2: Procurement arrangement principles

2: Procurement principles:
Appendices

Heriot-Watt University
 Paper
Challenges of post-tensioning in Dubai –
a designer’s perspective

Paul J. Mullett, BEng(Hons) CEng MICE

Gifford

Keywords: Dubai, United Arab Emirates, Construction industry, Post-tensioned concrete, Procurement,
Design, Floors, Risk, Subcontractors
Received: 01/09: Accepted: 02/09
© Paul J. Mullett

Synopsis
Fuelled by record prices of oil and the resulting high liquidity, the
Middle East, and the Gulf Cooperation Council (GCC) region in
particular, has in recent years seen a significant increase in
investment for both public and private infrastructure and
development projects. The epicentre of this boom has been Dubai
in the United Arab Emirates which, driven by the vision of HH
Sheikh Mohammed Bin Rashid Al Maktoum, has until very recently
1
continued to experience unprecedented levels of construction. The
high-profile projects in Dubai, including the iconic palm islands and
the colossal Burj Dubai, require no further introduction to structural
engineers throughout the world.
With a large proportion of fast-paced high-rise projects and in
situ concrete the preferred method of construction throughout the
region, the majority of building projects are specified with a post-
tensioned floor system. The post-tensioning business in the GCC,
and in particular Dubai, is therefore one of the most competitive in
the world.
The market is dominated by traditional procurement methods,
typically placing a high burden of risk on contractors with stiff
penalties for project overruns and rapidly increasing labour and
material costs. Employed by main contractors on a design and
build basis, post-tension sub-contractors and their specialist
designers are positioned to suffer the most from both technical
and contractual inadequacies. Combined with a highly competitive
and variable consultant market, the additional burden on specialist
post-tension designers can be significant. With such pressures,
issues of quality (technical, material and construction) are
prevalent.
This paper discusses some of the challenges facing the design
of post-tensioning in Dubai, although many of the issues are
applicable to the wider GCC region.
2
1 Dubai has witnessed construction on a
An introduction to the market massive scale
Construction markets across the GCC have been booming and 2 ‘The Address’ Downtown Dubai is an
none more so than Dubai in the United Arab Emirates (Fig 1). The example of the successful integration of
post-tensioning into high-rise construction
race to invest, build and reap financial returns from available local
liquidity, has driven the extreme pace of construction projects. The
result has been an extremely competitive construction market will therefore continue to show significant growth, with markets in
across all sectors, characterised by extravagant high-rise projects certain localities maturing significantly. The region is not, however,
and freedom of architectural expression. immune to market forces and reduced investor confidence and
With large increases in land and property prices apparent in access to credit will temper the pace of development in many
many of the region’s cities, local markets have recently shown areas for some time to come. Dubai itself has, in recent months,
signs of maturity with many new projects more investor focused, seen a more pronounced slow down with many projects being put
demonstrating a greater balance of capital and whole life costs. A on hold until market confidence returns.
demonstration of this is the decree by HH Sheikh Mohammed Bin
Rashid Al Maktoum in 2007 that all new construction projects Post-tensioning in Dubai
should adhere to the minimum LEED1 certification requirements. The principles and benefits of post-tensioning are well
Long-term strategic development plans have been developed documented2 and are particularly relevant for high-rise
for many of the major cities in the region on a scale unrivalled construction. Post-tensioning is therefore widely used in the GCC
elsewhere in the world and, despite global economic woes, many countries and is the preferred form of construction for most high-
of these schemes remain underway. The signs are that the region rise projects in Dubai (see Fig 2).

