AIM Success Guide
Success GuideSuccessfully
ManagingCapital Projects
Written by Bill Ferris OBE DL, with thanks to ArteliaBased on the experience of the AIM Biffa Award
National Heritage LandmarkPartnership Scheme Projects
Front cover image: Repointing at Newman Brothers Coffin Works, Birmingham
Success GuideSuccessfully
ManagingCapital Projects
Written by Bill Ferris OBE DL, with thanks to ArteliaBased on the experience of the AIM Biffa Award
National Heritage LandmarkPartnership Scheme Projects
3
Capital projects that involveheritage sites and buildings,frequently face unexpectedchallenges and more uncertaintythan normal projects. Managingthese, alongside all the ‘normal’challenges of a capital project is asignificant undertaking.
The organisations supported byAIM Biffa Award learnt a greatdeal about project management inthe course of their work and thisguide shares some of thatlearning.
About Biffa Award
Since 1997, Biffa Award hasawarded grants totalling more than£156 million to thousands ofworthwhile community andenvironmental projects across theUK. The programme administers
money donated by Biffa Group Ltdthrough the Landfill CommunitiesFund.
The Royal Society of WildlifeTrusts has more than 20 years ofexperience in managing social andenvironmental grant programmestotalling over £250 million andproven successes working withand empowering people to makesignificant environmental andsocietal impacts across the UK.
In 1997 Biffa Group Ltd decided todonate landfill tax credits to RSWTto administer under the fund nameBiffa Award. To date, Biffa Awardhas awarded grants totalling morethan £156 million to thousands ofworthwhile projects across thecountry.
Site Team meeting, AIM Biffa Award funded project at the Coffin Works
AIM Biffa Award National HeritageLandmark Partnership SchemeAwarded 2012 - 2015This guide has been written to share learning from the AIM BiffaAward National Heritage Landmark Partnership Scheme. Thisscheme provided £1.5million to rescue, restore or bring into use,nationally significant industrial heritage.
Picture courtesy of Newman Brothers Coffin Works
In 2011, AIM entered into a 3-year funding partnership with Biffa Award which provided a £1.5minvestment into independent museums and industrial heritage sites across the UK. The Scheme focusedon landmark industrial heritage sites, relating to key industries including mining, textile manufacture,shipbuilding, metal processing, chemical industries, defence, farming and technologies such as powergeneration and communication. The heritage projects that the funding supported were:
AIM Biffa AwardNational Heritage Landmark Partnership Scheme
Newman Brothers CoffinWorksCoffin Works Learning andInterpretation Project£44,676
Brooklands MuseumStratospheric ChamberRestoration & Interpretation£120,000
National Mining Museumof ScotlandThe National MiningMemorial£120,000
Ironbridge GorgeMuseumsBedlam Furnaces - Icon ofIndustry£30,099
The Historic DockyardChathamChatham Dockyard WorldHeritage Discovery Centre£ 117,500
Underfall YardRevealing the story ofHydraulic Power£120,000
Brunel MuseumOpening up Brunel's Shaft£120,000
London Museum ofWater and SteamProject Aquarius –Babcock Room£80,364
Cromford MillsArkwright: Father of theFactory System£112,500
Bursledon BrickworksThe Museum of Bricks &BrickmakingReinstating the SecondSteam Engine£82,000
ss Great BritainThe Restoration of theGrade II* listed 'Brunel's'Drawing Office£117,180
National WaterwaysMuseum Ellesmere PortFrom Port to PowerhouseA Window on the World£119,718
Woodhorn MuseumColliery Winding HouseNew Visitor Access &Interpretation£35,000
The Postal MuseumMail Rail: The Birth of theUnderground PostalRailway£69,075
Middleport PotteryBringing the William BoultonSteam Engine atMiddleport Pottery Back toLife£120,000
AIM Success Guide 6
1. Introduction
So, you’ve raised the money, youknow what you want to do; nowyou’ve just got to do it!
Obvious, but potentially dauntingand a critical moment indetermining the successfuloutcome of a project. In reality thisdelivery part of the process shouldhave been well thought throughlong before the funding is in place.
Delivering successful projects is aserious business and one that,unsurprisingly, most museum andheritage organisations are notreally set up to deal with, despitethe probably relevant and wideranging knowledge held withintrustees, staff or volunteers.
Why would they be? Suchorganisations deliver museumservices as “the day job” andcapital projects are one off events,so planning how the organisationwill resource and deliver a project
is as important as every other partof the work of the organisation.
Capital projects are exhilarating,exhausting, exciting, demandingand all consuming! For mostorganisations the project is ameans to an end not an end initself.
Alongside delivering the capitalproject you will be researching andpreparing your collections for newexhibitions, fundraising, developingnew marketing materials, planningnew ways of delivering youroperations etc. so that when thecontractors move out, the “hometeam” is ready to make a successof the finished project.
Doing all of this, and possiblykeeping your museum openthroughout, is extremelydemanding - make sure you willhave the people and budgets youneed to make a success of yourcompleted project.
SuccessfullyManagingCapital Projects
Contents
1. Introduction2. Getting Ready for Your Project3. Planning Your Project4. Appointing the External Project Team5. Delivering Your Project
Appendix – Service Briefs, Procurement, Due Diligence andContracts
The Guide can only ever bean overview and an outlinefor Trustees andmanagement boards. Youmight want to read thisbefore embarking on acapital projects, in order tobe prepared for the breadthof considerations and againwhen you know your projectis going to go ahead.
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2. Getting Ready for YourProject
Being a Good Client
You are the client for your capitalproject and it is your project, notthe funder’s, the project manager’s,architect’s or any other of thedesigners’ or consultants’ who youemploy.
You employ professionals to helpprovide services beyond yourexperience or capacity and youdelegate such services to thembut…you must understand theboundary between delegation andabrogation of responsibility.
As client you should build anexcellent relationship with all theproject consultants, contractorsand your own directly involvedteam members. It should behonest, transparent, creative,communicative and quick -recognising that your organisationis the lead.
The old adage of “not buying adog and barking yourself” is truebut most successful dog ownerswill tell you that the dog knowswho the boss is and will doanything for them. So no needto bark but plenty of need to
know why the dog is barking andhow to respond as its leader!
