Management contract: appointing the management contractor - Revision history

Designing Buildings at 08:40, 28 October 2020

2020-10-28T08:40:49Z

← Older revision		Revision as of 08:40, 28 October 2020
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−		+	[[File:Project_plan_management_contract.jpg\|link=File:Project_plan_management_contract.jpg]]Management contracting is a procurement route in which the works are constructed by a number of different works contractors who are contracted to a management contractor. The management contractor is generally appointed early in the design process so that their experience can be used to improve the cost and buildability of proposals as they develop as well as to advise on packaging (and the risks of interfaces). More value is obtained by early appointment. Within this plan we suggest that the management contractor is appointed on completion of concept design. Earlier or later appointment might result in certain activities being re-allocated between the consultant team and the management contractor (for example the role of cost consultant).
−	[[File:~~Project plan management contract~~.jpg\|~~800x106px\|alt~~=~~Project plan management contract~~.jpg]]Management contracting is a procurement route in which the works are constructed by a number of different works contractors who are contracted to a management contractor. The management contractor is generally appointed early in the design process so that their experience can be used to improve the cost and buildability of proposals as they develop as well as to advise on packaging (and the risks of interfaces). More value is obtained by early appointment. Within this plan we suggest that the management contractor is appointed on completion of concept design. Earlier or later appointment might result in certain activities being re-allocated between the consultant team and the management contractor (for example the role of cost consultant).	+

	Appointing a management contractor enables some works contracts to be tendered earlier than others, and sometimes, even before the design is completed (for example piling might commence whilst the detailed design of above ground works continues). This can shorten the time taken to complete the project, but does mean that there will be price uncertainty until the design is complete and all contracts have been let.		Appointing a management contractor enables some works contracts to be tendered earlier than others, and sometimes, even before the design is completed (for example piling might commence whilst the detailed design of above ground works continues). This can shorten the time taken to complete the project, but does mean that there will be price uncertainty until the design is complete and all contracts have been let.

−	= ~~'''~~Agreeing the procedure that will be adopted~~'''~~ =	+	= Agreeing the procedure that will be adopted =

	The client may decide that they require advice from independent client advisers or member of the consultant team to help them make the appointment. The client may also wish to appoint a contract administrator to administer the management contractor's contract. If this requires new appointments, go to the work stage: Management contract: appointment.		The client may decide that they require advice from independent client advisers or member of the consultant team to help them make the appointment. The client may also wish to appoint a contract administrator to administer the management contractor's contract. If this requires new appointments, go to the work stage: Management contract: appointment.
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	The client may have to follow a pre-determined procedure if; there are in-house rules governing appointments, if they are a local authority or other public body, or if the project will be publicly funded. Such procedures may include assessing whether OJEU procurement rules are likely to apply which can cause significant delays unless implemented early in the project.		The client may have to follow a pre-determined procedure if; there are in-house rules governing appointments, if they are a local authority or other public body, or if the project will be publicly funded. Such procedures may include assessing whether OJEU procurement rules are likely to apply which can cause significant delays unless implemented early in the project.

−	= ~~'''~~Agreeing the nature of appointment required.~~'''~~ =	+	= Agreeing the nature of appointment required. =

	The client should agree the wording of any adverts that are required (such as OJEU adverts) and if appropriate prepare a pre-qualification questionnaire.		The client should agree the wording of any adverts that are required (such as OJEU adverts) and if appropriate prepare a pre-qualification questionnaire.
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	The client prepares a formal request for proposals.		The client prepares a formal request for proposals.

−	= ~~'''~~Preparing a list of possible candidates.~~'''~~ =	+	= Preparing a list of possible candidates. =

	The client prepares a long-list of possible candidates, either from recommendations, existing relationships or expressions of interest received in response to adverts.		The client prepares a long-list of possible candidates, either from recommendations, existing relationships or expressions of interest received in response to adverts.
Line 36:		Line 35:
	Short-listed candidates are invited to submit proposals in response to the client's request for proposals.		Short-listed candidates are invited to submit proposals in response to the client's request for proposals.

−	= ~~'''~~Selecting the preferred candidate and making the appointment.~~'''~~ =	+	= Selecting the preferred candidate and making the appointment. =

	The client collates responses to queries from candidates and issues these responses to all candidates.		The client collates responses to queries from candidates and issues these responses to all candidates.
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	The client assesses the candidates' proposals (including the personnel the management contractor will use on the project). The client may seek advice from existing consultants or independent client advisers.		The client assesses the candidates' proposals (including the personnel the management contractor will use on the project). The client may seek advice from existing consultants or independent client advisers.

−	The client invites the candidates to interview, identifies the preferred candidate(s) and opens negotiations with the preferred candidate(s).~~<br/>~~	+	The client invites the candidates to interview, identifies the preferred candidate(s) and opens negotiations with the preferred candidate(s).

