SCOTTISH CAPITAL INVESTMENT MANUAL

Transcription

1 SCOTTISH CAPITAL INVESTMENT MANUAL Management of Construction Projects Guide Supplement: Gateway 3 Task List 7 December 2009

2 Contents 1. PROJECT DIRECTOR RESPONSIBILITIES (GATEWAY 3) People Processes Programme Processes Project Execution Plan (Gateway 3) TECHNICAL PROJECT MANAGER RESPONSIBILITIES (GATEWAY 3) Procurement Processes Programme Processes

3 INTRODUCTION Within the Management of construction Projects of the Scottish Capital Investment Manual (SCIM), guidance is given on the normal tasks undertaken following approval of the Full Business Case (Gateway 3) and the responsible officers for key deliverables. This supplementary document provides a checklist of roles, responsibilities and deliverables for Gateway of the OGC Gateway Process Investment Decision. This should be read in conjunction with the Frameworks Scotland Guidance for Frameworks Scotland Projects. Reference should also be made to the Gateway 3 section, within the OGC Gateway Process information pack available from the OGC or on the OGC website, which lists the requirements of a Gateway Review. This section provides a detailed checklist of specific tasks to be undertaken by the Project Director and Technical Project Manager through these processes. 3

4 1. PROJECT DIRECTOR RESPONSIBILITIES (GATEWAY 3) 1.1 People Processes Figure 1 Project Director Tasks for Gateway 3 People Processes Deliverables Tasks Date Completed Integrated Project Team Stakeholder and business or user representatives will be involved in the development of the project and the project board or steering group will be effective in the development of the design. The entire membership of the integrated construction project team will be identified, their responsibilities and internal relationships made explicit in a revised organogram. The team will operate under the leadership of the lead consultant, who has the responsibility for coordinating the input of the rest of the team. The Project Director, through the Project Manager, must ensure that during this process: The integrity of the brief is maintained The project remains within the budget The process is completed to programme 4

5 OGC Gateway Review Process Information Pack Scottish Government Construction Procurement Manual Section 3 Procurement Strategies and the Appointment 1.2 Programme Processes Figure 2 Project Director Tasks for Gateway 3 Programme Processes Deliverables Tasks Date Completed Planning Full planning consent, building regulations and other Consent statutory approvals will be obtained by the responsible party. Any public enquiry must be satisfactorily concluded before Full Business Case approval. The planning authority must be consulted during design development. Monitoring and Control Progress Monitoring The Project Director must ensure that appropriate time, quality and cost monitoring and reporting systems are in place and that they receive the report on a formal basis (usually monthly) and by exception where particular issues arise. Practical Completion Completion is certified by the Project manager when the contract works have been satisfactorily completed and commissioned, subject only to minor defects. The form and term used for this certificate may differ depending on the form of contract used. 5

6 After completion, all consultants will hand over their documents on the project to the Project Director for retention by the NHSScotland Body. The number of those documents handed over will vary depending on the project, but will include those which: May be required for audit or to respond to Ministerial or Parliamentary requests for information, including those relating to procurement; and Relate to tests of quality or for compliance with performance specifications. Handover of documents may be deferred until after completion of the post project evaluation. 6

7 1.3 Project Execution Plan (Gateway 3) The Project Execution Plan (PEP) is a critical construction phase master file which the Project Director is required to maintain throughout the construction period. (Gateway 3 and 4) It incorporates and will build upon the Project Initiation Document (PID), Outline Business Case and Full Business Case developed and approved earlier in the project lifecycle. (See Programme and Project Organisation and Business Case Sections for further details). The PEP should be updated to reflect work to date and the proposed agreement to be made between the client and construction supply chain. This section provides a detailed checklist of specific tasks to be undertaken by the Project Director at Gateway 3. 7

8 Figure 3 Project Director Tasks for Gateway 3 Project Execution Plan (PEP) Item Tasks Transfer New PID / OBC Section / FBC Gateway 3 Sections 1. Brief description of project 2. Aims and objectives of PEP 3. Procedures for updating the PEP Project organisation structure 4. construction supply chain 5. Project reporting structure 6. Strategic brief 7. Risk management strategy Value management report / option 8. appraisal report 9. Development Control Plan 10. Risk register and latest risk analysis Budget, latest cost report and cash 11. flow Whole life cost option appraisal 12. reports 13. Time and resource plan Outline schedule of key meetings 14. and workshops Copies of key permission 15. documents Change management procedures 16. and control systems 17. Site Investigation 18. Equipment strategy report Date Completed 8

