Procurement Management

set of questions “some are repeated” should be answered from the hand out attached in the additional files + a model answers 1. A large Japanese global banking corporation is to construct its new European headquarters in the City of London. The bank has appointed a client representative as Project Sponsor from one of the international Japanese contractors who has worked in the UK and USA previously. The project budget is set at £300m and the development will include:  Accommodation spread over twenty storeys.  A reception area on the ground floor is to be of high quality and prestige to reflect the banking corporation’s global image.  Office accommodation is over the twelve floors, half of which will be open plan, highly serviced in terms of IT as well as mechanical and electrical service installations to provide a reliable and controlled working environment.  Three trading floors, which are all to open plan to handle the bank’s global financial trading. These will be highly complex in terms of IT and security requirements and there will be a significant requirement for M&E ventilation due to intense heat gains.  The remaining floors, on the top of the building, will be prestigious cellular office and conference accommodation set aside for directors and senior management.  The site is both constrained with busy roads on two sides, and also is in a part of the City of London where underground metro systems operate and there is also the likely incidence of archaeological artefacts to be found buried at various depths within the soil. Due to quality requirements and the Project Sponsor’s USA experiences, the banking corporation is intending to procure this contract through a Construction Management procurement route. The site for the development is a gap site between a large multi-storey office block and a listed building from the late 1790’s. The multi-storey office block is relatively new and contains large amounts of computer equipment in the basement. The geotechnical survey for the site indicates that piled foundations may be required but this must also take account of a mains sewer running through the centre of the site. Write a report advising the banking corporation’s project sponsor on the appropriate issues that it needs to consider with its procurement and tendering strategy for the development and a justified recommendation if this is the best strategy. [Compulsory Question: 50 marks] CIVE5360M01 Page 3 of 3 END 2. Increasingly public and private sector clients are looking for Cradle-To-Grave solutions for buildings, that is, managing buildings through their ‘whole life’ from concept to demolition that is extending the idea of the project life cycle. The choice of an appropriate procurement route becomes a crucial strategic investment decision and requires balancing priorities. However, it can be argued that the underlying processes of delivering a project for a client remain the same. Discuss this statement using a range of appropriate procurement options to demonstrate and justify your answer. [25 marks] 3. The Bridgehouse NHS Hospital Trust is responsible for managing the physical assets of Bridgehouse and Emondsley Hospitals. It wishes to re-establish a new combined hospital on a new site since the existing hospitals were built in the order of one hundred years ago. Emondsley, in particular, has not been maintained as well as the Bridgehouse hospital due to a lack of funds and it is getting to a point where the Trust is concerned that the basic sanitary external and internal infrastructure will deteriorate very rapidly and become a health hazard if there are many more extreme winters. The Trust has already purchased a new greenfield site about five miles away between each of the two existing hospitals. They now need to consider what is the appropriate way forward given that they will need to consider the Government’s recommendations on adopting either a Design and Build, Prime Contracting, or, the Public Private Partnership / Private Finance Initiative (PPP/PFI) procurement route, where the latter integrates funding, concept, design, construction, maintenance and operation within a contract period of twenty five years. Discuss and recommend which of these three procurement routes is best suited for the above new hospital accommodation, taking account of whole life performance requirements, also indicating the issues that need to be considered across the procurement strategy options and more specifically the one to be adopted. [25 marks] 4. “The concept of supply chain management has been imported into construction from the manufacturing sector without due recognition of important differences between the sectors; where relevance to mass production, including the use of logistics management and partnering philosophies are more appropriate than in project-based industries like construction”. Discuss this statement, justifying your conclusions. [

 

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