The Structural Engineer 87 (12) 16 June 2009 21

 Typical advantages include the following:
– faster formwork striking times resulting in a reduced floor casting
cycle;
– reduced concrete mass leading to material savings in vertical
elements and foundations;
– reduced passive reinforcement increasing speed of construction
and making significant cost savings;
– thinner structural elements leading to a reduced storey height;
either providing additional valuable floor space for a given height
or reducing the building volume/envelope giving rise to reduced
material and operating costs;
– longer floor spans and provision for ‘soft-zones’ increasing
future flexibility;
– improved deflection performance.
Due to the general efficiency of post-tension design solutions
and the criticality of correct design intent, the performance of post-
tension floors is particularly sensitive to the quality of design and
construction. Given the highly aggressive exposure conditions and
variability of design and construction quality, this is a particularly
important issue for the GCC region.
All the main specialist post-tensioning players are active in the
region, supported by either in-house or contracted third party
design teams. The benefits and nuances of the various systems
available are beyond the scope of this paper, however due to the
particular requirements of the market, bonded post-tensioning
systems are generally preferred over unbonded systems.
Due to the popularity of post-tensioning in the region many
smaller, less experienced design and installation companies have
recently joined the list of post-tensioning specialists operating in
the market. This has raised the pressure in what is already a highly
competitive design and installation market and has increased the
challenge of maintaining standards at an acceptable level.
Contracts and procurement
Methods of procurement in the GCC are generally traditional, with
clients appointing architectural and structural consultants to
complete detailed designs in advance of inviting tenders from main
contractors. In turn, post-tensioning works are usually procured by
the main contractor on a design and build basis, either through a
competitive tender, direct appointment or occasionally through a
nomination by the client or main consultant. Main contracts and
sub-contracts are usually based on the standard FIDIC forms
incorporating a combination of lump-sum and re-measured
components, although post-tensioning sub-contract works are
invariably lump-sum contracts.
The sheer number and scale of tenders and the minimal time
available to adequately assess projects can make bidding
extremely hazardous for post-tensioning sub-contractors. With
many post-tension projects tendered on inadequate or poorly
considered scheme designs, and with highly variable costs for
passive reinforcement and post-tensioning strand, the post-
tensioning sub-contractor can carry a significant financial burden if
the final material quantities are substantially more than that detailed
in the accepted bid.
Regrettably the fine details of contractual arrangements are
often not sufficiently defined and can leave many hidden problems
that only surface late into the project. Problems typically include
design scope interfaces and the division of responsibility between
the main consultant and post-tension sub-contractor’s designer.
Examples of issues that can cause problems are consideration of
thermal and shrinkage effects, design of key elements such as
transfer structures and the design of connections for forces due to
lateral loads (i.e. wind and seismic). Poorly considered, or simply
unachievable, scheme designs also serve to raise the pressure on
post-tension sub-contractors once the project has commenced.
The overall result is a very high risk commercial environment
which has created an increasing tendency for parties to offload risk
to others, often to those not necessarily best placed to manage it.
Extremely demanding project programmes, rising labour and
material costs, contractual vagaries and inherent (but often
avoidable) technical difficulties all place a large burden of risk on
22 The Structural Engineer 87 (12) 16 June 2009
3
3 A screenshot from typical post-tension
design software
the main contractor which is passed directly to the post-tensioning
sub-contractor and their specialist designers. The risk to post-
tensioning subcontractors is significant and limiting risk exposure
and liability is extremely important to consultants engaged in such
work.
Despite this confrontational approach litigation has not been
widespread and disputes are generally settled (relatively) amicably
and without loss of face, often by offsetting losses against the
promise of future work. With both the consequences of delays and
commercial pressures increasing, there is however, a real concern
that litigation will increase.
The significant benefits that can be realised through alternative,
less confrontational methods of procurement and earlier
involvement of supply chain members, as encouraged by the
Latham3 and Egan4 reports in the UK, are regrettably uncommon
in Dubai and the wider region. Best value is still equated with
lowest capital cost and hence a substantial shift is required in the
market to provide structures that truly offer better value for money
and achieve the stipulated LEED requirements. In this respect,
post-tension sub-contractors and specialist designers have a great
deal to offer to ensure that floor schemes are achievable, efficient
and buildable from the outset.
