Establish a conceptual understanding of procurement and supply chain strategies within the built environment projects
Module Learning Outcomes
(MLOs) Assessed by Coursework
1. MLO 1 - Establish a conceptual understanding of procurement and supply chain strategies within the built environment projects.
2. MLO 2 - Implement and critically evaluate appropriate procurement processes by which construction projects and services are acquired from internal and/or external sources.
3. MLO 3 - Identify and critically evaluate appropriate client requirements to develop respective procurement and supply chain strategies that enable project success, business benefits and overall sustainable operations.
4. MLO 4 - Embrace professionalism, demonstrate multi-disciplinary skills and apply expert and specialised knowledge in the field of construction project management.
5. MLO 5 - Embrace intercultural cooperation through consciousness, responsible and professional ethical conduct in a reflexive way.
CLIENT PROJECT BRIEF
As part of Riverside Sunderland Masterplan, the Sunderland City Council plans to build 1,000 homes to rent and buy, with community facilities and social infrastructure for a population of 2,500. The proposed project seeks to create a unique place to live, i.e. a carbon-neutral community in a stunning landscape setting in the heart of a great industrial city. With an extensive walking and cycling network and easy access to public transport, Riverside Sunderland will encourage healthy living and reduce car dependency. Smart homes will be digitally enabled for comfort, convenience and energy efficiency. Community facilities will promote sociability and active citizenship. Following the recent entry of the insurance giant, Legal and General, into the housing market, others are keen to get involved too. In particular, Vitality Life has secured (for the purposes of this task) a collaboration with the Sunderland City Council, as the primary funder, to deliver the vision for the Riverside development project, specifically, the 1,000 homes. The first 800 homes will be delivered in four new neighbourhoods: Vaux, Farringdon Row, Ayre’s Quay and Sheepfolds. As the new community takes shape other opportunities will come forward, notably in the Heart of the City. 45% of the new homes (367 units) will be south of the river, at Vaux, Farringdon Row and Ayre’s Quay, and 55% (445) north of the river, at Sheepfolds. The majority (72%) will be houses and maisonettes including 378 3/4-bedroom family houses.
The development will aim to achieve a relatively high density of around 74 homes per hectare across the MCE | Learning and Teaching Version 2.0 | Page 3 of 6 whole site, with a limit of less than one car parking pace per dwelling, due to the big push to reduce car dependency and promote active travel.
Key Programme Features are described below:
1. standardised designs,
2. more accurate market intelligence,
3. providing jobs, training and supply-chain opportunities for Sunderland residents and businesses,
4. reduced costs with an ambitious 15% target,
5. improved programme certainty,
6. reduced risk, and
7. greater innovation and improved relationships across the supply chain.
Key Project features are described below:
1. Substantial cost savings,
2. Innovative, high-quality designs and sustainable standards,
3. Flexible use of space,
4. Tight construction programme with improved programme certainty,
5. Collaborative working by integrated team, across Client and Contractor teams,
6. Commitment to local economy, and
7. Improved employment and skills outputs.
The Council put forward its land assets in this partnership with Vitality Life who will, in turn, provide the finance for the £160 million development, with both parties sharing equally in any development profit where a development achieves a positive land value. Although planning approval for the scheme has not yet been granted, planners are confident that this will be secured. Although the Council’s inhouse estates team has technical construction expertise, they have no capacity to design and project manage a scheme of this magnitude. They are therefore now seeking to procure the necessary expertise to move the project forward:
•Necessary consultants to assist in getting the project off the ground by January 2022. • Construction contractor(s) and such other specialists as are necessary to carry out the various elements of construction work.
• The council’s own inhouse estates team has some initial ideas which they’re keen to explore with the selected consultant designers.
• The client is undecided on whether to award the entire project as one contract or to break it into the four natural packages, according to the four new neighbourhoods, namely: Vaux, Farringdon Row, Ayre’s Quay and Sheepfolds.
• The client is also undecided as to what other key consultant it needs to assist in the securing the completed project in order to achieve completion by September 2023.
As the only one with procurement expertise within the Local Authority’s inhouse estates Team, you have been tasked to develop a report (refer to “Tasks to be completed by students” for further details) to guide the council in the procurement of the various works and services required on this major redevelopment project. The client is eager to use this project to improve the image of the North East as well as to attract investment to Sunderland.
TASKS TO BE COMPLETED BY STUDENTS Based on the client project brief above, prepare a high level but comprehensive procurement report for the client, which:
1. Provides a ‘road map’ for the Local Authority, demonstrating how you should procure each of the works and services, how the client can ensure that the scheme is completed within budget and on time, how the client and funding partners will be involved at each stage of the process, and other specific consultants and project participants you propose they MCE | Learning and Teaching Version 2.0 | Page 4 of 6 should procure and their primary roles in the process. In the submitted report, due consideration should be given to:
a) Identifying the client and stakeholder needs based on this brief and associated documentation,
b) the most suitable procurement arrangement, bearing in mind the variety of options,
c) the most suitable main standard form of contract to support the overall strategy,
d) The most suitable tendering strategy for obtaining the most economically advantageous tender,
e) the mechanism for pricing and agreeing the price for the project,
2. Provide a critical analysis of how the Sunderland City Council and its development partners might be able to achieve their broad aim of driving efficiencies through the supply chain and thereby save 15% of total construction and design costs.
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