ANNEX 8 Contract Management Strategy

Transcription

1 ANNEX 8 Contract Management Strategy Bath & North East Somerset, Bristol, North Somerset and South Gloucestershire Councils working together to improve your local transport

2 Contract Management Strategy - Ashton Vale to Temple Meads & Bristol City Centre MetroBus 1.0 General Principles The Ashton Vale to Temple Meads and Bristol City Centre (AVTM) MetroBus contracts have been procured in accordance with the West of England Joint Procurement strategy and endorsed by the Procurement Working Group (PWG) and Programme Assurance Board (PAB).The Contracts comprise of the following: Contract 1 : Guided segregated Busway Contract 2 : Ashton Avenue Swing Bridge Contract 3 : Bathurst Basin Bridges Contract 4 : Bristol City Centre loop Contract 1: The AVTM MetroBus guided Busway section from long Ashton Park and Ride to Bathurst basin Bridges will delivered through a NEC3 Engineering and Construction Contract ( ECC), Design & Build Option C ( Target Price contract with Activity Schedule ). Contract 2: Ashton Avenue Swing Bridge will be delivered through a NEC3 Engineering and Construction Contract ( ECC ),Design & Build Option A (fixed Price contract with Activity Schedule). Contract 3: Bathurst Basin Bridges will be delivered through a NEC3 Engineering and Construction Contract ( ECC ),Option A (fixed Price contract with Activity Schedule). Contract 4: Works to the City centre loop consist of twelve individual work packages and will be delivered through the Highways and Associated Works Framework (HAAWF), with design work undertaken by Bristol City Council. The HAAWF has been let as a series of individual Lots: Lot 1: up to 1M Lot 2: 1M to 3M Lot 3: above 3M, with an expected maximum contract value of approximately 7M. To reduce procurement costs, a Schedule of Rates method will be used for works up to 1M in value. For works over 1M and for special conditions, a mini-tender system will be used. The HAAWF tender documents proposed that six contractors would form Lot 1 (up to 1M), five contractors would form Lot 2 ( 1M to 3M) and five would form Lot 3 (above 3M with an approximate maximum of 7M). 2.0 Planning and Governance The Programme Assurance Board (PAB) will maintain governance through implementation of the appropriate management systems along with the AVTM Project Board. The PAB is the group which guides and steers the direction of the MetroBus Programme. Senior officers from the PAB meet quarterly, where consideration is given for highlighting and dealing with key project deliverables. Currently, the AVTM Project Board meets bi-monthly. 1

3 The Senior Responsible Owner (SRO) is responsible for providing guidance and direction to the Employers Project Manager, and in turn ensures the project progresses in line with the Project Plan and that outputs and milestones agreed by the PAB are achieved. The Employers Project Manager (PM) is responsible for delivering the project in line with agreed controls and procedures. The PM reports and is accountable to the SRO and Project Board. The primary focus of the PM will be to define the Project Plan and to ensure that the project is delivered on time and within specification and budget, seeking additional financial authorities as required. The MetroBus Procurement Working Group (PWG) meet on a monthly basis to coordinate the detailed elements of the procurement activities for all four MetroBus schemes. The PWG is made up of senior officers from the three lead authorities responsible for the schemes and makes recommendations that feed into the Governance structures provided by the Project Board, PAB and the Joint Transport Executive Committee (JTEC).The PWG plays a significant role in reviewing, endorsing and providing oversight of the MetroBus infrastructure procurement programme. 3.0 People The AVTM MetroBus Delivery Team is shown in Annex 9 of the Full Approval submission. The Employers Project Manager ( PM ) reports directly to the SRO ensuring robust accountability and clear lines of communications. The Employers PM has overall responsibility for managing the AVTM MetroBus contracts and deals with programme, monetary issues and changes to the contracts. A NEC3 (New Engineering Contract) Project Manager & supervisory team will be appointed to administer & manage the day to day running of the MetroBus contracts. The NEC3 PM will report directly to AVTM MetroBus Delivery Manager, whom has overall responsibility for the delivery and co-ordination of the overall project which as previously mentioned includes MetroBus contracts (1 to 3) and contract 4, City Centre Loop packages procured under the HAAWF. The NEC3 project team administration duties below are specific to all contracts and include but not limited to : Project Manager Instructions; Management of compensation events; Maintaining change control register across the contract; Management of early warning notifications and project risks through the contract risk register; Monitoring progress against the accepted programme and instigate collaborative team working to mitigate any programme delays; Co-ordinate and chair monthly Contractor / Client progress meetings; Production of monthly progress reports; Instigate collaborative team working to manage design changes whilst maintaining focus of project aims, constraints and risks; and 2

