PRE-CONSTRUCTION MANAGEMENT SERVICES (an alternative to a 2-Stage contract )
Heery has developed an alternative to 2-Stage Traditional or 2-Stage Design and Build procurement routes. This uses Heery consultancy based Construction Management services throughout the pre-construction period.
Many of our Clients have experienced disappointment with 2-Stage projects where a second stage lump sum tender has been offered significantly above the cost plan. Once selected after a first stage competitive bid - typically on the basis of staff, programme and mark up - some main contractors have elected to deal with Stage 2 lump sum risks by simply adding cost allowances to the net construction cost, whereas most contracts envisagemain contractors working with the team to mitigate cost and risk. This is at a stage when changing contractors is not a feasible option. Competitive advantage gained in Stage 1 is thus eroded.
As a consultant Construction Manager our objectives are absolutely aligned with those of our Client. Heery we can bring the same pre-construction skills to a project as a main contractor and we act as Client "advocates" throughout.
Heery services include procurement and management of design portion specialist sub-contractors; logistics and detailed construction planning; value management and value engineering; risk management; construction optioneering; buildability; design programme management; design cost control; approvals management; and third party liaison.
These skills and techniques have been adopted on Heery managed projects valued at more than £150 million.
As shown in the flow chartlinked below,this procurement route, detailed design (RIBA Stage E) is completed with the benefit of specialist contractor design input and coordination. It enables market testing of costs in order to develop a high degree of cost certainty.
A Heery developed programme, logistics plan and overall construction method statements add to this certainty. Typically the job is then competitively tendered to three or four main contractors who are each invited to challenge and improve upon the cost, programme and specifications developed by the consultant team.
At the end of this tender assessment period, the most attractive two tenderers are provided with further production information from the design team in order to reduce any outstanding risks. The design team willideally have secured all statutory approvals in the meantime.
Finally, once a winner has emerged, the Client appoints on either a traditional contract or design and build contract. The design team may be novated to the Contractor. This approach permits the Client to stay in control of design for much longer than a normal design and build route, retaining the important competitive element that can otherwise be lost in a 2-Stage scenario.
Heery can provide Employers Agent services during the construction stage, and if any advanced or enabling works are needed, Heery can manage these using either a management or construction management contract. We are able to take the role of Principal Contractor.
This approach provides more flexibility, greater control during design, better value and better time and cost certainty.