Fundamental attributes of a ‘agood client’:
▪ Leadership and vision
▪ Clarity of project purposes andconsistency of your success cri-teria
▪ Clear lines of responsibility andauthority
▪ Engagement and Availability
▪ Approachable and able to ac-cept advice for consideration
▪ Decisiveness and clear decisionmaking protocols
▪ Good systems especially for rap-id decision making
▪ Commitment to excellent com-munications
▪ Enthusiasm to build a sense ofteam and common goal
▪ Plans for what will happen afterthe project is finished
TIP
Planning and resourcingfor post capital projectoperations should be aprimary focus fororganisations and is oftenunder resourced asprojects take over
Picture courtesy of Chatham Historic Dockyard Trust
AIM Success Guide 8
The Journey
You’re now about to set off on alinear journey and the first threesteps of that journey are critical tosuccess, in that you:
▪ Know where you want to go –Your Vision
▪ Why you are going to your newdestination -- Determine yoursuccess criteria so you and theproject team can keep referring
back to them to ensure you aredelivering what you set out todeliver.
▪ Have a map - Plan your journeyand think about what could getin the way of reaching your des-tination
The rest will fall in to place…
Remember that your vision mustbe about what you want to achieve,which will only be possible throughthe capital project you are going toundertake. The vision should notbe to have a building for abuilding’s sake, but about thedifference that space will make tohow effectively you can deliveryour purpose.
Client Project Team Structure
Early on in the project you need toset up a client project team (the“home team” of staff, trustees andvolunteer’s directly engaged in theprojects planning and delivery) sothat the roles and responsibilities ofthose within your organisation whoare working on your project areclear.
A degree of formality to this isnecessary for a large capitalproject, as there are potentiallyboth emotive and high-riskdecisions to be made as theproject develops.
Usually an organisation will appointa key person to lead the project.They might be called the ProjectDirector or Internal/Client ProjectManager, to distinguish them froma consultant project manager.
They may be someone who wasalready employed by theorganisation and who may nothave led a major project before(possibly continuing their normalrole alongside the project managerrole, though how demanding thiscan be should not be under-estimated).
Sometimes a new member of staffis recruited.
During the project there will be lotsof key decisions to be made -whether they are about signing offthe brief, design, appointment ofconsultants and contractors,spending money or makingchanges.
Vision Success Criteria Plan
Procure the Professional
TeamDesign
Procure the Works and
Build it Handover Operate &
Maintain EvaluateVISION SUCCESSCRITERIA
PLANPROCURE
THEPRO
TEAM
DESIGN
PROCURETHE
WORKSAND
BUILDIT
HANDOVER
OPERATE&
MAINTAINEVALUATE
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It is important to be clear on howmuch decision-making is delegatedand what needs to be decided bythe trustees or other seniormembers of the organisation.
In all cases it is necessary to havea process that ensures decision-making is informed, speedy anddecisive!
The risks and impacts onorganisational operations dictatethat it is vital that the board oftrustees is engaged and informedabout key aspects of projectdelivery however big or small theorganisation.
In smaller, volunteer organisationsit will often be the board or asubset of it that delivers the projectwith appropriate professional andeven volunteer support. In largerorganisations the staff will often bedelegated responsibility to deliverprojects but this should only bewithin clearly defined parametersand with explicit and definedreporting and authority limits.Larger organisations mightconsider a sub group of trusteeswith specialist knowledge to haveoversight of project delivery,considering greater detail than canbe achieved by the board.
Such a group has delegatedauthority to a clearly defined extentand reports to the main board to anagreed programme and extent.
A project governance structuremight look like this:
Trustee Board
Trustee ProjectSub Group
Client ProjectDirector Role
Organisational SeniorManagement Role
Client ProjectTeam
Project TeamProfessional Team &Works Contractors
Client and ProjectTeams
OrganisationalManagement
Functions
*
Staying Open DuringBuilding Works
Cromford Mills, TheArkwright Experience,funded by AIM Biffa Award
Communication is always keywhen dealing with a capital worksprogramme - especially when yoursite remains open to visitors.
At Cromford, we found that thebest way to deal with thedisruption was to embrace it and totell the world what was happening,rather than just putting up bigunfriendly NO ENTRY signseverywhere.
It took us around 8 months in all tointroduce a viewing platform andCGI equipment to create ‘TheArkwright Experience’ and wewere hampered by difficultenvironmental conditions.
The building in which it is locatedis arguably the most important onthe site - and the one thateverybody wants to go in - sorestricting entry whilst the workwas done meant that wepotentially had disappointedcustomers.
We managed the situation bymaking sure that visitors wereinformed about the work as soonas they arrived on site: theyunderstood what we were doingand why and that they were invitedto come back as soon as the newexperience opened so that theycould be some of the first to see itin action. Generally, people are asinterested in the newdevelopments as they are thehistory – but they need to be keptinformed and allowed to feel partof the changes.
* This person will usually have permanent responsibilities within the organisationbut if the project is very large it might be a specific appointment
Case Study
AIM Success Guide 10
The Project Brief
As a good client with a clear vision,you will have written a project briefbefore engaging consultants orplacing contracts. This is thedocument that sets out exactlywhat it is you are trying to achievewith your project and what are theabsolute essentials of the finishedproject.
You will need to think about what isreally important to yourorganisation. Such things mightinclude:
▪ Brilliant contemporary designusing specific design referenceslike local materials or designfeatures
▪ Sympathetic design toemphasise an historic building’squality and listed status
▪ Low carbon impact indevelopment or operation
▪ Funds available and budgetlimits to be applied to the capitaland activity elements of theproject, remembering toconsider “client” needs*
▪ Future operational efficiency andvisitor comfort
▪ Accessibility issues
▪ Collections care andenvironmental controls
▪ Security
▪ Interpretational styles andapproaches to work with thearchitecture and collections
▪ Minimisation of future operatingcosts (staff, utilities,maintenance etc)
▪ Visitor and staff operationalneeds (eg staff/volunteer roomsand lockers are surprisinglyoften overlooked)
There is no definitive list to work tobecause every organisation willhave different priorities anddifferent funding strategies.
The list demonstrates howimportant it is to consider the actualoperation of the finished project asmuch as the project deliveryprocess itself.
The brief is critical, as the projectdevelops, in helping you manageinevitable change. If a change issuggested or emerges alwayscheck the consequence against thebrief to be sure that there are no“unforeseen” impacts of thechange.
All organisations should have theproject brief signed off by the boardof trustees and chair, to avoidchange later. In smallerorganisations the trustees andchair might actually define the brief.
Soliciting the comments of staffand volunteers through structuredconsultation is always a good ideabecause their “operational” eye islikely to spot things you havemissed.
Many museums that haveundertaken capital project will bewilling to share their brief with youif you ask. It’s always a good ideato ask what they would dodifferently if they were writing abrief again.
