Civil engineering design and construct a guide to integrating design into the construction process

Transcription

1 CIRIA C534 London, 2000 Civil engineering design and construct a guide to integrating design into the construction process G Lafford MA CEng FICE MHKIE MAPM C Penny BSc CEng FICE MIGasE MIMgt S O Hana BSc CEng MICE N Scott BEng (Hons) M Tulett MSc CEng MICE A Buttfield BSc (Hons) 6 Storey s Gate, Westminster, London SW1P 3AU TELEPHONE FAX enquiries@ciria.org.uk WEBSITE

2 Summary This publication is a guide to best practice in managing the project process in civil engineering design and construct (D&C) projects. It discusses the issues to be addressed when managing design and explains the attitudes and practices that are recommended to enable projects to succeed. Considerable emphasis is placed on imparting awareness of the importance of the designer constructor interface. In a D&C project, the most critical lines of communication are at this interface. As well as describing contractual frameworks, this guide also contains management toolboxes for reference. It is intended to be a working document to assist those at a senior level (client, contractor and consultant) who have to make crucial decisions affecting the outcome of a project. Civil engineering design and construct a guide to integrating the design into the construction process Lafford, G; Penny, C; O Hana, S; Scott, N; Tullett, M; Buttfield, A Construction Industry Research and Information Association CIRIA C CIRIA ISBN Keywords Design and construct, client, owner, designer, contractor, constructor, design development, communication, procurement routes, design process, design management, D&C interface manager, engineering interfaces Reader interest Senior managers, project managers and others involved in civil engineering design and build Classification AVAILABILITY CONTENT STATUS USER Unrestricted Advice/guidance Committee-guided Clients, owners, construction professionals Published by CIRIA, 6 Storey s Gate, Westminster, London SW1P 3AU. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, including photocopying and recording, without the written permission of the copyright-holder, application for which should be addressed to the publisher. Such written permission must also be obtained before any part of this publication is stored in a retrieval system of any nature. 2 CIRIA C534

3 Acknowledgements This publication was researched and written by: Geoff Lafford Charles Penny Simon O Hana Neil Scott Mike Tulett Anne Buttfield Mott MacDonald Balfour Beatty Balfour Beatty Mott MacDonald Mott MacDonald Mott MacDonald. The work was overseen by a Steering Group comprising: Nigel Proctor (chair) Hyder Peter Barringer Trafalgar House Construction (Regions) Ltd Roy Bishop (research manager) CIRIA John Dawson Highpoint Rendel Tony Hetherington Health and Safety Executive Geoff Hodgson Loughborough University Colin Horner Highways Agency Tom Kerr Northern Ireland Water Executive Paul Lawrence Graham Consulting Group Graham Perrett Bechtel Water Technology Allan Thomas Babtie Group Ken Treadaway BRE Peter Wratten Wessex Water. Corresponding members were: Peter George Alan Hargreaves Mitchell McFarlane Group Tarmac Construction. The project was funded by the DETR, the Highways Agency, North West Water (Bechtel), Wessex Water and Water Service (NI). A considerable number of people participated in the research and consultation process, contributing their valuable time and knowledge. Nearly 200 people completed questionnaires and many participated in detailed discussions on a number of issues. Particular thanks must go to those who took part in interviews and to those who attended the Edinburgh seminar that gathered so many ideas. The names of those organisations which responded to the questionnaire are listed in the Appendix. CIRIA C534 3

4 Contents Summary...2 Acknowledgements...3 List of figures...6 List of tables...6 Glossary About the guide Purpose of this guide Who should read it The project process in D&C Scope of the guide Now D&C has been chosen How to use this guide An overview of design and construct Introduction The impact of privately financed projects The culture of design and construct Managing the D&C interface Introduction Organisation at the interface The people and their roles Commitment to the design Buildability Ensuring the design intent Communication What happens on site Summary Design and construct options Introduction Phases of D&C procurement Design stages Tendering for design and construct Summary of procurement options Three phase procurement contractual framework Introduction Who does what? Client's contractual relationship with designer and D&C contractor Sub-contractors, specialist designers and vendors Risks and responsibilities Safety with CDM Summary Three phase procurement: pre-tender phase Introduction Project definition client s requirements Design brief Site investigation CIRIA C534

5 6.5 Utilities and enabling works CDM Regulations Risk transfer Value management Whole-life cost Multi-discipline coordination Outline design hold Three phase procurement: tender phase Introduction Tenderers conference The design team Innovation in tender design Developing the client s design Project definition contractor s proposals Quantifying the design CDM Regulations Site investigation Risk assessment Three phase procurement: implementation phase Introduction Quality management Team organisation Design and construction planning Design checking, approval and certification Design change control and configuration modelling Document control Value engineering Achieving value Introduction The people issues The concept of quality The added value of D&C Value management Providing experienced and capable D&C staff Providing an environment conducive to delivering value Single phase procurement Introduction Where to start Moving forward How best to ensure success Conclusion...76 Toolbox 1...Quick reference guide for owners 77 Toolbox 2... Quick reference guide for D&C contractors 79 Toolbox 3...Quick reference guide for designers 80 Toolbox 4...Communications 81 Toolbox 5... Choosing a D&C interface manager 82 CIRIA C534 5

6 Toolbox 6...The CDM Regulations applied to D&C 83 Toolbox 7... Useful tips 87 Further reading...89 Appendix...92 LIST OF FIGURES 2.1 A typical BOT structure Traditional procurement Three phase procurement Single phase procurement Design and construct options Three phase procurement Single phase procurement Single stage tendering based on outline design (Option A) Single stage tendering based on novated design or contractor s alternative design (Option B) Two stage tendering based on performance specification (Options C and D) Choosing the appropriate procurement option The contractual framework of three phase procurement Multi-discipline coordination Design activities during the tender phase two stage tender Design activities during the tender phase single stage competitive tender Design quality management plan Organisation in the implementation phase Design check process flow chart The impact of early involvement Choosing a D&C contractor...74 LIST OF TABLES 2.1 Nomenclature for varying procurement strategies Design brief details CIRIA C534

7 Glossary BOT, BOT project An acronym for build-operate-transfer; used in this guide as the name for any project which is not financed by the owner and includes projects procured under the Private Finance Initiative. Other variants (BOOT, BOO, DBFO) are defined in Section 2. CDM Regulations Construction (Design and Management) Regulations client client s representative concept design to concession constructor, construction team consultant contractor D&C D&C contract D&C contractor D&C interface manager D&C project definitive design The employer of the contractor in a D&C contract, usually the owner or, in BOT, the promoter. See owner. The company or individual who represents the client and, after award of the D&C contract, is the point of contact with the D&C contractor. The initial design which defines the concept of the facility be constructed; the degree of definition ranges from performance specification to outline design. An arrangement whereby the owner in a BOT project grants to a promoter the right to construct and operate a facility for a period of time. The team appointed by the D&C contractor to undertake the construction; it may include sub-contractors as well as the D&C contractor s own personnel. A company which provides design, management or advisory services. A company which constructs engineering works. Design and construct. D&C is used in this publication in preference to design and build, but both terms have the same meaning. A contract under which the contractor is responsible for both design and construction. The party responsible for both design and construction in a D&C contract. The individual responsible for managing the interface between the designer and constructor. A project in which the owner finances the facility and procures it through a D&C contract. A design which defines what has to be constructed in sufficient detail to be priced with the same degree of certainty as in traditional procurement. CIRIA C534 7