Post-tension design challenges
Post-tension design is currently typically undertaken in accordance
with BS 81105,6 and associated good practice guidance, such as
the Concrete Society Technical Report 43 (1st Edition)7. Designs in
accordance with the ACI 3188 code are also common and may
take preference once the existing British Standards are
discontinued.
Designs are usually produced using industry standard Finite
Element software such as ADAPT Builder EX9 or RAM Concept10.
As with any such design software, it is easy to produce designs,
but it does not guarantee an understanding of structural concepts,
practical design issues or the influence of modelling assumptions
(see Fig 3). A significant amount of experience is therefore required
to produce safe, efficient and buildable post-tension solutions and
the involvement of specialist post-tension designers at an early
stage is highly recommended.
As with most design consultancy, the quality of the output is
dependant on the availability of time, skills and information.
Unfortunately all three of these factors are under pressure in a fast-
paced competitive market. The following sections discuss some of
the current market inadequacies and the challenges they present
to post-tension sub-contractors and their specialist designers in
particular.
Quality of scheme (tender) design
Many of the consultancies engaged in the local market provide
clients with a combined architectural, structural and M & E
consultancy service. Due to the normal fee structures and available
skill base, often this service is heavily focused on the architectural
aspects of the building. The resulting structural schemes used for
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62
ECONOMICS
Procurement Construction management
Even in these risk-averse days, some hands-on clients still prefer the construction management
route. But would more schemes benefit from the CM approach? And how should clients organise
themselves to get the best results? Simon Rawlinson of Davis Langdon reports
01 Introduction
Construction management (CM)
has been out of favour in recent
years with only a select group of
commercial clients continuing to
adopt the route. With the Fraser
enquiry into the Scottish
Parliament delays and high-
profile court cases highlighting
the risks of CM, it is not
surprising that use of this form
of procurement has fallen.
However, as the continuing
Wembley Stadium saga
illustrates, no procurement route,
even with as low a client risk-
profile as design-and-build, can
guarantee a successful outcome.
CM’s reputation has shifted
from its high point in the 1980s,
when it was almost exclusively
associated with well-managed
and well resourced commercial
projects such as Broadgate and
Canary Wharf. Since then it has
been adopted, typically for speed
or flexibility reasons, on a wider
range of projects, including
schemes from the arts, leisure
and public administration
BUILDING MAGAZINE 01.09.2006
sectors. In some cases, the client
and CM have not collectively been
able to impose discipline on
design development, coordination
and timely decision-making –
and, although there have been
resounding successes such as
Tate Modern, there have also been
disappointing results. Whether
these projects would have fared
better following other
procurement strategies is a moot
point, but it is clear that the use
of CM can in some circumstances
expose existing weaknesses in
project management capability.
So, given the higher risk
exposure that follows that
adoption of a construction
management strategy, what
additional benefits should the
client be seeking as
compensation? Opportunities for
enhanced performance include:
■ Acceleration of the overall
project programme;
■ Enhanced ability to incorporate
change into the design;
■ Delayed completion of design
elements, such as retail fit-out or
hotel fixtures and fittings, that
can be finished later without
affecting the overall programme;
■ Involvement of specialist trade
contractors in design and
construction;
■ Creation of a less adversarial,
problem-solving project culture.
Clients should always devise
their procurement strategy on the
basis of their project priorities,
management capability and the
extent of risk that they are
prepared to accept. Clients in arts
organisations, a sector that used
CM extensively during the lottery
boom, might not, for example, be
best-equipped to take on the
increased risk exposure and
additional administrative role
associated with CM – and might
not now be given funding without
the security of a lump-sum
contract.
However, beyond the glare of
publicity, a small but significant
group of clients continue to use
CM to their advantage, using, for
example, the cultivation of direct,
long-term relationships with
trade contractors to secure many
of the benefits more often
associated with partnering.
Furthermore, by employing a
construction manager who is able
to focus on the interests of the
project, rather than on its own
risk management, the client can
be confident that its project
objectives will be shared by the
rest of the team.
This article summarises current
best practice with respect to
construction management. It
will look at advantages and
disadvantages of the route and
in particular at what steps can
be taken to address the client’s
higher risk profile associated
with CM. A case study based on
the Peter Jones refurbishment
identifies many of the key
ingredients of the successful
application of CM and also
demonstrates how modifications
to the general approach can work
to the client’s advantage.

This picture: The flexibility of construction
management was an advantage in the highly
complex Time and Space planetarium project
in Greenwich Park
Below left: London’s Tate Modern has been
hailed as one of the most successful recent
construction management projects
02 Construction management best practice
Construction management is perhaps best
summed up as the procurement route whereby
designers design, trade contractors detail and
deliver their packages, and where the
construction manager manages the process,
leaving the client to lead and accept the risk
on a project for which they are ultimately
responsible. The key issues raised by this
definition include:
■ The central role of the construction
manager in managing the project and in
providing administrative support to the
employer.
■ No single point of responsibility related to
the delivery of the project.
■ The greater role of trade contractors in the
completion of their design work and co-
ordination of their work with other packages.
■ The direct relationship between the client,
consultants and trade contractors.
■ The importance of coordination and
management at interfaces between different
trade packages.
CM is distinguished by the influence of the
client’s and construction manager’s
management and leadership skills on the
outcome of the project, and the potential
exposure of the client to loss should these
capabilities not be in place. Problems related
to co-ordination and timely decision-making
are common to all construction projects,
and with CM as well as any alternative
procurement route, it is the performance
of the team that is at the root of project
success – not the procurement strategy
per se.
However, by providing the client with greater
influence over the project and more flexibility
economics.procurement 63
in connection with contractor selection and so
on, the selection of CM also means that lack of
performance by the client, caused by
indecision or delayed instruction, can have a
real effect on a project. Furthermore, the
consequences of ineffective management by
the construction manager will also directly
affect the client , should delay or claims for
additional payments to trade contractors
occur as a result.
Accordingly, the client must be sufficiently
disciplined and resourced to provide its inputs
into the project as required by the agreed
information release schedules. They must also
ensure that they appoint a construction
manager with the appropriate resources and
experience and a positive approach – a task
that is challenging for many clients, whether
experienced or not.
BUILDING MAGAZINE 01.09.2006
03 The construction manager’s role
The construction manager’s
roles and responsibilities go
well beyond the scope of
work of a typical contractor
and require specialist
resources for successful
delivery. As an illustration
of the scope of the role, the
following duties are typically
found in a construction
manager appointment:
■ Programming of design
and construction activity,
including information release
programmes, approvals and
reprogramming to meet overall
completion dates.
■ Advising on buildability
construction methodologies
and sequencing including
assistance with the selection of
materials or, in some instances,
the use of prefabrication.
■ Commenting on and
monitoring the progress of
design development.
■ Advising on requirements
for preconstruction works,
temporary works, mock-ups
and testing.
■ Packaging up the works into
well co-ordinated and clearly
demarcated trade contracts,
together with the definition
of the transfer of design
responsibility.
■ Advising on the pre-
qualification of trade contractors.
■ Preparing and collating pre-
qualification and tender
documentation together with the
BUILDING MAGAZINE 01.09.2006
administration and negotiation of
the tender process.
■ Managing, planning and
controlling the work of trade
contractors, including the
administration of design
approvals and inspections.
■ Monitoring and reporting on
overall progress, advising on
issues related to trade contractor
performance and forecasting the
impact of design changes or
disruption to the progress of the
works.
■ Managing financial aspects of
the project, including trade
contract valuations, claims and
administration of contra-charges.
■ Initiating action by the client
and project team to mitigate
delays or cost overrun.
Beyond the letter of the CM
agreement, it is widely recognised
that the construction manager’s
soft skills can make a substantial
contribution to the success
of the project. The case study
overleaf illustrates this well.
The separation of the
construction manager from
direct contractual relationships
with the trade contractors
places them a good position
to promote a collaborative
approach to project delivery.
An adversarial approach is
usually less effective – partly
as the client is unlikely to
have the same commercial
interest in the aggressive
management of subcontractor
relationships as an equivalent
main contractor.
Another area of contrast
between CM and conventional
contracting relates to the
identification and avoidance of
problems before they occur.
A solutions-based approach
such as this requires thorough
planning and management and
as a result, significant resource.
This is particularly the case
in areas such as design co-
ordination and risk management,
both of which are often given
lip service under other
procurement routes.
Effective project administration
is also an important aspect of
CM, and the availability of a
range of standard processes,
documents, templates and
databases will play an important
role in enabling the client to
discharge its responsibilities.
All of these aspects of the CM
service should be available to
clients on all projects, but there
continues to be considerable
inconsistency in the standard
of service and performance
that is offered to clients. As a
result, it is essential that the
construction manager’s ability
and track record in delivering
across its full range of project
responsibilities is carefully
tested at appointment, and
that this appointment takes
place at a sufficiently early
stage for the construction
manager to be able to carry
out all aspects of its pre-
construction role.
Finally, as the role is so
wide-ranging, there is
potential for overlap with the
work of other consultants,
particularly project managers
and, to a lesser extent cost
consultants. This potential for
overlap needs to be dealt with
directly, either via the clear
drafting of schedules of services
or through the adoption of a joint
team-based approach to work
such as cost control.
Although the duties described
above might suggest that the
construction manager role
provides for considerable
authority with limited
responsibility, the agreements
and services under which
construction managers operate
can be very demanding. In
addition, the judgement of the
legal case associated with the
Great Eastern Hotel suggests
that the construction manager
role creates significant direct
liabilities. In the Great Eastern
Hotel case, the judge found
that deficiencies in the delivery
of specific construction
management responsibilities
such as the organisation of
temporary works and the
packaging up of work created
liabilities for the construction
manager for both delay and
cost overrun.
 Chiswick Park (pictured on this page and
opposite), Stanhope’s office and retail
scheme in West London, was construction
managed by Bovis Lend Lease

04 Advantages and disadvantages of CM

Construction management stands at the top end of the scale with therefore may not be secured by all clients following a CM strategy. As
respect to a client’s risk exposure but potentially offers substantial a result, careful consideration of these advantages and disadvantages
advantages. However, most of these benefits, set out in the table must be undertaken on a project and client-specific basis, to ensure
(below), are only secured by direct client engagement and action, and that they are relevant to a client’s decision making.

Advantages Disadvantages

Accelerated programme overlapping design and construction Design co-ordination risk and increased likelihood of design change

Ability to closely manage cost during design and procurement No cost certainty until all packages are let and no single point
lump-sum cost commitment

Proactive management of the design and construction process to Exposure to risk associated with construction manager and team
minimise impact of change and other causes of disruption performance. Reliance on the capability of construction manager
and project team to correctly forecast consequences of change.
Responsibility to fund solutions to problems should they occur

Hands-on involvement of the client on the project Increased administration role for the client of CM route

Professional team including the construction manager focused on CM and professional team owe duty of care liability only
meeting client’s needs. Integration of design and construction skills

Full control over design including incorporation of design by High degree of client ownership of risks associated with design
specialist contractors including impacts of late or incomplete and uncoordinated design

Early appointment of construction advisers and specialist trade

contractors

Ability of client to influence the selection of trade contractors. Added complexity of one to one contractual relationships of client
One-to-one contractual relationships with all team members

Management focus on programme, sequencing and buildability Reliance on management capability of construction manager

Client ownership of tendering and contractual arrangements Client position at centre of management requires effective
decision-making

Opportunity to package the work to suit the capability of the trade

contractors and to manage on-site interfaces

Ability to identify and act upon poor trade contractor performance Client exposure to performance risk and exposure to consequential
loss associated with trade contractor default.