	The client appoints the selected candidate and arranges a start-up meeting with the management contractor and the consultant team.		The client appoints the selected candidate and arranges a start-up meeting with the management contractor and the consultant team.
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	NB. This appointment will generally cover pre-construction and construction services, however progressing to the construction phase will be dependent on the client issuing a 'notice to proceed' and may involve the addition of definitive particulars to the contract.		NB. This appointment will generally cover pre-construction and construction services, however progressing to the construction phase will be dependent on the client issuing a 'notice to proceed' and may involve the addition of definitive particulars to the contract.

−	----	+	-----
−		+	[[File:Continue_to_next_stage_button.png\|link=Management_contract:_detailed_design]][[File:Test_button.png\|link=Management_contract:_outline_work_plan]]
−	[[File:~~Continue to next stage button.png\|alt=Continue to next stage button~~.png\|link=~~Management contract~~: ~~detailed design~~]][[File:~~Test button.png\|alt=Test button~~.png\|link=~~Management contract~~: ~~outline work plan~~]]	+

−	[[Category:Management_contract]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:DCN_Template]] [[Category:Management_contract]]

Designing Buildings at 07:54, 24 September 2015

2015-09-24T07:54:19Z

Designing Buildings at 15:09, 10 September 2015

2015-09-10T15:09:00Z

← Older revision		Revision as of 15:09, 10 September 2015
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	= '''Agreeing the procedure that will be adopted''' =		= '''Agreeing the procedure that will be adopted''' =

−	The client ~~identifies~~ the ~~need~~ to appoint a management contractor ~~(perhaps with advice from~~ the ~~consultant team)~~.	+	The client may decide that they require advice from independent client advisers or member of the consultant team to help them make the appointment. The client may also wish to appoint a contract administrator to administer the management contractor's contract. If this requires new appointments, go to the work stage: Management contract: appointment.

−	The client ~~may decide that they require advice from independent client advisers or member of~~ the ~~consultant team to help them make the appointment~~. ~~If this requires~~ a ~~new appointment~~, ~~go to the work stage: Management contract: appointment~~.	+	The client determines the selection procedure that will be adopted. This might be a process of recommendation, research and interview, open competition, selective competition, or an existing relationship such as a framework agreement.

−	~~The client may wish to appoint a contract administrator to administer the management contractor's contract. If this requires a new appointment, go to the work stage: Management contract: appointment.~~	+	The client may have to follow a pre-determined procedure if; there are in-house rules governing appointments, if they are a local authority or other public body, or if the project will be publicly funded. Such procedures may include assessing whether OJEU procurement rules are likely to apply which can cause significant delays unless implemented early in the project.
−		+
−	The client determines the selection procedure that will be adopted. This might be a process of recommendation, research and interview, open competition, selective competition, or an existing relationship such as a framework agreement. The client may have to follow a pre-determined procedure if; there are in-house rules governing appointments, if they are a local authority or other public body, or if the project will be publicly funded. Such procedures may include assessing whether OJEU procurement rules are likely to apply which can cause significant delays unless implemented early in the project ~~as the procedures that must be followed are quite lengthy~~.	+

	= '''Agreeing the nature of appointment required.''' =		= '''Agreeing the nature of appointment required.''' =
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	The client should prepare documents describing the nature of the development (if the management contractor is appointed very early in the project, this might simply be the strategic brief, whereas if they are appointed later, it could include the project brief and concept design).		The client should prepare documents describing the nature of the development (if the management contractor is appointed very early in the project, this might simply be the strategic brief, whereas if they are appointed later, it could include the project brief and concept design).

−	The client should define the schedule of services that will be required, selection criteria, form of agreement and contract terms for the appointment. The agreement between client and management contractor is likely to cover both pre-construction and construction activities, with a notice to proceed between the two, before which works contracts cannot be let. Collateral warranties are also likely to be required (for example for purchasers, tenants or funders). In addition the client is likely to define the works contract terms and any requirement for works contract warranties. A management contractor might be reimbursed on the basis of fixed or variable costs (the works contract costs) plus either a percentage fee, a fixed fee, or on a target-cost basis. The terms of the appointment must be clear about what is to be provided by the management contractor (such as the provision of site facilities) and whether activities constitute pre-construction or construction services.	+	The client should define the schedule of services that will be required, selection criteria, form of agreement and contract terms for the appointment.
		+
		+	The agreement between client and management contractor is likely to cover both pre-construction and construction activities, with a notice to proceed between the two, before which works contracts cannot be let. Collateral warranties are also likely to be required (for example for purchasers, tenants or funders). In addition the client is likely to define the works contract terms and any requirement for works contract warranties. A management contractor might be reimbursed on the basis of fixed or variable costs (the works contract costs) plus either a percentage fee, a fixed fee, or on a target-cost basis. The terms of the appointment must be clear about what is to be provided by the management contractor (such as the provision of site facilities) and whether activities constitute pre-construction or construction services.

	The client should agree the form of proposal that will be requested from candidates.		The client should agree the form of proposal that will be requested from candidates.

