The Planning Process & Pre-Tender Planning

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The Planning Process &

Pre-Tender Planning

PRODUCTION ORGANISATION & HUMAN RESOURCE MANAGEMENT

BSc (Hons)

BUILDING CONSTRUCTION MANAGEMENT

9th June 2010



Name Bee Gan MScModule Leader Production Organisation & HRM

Principles of Valuation

Department Role International Co-ordinator

Others Doctorate Student at Aalto University

Helsinki

Committee Member of CIOB Sheffield

Location Unit 1 Science Park

Contact No. 0114 225 4611

Email [email protected]

introduction | module outline | planning process | pre-tender planning

BSc (Hons)





BSc (Hons)


Tutor Topic Area

Bee Gan Planning ProcessPre-tender Planning

Progress Recording/Cost optimisation & acceleration

Method Statement

Risk Assessment

Change Management

Mick Blackwell Industrial Relations

Human Resource Management

Keith Roberts Pre-contract Planning

Short-term Planning

Jin Shan WongRisk Analysis & Problem Solving




BSc (Hons)


Assessment Task % weighting of overall module mark

Assessment Requirement

Planning &

Programming

(6 August 2010 16:00)

35% 3000 words, plus supporting

plans and documents

Industrial & HumanRelations

(15 & 22 July 2010)

15% 1500 words, pluspresentation slides

Unseen Examination

(to be confirmed)

50% 3 hours + 15 minutes

reading time




BSc (Hons)


SPECIAL ANNOUCEMENT:

SEMINARS - 10 June 2010

Group A 09:00 - 10:00

Group B 10:00 - 11:00




BSc (Hons)


Planning, the process of

- determining, analysing, devising and organising the resourcesrequired for a construction project.

- programming/sequencing, of those resources using any one ormore of a number of programme types.

The planning process itself involves several stages which can be identifiedas:

Pre-tender planning - Pre-contract planning - Contract planning

Each stages is an important management consideration to the principalcontracting organisation, providing the tender price, outlining the

strategic resourcing for the project and providing detailed sequences forthe site work operations.




BSc (Hons)


Construction projects are:

- complex and interdisciplinary in nature.- they embrace many independent yet interdependent items of work,

many operational tasks and involve the contribution of manyparticipants.

The objectives in project planning include:

- thinking ahead , identify tasks, problems and possible solutions- communication , plans must be communicated to those involved

with the project and include, strategy, methods and timing - allmust be understood

- providing a yardstick , plans provide a basis for monitoring the

project and measuring progress in terms of output, time and money- TIME - COST - QUALITY




BSc (Hons)


Pre-tender

Programme

OverallContract/

Master

Programme

Short

Term

Programme

Monthly

Programme

Work

Stage

Programme

Weekly

Programme

Daily

Work

Operations

Pre-tender

Stage

Pre-contract

Stage

Contract

Stage

Planning stages and types of programme




BSc (Hons)


Matrix showing

possible types of projects and

programme




BSc (Hons)


Programming methods:

- Gantt- Bar Charts- Network Analysis- others

Software Packages:

- Microsoft Excel- Microsoft Project Planning- Micro Planner

- Power Project Team Plan




BSc (Hons)


What is Pre-tender Planning?

From a contractor's perspective:

- The planning considerations during the preparation of an estimate, and;

- Its conversion into a commercial bid.




BSc (Hons)


Reasons for Pre-tender Planning?

- To establish a realistic contract period- To identify the construction methods- To access the methods related items which affect the bid

price- To aid the build up of contract preliminaries and plant

expenditure- To aid the tendering process




BSc (Hons)


Activities that take place during the pre-tender planning include:

• Decision to tender - Company tendering policy- Type and size of work (has it been done before? Was it

profitable?)- Knowledge of client, architect, other professional parties- Location of the project

- Finance availability to fund the project- Availability of resources (labour, plant, materials, including

sub-contractors)- Proportion of contractor’s work with sub-contractors’ work

- Other tenderers- tender period- Terms and conditions applicable to the project

- Market conditions




BSc (Hons)


• Project appreciation- Careful assessment of the tender documents and related information

• Pre-tender meetings- Meetings with planning, estimating and production staff to discuss

issues related to the tender• Site visit and preparation of site visit report

- To assess conditions related to site access, ground conditions,restrictions and security

• Enquiries to sub-contractors and suppliers- Dispatching of enquiries for quotations

• Tender method statement - The method and sequence of construction operations prepared in

connection with the tender• Preparation of the pre-tender programme

- Covers the major stages of work to establish project completion time• Pre-tender health and safety plan

- Address health and safety aspects of project, sufficiently developed to

include with the tender• Preparation of the estimate

- Pricing the works including quotations from sub-contractors andsuppliers




BSc (Hons)





BSc (Hons)


• Assessment of contract preliminaries- Known as project overheads or site-on costs. Requirements need to

be identified and priced accordingly. Typical items would include:- Site staff - Plant not included in the unit rates- Small tools and tackle- