Foundations For Success: Procurement That Builds Results

RDJ recently held a construction panel discussion 'Foundations for Success: Procurement that Builds Results' at its Cork office at 85 South Mall.

It was an engaging discussion moderated by RDJ Construction Consultant, Denise Kennedy featuring Greg Power, Director of Estates, Campus Strategy & Property Development at the RDS; Sarah Murphy, Pre-Contract & Design Manager at Carey Building Contractors; and Finola McCarthy, Partner and Head of Procurement & Construction at RDJ, who highlighted important considerations for construction procurement in public and private projects.

Key Takeaways from Panel Discussion

• It was recommended that Employers/Clients take an aerial view of "value for money" and in doing so consider what is the real benefit of the project before going to tender.
• Employers/Clients are encouraged to set a realistic budget by using Reference Class Forecasting in the initial estimate "sanity check" and avoid the "value engineering" process that seems so commonplace in the industry.
• The panel recognised that the Client and Contractor have different interests in respect of a construction project - the Client's primary objective is that the project is completed safely, on time, on budget and to a high quality and the Contractor wants to achieve all that but also needs the project to be profitable. The panel noted it was important for both parties to be aware of and respect each other's interests throughout the process.
• Employers/Clients should ensure risks are properly identified and there should be a scientific and methodical calculation of the total risk of the project.
• Employers/Clients were encouraged to use the assessment of risk identified in the Risk Register to inform the contingency required for the project budget.
• Employers/Client should assess the buildability of projects and consider using Design & Build contracts for projects that would benefit from the contractor taking on full design responsibility, whichpotentially allows design and buildability to be simplified.
• Establishing a realistic programme pre-tender was identified as critical to avoid a situation where contractors submit a programme with their tenders that they know is not achievable simply to avoid disqualification.
• Employers/Clients should consider conducting a review of the level of design coordination between design team members to ensure the Pricing Document/Bill of Quantities and Works Requirements incorporate the necessary level of design coordination and are consistent with one another, prior to advertising a tender.
• Employers/Clients might consider arranging an appropriate peer review of the draft contract documents to ensure the relevant documents are captured in the contract and that the Works Requirements reflect the allocation of risk as proposed in the Risk Register.
• Employers/Clients should consider what aspects of a tender opportunity might be appealing to contractors and what might deter contractors from tendering. Establishing the most appropriate MEAT award criteria for the project should be informed by this.
• The value of building relationships and establishing clear lines of communication through all phases of a project was identified as hugely beneficial by all members of the panel.

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