5CN035: Construction Costing and Procurement Module Introduction PDF

5CN035: Construction Costing and Procurement School of Architecture and Built Environment Faculty of Science and Engineering WEEK 1 - Introduction to module & Review of procurement methods and contracts Amina Kazeem Mustapha Today’s Agenda Introduction to...

5CN035: Construction Costing and Procurement School of Architecture and Built Environment Faculty of Science and Engineering WEEK 1 - Introduction to module & Review of procurement methods and contracts Amina Kazeem Mustapha Today’s Agenda Introduction to the module Discuss assessments Recap on procurement and role of the Quantity Surveyor (QS) Module overview Aim: The principal aim is to extend existing knowledge and further develop an understanding of the elements, concepts, and techniques used in quantity surveying within the industry or the processes of work items from the perspective of the main contractor and sub-contractor. Learning Outcomes: LO 1 Identify and describe the QS functions under a variety of main contracts. LO 2 Appraise the tendering procedures for construction projects. Apply estimating techniques to a range of work tasks for construction LO 3 projects. Evaluate the sub-contracting arrangements and documents between the LO 4 parties. Session Plan Dates Lecture topic Tutorial focus Introduction to module & Review of procurement methods and Week 1- 24/09/24 Review of coursework contracts (LO1) Week 2 - 01/10/24 Tendering - Tendering process and preparation (LO1; LO2; LO3; LO4) Review of alternative tender approaches Tendering - Assessing tender bids and selection of contractor (LO1, Week 3 - 08/10/24 Producing tender evaluation spreadsheets LO2) Subcontract enquiries - Subcontracting arrangement for Week 4 - 15/10/24 Writing alternative sub-contractor tender enquiry letter labour/plant/material & associated tender enquiries (LO1, LO4) Week 5 - 22/10/24 Estimating - Introduction to estimating & resource costing (LO3) Calculating unit rates using all-in rates of labour/plant/material Week 6 - 29/10/24 Estimating - Unit rate estimating (LO3) Calculating unit rates using all-in rates of labour/plant/material Week 7 - 05/11/24 Assessing Labour /plant/material requirements (LO3) Calculating unit rates using all-in rates of labour/plant/material Operational estimating - Developing construction work method Week 8 - 12/11/24 Worked examples statements for operational estimate (LO3) Week 9 – 19/11/24 Estimating preliminaries (LO2, LO3) Worked examples Week 10 - 26/11/24 Estimating profit/overheads & tender settlement (LO3) Worked examples Computer-aided estimating- Introduction to software tools that support Week 11 - 03/12/24 Introduction to software for estimating tendering in BIM environment (LO1, LO2, LO3) Week 12 - 10/12/24 Alternative tender documentation & revision (LO1; LO2; LO3; LO4) Revision & feedback on coursework KEY MODULE RESOURCES Assessment Two components: Assessment one: 2000 words Assessment two: Examination To pass an assessment, you must achieve a grade of 40% or more in each component. Module Protocols Procurement and role of the Quantity Surveyor (QS) Procurement and role of the Quantity Surveyor (QS) What is Procurement What is Procurement Procurement is the process of obtaining goods or services or the action of procuring something. It involves several steps, including identifying needs, researching suppliers, negotiating contracts, and managing supplier relationships. Procurement Strategy Procurement strategy serves as a roadmap for how the procurement process will be managed throughout the project lifecycle. It considers factors such as project goals, budget, schedule, quality requirements and risks management. It outline the processes of selecting and managing contractors and suppliers to ensure project completion. Procurement route The procurement route defines the relationship between the project’s stakeholders such as: The client, Contractor, Designer, Suppliers, etc. RICS, 2013 Traditional Procurement strategy Characteristics of the traditional procurement strategy Also Known as the lump sum method. It is perceived as a ‘least risk’ method of procurement. It involves detailed tender documentation. Advantages of the traditional procurement strategy Competitive fairness Design-Led Cost certainty Public accountability Well-known procedures Flexible changes RICS, 2013 Disadvantages of the traditional procurement strategy Risk of incomplete design Longer project duration Lack of early contractor input. RICS, 2013 Design and Build procurement strategy RICS, 2013 The design and build procurement strategy This strategy involves a single contractor who assumes the responsibility for both designing and constructing the project. Variations of design and build:- Package deal - Develop and construct RICS, 2013 Advantages of the design and build procurement strategy Reduced client risk Integrated contribution Price certainty Shorter project duration RICS, 2013 Disadvantages of the design and build procurement strategy Complexity in brief preparation Early commitment to design Difficulty in bid comparism Limited design evaluation Costly changes Potential quality compromises RICS, 2013 Construction management procurement strategy RICS, 2013 The Construction management procurement strategy Involves the client directly contracting with the trade contractors for the various aspect of the works. RICS, 2013 Advantages of the Construction management procurement strategy Time-Saving Trade contractor input Clear roles and risks Client control Flexibility for design changes RICS, 2013 Disadvantages of the Construction management procurement strategy Uncertain costs and timeline Client involvement Skilled team requirement Control and scheduling RICS, 2013  Partnering Partnering:- Is a collaborative concept applied within various procurement routes to foster cooperation and improve project performance. Methods of partnering:- Traditional contract with a separate partnering charter Two-Party partnering contract Multi-Party partnering contract RICS, 2013 Advantages of ‘partnering’ Reduced disputes Early Supply chain involvement Strategic benefits RICS, 2013 Disadvantages of ‘partnering’ Potential for abuse Higher client resource requirement Learning curve Direct costs RICS, 2013 The role of the Quantity Surveyor in procurement Appointing consultants Cost planning management Implementing tendering procedures Contract administration Post-contract services Risk management and value engineering