BUILDING MAGAZINE 01.09.2006

66 economics.procurement
05 Client actions to reduce the risk of CM
Construction management
involves no more or less co-
ordination and organisation than
any other procurement option.
However, as the client is involved
alongside the construction
manager in more aspects of
project administration, it will
inevitably make greater demands
on the client’s time and
resources. Although this is not an
issue for experienced employers
with a dedicated management
resource, this could challenge the
capabilities of less well-
resourced, one-off clients.
In addition to making sure that
their own house is in order,
clients must make sure that the
construction manager is fully
engaged at all stages of the
project. Key measures that can
be put in place to create the
conditions for success on a CM
project include:
■ Early appointment of the
construction manager. To be
really effective, the construction
manager needs to be on board
before the initial design, budget
and programme are set.
Retrospective adoption of a CM
strategy is likely to result in the
appointed construction manager
having limited influence, playing
catch-up throughout the project.
■ Appointment of the right CM
team. Clients and their advisers
must be absolutely vigorous in
their selection and appointment
of the CM team, ensuring that it
has the full range of skill sets
and processes required. Key areas
BUILDING MAGAZINE 01.09.2006
of concern include: the use of
consistent processes for design
review and coordination, trade
contractor pre-selection and so
on; the management of package
interfaces, the capability to
predict the full outcome of
change orders; and the overall
management of the project team.
■ Early determination of the
minimum level of cost certainty
required ahead of start on site.
This typically ranges from 70 to
80% of the anticipated
construction cost. The timing of
package procurement will
determine the design programme.
■ Clear communication of areas
of responsibility. CM agreements
are often bespoke and
considerable negotiation may be
required in the agreement of a
construction manager’s scope of
service and liability. Roles must
be properly demarcated so that
the construction manager can
perform effectively in advance of
the completion of the CM
agreement.
■ Ensuring that management
resources are applied at key
stages of the project, including:
■ Design – establishing and
monitoring the design
programme, and reviewing
design deliverables for
completeness and coordination.
The construction manager will
also need to enforce compliance
with information release
schedules with respect to
completeness and timeliness.
Where change occurs, the
impact on the associated
elements of the works will need
to be reviewed on a consistent
and thorough basis.
■ Management of the work as it
proceeds – providing sufficient
on-site management resources
to co-ordinate package
interfaces, to monitor progress
and to implement corrective
action as required.
■ Management of contra-
changes – recording the basis of
issues that give rise to contra
changes so that costs are borne
by the responsible party rather
than by the client.
■ Establishing change control
processes that address the full
impact of any change on a
package, associated trade
contractors and overall
programme. Change control
should include procedures that
strictly define delegated powers
and requirements for client sign-
off. Cost reporting processes that
closely monitor the impact of
instructed changes also need to
be in place, backed up by an
actively administered risk
management process. The scope
of progress reporting should also
be extended to include design
deliverables and information
release schedules.
■ Allocating work to packages
based on trade interfaces rather
than administrative convenience.
Clients should also monitor
packages to avoid the duplicate
procurement of site
establishment, plant and
interface management resources
by the construction manager and
by trade contractors – not only to
save money, but also to ensure
that responsibility rests with a
single party.
■ Ensuring that the procurement
of trade contractor packages is
based on sufficient information
to define the full scope of work
and all critical interfaces with
other packages. Design should be
completed to a point whereby
provisional sums are not required
in package tenders. Pricing
documents should also be
prepared in sufficient detail to
enable the project team to obtain
enough price information to
support cost reporting and the
negotiation of variation costs.
■ Investment of time and effort
by the client and construction
manager into the development of
relationships with trade
contractors, including the issue
of instructions, administration
of payment and problem solving.
In managing these relationships,
the construction manager and
client should aim to achieve a
balance between contractual
discipline and an appropriate
level of flexibility, in order to
maintain the commitment and
co-operation of trade contractors.
Investment in team-building
activities at all levels of the
project team also helps to focus
staff on the importance of the
client’s objectives and the
successful completion of the
scheme.