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Budget for ‘Client’ Needs
Your organisation will need abudget for delivering the projectbeyond the costs of design feesand building works. Many of theseitems are not included in budgetsdrawn up by cost consultants (orquantity surveyors), for instance:
▪ Costs of fundraising and internalproject management
▪ Legal fees and property issues
Early investigations, reports orsurveys (e.g. trail pits, asbestossurveys, highways reports)
▪ Irrecoverable VAT (andprofessional advice relating tothis)
▪ Furniture and fittings, signage
▪ Artist’s impressions orarchitectural models – veryuseful for fundraising andconsultations with stakeholders
▪ Stakeholder consultations andevents including the launch partyand donor recognition
▪ An internal client contingencyusually not shared with thedesign team, for theorganisation’s own requirementsto successfully deliver theproject and plan for operationsafter completion
Image courtesy of The Historic Dockyard Chatham
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3. Planning Your Project
You know your business betterthan anyone, with your in-houseteam start to build your projectdelivery plan. A good place to startis thinking about the obstacles youmay or may not have to negotiateto stay on track.
Programme - A simple timeline foryour project helps your teamvisualise how the project will bedelivered and how it may impact ontheir day to day business. Moredetailed programmes will bedeveloped as you move throughthe life of the project, usually byyour project manager, and they areessential to the success of theproject. These are often shown asGantt Charts. Analysing thesecharts identifies where time-relatedrisks exist, interdependency ofstages and the “critical path”.
Risk Management - There aremany risks associated withdelivering capital programmes.Understanding these and ratingtheir likelihood, and significance ifcrystallised, is essential.
The process is often seen as a“necessary evil”: it is far from anevil but it is totally necessary!If appointed, a project manager willnormally lead this process througha workshop that involves the clientand professional team, soeveryone understands what therisks are and which are mostsignificant. Risks range fromfinancial and programme related,to legal, damage to historic fabric,archaeology or collections,organisational and many more.An experienced project team willquickly identify universal risks butyou are best placed to considerspecific risks. Once identified,mitigation (measures that limit orreduce the impact or likelihood of arisk materialising and adverselyaffecting project outcomes) andmonitoring strategies can bequickly identified.
Risks can also be costed to informdecisions about contingency (seebelow).
The risk register is a “live”document and it is very importantto review it with the team regularlyand especially before embarkingon specific phases of the project’sdelivery, making sure that newteam members and disciplines arefully engaged in the process fromthe start.
Contingency - All projects shouldhave sufficient contingencyincorporated into costings and timecontingency (or ‘slack’) intoprogrammes, to cover theconsequence of foreseeable risk.
This can be as simple as apercentage of budget, the scale ofwhich depends on the potentialrisks foreseeable, the amount ofpre project investigationsundertaken and the client’s ownpropensity to make late changes.
There can be no prescriptivepercentage but, because itincreases the fundraising targets,most clients underestimatecontingency.
Too big a contingency can imply alack of planning too. On largeprojects it can be useful to breakproject contingency down in moredefined ways such as:
▪ Client contingency to facilitatedesign enhancement and projectdevelopment in the earlyphases.
▪ Ground works contingencywhere new build works areinvolved. Ground works can bethe most risky elements.
▪ Activity based contingencywhich is probably morecontrollable.
▪ General project contingency.
Project Programme is simplythe title given to the time takento complete individual elementsof your project and how each ofthose elements relate to theothers combining them toprovide the fastest, mostefficient, least risky route tomeeting all of the outcomes ofyour brief
Gantt Charts - the bar chartsthat plot the time taken tocomplete the elements of yourproject ordered and linked tomaximise efficiency andillustrate issues such as orderlead times, elements that relyon the completion of otherthings before they can start etc.
Critical Path - the time line thatjoins all of the significantelements of a project thatdictate progress, delay incompleting a critical path itemdelays the whole project.
Risk management - theprocess of identifying whatthings are likely to negativelyimpact on the delivery of yourproject with time and costimplications, how likely theseevents are to happen and whatyou can do to prevent ormitigate the risks.
Contingency - a cash or timereserve that is set asidespecifically to cover changes,unexpected events or designdevelopment as a projectdevelops.
AIM Success Guide13
▪ Post opening contingency to fixthings that don’t work asexpected when you start usingthe completed building orexhibition.
One important way of managingrisk is having a strong changemanagement process to deal withchanges during the design andconstruction stages of the project.
They might be changes that haveto be made, or that people withinthe client team wish to make. Seethe Project Delivery section formore information.
The Project Programme
The Project Manager (PM) hasoverall responsibility for agreeingand managing the projectprogramme (time line). It is afundamental tool of successfulproject management. The clienthas an absolute responsibility toreview this regularly andunderstand the implications ofmaking changes to it.
Understanding how the differentparts of the programme relate toeach other, what elements arecontingent on delivery of otherparts and therefore what the“critical path” is representsessential client knowledge. Thisshould ensure that unintendedclient led delays are avoided.
The programme must be realistic,include lead times for procurementand reflect the decision makingprocess and time implications thatare contingent on it. If things takelonger or are delayed, they almostalways cost more, especially afterbuilding works have started.
Client input into the development ofthe programme is vital. Keymilestones you might want toensure are included are:
▪ essential opening dates(perhaps an anniversary)
▪ funding patterns and absolutecashflow imperatives
▪ internal resources for contentdevelopment and design review(your own curators, historians,designers)
▪ conservation times for keycontent
▪ internal time needed to providedetailed information aboutcollections and history toexhibition designers
▪ local knowledge about planningand other consents
▪ consultation requirements
Major programme risk areasinclude:
▪ Unforeseen ground work delays– archaeology, obstructions,services
▪ Uncontrolled change
▪ Unrecognised procurement leadtimes – especially for softwaredevelopment and hardwareprocurement
▪ Lack of ongoing project relatedfundraising success taking placeduring delivery. A grant for newdisplay cabinets gets turneddown, the fundraising lunchdoesn’t reach its target
▪ Loss of key personnel at criticalpoints
▪ Financial failure of a contractoror consultant
▪ Poor programme managementnot recognising likely futuredelays or errors
AIM Success Guide
4. Appointing the ExternalProject Team
There are more detail aboutsuccessful procurement in theAppendix, covering:
▪ Development of Service Briefs
▪ Procurement and ProcurementRules
▪ Legal Contracts
▪ Due Diligence
▪ Guarantees
▪ Types of Building Contract
Appointing the Design Team(also called Professional Teamor Consultants)
One of the client’s key jobs is toappoint the design team and,usually later in the process, thecontractor(s) who will do thebuilding/fitout works.