9 19. Project method statement 20. Design freeze dates related to milestone activities Brief and design development 21. review report Quality management plan and 22. Design Quality indicators 23. Health and Safety file 24. Public Relations Plan 25. Market analysis report tendering 26. Project procurement strategy 27. Plan for occupation 28. Planning for Post Project Evaluation 29. Outline Business Case 30. Full Business Case Further information Scottish Government Construction Procurement Manual Section 2 Value for Money. A5 Project Execution Plan and PROCODE Section 1.6 and

10 2. TECHNICAL PROJECT MANAGER RESPONSIBILITIES (GATEWAY 3) 2.1 Procurement Processes Figure 4 Technical Project Manager Tasks for Gateway 3 Procurement Processes Deliverables Tasks Date Completed Tender Bid documents are prepared according to Documents procurement strategy used. During the preparation of the tender documents, the following will be considered: The documents will be prepared by the design team under the direction of the Technical Project Manager. The best practice guidance on contract documents given in PROCODE must be referred to. The Technical Project Manager and design team will recommend to the Project Director the most appropriate form of contract. The drawings and specifications must be appropriate for the contract strategy. The specifications must include whatever tests, samples or mock-ups may be required 10

11 during the course of the work to assure quality and compliance with the specification. This is particularly important for Group 1 and 2 equipment items, which must be tested for performance, as part of the commissioning procedure, before acceptance. The award criteria must be appropriate, specific to the particular project, and relevant to assessing whether tenders represent value for money. The criteria must be included in the initial advertisement and the tender documents. General Considerations The following basic procedures apply to all contract procurement strategies: The procedures for tendering and awarding contracts apply to both works contracts and for the purchase and installation of Group 1 and the installation of Group 2 equipment. Group 2, 3 and 4 equipment, will be obtained using the NHSScotland Body s normal purchasing procedures. The Technical Project Manager and the design team must integrate the procurement of both works and equipment into the overall project programme. 11

12 The specification and delivery dates should be established by the project team, and the purchase requisition approved by the Project Director, on the advice of the Technical Project Manager. Nothing may be charged against the project budget unless it has been approved by the Project Director. The formal post-tender estimate and the mandatory completion of the Scottish Government Health Directorates Contracts and Cost Analysis Report apply only to the main works contract. Indemnity Insurance and Collateral Warranty The requirement for Professional Indemnity Insurance (PII) and Collateral Warranties will be determined and made explicit following the recommendations of PROCODE. Tenders Tender lists must be prepared within the appropriate tender period followed by tender assessment and post tender negotiations as appropriate. PROCODE Section 1.3 Part

13 Investment Decision Final Checks Confirm validity of tender, execute contract, complete Scottish Government Health Directorates contract and cost analysis forms where applicable Investment decision entails: Before the contract is awarded, the Project Director, through the Technical Project Manager, must ensure that the contract documents have been brought up to date to include any agree post-tender changes. The NHSScotland Body must confirm that it is in a position to make the site available, and that the contract administrative arrangements are in place. The contractor must confirm that the tender remains valid if the normal acceptance period stipulated in the contract is exceeded. The Project Director must ensure that a total funding package is available to meet the approved sum, including contingency and allowances for inflation. This is particularly important where external funding or private finance is involved and could be cash limited. Following the successful review of Gateway three the contract may be awarded, and the contract formally executed. Following the award of the contract the Project Director, through the Technical Project Manager as appropriate, will: 13

14 Notify unsuccessful bidders Place a notice in the EU Journal Update the Project Execution Plan Alternate Dispute Resolution Conditions relating to Alternative dispute Resolution (ADR) will be clearly outlined in the contractual documents following the guidance in PROCODE. PROCODE Section 1.3 Part 22 14

15 2.2 Programme Processes Figure 5 Technical Project Manager Tasks for Gateway 3 Programme Processes Deliverables Tasks Brief/Design It is important for the key stakeholders / user panel to Freeze recognise that one tenders are accepted the brief / design is now frozen and, henceforth, any proposed changes must be subject to formal change control procedures. Change following the signing of the contract will necessarily have time and cost consequences. Date Completed Quality Standards Design developed by the integrated project team post contract will comply with quality procedures. The quality activities during design development are: Confirming the project brief Ensuring that designers are familiar with the standards issued by the Scottish Government Health Directorates Ensuring compliance with: Legislative requirements Standards and statutory guidance impacting such topics as health and safety, security, privacy and dignity 15