	The client prepares a formal request for proposals.		The client prepares a formal request for proposals.
−
−	NB. There is a body of opinion that believes that if a management contractor operating on a cost plus fee arrangement pursues a trade contractor in court for non-performance the management contractor is unable to prove loss and damages. This is because the loss is simply passed on to the client, and so it is the client that has incurred the damage. This has increased the tendency for clients to require direct warranties with each works contractor.

	= '''Preparing a list of possible candidates.''' =		= '''Preparing a list of possible candidates.''' =
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	The client assesses the candidates' proposals (including the personnel the management contractor will use on the project). The client may seek advice from existing consultants or independent client advisers.		The client assesses the candidates' proposals (including the personnel the management contractor will use on the project). The client may seek advice from existing consultants or independent client advisers.

−	The client invites the candidates to interview.	+	The client invites the candidates to interview, identifies the preferred candidate(s) and opens negotiations with the preferred candidate(s). <br/>
−		+
−	~~The client~~ identifies the preferred candidate(s).	+
−		+
−	~~The client~~ opens negotiations with the preferred candidate(s).	+

	The client appoints the selected candidate and arranges a start-up meeting with the management contractor and the consultant team.		The client appoints the selected candidate and arranges a start-up meeting with the management contractor and the consultant team.
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	----		----

−	[[File:Continue to next stage button.png\|link=~~Management_contract~~:~~_detailed_design~~]][[File:Test button.png\|link=~~Management_contract~~:~~_outline_work_plan~~]]	+	[[File:Continue to next stage button.png\|alt=Continue to next stage button.png\|link=Management contract: detailed design]][[File:Test button.png\|alt=Test button.png\|link=Management contract: outline work plan]]

Designing Buildings at 15:01, 10 September 2015

2015-09-10T15:01:50Z

← Older revision		Revision as of 15:01, 10 September 2015
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	Appointing a management contractor enables some works contracts to be tendered earlier than others, and sometimes, even before the design is completed (for example piling might commence whilst the detailed design of above ground works continues). This can shorten the time taken to complete the project, but does mean that there will be price uncertainty until the design is complete and all contracts have been let.		Appointing a management contractor enables some works contracts to be tendered earlier than others, and sometimes, even before the design is completed (for example piling might commence whilst the detailed design of above ground works continues). This can shorten the time taken to complete the project, but does mean that there will be price uncertainty until the design is complete and all contracts have been let.

−	~~----~~	+	= '''Agreeing the procedure that will be adopted''' =

−	~~⇒ [[Management_contract:_outline_work_plan\|outline plan]] \| [[Management_contract:_concept_design\|previous stage]] \| [[Management_contract:_detailed_design\|next stage]]~~	+	The client identifies the need to appoint a management contractor (perhaps with advice from the consultant team).

−	~~----~~	+	The client may decide that they require advice from independent client advisers or member of the consultant team to help them make the appointment. If this requires a new appointment, go to the work stage: Management contract: appointment.

−	~~'''A. Identifying the need to appoint a management contractor.'''~~	+	The client may wish to appoint a contract administrator to administer the management contractor's contract. If this requires a new appointment, go to the work stage: Management contract: appointment.
−	~~#The client identifies the need to appoint a management contractor (perhaps with advice from the consultant team).~~	+
−	#The client may decide that they require advice from independent client advisers or member of the consultant team to help them make the appointment. If this requires a new appointment, go to the work stage: Management contract: appointment.	+
−	#The client may wish to appoint a contract administrator to administer the management contractor's contract. If this requires a new appointment, go to the work stage: Management contract: appointment.	+
−	#The client determines the selection procedure that will be adopted. This might be a process of recommendation, research and interview, open competition, selective competition, or an existing relationship such as a framework agreement. The client may have to follow a pre-determined procedure if; there are in-house rules governing appointments, if they are a local authority or other public body, or if the project will be publicly funded. Such procedures may include assessing whether OJEU procurement rules are likely to apply which can cause significant delays unless implemented early in the project as the procedures that must be followed are quite lengthy.	+

−	----	+	The client determines the selection procedure that will be adopted. This might be a process of recommendation, research and interview, open competition, selective competition, or an existing relationship such as a framework agreement. The client may have to follow a pre-determined procedure if; there are in-house rules governing appointments, if they are a local authority or other public body, or if the project will be publicly funded. Such procedures may include assessing whether OJEU procurement rules are likely to apply which can cause significant delays unless implemented early in the project as the procedures that must be followed are quite lengthy.

