04 Professional Practice Project Management Case Study
Alexander Hussey 13023545 UBLMMB-15-M
Pages: 18 Word Count: 1994
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Contents
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Introduction Investigation introduction
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Overview Scenario summary
Question 1: Substitution Process The process of changing Employer’s Requirements
Question 2: Consequences Changing window sizes during RIBA Stage 5
Question 3: Equal & Approved Querying product quality & application
Question 4: Cost Liability Adjustment cost responsibility
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Conclusion
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Appendix
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References
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Introduction As part of our Post Contracts workshop, a series of scenarios were provided based on practice situations. This case study utilises the set scenario and following questions to investigate solutions to potential problems that may arise in practice. The topics addressed in this study are related to professional, legal and project management concerns. Whilst observing these areas of Post-Contract, suggestions of how to minimise or avoid detrimental impacts start to form. As changes are made during the construction process, it is important to consider the impact of these adjustments on client vision, legal requirements and costs at this later stage. This analysis will address the problems resulting from this and how they can be resolved. To view the full scenario please refer to the complete case study in the appendix.
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Overview Client: Developer Sector: Mixed use - Primarily Residential Project: New Build, 340 apartments, 6 retail units Value: £55,000,000 construction Procurement: Design & Build Contract: Bespoke Contract Start on site: 1st June 2019 Completion: 1st August 2021 - The larger window types have been reduced in size due to the limitations of the VE manufacturer’s profiles / system. - The ironmongery for the external doors cannot be provided in brushed stainless steel, they have proposed chrome. - The previous window manufacturer had proposed stacked windows to achieve the desired aesthetic. The subcontractor has replaced this with a curtain walling profile as the VE windows profile cannot be stacked.
Scenario Questions: 1. Advise the contractor on the process of
changing the Employers Requirement’s in a design & build project.
2. Review the potential consequences of changing the size of windows at this late stage?
3. The client feels they are getting an inferior
product, what are the options the contractor has to resolve this situation?
4. Who should cover the increased cost of the curtain walling?
Appointed by repeat client for mixed use residential project (2015).
Gained planning permission consent (2016). Two stage tender process including value engineering. Contractor appointed. Part of the architecture team novated to the contractor. 7 months into Stage 5, work on superstructure progressing. (2020) QS team reviewing packages of subcontractor work. Fig.1 Scenario background
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Question 1: Substitution Process Advise the contractor on the process of changing the Employer’s Requirements in a design & build project.
Employers Requirements, with regards to ‘Design and Build’ procurement (Fig.2), “describes for the contractor the development which the employer wants him to design and build” (Longworth consulting, 2020). This document outlines specifications and details as proposed by the client. During the formation of this package of information for both client and contractor to review, along with the ‘Value Engineering’ exercise, a change control procedure should be introduced “to ensure that the approved information is not changed without the express permission of the client.” (Designing Buildings, 2020). ‘Value Engineering’ addresses concerns and reduces unnecessary costs whilst improving project efficiency. The process involves:
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(Designing Buildings, 2020)
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- Identifying the main elements of a product, service or project. - Developing alternative solutions for delivering those functions. - Assessing the alternative solutions. - Allocating costs to the alternative solutions. - Developing in more detail the alternatives with the highest likelihood of success.”
Design & Build Contractual/ Functional Relationship
Fig.2 Design & Build contractual and functional relationships
Substitution Process
It is the job of the employers agent, in house or external, “acting on behalf of the client as the contract administrator for design and build contracts” (Designing Buildings, 2019) to assume the role of a broker between contractor and client, who will then assess the changes. To constitute a change;
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“there has to be an alteration to the requirements set out in the ‘Employer’s Requirements’ document not simply the work, including any design, undertaken by the contractor”
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(Chappell and Dunn, 2016, p.420)
The contractor will therefore have to relay the information from the subcontractor’s QS team to the employer’s agent in order for the client to review the new status (Fig.3). Considering both the window dimensions and the ironmongery finish; the constraints stem from the supplier’s and manufacturer’s capabilities and provisions. This would lead to a mutually agreed review of the ironmongery suppliers, the window manufacturers and the type of window systems. This would need to be completed before resuming the construction on site so that named suppliers can be verified and new products ordered. Elements to consider are:
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- Who is requesting the change. - The consequences of the change, including health and safety, time, quality, cost (and who will bear the cost). - Proposals for mitigation of any consequences. - The risks associated with the change. - Alternatives to the proposed change. - Time by which the change must be instructed.