The professional services team areusually appointed first and mightinclude some or all of the following:
▪ Project Manager (PM)
▪ Quantity Surveyor (QS) –sometimes called CostConsultant
▪ Architect
▪ Exhibition Designer (bestappointed at the same time asthe rest of the design team)
▪ Structural Engineer
▪ Mechanical and ElectricalEngineer (M&E) (with potentialadditions of acoustic andlighting)
▪ Access Consultant
▪ Activity Planner (for HLF fundedprojects where an Activity Planis required)
▪ Business Planner
The briefs you prepare for theseteam members (see appendix formore information) and thedecisions you make in appointingthem, will have significant impactson how well the process of projectdelivery actually happens, whatoutcomes you get and how muchstrain the process puts on theclient organisation or converselyhow much enjoyment andsatisfaction is derived from it.
Happy teams make happy projects,that are generally successful.
Capital projects are demandingand resource heavy with manytechnical components. If you havean organisation to run or to getready to operate a new facilitypost-project completion, it is mostunlikely that the client team willhave capacity to deliver asignificant capital project withoutsupport.
Even if it thinks it will have theprofessional skills and knowledge!Sometimes clients may resent theseemingly high cost of professionalfees, but you generally get whatyou pay for and value comes fromhow you use the investment inthem by managing them well.
Build the realistic costs into yourfundraising strategy and build themanagement time into yourresource schedules, to ensure youget the best from the team.
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TIP
Resist making a publicstatement about when youwill open your project foras long as possible, ascapital projects aredelayed more often thannot, sometimes by manymonths.
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There is more information aboutcontracts for professional teammembers and procurementprocesses and rules in theappendix.
Choosing the Right Team
Cost is only one factor. Lowestcost is not always best value, besure to weight this factorappropriately.
You will work with this team for aconsiderable time and it’simportant, therefore, that itsconstituent members “fit” theorganisation that they work for andthat you are comfortable with theiroperating ethos and approach.Your consultant team should showa commitment to your vision and tolistening to you and understandingyour needs, so that the final projectis not just an architectural marvel,but will be fit for purpose when youcome to use it.
That doesn’t mean that they just dowhat you tell them - what’s thepoint of employing creativeprofessionals if all they do isimplement your thinking?
The balance is right when the team“buys into” the ethos of the clientorganisation and then addsprofessional value to it.
The client needs to show realleadership, recognising theseparation of that and detailedmanagement, which is for the teamto do. The client must be preparedto be challenged and acceptdifferent thinking, but this is alwaysbest done if there is excellent two-way respect and understanding.
Be very firm in insisting that noappointment is made withoutmeeting those that will actuallywork on your project and how theeffort divides between teammembers.
A very personable “businessdevelopment manager” will neverbe the one who leads your designprocess – be warned!
Be very careful about thesubstance that lies behind tenderpitches! Find out how much workthese specific team members havecommitted to other projects overthe duration of your project. Busypeople and teams tend to beattractive but can be over-stretched!
It is essential to undertakeappropriate due diligence. Notonly things like financial stability,but make sure that the currentworkforce has actually worked onyour type of project, take thetrouble to visit projects that theyhave worked on and find out howthe relationship worked or at leastspeak to others that have used theservices, not always the onessuggested by the consultant!
(See the appendix for more on duediligence.)
Be sure about the actual scope ofworks that it is being offered withinthe contract. As an example,client’s often believe that lighting oracoustic services are provided inM&E contracts because the“company” has those serviceswithin its organisation and mighteven have mentioned them. If theyare not specified as included in theservices they will be an additionalcost!
Often a group of consultants willpitch together as a team. This canbe very positive if they have reallyworked together, that there is agood dynamic with complementaryskills but if it is a team stitchedtogether for a specific purpose – tolook good to win your project –take care.
AIM Success Guide
More focus on team testing andcompatibility is required. Try toidentify whether such groupingsare true marriages with chemistryand additionality, or “marriages ofconvenience” to meet the brief,with no track record of workingtogether.
The latter can work but it isobviously more risky, if the
individual members do not share acommon ethos to such projects.
Professionals are used to workingin new teams on a day to day basisbut the client and ProjectManagers (PM) approach and styleof managing the team has a bigpart to play on the efficiency andbuy-in of the team.
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TIP
Tips on appointing the designteam:
▪ Investment by tenderers inpitches isn’t always backedup by similar investment orcommitment to your project– do your due diligence!
▪ Is there real chemistry withinthe pitch team dynamic?
▪ Do you know who will reallywork on your project? If notfind out!
▪ Cost is only one factor.Lowest cost is not alwaysbest value - be sure toweight this factorappropriately
▪ The track record of the LeadConsultant within a teamthat is pitching together, isvital information
Picture courtesy of Cromford Mills
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Appointing the Contractor
Later on in the project developmentprocess you will appoint aContractor. The same approach toselection that you used with thedesign team, applies to thecontractors and service providerswho will physically deliver yourproject, but by this stage you havea professional team to assist.
Good selection decisions rely onidentifying the critical elements ofwork packages and getting thebest team to deliver that.
Construction teams often come asteams of unrelated specialist areassuch as:
▪ Principal contractor (thebuilder)
▪ Subcontractors including:
▪ Carpentry
▪ Roofing
▪ Electrical and mechanicalPlumbing, heating, lightsand power
▪ Painting and decorating
▪ Specialist equipmentsuppliers
▪ Etc.
See the appendix for moreinformation on appointing acontractor including types ofbuilding contract, guaranteesand due diligence.
Contract Administrator?
The technical administration of thebuilding contract(s) is not to betaken lightly as get it wrong andyou could inadvertently findyourself in a legal challenge oraccepting costs that you didn’tapprove.
A Contract Administrator is onlyusually required on large andcomplex projects.
It is a costly service that is there tosafeguard the client from futurecontractual disputes and costs.There are no hard and fast rulesabout the need but good PMs andQSs will advise. The services arenot usually recommended on smallprojects.
The Architect or the PM are oftennominated as the ContractAdministrator (CA) or in NECContracts PM.
This is an important role inmanaging the delivery of allcontracts. It is worth seekingspecialist advice on where thisresponsibility best sits based onyour specific project and yourexperience.
The CA/PM, although employed bythe client/employer, have a neutralrole to play between theclient/employer and the contractedsupplier, so don’t expect yourContact Administrator to take yourside if things become contractual.
TIP
Tips on Tendering for theMain Contractor:
▪ Remove as many of therisks associated withcapital project delivery bydoing as much "de-risking" through surveysand careful developmentof your plan, beforedefining the scope ofworks. A fewarchaeological trial pits oran asbestos survey, atthe client's cost, beforecontracts are specifiedmight save huge delaysand costs later.