−	'''B. Agreeing the ~~exact~~ nature of ~~appointments~~ required.'''	+	= '''Agreeing the nature of appointment required.''' =
−	#The client should agree the wording of any adverts that are required (such as OJEU adverts) and if appropriate prepare a pre-qualification questionnaire.	+
−	#The client should prepare documents describing the nature of the development (if the management contractor is appointed very early in the project, this might simply be the strategic brief, whereas if they are appointed later, it could include the project brief and concept design).	+	The client should agree the wording of any adverts that are required (such as OJEU adverts) and if appropriate prepare a pre-qualification questionnaire.
−	#The client should define the schedule of services that will be required, selection criteria, form of agreement and contract terms for the appointment. The agreement between client and management contractor is likely to cover both pre-construction and construction activities, with a notice to proceed between the two, before which works contracts cannot be let. Collateral warranties are also likely to be required (for example for purchasers, tenants or funders). In addition the client is likely to define the works contract terms and any requirement for works contract warranties. A management contractor might be reimbursed on the basis of fixed or variable costs (the works contract costs) plus either a percentage fee, a fixed fee, or on a target-cost basis. The terms of the appointment must be clear about what is to be provided by the management contractor (such as the provision of site facilities) and whether activities constitute pre-construction or construction services.	+
−	#The client should agree the form of proposal that will be requested from candidates.	+	The client should prepare documents describing the nature of the development (if the management contractor is appointed very early in the project, this might simply be the strategic brief, whereas if they are appointed later, it could include the project brief and concept design).
−	#The client prepares a formal request for proposals.	+
		+	The client should define the schedule of services that will be required, selection criteria, form of agreement and contract terms for the appointment. The agreement between client and management contractor is likely to cover both pre-construction and construction activities, with a notice to proceed between the two, before which works contracts cannot be let. Collateral warranties are also likely to be required (for example for purchasers, tenants or funders). In addition the client is likely to define the works contract terms and any requirement for works contract warranties. A management contractor might be reimbursed on the basis of fixed or variable costs (the works contract costs) plus either a percentage fee, a fixed fee, or on a target-cost basis. The terms of the appointment must be clear about what is to be provided by the management contractor (such as the provision of site facilities) and whether activities constitute pre-construction or construction services.
		+
		+	The client should agree the form of proposal that will be requested from candidates.
		+
		+	The client prepares a formal request for proposals.

	NB. There is a body of opinion that believes that if a management contractor operating on a cost plus fee arrangement pursues a trade contractor in court for non-performance the management contractor is unable to prove loss and damages. This is because the loss is simply passed on to the client, and so it is the client that has incurred the damage. This has increased the tendency for clients to require direct warranties with each works contractor.		NB. There is a body of opinion that believes that if a management contractor operating on a cost plus fee arrangement pursues a trade contractor in court for non-performance the management contractor is unable to prove loss and damages. This is because the loss is simply passed on to the client, and so it is the client that has incurred the damage. This has increased the tendency for clients to require direct warranties with each works contractor.

−	~~----~~	+	= '''Preparing a list of possible candidates.''' =

−	~~'''C. Preparing a list of possible candidates.'''~~	+	The client prepares a long-list of possible candidates, either from recommendations, existing relationships or expressions of interest received in response to adverts.
−	#The client prepares a long-list of possible candidates, either from recommendations, existing relationships or expressions of interest received in response to adverts.	+
−	#The candidates may be required to complete a pre-qualification questionnaire, or there may be some other assessment procedure (such as interviews) that results in the preparation of a short-list that will be invited to submit proposals. Such assessments may include assessing experience and capability, checking professional indemnity insurance, assessing CDM competence, checking references and so on.	+
−	~~#The client should put in place procedures for responding to queries from candidates.~~	+
−	~~#Short-listed candidates are invited to submit proposals in response to the client's request for proposals~~.	+

−	----	+	The candidates may be required to complete a pre-qualification questionnaire, or there may be some other assessment procedure (such as interviews) that results in the preparation of a short-list that will be invited to submit proposals. Such assessments may include assessing experience and capability, checking professional indemnity insurance, assessing CDM competence, checking references and so on.

−	'''D. Selecting the preferred candidate and making the appointment.'''	+	The client should put in place procedures for responding to queries from candidates.
−	#The client collates responses to queries from candidates and issues these responses to all candidates.	+
−	#The client receives and opens the candidates' proposals and makes a record of the fee proposals of each candidate. In some circumstances, fee proposals may be submitted in a sealed envelope and opened separately from the rest of the proposals so that the assessment procedure is not initially prejudiced by the fee (which it may be possible to negotiate down).	+	Short-listed candidates are invited to submit proposals in response to the client's request for proposals.
−	#The client assesses the candidates' proposals (including the personnel the management contractor will use on the project). The client may seek advice from existing consultants or independent client advisers.	+
−	#The client invites the candidates to interview.	+	= '''Selecting the preferred candidate and making the appointment.''' =
−	#The client identifies the preferred candidate(s).	+
−	#The client opens negotiations with the preferred candidate(s).	+	The client collates responses to queries from candidates and issues these responses to all candidates.
−	#The client appoints the selected candidate and arranges a start-up meeting with the management contractor and the consultant team.	+
−	#The client informs other candidates that they have been unsuccessful. It is best practice to give clearly thought-out, specific feedback to unsuccessful candidates as they have take the time to prepare proposals often for no fee. Candidates greatly appreciate this feedback and will be more likely to express interest in future projects.	+	The client receives and opens the candidates' proposals and makes a record of the fee proposals of each candidate. In some circumstances, fee proposals may be submitted in a sealed envelope and opened separately from the rest of the proposals so that the assessment procedure is not initially prejudiced by the fee (which it may be possible to negotiate down).
		+
		+	The client assesses the candidates' proposals (including the personnel the management contractor will use on the project). The client may seek advice from existing consultants or independent client advisers.
		+
		+	The client invites the candidates to interview.
		+
		+	The client identifies the preferred candidate(s).
		+
		+	The client opens negotiations with the preferred candidate(s).
		+
		+	The client appoints the selected candidate and arranges a start-up meeting with the management contractor and the consultant team.
		+
		+	The client informs other candidates that they have been unsuccessful. It is best practice to give clearly thought-out, specific feedback to unsuccessful candidates as they have take the time to prepare proposals often for no fee. Candidates greatly appreciate this feedback and will be more likely to express interest in future projects.

