7CNMN011W Procurement Assignment – UK

The Scenario :-

  1. Client – Luxehomes (SME) based in SW England
  2. Exploring public sector funding opportunities for a new housing development
  3. Development to start 2Q 2023
  4. Luxe homes wish to secure a loan from the Home Building Fund (HBF) towards the development
  5. HBF have a specific criteria for projects to meet to secure funding
  6. Luxehomes have limited procurement experience
  7. You are a construction professional working for the consultancy firm SAM Ltd
  8. You have been appointed to provide advice as to the most suitable procurement method and contractual arrangement to deliver HBF’s loan criteria

Home Building Fund Criteria

  1. To qualify for the funding, the Home Building Fund (HBF) require projects to meet the following criteria
  2. Deliver the best value for money for the taxpayer
  3. Projects to focus on areas of highest affordability pressures
  4. Projects should demonstrate the greatest potential for early delivery
  5. Projects should have clear local support
  6. Projects that support policy priorities such as strengthening SME developer market brown field development and diversification and innovation in the housing market
  7. Projects that support wider government housing priorities such as estate regeneration garden villages and towns and making use of available public sector land.
  8. Demonstrate strong alignment with government procurement policies.

The Task :-
As a construction professional employed by SAM Ltd your director has asked you to produce a 4,000-word report that critically evaluates procurement routes and contractual arrangements for residential projects in the UK.

Your report should include recommendations for a suitable procurement strategy for the proposed housing project that could maximise delivery of the funder’s loan criteria for the successful completion of the design construction and commissioning of the project.

The Task :-
Your Director has asked you to consider the following

  1. A suitable procurement route for the proposed project with a clear rationale for its selection and suitability.
  2. A suitable contractual strategy including contractor selection criteria with full justification as to why your advice is best suited to the proposed project.

Task 1
– A suitable procurement route for the proposed project with a clear rationale for its selection and suitability.

i.Procurement Cycle

ii. Project success criteria / Client’s Brief

iii. Factors that influence selection of procurement routes

iv. Analysis of available procurement routes & possible options

a.Traditional procurement

b.Design and build

c.Partnering / alliancing

d.Construction management

e.Contractor approved without any tender process

f.Measured term

g.PFI / PPP

h.Cost plus

i.Management contracting 1%

Task 1

  1. Provide your recommendations
  2. Select a suitable procurement route
  3. Provide full rationale as to why you have selected this route and why it is suitable
  4. Remember this funding is from government
  5. Value for money
  6. Policy priorities – The Construction Playbook etc
  7. Critical Analysis
  8. Business style report
  9. You are a construction professional providing advice

Task 2 – A suitable contractual strategy including contractor selection criteria with full justification as to why your advice is best suited to the proposed project.

I.Focus on developing procurement strategy to a contract strategy

II. Agreement between Developer and Contractor

III. What is a contract strategy?

IV. How does this support

  1. Client’s requirements
  2. Procurement strategy

a.Factors that influence contract strategy
b.Options available

  1.  JCT
  2. NEC
  3. FIDIC
  4. Bespoke
  5. And more!!

Task 2

  1. Contracts can be found via the Library database Construction Information Service (CIS) – search JCT NEC / FIDIC – library search
  2. Process for tendering and selection
  3. How do we select the right contractor
  4. Provide your contract strategy recommendation
  5. Full justification
  6. This is not a legal analysis of contracts
  7. Focus is on the process and how contracts support critical success factors!
  8. Don’t forget funding is public sector – value!

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