(Designing Buildings, 2020)
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This ensures that the contractor and the client have been made aware of, approved the changes and understood the risks. If there are any disputes in relation to changes throughout the project timeline, all involved parties can refer to the change control procedure and the signed dates of accepted changes. This could avoid any potential litigation and confusion, resulting in minimal time delays and cost impacts.
Design & Build Contractual/ Functional
Fig.3 Employer agent role in novated Design & Build Procurement
Question 2: Consequences Review the potential consequences of changing the size of windows at this late stage.
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- Variations to the Contract - Instructions issued by the Employer - The Employer deferring possession of the site - Exceptionally adverse weather conditions - The Employer impeding or preventing the works in any way - Force majeure - Suspension of the Works
(Heming, 2020)
‘Relevant Matters’ are issues “for which the client is responsible that materially effects the progress of the works.” (Designing Buildings, 2018). Examples of ‘Relevant Matters’ include;
Environmental effects of the reduced window size include alterations in U-Value & Thermal Performance, Acoustic Performance and Solar Gain. External cladding will also need to be reconsidered. The reduced sizes will result in increased quantities and cost, together with additional orders to ensure the project meets the original deadline. Changing these dimensions during the construction stage will alter the original aesthetics and structural considerations, impacting on the project timescale.
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In certain circumstances, contractors can apply for an “Extension of time”, which is an “additional period (whether in days or weeks) that is added to the duration of the project” (Heming, 2020). Circumstances that allow time extension are referred to as ‘Relevant Events’ and ‘Relevant Matters’.
(Designing Buildings, 2018)
- Discrepancies in the contract documents. - Disruption caused by works being carried out by the client. - Failure by the client to supply goods or materials - Instructions relating to variations and expenditure of provisional sums.
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Additionally, MEP and M&E engineers will need to be consulted to ensure the building meets the same internal and external environmental standards as per the ‘Employer’s Requirements’, to minimise the effects on building performance.
Examples of ‘Relevant Events’ include;
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Consultations will need to take place between planning and architectural design teams to ensure the building meets the appropriate specification and planning requirements. This will impact the door and window schedules of the design team, the reapplication for planning permissions with respect to public facing facades and the assurance of consistent updated drawings across all parties.
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Consequences
This case does not constitute a ‘Relevant Event’ or ‘Relevant Matter’ as the responsibility falls on the contractor due to the misinformation from the subcontractor’s suppliers. These alterations could be considered as ‘non material amendments’, which is;
a very small change to the development already granted planning permission.
(Trafford Council, n.d.)
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Although planning drawings will need to be updated, it does not require a separate planning application. An example of this form of amendment was in the redevelopment of Urmston Town Centre (Fig.4) where;
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changes to the windows, removal of balconies and changes to materials used have been agreed for the residential upper floor of the second phase.
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(Trafford Council, n.d.)
In order for these planning amendments to be made, the contractor must produce a revised notice via the planning portal (Fig.5).
Fig.4 Urmston Town Centre (North West Place, 2008)
Applications to be made via the standard application form on the planning portal website. (Refer to appendix for NMA info) Two copies of relevant, plans, sections, elevations and window schedules showing amendments to be submitted. The fees for NMA applications for household applications are £34. In the case of this development, the price is agreed upon. Design and Access statement is not required for a ‘Non Material Amendment’ application. More than one application can be applied for on one application form. Under NMA provisions, the Local Planning Authority are not required to carry out publicity as part of the amdendment.
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Fig.5 Non material amendment summary (Information courtesy of Trafford Council)
Question 3: Equal & Approved The client feels they are getting an inferior product, what are the options the contractor has to resolve this situation?
Contractors and Subcontractors aim to ensure that the most efficient approach is applied in order to reduce costs and accelerate the time scale. This can lead to a reduction in product quality. Referring to the external door ironmongery, the client statement of “inferior product” is valid as brushed stainless steel and chrome cannot be compared as ‘equal and approved’, due to their different price and properties (Fig.6). An ‘equal and approved’ product is considered equivalent in;
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quality, durability, appearance, strength, design, performance, physical dimensions, and arrangement
If it is deemed suitable and meets building regulations and environmental regulatory requirements, “the architect may approve the alternative, but is not obliged to approve it.” (Lighting Digest, 2010). If an alternative product is to be outlined to the client during this stage, sufficient time must be given. Stainless steel is a very durable corrosion resistant material, ideal for exterior applications. Therefore, in order to substitute a suitable material, alternatives must perform similarly, as well as aesthetically satisfying the client.