	NB. This appointment will generally cover pre-construction and construction services, however progressing to the construction phase will be dependent on the client issuing a 'notice to proceed' and may involve the addition of definitive particulars to the contract.		NB. This appointment will generally cover pre-construction and construction services, however progressing to the construction phase will be dependent on the client issuing a 'notice to proceed' and may involve the addition of definitive particulars to the contract.
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	----		----

−	⇒ [[~~Management_contract~~:~~_outline_work_plan\|outline plan]] \| [[Management_contract:_concept_design\|previous~~ stage]] \| [[Management_contract:_detailed_design~~\|next stage~~]]	+	[[File:Continue to next stage button.png\|link=Management_contract:_detailed_design]][[File:Test button.png\|link=Management_contract:_outline_work_plan]]
−		+
−	[[~~Category~~:~~Construction_management_contract~~]]	+

Designing Buildings: Removed protection from "Management contract: appointing the management contractor"

2015-09-10T14:58:39Z

Removed protection from "Management contract: appointing the management contractor"

← Older revision

Revision as of 14:58, 10 September 2015

Designing Buildings at 13:34, 3 July 2013

2013-07-03T13:34:26Z

← Older revision		Revision as of 13:34, 3 July 2013
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−	[[File:Project plan management contract.jpg\|800x106px]]Management contracting is a procurement route in which the works are constructed by a number of different works contractors who are contracted to a management contractor.	+	[[File:Project plan management contract.jpg\|800x106px\|alt=Project plan management contract.jpg]]Management contracting is a procurement route in which the works are constructed by a number of different works contractors who are contracted to a management contractor. The management contractor is generally appointed early in the design process so that their experience can be used to improve the cost and buildability of proposals as they develop as well as to advise on packaging (and the risks of interfaces). More value is obtained by early appointment. Within this plan we suggest that the management contractor is appointed on completion of concept design. Earlier or later appointment might result in certain activities being re-allocated between the consultant team and the management contractor (for example the role of cost consultant).
−		+
−	The management contractor is generally appointed early in the design process so that their experience can be used to improve the cost and buildability of proposals as they develop as well as to advise on packaging (and the risks of interfaces). More value is obtained by early appointment~~, but there is less certainty about the precise nature of the appointment that is required~~. Within this plan we suggest that the management contractor is appointed on completion of concept design. Earlier or later appointment might result in certain activities being re-allocated between the consultant team and the management contractor (for example the role of cost consultant).	+

	Appointing a management contractor enables some works contracts to be tendered earlier than others, and sometimes, even before the design is completed (for example piling might commence whilst the detailed design of above ground works continues). This can shorten the time taken to complete the project, but does mean that there will be price uncertainty until the design is complete and all contracts have been let.		Appointing a management contractor enables some works contracts to be tendered earlier than others, and sometimes, even before the design is completed (for example piling might commence whilst the detailed design of above ground works continues). This can shorten the time taken to complete the project, but does mean that there will be price uncertainty until the design is complete and all contracts have been let.

−	~~Project plans for other procurement routes are available on the Designing Buildings Wiki home page.~~	+	----

−	~~NB This article is locked to preserve the logic and continuity of the full work~~ plan~~. If you would like to propose changes or additions, click on the 'submit comment' button at the bottom of the page.~~	+	⇒ [[Management_contract:_outline_work_plan\|outline plan]] \| [[Management_contract:_concept_design\|previous stage]] \| [[Management_contract:_detailed_design\|next stage]]

	----		----
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	----		----
−	*Next work stage: ~~Management contract~~: ~~detailed design.~~	+
−	*Previous work stage: ~~Management contract: concept design.~~	+	⇒ [[Management_contract:_outline_work_plan\|outline plan]] \| [[Management_contract:_concept_design\|previous stage]] \| [[Management_contract:_detailed_design\|next stage]]
−	*Return to: Management contract: outline work plan .	+

	[[Category:Construction_management_contract]]		[[Category:Construction_management_contract]]

Designing Buildings at 13:29, 3 July 2013

2013-07-03T13:29:27Z

Designing Buildings at 08:20, 5 March 2012

2012-03-05T08:20:24Z

← Older revision		Revision as of 08:20, 5 March 2012
Line 1:		Line 1:
	Management contracting is a procurement route in which the works are constructed by a number of different works contractors who are contracted to a management contractor.		Management contracting is a procurement route in which the works are constructed by a number of different works contractors who are contracted to a management contractor.