16 Disability discrimination Act, and Infection Control Design Management Design developed by the integrated project team post contract will be managed and conform to the project brief. Any required change will comply with the change and cost control procedures described in the Project Execution Plan. The purpose of design management is to ensure that: Designs comply with the brief, with the brief itself not being altered except through formal change control procedures Changes are strictly controlled and costed Options are considered where practicable and appraised Designs are well co-ordinated Design is completed to programme Cost and progress reports are issued at regular intervals The Project Director and the key stakeholders / user panel are kept informed through meetings and presentations 16

17 Section 1.6 and of PROCODE for procedures for design management Scottish Government Construction Procurement Manual - Section 1 Annex C, Design Understanding the Design Process Design Development Where not included in the tender documents: Sketch designs/detailed designs will be presented to the key stakeholders/user panel to explain how the brief has been translated to fulfil their requirements. Ideas to improve operability will be considered within the change control procedures. Sketch designs will include: Spatial layouts, including room locations, circulation and major plant and equipment space. Site access and contractors areas. A value and risk study may be conducted at this stage (VE1) and (RM3). Final decisions will be taken by the appropriate person. The Project Manager will draw the attention of the Project Director to design options which affect whole hospital operations, aesthetic appearance, capital and running costs, programme or operability. The above will be reported in an updated brief and design development review report. 17

18 Equipment Schedules Scottish Government Construction Manual Section 1 Annex C, Design Understanding the Design Process. Equipment schedules for Groups 2 and 3 equipment based on the agreed room data sheets/layouts, will be prepared at this stage. The items available for transfer should be identified so that schedules for new equipment can be prepared and costed to ensure that the equipment budget established at the Full Business Case stage will not be exceeded. Detailed Design Detailed design comprise converting the sketch design into production drawings and specifications which are in sufficient detail for: Constructing the buildings. Installing services. Purchasing client equipment. Co-ordinating building services and client equipment with the building itself. Scottish Government Construction Procurement Manual Section 1 Annex C, Design Understanding the Design Process 18

19 Cost Estimate A cost estimate (budget/cost 3) must be prepared for the main building contract under any procurement strategy prior to Full Business Case approval. This will include: Up to date risk analysis and contingency Up to date capital cost estimate Updated whole life costs (WLC report 3) Confirmation that the programme is acceptable If the review indicates that costs exceed the figure approved by the Scottish Government Health Directorates, the design will be reviewed for savings, otherwise re-approval will be necessary. Monitoring and Control Scottish Government Construction Manual Section 4 Financial Aspects, Budget Estimates. Programme Management Each contract, when awarded, will contain its own programme, compatible with the project programme and key milestone dates. The Technical Project Manager will check and monitor progress against the contract programme and issue monthly Project Progress Reports. 19

20 Quality Control There are two main requirements of quality control: To check that all construction work undertaken by the contractor is in accordance with the contract documents. There may be a Clerk of Works appointed, based on the site, who has delegated authority to act as inspector on behalf of the client. The clerk of works has no authority to change the specifications, only to see that they are complied with. Ensure compliance with the inspection and testing procedures in the contract documents have been complied with. Record Keeping Maintenance of good records of site activities is a responsibility of the Project Manager. The Project Director will ensure, through personal inspection that this is carried out thoroughly. These records are necessary to provide an audit trail and information for the post-project evaluation. The records are essential for the assessment of claims, and particularly for any disputes. Records must include: A daily diary All site instructions and change orders 20

21 Inspection and testing results Drawing issues and revisions Requests for information or instructions by the contractor Any circumstances which might give rise to a claim Other matters which the Technical Project Manager considers significant Scottish Government Construction Procurement Manual Section 2 Value for Money, A6.15 Quality Control Post Project Evaluation Guide A.7 Project Reports Section 3 Procurement Strategies and Appointment of Consultants and Contractors, A. - The Award Stage, Audit Trail Payment and Financial Controls Cost Management Project Manager to: operate change control procedures, price variations, manage expenditure of contingencies, and maintain latest estimated cost and cash flow, initiate action to avoid overspend, issue monthly Financial Status Reports and submit Scottish Government Health Directorates Report Form. 21

