose
through which tenders can be attained. This legally specifies duties and responsibilities of
employers as well as contractors (El-Sabek and McCabe, 2018). NEC stimulates good
management of relationship among two parties which comprises of work within contract. Along
with this, it can be utilised in wide range of commercial conditions as they are written in simple
and clear English. It furnishes wider range of determinate end to end project management
contracts which empowers users to deliver entire work on time, as per budget and higher
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standards. This can be utilised by West University as it will render them with appropriate
guidance notes along with flow charts that will provide details related with what procedures can
be followed by whom and when it has to be done.
Tender documents
The written invitation which is being sent to probable suppliers of service or goods for
rendering information for buyer for choosing among them is referred to as tender document.
Issuing of document starts from tender process in which business makes choice of qualified as
well as interested suppliers on the basis of availability, price as well as in delivery terms
(Mejíaand et. al., 2016). The detailed tender notice is illustrated below:
Tender Notice
Name of Project: Refurbishment of Matilda Street building, United Kingdom
Online percentage rate tenders are being invited by Facilities and Estate Department West
University, UK for peculiar work from contractors who are registered within relevant class. The
name of the work, along with earnest money, security deposits and time for attainment of
project are illustrated below:
Sr. No. Name of
Work
Estimated
Cost
Earnest
Money
Security
Deposit
Class of
Contractor
Time Limit
In Tender
1 Refurbishm
ent of
Matilda
Street
building,
United
Kingdom
67835 67835 33917 II 1 year
1. The entire bidding process will be online i.e. e-tendering. All the notifications with
respect to this tender notice can be published on the official website of West University.
2. Bidding document will be seen as well as downloaded from University website from
10.00 AM on 15th February 2020 to 28th February 2020 up to 05.00 PM.
3. The bid will be submitted via electronic format within the website of office before
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deadline is achieved.
4. Along with this, bid will be accompanied via online payment method in the favour of
“Refurbishment of Matilda Street building, United Kingdom” .
5. The tender fee has to be paid through online medium as well as scanned copy of receipt
has to be accepted.
6. Bid can be considered as “invalid” in case scanned copy of payment certificate are not
provided by online mediums along with bid.
7. Tenders that do not accomplish requirements or are incomplete are liable for rejection
and they will not be addressed.
8. The successful tendered is required to furnish contentment of peculiar concerned
authority with a valid as well as concurrent license issued within their favour under
provision of The Construction (Design and Management) Regulations 2015 before
starting work. Failure to do so will be withdrawn as well as security deposit will be
forfeited.
9. Right to cancel or reject without any reason is reserved with Facilities and Estate
Department West University.
Facilities and Estate Engineer
West University
Method for identification and appointing construction organisation.
The evaluation as well as selection of contractors is an important aspect within the
construction process (Yan, Ribbink and Pun, 2018). With respect to this, state law needs
University for publicly advertise for carrying out competitive bid in terms of construction
contracts.
Competitive Biding: As per this, construction contract has to be awarded to one who has
made lowest bid. The need for it must not be obviated through splitting project within smaller
units of tasks or through usage of change orders for authorising substantial work. This can be
utilised by West University as this will lead to identify the kind of construction documents which
are being utilised. It will furnish appropriate documentation to each and accordingly actions can
be taken by Facilities and Estate Department of West University. This also illustrates that the
work will be carried out in an satisfactory manner (Doloi and et. al., 2016).
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Conclusion
From above it can be concluded that project planning is an important asset while working
on any project. Along with this, contracts have to be adhered to so that desired standards of work
can be attained and any kind of illegal activities will also be prevented. The appropriate proposal
has to be formulated for making individual clear about project which is to be conducted and
tender must be given. Depending upon the bids which are made, authorities can formulate
decisions in context of who is best fro carrying out project.
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References
Books & Journals
Burgelman, J. and Vanhoucke, M., 2018. Maximising the weighted number of activity execution
modes in project planning. European Journal of Operational Research, 270(3), pp.999-
1013.
Kerzner, H., 2019. Using the project management maturity model: strategic planning for project
management. John Wiley & Sons.
Pishdad-Bozorgi, P. and et. al., 2018. Planning and developing facility management-enabled
building information model (FM-enabled BIM). Automation in Construction, 87, pp.22-
38.
Patanakul, P. and et. al., 2016. What impacts the performance of large-scale government
projects?. International journal of project management, 34(3), pp.452-466.
Oliveira, M., Ribeiro, J. and Macário, R., 2016. Are we planning investments to fail?
Consequences of traffic forecast effects on PPP contracts: Portuguese and Brazilian
cases. Research in Transportation Economics, 59, pp.167-174.
Guida, P.L. and Sacco, G., 2019. A method for project schedule delay analysis. Computers &
Industrial Engineering, 128, pp.346-357.
El-Sabek, L.M. and McCabe, B.Y., 2018. Coordination challenges of production planning in the
construction of international mega-projects in the Middle East. International Journal of
Construction Education and Research, 14(2), pp.118-140.
Mejía, G. and et. al., 2016. A Petri Net-based framework for realistic project management and
scheduling: An application in animation and videogames. Computers & Operations
Research, 66, pp.190-198.
Yan, T., Ribbink, D. and Pun, H., 2018. Incentivizing supplier participation in buyer innovation:
Experimental evidence of non-optimal contractual behaviors. Journal of Operations
Management, 57, pp.36-53.
Doloi, H.K. and et. al., 2016. Assessment of Stakeholders’ Management Practice in
Infrastructure Projects—An Indian Case Project. In Construction Research Congress
2016 (pp. 1465-1474).
Online
What is Procurement Strategy in Construction?. 2016. [Online]. Available through:
<https://www.towereight.com/what-is-procurement-strategy-construction/>.
Procurement route. 2020. [Online]. Available through:
<https://www.designingbuildings.co.uk/wiki/Procurement_route>.
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