−	The management contractor is generally appointed early in the design process so that their experience can be used to improve the cost and ~~buildibility~~ of proposals as they develop as well as to advise on packaging (and the risks of interfaces). More value is obtained by early appointment, but there is less certainty about the precise nature of the appointment that is required. Within this plan we suggest that the management contractor is appointed on completion of concept design. Earlier or later appointment might result in certain activities being re-allocated between the consultant team and the management contractor (for example the role of cost consultant).	+	The management contractor is generally appointed early in the design process so that their experience can be used to improve the cost and buildability of proposals as they develop as well as to advise on packaging (and the risks of interfaces). More value is obtained by early appointment, but there is less certainty about the precise nature of the appointment that is required. Within this plan we suggest that the management contractor is appointed on completion of concept design. Earlier or later appointment might result in certain activities being re-allocated between the consultant team and the management contractor (for example the role of cost consultant).

	Appointing a management contractor enables some works contracts to be tendered earlier than others, and sometimes, even before the design is completed (for example piling might commence whilst the detailed design of above ground works continues). This can shorten the time taken to complete the project, but does mean that there will be price uncertainty until the design is complete and all contracts have been let.		Appointing a management contractor enables some works contracts to be tendered earlier than others, and sometimes, even before the design is completed (for example piling might commence whilst the detailed design of above ground works continues). This can shorten the time taken to complete the project, but does mean that there will be price uncertainty until the design is complete and all contracts have been let.

Designing Buildings at 16:36, 8 February 2012

2012-02-08T16:36:08Z

Designing Buildings at 16:42, 6 February 2012

2012-02-06T16:42:17Z

← Older revision		Revision as of 16:42, 6 February 2012
Line 73:		Line 73:

	----		----
−
−

	*Next work stage: Management contract: detailed design.		*Next work stage: Management contract: detailed design.

← Older revision		Revision as of 07:54, 24 September 2015
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	The client may decide that they require advice from independent client advisers or member of the consultant team to help them make the appointment. The client may also wish to appoint a contract administrator to administer the management contractor's contract. If this requires new appointments, go to the work stage: Management contract: appointment.		The client may decide that they require advice from independent client advisers or member of the consultant team to help them make the appointment. The client may also wish to appoint a contract administrator to administer the management contractor's contract. If this requires new appointments, go to the work stage: Management contract: appointment.

−	The client determines the selection procedure that will be adopted. This might be a process of recommendation, research and interview, open competition, selective competition, or an existing relationship such as a framework agreement.	+	The client determines the selection procedure that will be adopted. This might be a process of recommendation, research and interview, open competition, selective competition, or an existing relationship such as a framework agreement.

	The client may have to follow a pre-determined procedure if; there are in-house rules governing appointments, if they are a local authority or other public body, or if the project will be publicly funded. Such procedures may include assessing whether OJEU procurement rules are likely to apply which can cause significant delays unless implemented early in the project.		The client may have to follow a pre-determined procedure if; there are in-house rules governing appointments, if they are a local authority or other public body, or if the project will be publicly funded. Such procedures may include assessing whether OJEU procurement rules are likely to apply which can cause significant delays unless implemented early in the project.
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	The client should prepare documents describing the nature of the development (if the management contractor is appointed very early in the project, this might simply be the strategic brief, whereas if they are appointed later, it could include the project brief and concept design).		The client should prepare documents describing the nature of the development (if the management contractor is appointed very early in the project, this might simply be the strategic brief, whereas if they are appointed later, it could include the project brief and concept design).

−	The client should define the schedule of services that will be required, selection criteria, form of agreement and contract terms for the appointment.	+	The client should define the schedule of services that will be required, selection criteria, form of agreement and contract terms for the appointment.

	The agreement between client and management contractor is likely to cover both pre-construction and construction activities, with a notice to proceed between the two, before which works contracts cannot be let. Collateral warranties are also likely to be required (for example for purchasers, tenants or funders). In addition the client is likely to define the works contract terms and any requirement for works contract warranties. A management contractor might be reimbursed on the basis of fixed or variable costs (the works contract costs) plus either a percentage fee, a fixed fee, or on a target-cost basis. The terms of the appointment must be clear about what is to be provided by the management contractor (such as the provision of site facilities) and whether activities constitute pre-construction or construction services.		The agreement between client and management contractor is likely to cover both pre-construction and construction activities, with a notice to proceed between the two, before which works contracts cannot be let. Collateral warranties are also likely to be required (for example for purchasers, tenants or funders). In addition the client is likely to define the works contract terms and any requirement for works contract warranties. A management contractor might be reimbursed on the basis of fixed or variable costs (the works contract costs) plus either a percentage fee, a fixed fee, or on a target-cost basis. The terms of the appointment must be clear about what is to be provided by the management contractor (such as the provision of site facilities) and whether activities constitute pre-construction or construction services.
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	The client assesses the candidates' proposals (including the personnel the management contractor will use on the project). The client may seek advice from existing consultants or independent client advisers.		The client assesses the candidates' proposals (including the personnel the management contractor will use on the project). The client may seek advice from existing consultants or independent client advisers.