▪ Time spent defining thescope of specification ofservices and works inadvance of contractsbeing let is rarely wastedand will save delay andcost later
▪ Design and Buildconstruction contracts areoften cost effective, asare ConstructionManagement approachesbut both come with risksand resourceimplications. Don't beseduced by "low" cost, ifquality or other measuresare key success factors.
▪ Be prepared to delaygoing out to tender if theinformation is notsufficiently developed asit will potentially givegreater cost andprogramme certainty.
AIM Success Guide 18
5. Delivering the Project
Building and Leading a GreatTeam
So, you’ve appointed theprofessional project team or designteam and the work really begins.
All successful projects start with awell facilitated pre-start workshop.The PM will usually organise thisand provide the agenda. Whilstmuch of this will be technical andbeginning to look at detail, thereare things that the client must showleadership on, so it is a good ideato ensure an early session on theagenda to establish this. If theproject team doesn’t understandthe ethos of the organisation andhow that relates to the capitalproject and therefore “whatsuccess looks like” how can theydeliver what you expect?
You need to define this closely andmake sure that the whole teamunderstand it and adhere to it.
This will hopefully set the tone ofthe relationship, inspire the newteam, help make it gel as a bodyand leave no doubt about whoseproject it is and what is expected.In setting this out you mustremember your role in achievingsuccess. Slow decision making,uncertainty about budgets,constant change etc will all impacton critical outcomes. Don’t set astandard you can’t meet yourself.
Managing the Various “DeliveryPhases” of a Project
Once all the teams are in place,the roles and responsibilities areestablished and thecommunications protocols areagreed all that’s left to do isimplement the works!
The design stage and constructionstage of the project are quitedistinct and need different inputfrom the client team. The design
team will be with you through bothstages, and in addition, during theconstruction stage you will beworking with the Contractor (andContract Administrator, ifappointed). You should also beaware that during the ConstructionStage you will also be needing togear up your own organisation inpreparation for the opening andthis may include time consumingactivities such as recruitment,training and much more.
Your need to fundraise willprobably continue throughout.In both the design and constructionstages, the usual approach toproject management is a series ofscheduled meetings with differentpurposes and outcomes.
Make it clear, as client, that youexpect to be kept informed of allsignificant matters in a timely way,meaning that waiting for formalmeetings, where there is asignificant potential of delay or costincrease as a result of emergingissues, is unacceptable.
The principles of transparency,availability and greatcommunications are central tosuccess.
Example of topics to cover in aPre-Start Workshop
Ethos of the project
Things that might be covered bythe client include:
▪ Introductions to your team andtheir roles within the project
▪ Purpose of the organisationand the significance of thisproject to that purpose. This isa big opportunity to inspire theteam and build real empathyand interest that leads to theteam going the extra mile
▪ How you like to work withteams; embedded “one team”approach or distant, separatebut professional,
▪ Critical Success Factors forthe project, e.g.
▪ Quality
▪ Listed building/other statutoryconstraints and
▪ Budget and where the priorityspend must be focussed ifchanges are required. It isoften a good idea to ring-fenceinterpretation and fit-outbudgets to stop them beingplundered to pay for“emergent works”,architectural designdevelopment or servicesrequirements.
▪ Time/programme- are therecritical longstop dates?
▪ Design freeze imperative
▪ Optimising running costs
▪ Funder requirements
▪ Client Communicationsrequirements and protocol –informal / formal reporting
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Meeting Schedules
The PM will be keen to agree anumber of meeting schedules. It’simportant that a client understandswhat each meeting entails and howinvolved they need to be and atwhat level. Standard meetingsinclude:
▪ Design Team Meetings. Thesestart during the design stage andcontinue in the constructionstage. They are regularmeetings where the necessaryelements of the design team gettogether to develop designs,resolve issues and coordinatework. It is always worthappropriate client representationat these at a senior level,capable of making decisions andproviding sound information, aswell as to control “projectexpansion” etc!
▪ Client progress meetings. It isuseful for the client to meet withthe PM, QS and lead designersbetween formal meeting to helpprepare for them and resolveany issues or conflicts in a lessformal environment.
▪ Trustee reporting – main boardor sub-committee
▪ Funder monitoring meetings,especially HLF
▪ Progress meetings (constructionphase). These are formal andusually monthly and relate to thecontractor reporting progressagainst programme. They arealso used to confirm changesand deal with formal RequestsFor Information (RFI’s). Theyare minuted and contractual,requiring careful preparation anddetailed analysis of reports.Words matter at such meetings.
The regularity of meetings will varyas the project progresses based onthe needs. It is best to meet moreoften early in the project when
there are always more risks,greater uncertainty, greater needfor information and change.
It is essential that clients recognisethis, allow diary time and havedecision-making processes inplace.
At certain points in the designprocess the client will be asked toformally sign off the design to thatpoint. Before each sign off a costestimate should be prepared basedon the designs. If this is overbudget the client can expect theproject manager to work with thedesign team to bring the costswithin budget again.
This is often done through a ValueEngineering workshop, where thedesign team (and contractor ifappointed) get together to look athow costs can be reduced, withminimum impact on the requiredoutcomes. Most projects requirethis at some point during thedesign stage.
Picture courtesy of NationalWaterways Museum Ellesmere Port
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Client Team Meetings
How the client team interacts as aunit will depend on the scale of theorganisation and the managementethos.
What matters most is that it is acohesive and communicative team.
Where there is executive andtrustee separation it is essentialthat trustees are fully engaged andinformed. Capital projects oftendwarf the scale of annualoperations so trustees have aresponsibility to be fully engaged,but not necessarily managing.This is especially important shoulda crisis occur that requires rapiddecision making if costs and timeare not to be lost. This will requireflexibility and accessibility outsideusual meeting protocols.
As discussed earlier (see ClientProject Team Structure), within theclient team it is essential thatdelegated powers, authority levelsand responsibilities are clearlydefined and monitored.
Change and ChangeManagement
As projects develop there willalways be changes. Change isoften a very good thing -improvingproject outcomes and outputs. Butthese changes need to bemanaged or they can become verycostly. The implications of thechange on the budget, other areasof the project delivery and on theoverall outcome of the project,need to be considered before anychange is agreed.The reason for a change may be adiscretionary issue - you chose tomake a change, or it may be anenforced change, created byunexpected factors such as thediscovery of asbestos, archaeologyor even legislative developments.
Change rarely comes without acost, which might arise from avariety of sources including:
▪ Additional design costs as aconsequence (these have to bemet by the client)
▪ Programme delays which alwayshave a cost impact orprogramme impact whether interms of fees, contractprolongation and potentialdelays to opening dates andrevenue streams
▪ Missed procurement deadlines
▪ Increased build or fit-out costsetc.