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(Law Insider, 2020)
to the originally specified product.
Fig.6 Chrome Plated vs. Polished Stainless Steel Table (Thermogroup, 2020)
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Equal & Approved
These alternatives include high carbon steel, anodised aluminium and mild steel (Fig.7). Appropriate documentation must be provided, comparing the original with the alternatives, this may include:
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- technical literature - performance specification - test results - specification - drawings - method statements - Control of Substances Hazardous to Health Regulations (COSHH) documents - life cycle costing - environmental impact statements.
However, this may result in further cost implications as stainless steel is more expensive than chrome. Whichever is the chosen ironmongery, further time delays will be incurred due to additional negotiations and product acquisition.
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(Lighting Digest, 2010)
Stainless Steel Durability Corrosion Protection Aesthetic Appeal Thermal Conductivity Cost Fig.7 Metal comparison table
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The contractor may refer to specific manufacturers and suppliers, allowing both designer and client to benefit from specialist expertise. If, after further review, the client is still unconvinced by the selection then the contractor could advise a renegotiation with the original supplier suggested in the VE exercise.
Chrome
High Carbon Steel
Anodised Aluminium
Mild Steel
Question 4: Cost Liability Who should cover the increased cost of the curtain walling?
The implementation of a curtain wall will have to be logistically reconsidered, along with the internal and external environmental impacts. Stacked arrangements are “most commonly installed from the inside of a building, which is a safer, more efficient and more cost effective.” (Lenmak, 2018). Curtain walling systems;
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This will require greater safety considerations, supplementary equipment and therefore increased labour, material and time costs. Additionally, the contractor will need to account for the cost of engineering consultation as the two systems bear different levels of load on the building structure, which will need to be approved by a qualified engineer before any construction or product ordering commences. This alteration would need verification by the local planning authority under the classification of a ‘minor material amendment’ (Fig.8). This is defined as;
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(Trafford Council, n.d.)
Full plans and a Design and Access statement are required. MMA’s can be applied to planning permissions, but not Listed Building Consent or Conservation Area Consents The Planning Authority has 8 weeks to determine the application (13 weeks for a “major” application). If an application is denied, a completely new planning permission for the proposal can be submitted.
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one whose scale and nature results in a development which is not substantially different from that which has been approved.
This application can only be approved once a listed set of plans have been approved. Application must state requested conditions. Application to be made via planning portal website for an agreed fee. (Refer to appendix for MMA info).
are installed from the outside of a building using cranes or rigs.
(Lenmak, 2018)
The council would take a minimum of eight weeks to determine the outcome, delaying the project, resulting in cost implications (Fig.8).
Fig.8 Minor material amendment summary (Information courtesy of Trafford Council)
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Cost Liability
If planning is approved, the subsequent increased cost of the curtain wall system and its installation, will need to be covered by the contractor, as the client had not accepted the product and specification changes. However, if disagreements arise, mediation could occur to help the parties reach a mutual agreement. Mediation;
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(Novitski, 2008)
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is a conference between opposing parties facilitated by a neutral, mutually agreed-upon mediator
that, if successful, will lead to a signed agreement clearly outlining the updated responsibilities. Following this, it is the contractors responsibility to provide a written notice to the employers agent/contract administrator stating the potential issues (Fig.9). They will then assess the claim and the work progress as carried out by the role of Clerk of Works. If the extension is not considered a ‘Relevant Event’ or a ‘Relevant Matter’ the contractor may be required to pay liquidated damages that are;
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pre - determined damages set at the time that a contract is entered into based on a calculation of the actual loss the client is likely to incur if the contractor fails to meet the completion date.
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(Designing Buildings, 2020)
However, if the extension is granted, the contractor is not legally obligated to complete the works by the pre-agreed date.
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Fig.9 Extension of Time Process for scenario
Conclusion In conclusion, this study examines and clarifies the contractor/client responsibilities and processes during late stage alterations. It focusses on economic, legal and practical liabilities resulting from poor communication between client, contractor and subcontractor. The importance of contract clarification, supplier capabilities and system discrepancies have been highlighted. The complexities of verifying specifications and aligning updated information across all parties involved further demonstrates the sensitivity of the timeline of a project with regards to the scale of a problem. However, the time taken to gather the relevant information can sometimes outweigh material and labour costs or even create further delays in approving deviations from the original ‘Employer’s Requirements’. The more developed these requirements are upon the project’s inception, the more accurate the tender value can be estimated and the more precise the drawings can be. On the other hand, an over scrutinised “Employers Requirements” document could lead to a limited vision. This also illustrates how claims and issues can be averted through sufficient preparation and notification, updated construction programmes and concise contracts. Maintaining a strong link between both parties via the appointed employer’s agent is crucial in receiving consistent updates. The time that information is provided and the regularity of updates, by all parties, have a significant effect on the synchronicity of individual outcomes to better the project.