−	The client invites the candidates to interview, identifies the preferred candidate(s) and opens negotiations with the preferred candidate(s). <br/>	+	The client invites the candidates to interview, identifies the preferred candidate(s) and opens negotiations with the preferred candidate(s).<br/>

	The client appoints the selected candidate and arranges a start-up meeting with the management contractor and the consultant team.		The client appoints the selected candidate and arranges a start-up meeting with the management contractor and the consultant team.
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	[[File:Continue to next stage button.png\|alt=Continue to next stage button.png\|link=Management contract: detailed design]][[File:Test button.png\|alt=Test button.png\|link=Management contract: outline work plan]]		[[File:Continue to next stage button.png\|alt=Continue to next stage button.png\|link=Management contract: detailed design]][[File:Test button.png\|alt=Test button.png\|link=Management contract: outline work plan]]
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		+	[[Category:Management_contract]]

← Older revision		Revision as of 13:29, 3 July 2013
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−	Management contracting is a procurement route in which the works are constructed by a number of different works contractors who are contracted to a management contractor.	+
		+	[[File:Project plan management contract.jpg\|800x106px]]Management contracting is a procurement route in which the works are constructed by a number of different works contractors who are contracted to a management contractor.

	The management contractor is generally appointed early in the design process so that their experience can be used to improve the cost and buildability of proposals as they develop as well as to advise on packaging (and the risks of interfaces). More value is obtained by early appointment, but there is less certainty about the precise nature of the appointment that is required. Within this plan we suggest that the management contractor is appointed on completion of concept design. Earlier or later appointment might result in certain activities being re-allocated between the consultant team and the management contractor (for example the role of cost consultant).		The management contractor is generally appointed early in the design process so that their experience can be used to improve the cost and buildability of proposals as they develop as well as to advise on packaging (and the risks of interfaces). More value is obtained by early appointment, but there is less certainty about the precise nature of the appointment that is required. Within this plan we suggest that the management contractor is appointed on completion of concept design. Earlier or later appointment might result in certain activities being re-allocated between the consultant team and the management contractor (for example the role of cost consultant).
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	'''A. Identifying the need to appoint a management contractor.'''		'''A. Identifying the need to appoint a management contractor.'''
−
	#The client identifies the need to appoint a management contractor (perhaps with advice from the consultant team).		#The client identifies the need to appoint a management contractor (perhaps with advice from the consultant team).
	#The client may decide that they require advice from independent client advisers or member of the consultant team to help them make the appointment. If this requires a new appointment, go to the work stage: Management contract: appointment.		#The client may decide that they require advice from independent client advisers or member of the consultant team to help them make the appointment. If this requires a new appointment, go to the work stage: Management contract: appointment.
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	'''B. Agreeing the exact nature of appointments required.'''		'''B. Agreeing the exact nature of appointments required.'''
−
	#The client should agree the wording of any adverts that are required (such as OJEU adverts) and if appropriate prepare a pre-qualification questionnaire.		#The client should agree the wording of any adverts that are required (such as OJEU adverts) and if appropriate prepare a pre-qualification questionnaire.
	#The client should prepare documents describing the nature of the development (if the management contractor is appointed very early in the project, this might simply be the strategic brief, whereas if they are appointed later, it could include the project brief and concept design).		#The client should prepare documents describing the nature of the development (if the management contractor is appointed very early in the project, this might simply be the strategic brief, whereas if they are appointed later, it could include the project brief and concept design).
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	'''C. Preparing a list of possible candidates.'''		'''C. Preparing a list of possible candidates.'''
−
	#The client prepares a long-list of possible candidates, either from recommendations, existing relationships or expressions of interest received in response to adverts.		#The client prepares a long-list of possible candidates, either from recommendations, existing relationships or expressions of interest received in response to adverts.
	#The candidates may be required to complete a pre-qualification questionnaire, or there may be some other assessment procedure (such as interviews) that results in the preparation of a short-list that will be invited to submit proposals. Such assessments may include assessing experience and capability, checking professional indemnity insurance, assessing CDM competence, checking references and so on.		#The candidates may be required to complete a pre-qualification questionnaire, or there may be some other assessment procedure (such as interviews) that results in the preparation of a short-list that will be invited to submit proposals. Such assessments may include assessing experience and capability, checking professional indemnity insurance, assessing CDM competence, checking references and so on.
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	'''D. Selecting the preferred candidate and making the appointment.'''		'''D. Selecting the preferred candidate and making the appointment.'''
−
	#The client collates responses to queries from candidates and issues these responses to all candidates.		#The client collates responses to queries from candidates and issues these responses to all candidates.
	#The client receives and opens the candidates' proposals and makes a record of the fee proposals of each candidate. In some circumstances, fee proposals may be submitted in a sealed envelope and opened separately from the rest of the proposals so that the assessment procedure is not initially prejudiced by the fee (which it may be possible to negotiate down).		#The client receives and opens the candidates' proposals and makes a record of the fee proposals of each candidate. In some circumstances, fee proposals may be submitted in a sealed envelope and opened separately from the rest of the proposals so that the assessment procedure is not initially prejudiced by the fee (which it may be possible to negotiate down).
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	*Next work stage: Management contract: detailed design.		*Next work stage: Management contract: detailed design.
	*Previous work stage: Management contract: concept design.		*Previous work stage: Management contract: concept design.

