Report: Advanced Construction Procurement and Contract Analysis

This report focuses on advanced construction procurement and processes within the context of a commercial building project for a top banking organization. It begins by defining the client's objectives and the briefing process, emphasizing the importance of clear communication and resource allocation. The report then explores project characteristics, including time, cost, and quality, and the selection criteria for contract forms, specifically JCT and NEC contracts. A scenario is presented where a new head office is planned in the City of London, highlighting the need for a signature building that reflects the bank's commitment to sustainability and shareholder value. The report compares JCT and NEC contracts based on price, provisional sums, cost, ground risk, program, payment, and time/loss/expense considerations. It also discusses different types of construction contracts and provides an overview of pre- and post-contract documentations, emphasizing the need for thoroughness at each stage. References to relevant literature supporting the findings are also included.

Advanced Construction Procurement and
Processes

Client’s objectives
Briefing process
It is defined as the initial stage in construction of the building which
states that the client requirements are all must be stated in the document
for better brief and understanding of the process of construction for the
building. This helps the client in examining and observing the designing
of the building that how they can allocate the resources.
Project characteristics
Features of projects demands various factors that can affect the
construction of the building like time, cost and quality. It is important to
analyse the feasibility study for the specific time duration, proficient
budgeting systems and with better quality of materials used for
sustainability of the building. It has challenging characteristics like
advanced technologies and well constructed features which is needed to
determine the influencing factors of the building (Dunant, Drewniok and
Cullen, 2017).
Selection criteria
Selection criteria of the form of contract is taken as the JCT as per the
requirements of the building construction. Like this form has fixed
pricing systems with minimal complications which contains provisional
sums having the contract sum analysis and tender negotiations. Moreover,
it has the separate concepts of timings and cost with relevancy of matters
and money where they contains details in a very comprehensive manner.

Explanation of scenario
The scenario is of the project type of commercialization where building is to be made for the commercial purposes. It
includes the services like banking and finance, selling and purchasing of goods and services, warehousing and many
more commercial activities in the building which satisfy the requirements of the process needed to build up the floors and
rooms. Constructing such type of a building can take a good decision making among the contractors to design the flow of
the construction and infrastructure as per the the requirements of the offices which is to be set up in the building on
different floors for better operations in various organizations. Structure of the building justifies or depicts the efficiency
in management of the people who will operate in the buildings for their own personal purposes (Ajayi, Oyedele and
Owolabi, 2017).
Client is one of the top banking organisations which is planning to build a new Head office in the City of London. The
existing office is inadequate to accommodate the new emerging technologies in the sector. The client therefore wishes to
build this new building so that it is not only a signature building with an artistic statement which gives the building
prestige and international acclaim but also reflects the commitment of the organisation to “sustainability” in line with its
CSR (corporate social responsibility) and satisfies the shareholders expectations in term of “value for money”. The new
building will serve the needs of the client and also offer further income streams through leasing some of the floors to
other institutional investors. The client does not have in-house expertise to manage such a challenging project and is
seeking advice on the most appropriate method of procurement and contracts to achieve its ambition and targets.

Compare two different standard
forms of contract
Basis JCT NEC
Price It is a fixed
price lump
sum contract.
It is a target
cost
contracts.
Provisional
sums
It contains
provisional
sums.
It does not
contain any
provisional
sums.
Cost There is some
cost through
contract sum
analysis and
tender
negotiations.
It has a
concept of
defined cost
and
disallowed
cost.
Ground risk This type of
risk is with
the
contractor.
It uses the
ICE
forseeability
test for the
ground risks.

Conti...Programme It does not
have any
actual
program to
execute.
It has float,
completion
float and
time risk
allowances.
Payment It's payment
is clear, all in
one sections
and it is easy
to follow.
It's payment
is located in
different
sections and
little difficult
to follow.
Time, loss,
expense
It has a
relevant
matters and
events for
time and
money to
dealt with
the separate
concepts.
It has a
compensatio
n events
which deals
with the both
the time and
money of the
contract.

Types of construction contracts
• Commercial contract.
• Domestic building contract.
• Percentage rate contract.
• Item rate contract or Unit price contract.
• Lump sum and scheduled contract.
• Cost plus fixed fee contract.
• Cost plus percentage of cost contract.
• Subcontract agreement.

Overview of the pre- and post-contract
documentations
Pre-contract documentations
It is defined as the agreement which is done
between the client and the contractor before the
construction of the building like clearing all the
terms and conditions, everything stated in the
document must be finalised before so that any
confusions and complications cannot arise after
the construction. This clarifies all the things before
hand only of the construction.
Post-contract documentations
It is defined as the agreement which is done
between the contractor and the client after the
construction part of the building. It states that after
the construction, contractor needs to checklist
everything that they has performed on the site and
if missed something then they has to rectify the
same (Hastie, Sutrisna and Egbu, 2017).

References
Dunant, C.F., Drewniok, M.P. and Cullen, J.M., 2017.
Real and perceived barriers to steel reuse across the
UK construction value chain. Resources,
Conservation and Recycling, 126, pp.118-131.
Harris, F., McCaffer, R., Baldwin, A. and Edum-
Fotwe, F., 2020. Modern construction
management. John Wiley & Sons.
Hastie, J., Sutrisna, M. and Egbu, C., 2017. Modelling
knowledge integration process in early contractor
involvement procurement at tender stage–a Western
Australian case study. Construction Innovation.