4 Administer contract completion including rectification of defects. The NEC3 project team will comprise of numerous works supervisor s whom duty is to ensure that the appointed contractor construct the works in accordance with the contract documentation referring, specifically to the drawings, specification & associated Works Information. Contractors appointed to undertake works across all the MetroBus contracts will report to the NEC3 PM and have their work defined by the respective contracts. The NEC3 team will provide robust and clear lines of responsibility, duties and communication which accords with the requirements of the NEC3 suite of contracts & well established industry working practice. 4.0 Quality Management System There is a requirement for the contractor to operate a QMS in accordance with BS EN ISO 9001 and described in a Quality Plan. The Quality Plan will cover: Contractors organisation and management; Contractors method statements and construction procedures; Contractors construction quality control; Suppliers quality plans; and Contractors consultation with affected parties. 5.0 Relationships and Communications Representatives of the employer, the NEC3 project manager and contractor will attend monthly progress meetings. In advance of these meetings the contractor will provide a progress report which will detail: Progress achieved to date; Delays, causes and effects of delays; Details of any comments and consultation undertaken with adjacent properties and businesses; Works programmed; Labour, plant, materials and Sub Contractors; Information received and required; Payment profile and compensation events/early warnings; and Risk. The Employers project manager will report monthly progress to the SRO and Project Board. The contractors will be required to comply with all legislation and the Code of Construction Practice which forms part of the contract documentation. The code requires the contractor to implement an Environmental Management System, obtain 3

5 Licences from the Environmental Agency, the Water Authorities & obtain Temporary Traffic Regulation Orders from the incumbent Highway Authority. There is also a requirement to appoint a nominated person within the contractors organisation tasked specifically to public liaison duties. The officer will directly liaise with both the NEC3 project teams and communication officers of both Bristol City Council and the West of England Partnership to ensure a coherent co-ordinated approach is provided with regard to public liaison. 6.0 Cost Management and Payments One of the primary functions of the NEC3 project team following appointment is to provide cost management services and include but not limited to: Administer NEC3 Conditions of Contracts; Certifying contractors monthly cost applications; Auditing contractor s costs; Maintain and facilitate financial communication between the Employers finance team and the contractor; Review compensation event quotations; Produce financial reports; Attending pre-commencement and monthly progress meetings; Provide continuous commercial & contractual support; and Prepare final accounts. Contracts 1 to 3 (NEC3 options A & C) contain Activity Schedules which forms the basis for all contractors payments. Contractor will use these Activity Schedules as means of evaluating the works completed. The NEC3 Project Manager assesses the submissions and recommends to the Employer the actual level of payment due. Cost reimbursement for contract 4 is facilitated by contractors applying for payment based on a schedule of agreed rates. 7.0 Risk Management Quantitative Risk Analysis (QRA) evaluations have been completed and used to influence the approach to scheme delivery, contract methodology and delivery team composition and size. Contracts 1 to 3 contain individual project risk registers which has identified the main risks, mitigation measures and owners. These registers will continue to be reviewed and updated at regular intervals during the delivery phases to ensure it accurately reflects changing circumstances. Mechanisms exist within the contracts for risk monitoring and review with defined routes for escalation. The NEC3 project team and contractors will meets regularly during the works, the Contract Management Strategy will continues to develop mitigation action plans in response to existing and new risks with identification of new risk owners. 4

6 Within the NEC3 conditions of contract, there is a contractual requirement to operate a formal risk register of notified events and an up to date realistic programme maintained by the contractor but used in joint decision making between the contractor and the NEC3 Project Manager. 8.0 Relationship management The New Engineering Contract (NEC3),Engineering & Construction Contract (ECC) should be viewed as a stimulus to good management which encourages collaborative working between both parties which reduces the risks inherent in construction and engineering work.. 5