← Older revision		Revision as of 16:36, 8 February 2012
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	NB This article is locked to preserve the logic and continuity of the full work plan. If you would like to propose changes or additions, click on the 'submit comment' button at the bottom of the page.		NB This article is locked to preserve the logic and continuity of the full work plan. If you would like to propose changes or additions, click on the 'submit comment' button at the bottom of the page.
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−

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	'''A. Identifying the need to appoint a management contractor.'''		'''A. Identifying the need to appoint a management contractor.'''
−
−

	#The client identifies the need to appoint a management contractor (perhaps with advice from the consultant team).		#The client identifies the need to appoint a management contractor (perhaps with advice from the consultant team).
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	#The client may wish to appoint a contract administrator to administer the management contractor's contract. If this requires a new appointment, go to the work stage: Management contract: appointment.		#The client may wish to appoint a contract administrator to administer the management contractor's contract. If this requires a new appointment, go to the work stage: Management contract: appointment.
	#The client determines the selection procedure that will be adopted. This might be a process of recommendation, research and interview, open competition, selective competition, or an existing relationship such as a framework agreement. The client may have to follow a pre-determined procedure if; there are in-house rules governing appointments, if they are a local authority or other public body, or if the project will be publicly funded. Such procedures may include assessing whether OJEU procurement rules are likely to apply which can cause significant delays unless implemented early in the project as the procedures that must be followed are quite lengthy.		#The client determines the selection procedure that will be adopted. This might be a process of recommendation, research and interview, open competition, selective competition, or an existing relationship such as a framework agreement. The client may have to follow a pre-determined procedure if; there are in-house rules governing appointments, if they are a local authority or other public body, or if the project will be publicly funded. Such procedures may include assessing whether OJEU procurement rules are likely to apply which can cause significant delays unless implemented early in the project as the procedures that must be followed are quite lengthy.
−
−

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	'''B. Agreeing the exact nature of appointments required.'''		'''B. Agreeing the exact nature of appointments required.'''
−
−

	#The client should agree the wording of any adverts that are required (such as OJEU adverts) and if appropriate prepare a pre-qualification questionnaire.		#The client should agree the wording of any adverts that are required (such as OJEU adverts) and if appropriate prepare a pre-qualification questionnaire.
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	NB. There is a body of opinion that believes that if a management contractor operating on a cost plus fee arrangement pursues a trade contractor in court for non-performance the management contractor is unable to prove loss and damages. This is because the loss is simply passed on to the client, and so it is the client that has incurred the damage. This has increased the tendency for clients to require direct warranties with each works contractor.		NB. There is a body of opinion that believes that if a management contractor operating on a cost plus fee arrangement pursues a trade contractor in court for non-performance the management contractor is unable to prove loss and damages. This is because the loss is simply passed on to the client, and so it is the client that has incurred the damage. This has increased the tendency for clients to require direct warranties with each works contractor.
−
−

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	'''C. Preparing a list of possible candidates.'''		'''C. Preparing a list of possible candidates.'''
−
−

	#The client prepares a long-list of possible candidates, either from recommendations, existing relationships or expressions of interest received in response to adverts.		#The client prepares a long-list of possible candidates, either from recommendations, existing relationships or expressions of interest received in response to adverts.
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	#The client should put in place procedures for responding to queries from candidates.		#The client should put in place procedures for responding to queries from candidates.
	#Short-listed candidates are invited to submit proposals in response to the client's request for proposals.		#Short-listed candidates are invited to submit proposals in response to the client's request for proposals.
−
−

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	'''D. Selecting the preferred candidate and making the appointment.'''		'''D. Selecting the preferred candidate and making the appointment.'''
−
−

	#The client collates responses to queries from candidates and issues these responses to all candidates.		#The client collates responses to queries from candidates and issues these responses to all candidates.
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	NB. This appointment will generally cover pre-construction and construction services, however progressing to the construction phase will be dependent on the client issuing a 'notice to proceed' and may involve the addition of definitive particulars to the contract.		NB. This appointment will generally cover pre-construction and construction services, however progressing to the construction phase will be dependent on the client issuing a 'notice to proceed' and may involve the addition of definitive particulars to the contract.
−
−

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