Budgets are always limited, Anychange that results in more costswill need to be funded from:
▪ Contingency, the use of whichearly in a project is very riskyand should only becontemplated subject to reviewof future risks and funderobligations
▪ Additional fundraising
▪ Savings made from elsewhere,which can have significantimpact on whether the projectachieves what you need andintend
The process of managingchange is therefore one of themost important elements increating successful projects. Ifyou employ a project managerthey will assist with this.
There needs to be a clearly definedprocess and very clear authorityprotocols, both within the clientorganisation and with the designteam and contractor.
Dithering about proposed changecan be very costly. The onus is onthe client and professional team tomanage the change processefficiently and quickly, which relieson good, accurate information andclient availability.
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As the client you are best placedto fully consider the impact ofproposed changes on the overalloutcomes of the project. In orderto ensure you can respondpromptly to requests for change,particularly during the constructionstage, ensure someone else fromyour organisation can madedecisions, if the person whonormally authorises changes isnot available.
Some clients delegate powers tosign off changes up to a certainfinancial limit to their consultantProject Manager. If you do this, itis essential to define exactly whatthose powers are. These mightinclude maximum cost of changelimits or specific areas wheredelegated change is acceptableand where it is not.Even if there is some delegation tothe PM, the client might wantcontrol over all change related tomaterials used, space planningwhere there might be unforeseenoperational implications,collections or interpretationmatters. For instance, aseemingly simple move of a doorlocation at construction phase tofacilitate an easier location for aradiator might actually prevent akey operational feature like adisplay case going where it needsto in order to fit the narrative. Theclient will understand this butperhaps the PM might not!
The best way to manage changeis to try to think through all theproject needs when writing theproject brief. If all those with aninterest in the project, both duringdelivery and post delivery, havebeen involved in designing thebrief and are consulted if changeis proposed, problems should beaverted. To achieve this effective-ly people must be available andengaged.
Tips for successfully managing change within yourproject:
▪ Having a formal process for change managementagreed with all members of the team. As a minimumthis must:
▪ Identify where the final responsibility lies foragreeing change. Best practice is that this is theclient (you) on every occasion, however large orsmall, meaning personnel availability is critical.
▪ Insist that any request for change is supported bya rationale and indicative (net) costs and likelyprogramme consequences
▪ Proposals for potential savings to compensatepotential programme or cost impacts arising fromthe proposed change, which should mean thatthe team works collectively and collaboratively tomanage change recognising programme andbudget constraints
▪ Provide a regular design and client team meetingschedule to agree and discuss proposed changes
▪ Provide a process to deal with urgent changerequests that fall outside the normal meetingprogramme
▪ Agreeing a “design fix/freeze” (a point in time when nodesign changes can occur without going through theformal change management process) as early aspossible in the project development both for buildingand fit-out works. Later changes based on “buildability”etc are still likely but should be manageable fromcontingency.
▪ Making it very clear to contractors (within contracts)that unauthorised change will not be paid for.
▪ Beware the risk of substantial cost implications of anumber of seemingly small changes, that together havea major impact.
AIM Success Guide
Crisis Management
You’ve done your due diligence,you’ve chosen a great team, theclient team is engaged, the briefswere good, the procurementstrategy is appropriate, there isprogramme and cash contingencybased on risk analysis - what couldpossibly go wrong?
The answer is many things.Capital projects introduce hugeamounts of uncontrollable factorsinto an organisation that isprobably used to having all thecontrol. Things like a nationalfinancial crisis might put seeminglysound contractors at risk offinancial collapse, the loss of a keycolleague through ill health at acritical moment, the loss of afunding partner and much more,can put outcomes in jeopardy.
All good projects plan to minimisethese risks but it is impossible tomitigate them all. What is possible,however, is to have a crisismanagement approach in placeand thought through that is capableof dealing with most situations. Ifthe worst happens, speed ofaction, open communication lines,careful planning, professionalstandards and total commitmentwill be essential. It requires theengagement of senior people anddecision makers.
There are some important stepsinvolved:
▪ The external PM and the clientproject lead must reactimmediately
▪ Arrangements for trusteecommunication must be in placebefore the crisis happens
▪ If the project is halted the sitemust be secured to prevent theftor damage
▪ Legal advice must be soughtimmediately if contractual issues
are involved and all relevantcontracts etc must be readilyavailable
▪ Trustees and other keystakeholders must be informedand engaged
▪ Key imperatives for recoverymust be identified quickly.These might include:
▪ Time
▪ Budget
▪ Potential compromises onquality and scope
▪ An early assessment of likelycosts and programmeimplications
It is essential that clientsunderstand that they have most tolose in a crisis. The professionalteam might lose reputation if theyare implicated and might havelegal penalties to face, but if thisisn’t the case they will actuallyreceive additional fees to managethe process and as such the clientpays ultimately.
No one wants a crisis but somelose more than others!
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When it all goes wrong!
Crisis Management at TheHistoric Dockyard Chatham’s£9.2m Command of theOceans (COTO) Project
Chatham Historic DockyardTrust (CHDT) is veryexperienced in delivering capitalprojects but even despiteappropriate due diligence,employing experienced teamsand applying all the principles ofgood project management,things can still go wrong.
Just months into the deliveryphase of the COTO project, theMain Contractor was placed intoAdministration, with nowarning. It is at thesemoments that a high qualityteam earns its fees. It is not amoment to hesitate but to act.The site was secured to preventtheft or damage. Stakeholdersand funders were informed.
Once the basics were done thenext critical phase was to planthe recovery, prioritising againstthe original project brief. Criticalsuccess factors were identifiedand agreed by trustees within
one week and shaped the plangoing forward. We identifiedthat delaying opening by morethan 3 months would result inthe key visitor season beingmissed and the impact of £9.2mspend negated.
So…. speed of action wasessential. Minimising the timelost is a good way to savemoney but it can result in costlyprocurement.
Finding an acceptable, valuebased procurement approachwas critical in limiting delay andcost….so creative thinking wasrequired. Matching all theoriginal outcomes in terms ofquality and services providedwithin the constrained budgetswas impossible….so, even afterconsideration of theperformance bond morefundraising was required.
Having informed funders andstakeholders of the situationimmediately, we also set aseries of meetings up over thenext 3 months to ensure that asour plans progressed we couldget sign off rapidly, with our ownBoard as well as with funders.
Crisis point! Contractor goes into administration leavingScheduled Ancient Monument suspended in mid-air!
Case Study
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With a great deal of hard workthe team managed to secureapproval to proceed with anew contractor within 7 weeksand works commenced again12 weeks from the siteclosing. The project openedin May 2016, just, 12 weeksbehind the original schedule.