06 Case study: Peter Jones department store refurbishment
This case study, based on the Peter Jones
department store refurbishment, illustrates
the conditions for success required for the
effective use of CM. It also underlines the key
role of the client and gives an example of how
CM can be adapted to provide a greater level
of certainty, but without undermining its key
features.
The refurbishment of the Peter Jones
department store in Chelsea, London, valued
at £100m and completed in summer 2004 is
one of the most complex and high-profile
projects that the John Lewis Group has
undertaken. The major issues for the client
concerned delivery to budget and to an
agreed programme aligned with key trading
dates, and above all, the minimisation of the
impact of the project on customers and
neighbours.
The John Lewis management is naturally
very focused on retailing as well as the
management of its building projects, and as
construction clients have tended towards
risk-sharing procurement strategies that
best align risks with the party best placed to
manage them. John Lewis’ general preference
is for lump-sum contracts where commercial
risk is taken by the contractor. In the case of
Peter Jones, the client was persuaded by the
project team that, because of the extended
project timescale, the problems of working in
a trading store and above all, risks related to
an uncertain scope of work in an existing
building, it would not be possible to obtain a
realistic or secure lump-sum tender as the
basis for a traditional contract.
The construction manager – in this case,
Bovis Lend Lease – was appointed at an early
project stage, during RIBA stage C. At the
same time the client made key internal
appointments, nominating the group deputy
chairman as project sponsor, and making the
existing Peter Jones MD a full-time project
director. A huge effort was made by the client
in preplanning, liaison with third parties and in
understanding the potential impact of the
project on trading and on the reputation
of the business. This level of commitment
had a profound impact on the motivation of
the project team. In time, the client team
co-located with the CM staff and other
consultants, creating a project team that was
fully focused on the client’s priorities and on
solving problems as they emerged.
Appointing Bovis early meant that detailed
programming options were considered from
the outset. The project budget was also
Opposite and right: The £100m refurbishment
of the Peter Jones department store in London
is an example of good construction management
based on the assumption of a CM route and
included realistic allowances for risk issues
associated with the uncertain scope of work,
the building’s listed status, phasing and so on.
The client’s active involvement ensured that
its key issues, mostly focused on a very high
level of customer care and neighbourhood
liaison, together with the achievement of the
detailed design solution required by the
retailers, were always at the forefront.
The project programme, devised after the
consideration of many options, was based on
three major phases – “the three rooms” –
involving the complete reconstruction and
extension of large, discrete sections of the
building. Package procurement really suited
the project, particularly with respect to the
continuing involvement of trade contractors
in successive phases.
An unusual feature of the contractual
arrangements for the project was Bovis’
responsibility for the performance of the
design team during the detailed design and
production information stages. The client
retained the design risk, but the arrangement,
whereby the design team was managed and
paid by the CM, focused Bovis’ attention on
the co-ordination of the design and on the
timing and content of information releases.
economics.procurement 67
The effect on the quality of information was
considerable – directly addressing one of the
major risks associated with CM. Risk
management as a discrete project
management activity was also taken very
seriously – aided by the successful
management of some major issues early in
the project – with monthly reviews and the
formal management of the ownership and
closedown of major risks.
One key to the success of the Peter Jones
refurbishment was the quality of working
relationships at all levels of the project, which
led to a genuine understanding of the client’s
key issues – particularly the importance of
managing the impact of the project on
customers. The client and CM were
instrumental in establishing this way of
working and in addressing the strengths and
weaknesses of CM procurement.
That a project with such a high risk profile
could be delivered so successfully – on time
and budget and to critical acclaim – is more as
a result of the efforts of the team, than the
selection of a procurement route. However in
this instance, the adoption of CM, and the
client’s commitment to its discipline, gave the
project the focus on end results that became
the foundation of its success.
Previously …
4 August Cost model: Retail fit-out
11 August Small projects cost model:
Social housing
25 August The tracker
Coming up …
8 September Cost update
15 September The tracker
22 September Whole-life costs: Basements
Data toolkit
Building’s database of cost data is an
essential resource for anyone in the
business of procuring buildings. There is an
extensive archive of cost models, market
forecasts, whole-life costings and much
more. See www.building.co.uk/datatoolkit
Cost model correction
Because of a production error, the cost
breakdown in the retail fit-out cost model
published on 4 August contained some
incorrect units. The corrected model is now
available on www.building.co.uk and Davis
Langdon’s website www.davislangdon.com
BUILDING MAGAZINE 01.09.2006