8 design process designer detailed design end user facility framework agreement M&E novation open book accounting operator outline design owner Development of an idea taken from inception through to provision of the details needed to construct the facility. The team appointed by the D&C contractor to undertake the design. It may be an in-house team or, more usually in the UK for civil engineering works, a firm of consulting engineers. The final design which is defined in sufficient detail to enable construction to proceed. The group of people who will use the completed facility: customer, passenger, employee, etc. That which is constructed. An agreement promoted by the client, that is held with a single or a small number of contractors for a long term relationship for mutual benefit. Generally they have prequalified through an open selection process. They operate under agreed terms and conditions and tender for works as they arise. The benefit to the client is reduced time taken in the tendering process. The commercial opportunity to the contractors is the restricted number of competitors. Mechanical and electrical. In the context of this publication, the transfer of design responsibility from the client s technical adviser to the D&C contractor; the technical adviser usually completes the design as the D&C contractor s designer. A process combining the scrutiny of costs with the payment mechanism. The project accounts are maintained by the contractor and are open for full inspection and audit by the client. Payments made by the client to the contractor are calculated on the basis of the audited project costs, including contractor s profit attributable to the project. The company responsible for operating and maintaining the facility; it is usually the owner in D&C projects and the promoter in BOT projects, although a third-party may be employed to operate and maintain the facility through a franchise agreement. Design parameters, specifications, preliminary calculations and drawings which define the form, function and performance of the facility; a form of concept design, as defined in this publication. The owner of the facility. In BOT the owner is the party, usually a government body, which grants the concession and to whom the facility is transferred at the end of the concession period. See client. 8 CIRIA C534

9 partnering performance specification private finance initiative, public private partnerships An arrangement whereby all parties wish to align their corporate objectives on a project by project basis to achieve mutual benefits. This can be in the form of an oral or written agreement, but does not override any legal contract between the parties. A specification of the function and performance required of the facility; this is a form of concept design, as defined in this guide. H M Government s method of procuring facilities for the public services (eg railways, hospitals) through buildoperate-transfer type strategies (see BOT and its variants) promotor, concessionaire The company or consortium which has the concession to developer, project finance, construct, build and operate the facility in a company sponsor BOT project. single stage competitive tender, single stage tender single stage negotiated tender shadow toll stakeholders supplier technical adviser turnkey contractor turnkey project two stage tender A tendering strategy in which tenderers each prepare, in competition, a complete technical and financial bid; the bid may be the subject of discussion between client and tenderer for clarification but not negotiation. A tendering strategy in which the client negotiates a complete technical and financial bid with each tenderer. A toll paid by the owner, usually a government body, to the promoter for the use of a BOT facility such as a highway, bridge or tunnel; similar shadow payments methods are used for availability in facilities such as hospitals and prisons. Those who have an interest in the facility, financial or otherwise. A company which supplies materials or components used in construction. The party, usually a consulting engineer, employed by the client or owner to give technical advice. The contractor responsible for both design and construction in a BOT project; the contractor is often responsible for financing the project and may be required to operate the facility for a short period after start-up. A project where the client hands over the whole procurement and construction process to a contactor who is responsible for the design, tendering, construction and commissioning of a project, the completed project is handed over to the client. A tendering strategy in which tenderers prepare an outline design with a cover price, in competition, followed by a definitive design and price negotiated between the client and one or two preferred bidder(s); alternatively, a technical CIRIA C534 9

10 solution is negotiated with a contractor, and then priced in competition. vendor value engineering value management value planning whole-life cost Manufacturer of a finished product which is installed in the facility; the vendor is usually responsible for detailed design of the product. The process of adding value during the design and construction process. Management of the value planning and value engineering functions. The process of adding value during the concept design stage. The cost of constructing, operating and maintaining the facility for its life or, in BOT, during the concession period; this should include the cost of decommissioning or, in BOT, the cost of upgrading before transfer to the owner at the end of the concession period. 10 CIRIA C534