The overall cost was some£700K higher than originallyplanned due to a range ofreasons associated withprolongation of professionalcontracts, additional worknecessary to transfer fromone contractor to another,remedial works that wererequired to correct deficientstandards left by others andother matters. The 10% ofcontract value Performance
Bond Covered approximately£300K of this.
Our funders were patient andunderstanding. Theywelcomed our engagementwith them and ourprofessional approach torecovery and insurance. Theconsequence being that wewere able to close our fundinggap very rapidly and completethe project with all its plannedoutputs secured. CHDT thankthem profoundly for theirsupport.
The project has delivered amajor step change in ourvisitor engagement andservice strategy meeting all ofthe desired outputs.
Mutual respect between client and professional team played a huge part in getting the project recovery plan in place so quickly.From left to right Bill Ferris (CEO, CHDT), Steve Prowse (Project Manager, Artelia), Alan Mitchell (Architect, Baines and Mitchell),Brendan Higgins (Architect, Baines and Mitchell), Bob Dollin (QS, Bob Dollin), Nigel Howard (Estate Manager, CHDT).
Case Study continued
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Image courtesy of Underfall Yard
Underfall Yard
Restoration of the Grade II*Pump House andmachinery - AIM/ BiffaAward £120,000
Taking on a project at HLFRound Two (RIBA Stage 4) canbe a challenge: everything is inplace and it’s easy to assumethat the hard work has beendone and it’s just a matter ofrunning with it. But projects arealways evolving – be ready forit!
Consultation: whilst consultationtakes place during the HLFRound One (developmentstage) and is an essential partof devising any project, it isimportant to not makeassumptions aboutstakeholder’s awareness ofyour plans. Tenants, funders,neighbours and consultants on
discrete portions have their ownlives and issues to contend withand are not necessarily livingand breathing your project theway you are.
Make sure that consultationcarries on throughout ourproject – update not only thenew people adding their namesto your growing e-bulletin listbut keep all your stakeholdersin the loop – even if you feelthere is not much to tell!
“Always tell the truth and youwon’t have to rememberanything…” base yourrelationship with your funderson this Mark Twain quote.
They want your project tosucceed and they have seen itall before – so keep talking tothem, trust their experience andinput and let them know aboutthe lows as well as the highs!
Stakeholder Management
This can be one of the mostimportant aspects of the project. Ifyou don’t manage communicationsand keep your stakeholdersinformed then there is a stronglikelihood that your project will bemisunderstood or be publiclycriticised for disruption caused orsimply for lack of communications.The success of a project can bebadly affected if the support ofstakeholders and communities islost.
Resourcing the PostOpening Phase
Delivering capital projects can be allencompassing, especially for smallorganisations. But it is a means to
an end for the client, not a means initself.
It is exhilarating, time consumingand exhausting - yet the day aftercompletion the day job starts again,often in a wholly new operatingenvironment.
The project team isn’t there to helpyou with that! And you thoughtyou’d book a well deservedholiday…. think again!So, the key is to plan appropriately,programme all the organisationalactions necessary and ensure thattime and capacity exists,remembering that after the elationof completion there can be teamdeflation!
And then relax in the knowledgeof a job well done!!!!!!!
Case Study
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Appendix
Index
Service BriefsProcurementLegal ContractsDue DiligenceGuaranteesTypes of Building Contract
Service Briefs
Key to delivering excellent capitalprojects is to have spent time,often with the Project Manager ifappointed early in the process, indeveloping detailed briefs for allservices (e.g. architectural,structural engineering, Mechanical& Electrical engineering etc) to beprocured.
Some elements of these arestandard and formulaic, but in partthey will be specific to how youwork as a commissioning clientand the actual works required foryour project.
Because they inform the tenderprocess, they provide the earliestindication of how good a client youwill be, what standards you expect,what the project ethos andoutcomes are and howprofessional the existing team is.
Much can be learned from theexperience of others in yournetworks that have deliveredsuccessful projects. People areoften happy to share theirknowledge.
It is likely that the first brief to writeis for the services of the PM who,once appointed, will go on todevelop the other briefs with you.
Getting this first one right isfundamental to success with thescope of their role andresponsibility critical.
Procurement
Procurement practices relate to allservices whether professionalteams, individual service providersequipment, construction, fit-out orother project needs.
Agreed procurement policies arean essential part of all successfulproject management.
The organisation commissioningworks and services may have aprocurement policy of its own andthis must be tailored to incorporatethe requirements of funders wherepublic money is involved.
The latter can be onerous and timeconsuming. Procurement leadtimes are often longer thanexpected and are not necessarilyconsistent over time as marketconditions change.
Procurement Rules
Early engagement of professionalservices such as QuantitySurveyors and Project Managerscan be helpful in getting theprocurement process right and canhelp to avoid mistakes andprogramme delays.
The rules for procurement onprojects are covered byprocurement regulations andprotocols.
Within the public sector andpublicly funded projects, if servicessuch as an Architect or works areabove certain value thresholdsthen they are required to beadvertised via the Official Journalof The European Union (OJEU).
These relate to competitiveadvertising, rules for the provisionof information and tenderingstandards.
TIPS
▪ A well thought throughservice brief leads togood tender outcomes
▪ Learn from theexperiences of others
▪ Engage your ProjectManager early to assist
▪ Consider theadvantages, againstthe costs, ofprocurement ofseparate PM and QSservices, with bothseparate fromarchitectural services,all reporting direct tothe client (greaterindependence andallegiance to the clientcan result).
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Too detailed to cover here andpotentially something that mightchange after Brexit, although theprinciples are unlikely to changemuch as they are good practice.
There are ways of procuring somethings more simply: small workspackages (small elements of aproject best carried out by knownand trusted contractors directlyemployed e.g. traditional(signwriting) let withoutcompetition, exceptional singletender actions (the work is sospecialist that only one contractorexists) where specialist (“unique”)services are required or the use of“approved supplier frameworks” alist of suppliers/contractors thathave agreed acceptable rates forcertain works agreed as part ofprevious competitive tendering)can be valuable and acceptablebut this should always be testedagainst policy, competitiveness,other contractor coordination andfunder needs, before committing.
Legal Contracts
Contracts for such services comein a fairly standard format butrequire careful scrutiny andadaptation to specific needs.
It is important to spend timedeveloping the “schedule ofservices” which defines exactlywhat you will receive. This is aclient responsibility, don’t expect alawyer to know what you expect,even if you need one to negotiatefor you and to cover the real“legalities”. If you just accept whatthe consultant suggests, you’ll getwhat they suggest and not muchmore in most cases!