22 The Technical Project Manager will follow the procedures below in the cost management of the project. To operate change control procedures. Although cost reports, estimates, and forecasts are prepared by the Quantity Surveyor, the Technical Project Manager is directly responsible for understanding the cost consequences of any decisions and for initiating corrective actions if necessary. To maintain an up to date estimated cost and cash flow To manage expenditure of contingencies To initiate action to avoid overspend. The project programme, which includes all contracts, and the programmes and terms of payment for individual contracts, must be compatible with the approved funding arrangements. If the forecast cash flow varies from that approved, the NHSScotland Body must notify the Scottish Government Health Directorates immediately for schemes approved by the Scottish Government Health Directorates To issue a monthly financial status report. This report is prepared by the Quantity Surveyor with comments by the Technical Project manager, and is submitted as an integral part of the Project Progress Report (PPR). It must include the results of monitoring by the Project Manager of the overall cost of the project, against the approved budget. 22

23 Payment Bodies, as the contracting parties, are responsible for paying contractors and suppliers the interim and final payments to which they are entitled. These will be made as follows: In most construction contracts, the Quantity Surveyor will agree valuation of interim payments due during the course of the work, which the contract Administrator will consider, and if agreed will issue a payment certificate. Bodies must pay the amount certified on time. The Project Director, on the advice of the Technical Project Manager, should keep the NHSScotland Body finance department aware of future payment requirements by means of the updated cash flow forecast. Claims Technical Project Manager to maintain record of potential claims, assess submitted claims and report on circumstances. The terms of the contract allow contractors to claim additional payments in certain circumstances defined in the contract conditions. These are generally due to either: 23

24 Risks occurring which are client risks under the contract Failure by the NHSScotland Body to comply with its obligations under the contract. This is often expressed as disruption of the contractors work programme due to changes or late information. Whenever recourse to arbitration or litigation is contemplated or undertaken, the Project Director will formally notify the Scottish Government Health Directorates of the situation and seek advice. Claims and Final Accounts Settle outstanding claims if possible. PROCODE Section 1.9 Guidance on the use of Cost Control Reporting Forms Scottish Government Health Construction Procurement Manual Section 4 Financial Aspects Scottish Government Construction Procurement Manual Section 1 Annex C, Claims 24

25 Propriety Tendering during the contract will be performed under standing financial instruction, proper delegations and allow for audit. The policies governing public procurement will apply with procedures in place complying with those policies. The Two most important policies are the maintenance of propriety and the award of contracts on the basis of best value for money. Implementation of these policies will be as follows: Propriety will be maintained through compliance with procedures providing checks and balances, placing the responsibility for contracts on more than one person, ensuring confidentiality and equal treatment of bidders. There must be formal delegations of financial authority for the approval and letting of contracts. Major works contracts must be approved by the Project Investment Decision maker (usually the NHSScotland Body). The Project Director must ensure that the Technical Project Managers and other consultants maintain the same high standards of propriety. The Technical Project Manager must maintain procedures, and check those of other consultants. 25

26 Internal Audit of these procedures is a specific part of the annual internal and external audits of NHSScotland Bodies, not simply a requirement of on stage of a capital project. As long as a recent audit has confirmed compliance, and Project Director is satisfied regarding the procedures of consultants, this requirement will have been fulfilled. PROCODE Section 1.3, Part 1.9, Part 4 (Guidance on Propriety) Scottish Government Construction Procurement Manual Section 3 Procurement Strategies and the Appointment of Consultants and Contractors, Team working Tips Final Review Cost Should the Full Business Case require that costs be reduced following the update of risk analysis and contingency, the established approved sum, and the project programme then a value and risk study will be undertaken to: Check the project against all the other constraints defined in the Full Business Case, including running costs, the discounted cash-flow calculations and re-approval criteria and Indentify any savings necessary to stay within budget for example, by simplifying some of the design or reducing the scope of the project. 26

27 Change control procedures require that if changes to the brief are proposed then they must be agreed with the key stakeholders / user panel. A variation in project scope or a cost above that approved will require reapproval from the Scottish Government Health Directorates and this must be done before the contract is signed. New tenders may be required if the scope of work has been altered significantly. Scottish Government Construction Procurement Manual Section 4 Financial Aspects, Annex A, Contents of a Financial Report. 27