Fig.10 Team communication
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Scenario
Appendix
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Scenario
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NMA & MMA Comparison
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NMA & MMA Comparison
Fig.11 Annex A: Summary comparison table (Gov.uk, 2014)
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Bibliography - Chappell, D. and Dunn, M. (2016). The Architect In Practice. 11th ed. 2016: Wiley, pp.214-440. - Designing Buildings (2020). Change Control Procedure For Building Design And Construction. [online] Available at: <https://www.designingbuildings.co.uk/wiki/Change_control_procedure_for_building_design_and_construction> [Accessed 3 April 2020]. - Designing Buildings (2019). Employer’s Agent For Design And Build. [online] Available at: <https://www.designingbuildings.co.uk/wiki/Employer%27s_agent_for_design_and_build> [Accessed 9 April 2020]. - Designing Buildings (2020). Liquidated Damages In Construction Contracts. [online] Available at: <https://www. designingbuildings.co.uk/wiki/Liquidated_damages_in_construction_contracts> [Accessed 10 April 2020]. - Designing Buildings (2018). Relevant Events V Relevant Matters. [online] Available at: <https://www.designingbuildings.co.uk/wiki/Relevant_events_v_relevant_matters> [Accessed 9 April 2020]. - Designing Buildings (2020). Value engineering in building design and construction. [online] Available at: <https:// www.designingbuildings.co.uk/wiki/Value_engineering_in_ building_design_and_construction> [Accessed 10 April 2020]. - Heming, P., 2020. The JCT And Extensions Of Time | C-Link. [online] C-link.com. Available at: <https://c-link.com/ blog/the-jct-and-extensions-of-time/> [Accessed 7 April 2020]. - Law Insider, (2020). Approved Equal | Legal Definition Of Approved Equal By Law Insider. [online] Available at: <https://www.lawinsider.com/dictionary/approved-equal> [Accessed 9 April 2020]. - Lenmak, (2018). Curtain Wall Vs. Window Wall: What’S The Difference? | Lenmak Exteriors. [online] Available at: <https://www.lenmak.com/curtain-window-wall/> [Accessed 3 April 2020]. - Lighting Digest, (2010). Reduce Your Risk In The Contractual Jungle - Equal And Approved - Lighting Industry News Portal For The Professional Lighting Industry. [online] Available at: <https://www.lightingdigest.co.uk/155-features/contract-law/1726-reduce-your-risk-in-the-contractual-jungle-equal-and-approved> [Accessed 7 April 2020]. - Longworth Consulting (2020). Employer’s Requirements Definition. [online] Available at: <http://www.longworthconsulting.co.uk/construction_contracts/employer_requirements.htm> [Accessed 3 April 2020]. - Novitski, B., (2008). Mediation For Architects 101. [online] Architecturalrecord.com. Available at: <https://www. architecturalrecord.com/articles/6888-mediation-for-architects-101> [Accessed 9 April 2020]. - Trafford Council (n.d.), Non-Material Amendments. [online] Available at: <https://www.trafford.gov.uk/planning/planning-for-householders/non-material-amendments.aspx> [Accessed 7 April 2020].
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Image References Fig.1 - Authors own image Fig.2 - Authors own image Fig.3 - Authors own image Fig.4 - North West Place, 2008. Ask Life Encouraged By Urmston Residential Sales. [image] Available at: <https://www.placenorthwest.co.uk/news/ask-life-encouraged-by-urmstonresidential-sales/> [Accessed 9 April 2020]. Fig.5 - Authors own image Fig.6 - Thermogroup, 2020. Chrome Plated Vs. Polished Stainless Steel. [image] Available at: <https:// www.thermogroup.com.au/chrome-plated-vs-polished-stainless-steel/> [Accessed 10 April 2020]. Fig.7 - Authors own image Fig.8 - Authors own image Fig.9 - Authors own image Fig.10 - Authors own image Fig.11 - Gov.uk, 2014. Annex A: Summary Comparison Table. [image] Available at: <https://assets. publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/864175/Annex_flexible_options.pdf> [Accessed 10 April 2020].
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