First draft Service contracts oftenfavour the supplier.Clearly, the risks associated withentering non favourable contractagreements will depend on thescale and complexity of a project.
It might be perfectly acceptable tosimply take a contract as writtenand not waste money on legal feesbut it is never acceptable not toread the contract and look for riskareas.
A good example is the cost relatedto weather delays. Contractors willoften try to pass weather relateddelays to the client but the clientdoesn’t need to accept these. Itdoesn’t take much experience torealise that such delays can bevery costly.
The same applies to risks relatedto ground obstructions whenexcavations are needed. Thesecan sometimes be passed to thecontractor within the contract.
As with all purchasing the oldadage of “buyer beware” will setyou in good stead.
Procurement Lead TimeTips
▪ Proper competitive ten-dering to meet “publicfunding” requirementsis time consuming
▪ Consider your procure-ment options early andif necessary take ad-vice as it can save timeand costs, but moreimportantly improvequality and de-risk yourproject
▪ Spend time to makesure the scope you’reasking for meets yourrequirements and nomore
▪ In your plan, build incontingency for the pro-curement phases
▪ Understand and planfor long lead-in itemssuch as lifts and displaycases
▪ Due diligence is timeconsuming but essen-tial.
▪ Decision making proc-esses often compoundlead time problems
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Due Diligence
(Due Diligence is the term used todescribe the exercise of the duty ofcare necessary in checking thecredentials of all those employed inplanning, managing and deliveringa project – quite simply areindividuals and companies as goodas they say, have they done thethings they claim, do they have thehuman resources and timerequired and are they financiallysound, now and for the duration ofthe project?)
Most clients understand the needfor due diligence but don’tnecessarily think through what isrequired. There are some basicsto consider:
▪ Financial resilience of theconstituent elements of teams.The Principal must be robust butso must significant sub-contractors. Always check thatthe latest accounts are up todate enough to reflect thecurrent situation. Seeminglysuccessful, fast growingcontractors are often vulnerableto cash flow issues but seemattractive because they aresuccessful
▪ Do they pay their sub-contractors on time?
▪ Do they have a reputation forbeing contractually minded in anattempt to increase income atthe client’s expense? Talk toother clients and be sure theirtender meets the workspecification fully.
▪ Do they have a good reputationfor completing on time?
▪ Do they have a good reputationfor working with otherdisciplines?
▪ Have they actually done whatthey say they have? Don’t justrely on their preferred referees.
Go and look at jobs they havedone and talk to clients.
▪ Is the team before you the oneyou will actually work with and isat a team that relates to thereferences given? New teamscan be difficult to work with.
▪ How much other work have theygot on and do the resourcesavailable meet those they saywill be there to work on yourproject? Over-stretched teamsdon’t deliver well.
▪ Do they understand thespecialist working environmentthat museums and heritage sitesprovide? Listed buildings,collections care, archaeologicalsensitivity and empathy
Your due diligence will depend onscale of project, type of projectorganisational approach to risk andmany other factors, but alwaysthink about what’s needed well inadvance of tenders and makearrangements accordingly if delayis to be avoided or short-cutstaken.
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Guarantees - Parent CompanyGuarantee and / or PerformanceBonds
At the time of procurement,particularly of significant workscontracts, it is advisable tostipulate that the tenderer is toconfirm that they are willing toprovide a Parent CompanyGuarantee (PCG) and or aPerformance Bond (PB) within acertain number of days ofappointment.
In simplistic terms; If a contractorhas a parent company and thecontractor gets into difficulty andhas to go into Administration orLiquidation then if you have a PCGthe parent company remains liableto complete your project.
If the Contractor does not have aParent Company then aPerformance Bond will provide youwith an insurance.
Getting a PCG and a PB is goodthing because, if a contractor has aParent Company and you onlyhave a PB, the parent companycould strip assets from thecontractor before it announces thatthe contractor has gone into
Administration leaving little for thecontractor’s creditors to claw back.
A performance bond is insurancetaken out at the beginning of aproject to assist recovery of costsin the event of a crisis.
They traditionally cover up to 10%of the main contract cost.
Such insurance might seemexcessively expensive andunnecessary if you have recruiteda great team and planned carefully,but things do go wrong because ofthe many external factorsdiscussed and the bond canrepresent the difference betweencompleting a successful projectand not doing so.
If things go wrong it is absolutelyessential that all costs resultingfrom the problem are collated andevidenced.
The bond will only pay out on proofof legitimate additional costs whichcan be significant.
Great project and financialmanagement of the minutiaeremains essential when all aroundyou seems to be crumbling!
TIP
Once you have yoursigned Parent CompanyGuarantee and orPerformance Bond LOCKit in the safe! If you haveto draw on them it’s asgood as a cheque
Image courtesy of Brunel Museum
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Types of Building Contract
Contracts for the delivery of thecapital project itself come in avariety of forms. Professionaladvice should always be soughtbefore entering into contracts.For example four options that maybe considered are:
1. Construction Management.Here the client effectivelyassumes the responsibility of“Principal Contractor” workingwith a number of individualsmall contract packages. Thiscan be highly cost effective butthe role of “PrincipalContractor” is an onerous onethat should not be taken lightlywith risks such as; health andsafety responsibility, contractorcoordination, delay etc restingwith the client.
2. Traditional Principal Contractorbased contracts where acontractor tenders to deliver acarefully defined package ofworks, covering severalprofessional disciplines, for agiven price. There are differentcontract forms that can beused, some more favourable tothe client than others. Theclient can specify the form ofcontract which can be ofbenefit. The key with thesecontracts is to define the workcontent as closely as possibleto prevent the need for laterchanges, additions or delaysthrough omissions. Yourprofessional team must bemanaged carefully to achievethis.
3. Design and Build Contracts(D&B). Such contracts tenderfor an overall programme ofworks and capital outcomes tobe delivered by the contractorin the way that they see mosteffective for a given price.These contracts are often verycompetitive and good value formoney but there are risks
especially in relation to qualitystandards, materials used andconsistency of design detailsbecause the contractor hasmore control over how thecapital works are designed anddelivered. Unless verycarefully defined suchstandards might not be thosedesired because the contractormight seek to maximise profitthrough minimising cost ratherthan delivering a betteroutcome defined in ways otherthan cost.
4. Hybrid of the above.
AIM Success Guide
Image courtesy of The HistoricDockyard Chatham
AIM Success Guide
Association of Independent Museums (AIM)3 Chestnut GroveLudlow, Shropshire SY8 1TJ
AIM Editor – Tamalie Newbery
www.aim-museums.co.uk
Copyright © 2017 Association of Independent Museums