11 1 About the guide 1.1 PURPOSE OF THIS GUIDE This best practice guide aims to help senior managers in the construction industry to manage the project process in civil engineering design and construct (D&C) projects effectively. It is intended to increase awareness and understanding of the issues involved, identifying what decisions need to be made, when and why. 1.2 WHO SHOULD READ IT This guide is written for as wide a readership as possible. While one of its purposes is to assist senior managers to manage with confidence, the concepts of and statements on best practice should ideally be understood by all involved in D&C projects, including: project executives in design, construction and financing companies managers of design and construct teams project managers within or working for client organisations project personnel reporting to any of the above. 1.3 THE PROJECT PROCESS IN D&C The potential benefit of D&C include cost- and time-savings through improved buildability, innovation etc. They can be realised because of the interaction between design and construction from an earlier stage in the project process, compared with traditional procurement. This guide concentrates on how the project process can best be managed in order to maximise the benefits of design and construct. D&C requires a different approach to managing the design compared with traditional procurement and considerable attention has been given in the guide to this critically important aspect of the project process. 1.4 SCOPE OF THE GUIDE This guide describes best practice in planning and implementing D&C projects. Differences between D&C and traditional procurement routes are highlighted along with contractual issues. Design and construct is taken to be a generic term encompassing the whole family of design, construct, finance, own, operate and transfer procurement strategies, in which one party is responsible for both designing and constructing a facility. This includes projects procured under the Private Finance Initiative (PFI). 1.5 NOW D&C HAS BEEN CHOSEN Certain concepts need to be considered before using this publication. CIRIA C534 11

12 Traditionally, consultants design and contractors construct. Both parties are employed by the client through separate contracts. Thus the designer has a direct relationship with the client and is focused on the client s needs. D&C requires a different approach and both contractors and consultants can find it difficult to adjust to this method of procurement. Consultants may be reluctant to work with a contractor to produce a suitable design and contractors often struggle with the implications of being responsible for a design they did not produce. Similarly, clients are often left feeling exposed, as they no longer have direct control over the design. Many of the problems in D&C arise from a lack of suitably qualified and experienced managers on both sides of the designer-constructor interface. These problems can be made worse if the client insists on an overly bureaucratic regime of checks and approvals. The importance of this interface is emphasised throughout the guide. There must be an individual with responsibility for managing this interface. This person is referred to as the D&C interface manager and the role is described in detail in Section 3. Involving the constructor, the operator and the eventual end-user in the initial stages of design work can bring the client significant benefits, from single point accountability through to improved operational and maintenance characteristics. Project teams can benefit from more direct communication, resulting in greater awareness of different aspects of a project and fewer errors due to misinterpretation and misunderstanding. There must, however, be genuine teamwork based on respect for each other s interests, expertise and responsibility. 1.6 HOW TO USE THIS GUIDE The guide is structured so that it does do not have to read it from cover to cover if one only requires information on a particular subject. Definitions of terms used are given in the Glossary. There are ten main chapters, including this introductory section. Chapter 2 provides an overview of D&C, outlining procurement routes and summarising common problems and misconceptions. Chapter 3 concentrates on the designer-constructor interface, its organisation and the roles and responsibilities of those at the interface, such as ensuring design intent and keeping information flowing. Chapter 4 considers the main options open to the client three phase and single phase procurement and the tendering strategies appropriate to each option. Chapter 5 discusses contract types and the nature of relationships between the parties in a D&C project. Chapter 6 describes activities in the pre-tender phase of three phase procurement. Chapter 7 describes activities in the tender phase of three phase procurement. Chapter 8 describes activities in the implementation phase of three phase procurement. Chapter 9 considers the issue of delivering value. Chapter 10 discusses the value-driven approach to D&C projects throughout single phase procurement. 12 CIRIA C534

13 The seven toolboxes provide quick reference summaries of the issues discussed in the guide, while the Further reading section provides a list of reference material. At present, most D&C is procured through a tendering process. Generally there are three phases: pre-tender tender implementation This three phase procurement process is described in Sections 6, 7 and 8. The trend is towards negotiated contracts, based on partnering or framework agreements. The project can then be undertaken in one phase, with the emphasis on achieving value. This single phase procurement process is described in Section 10. CIRIA C534 13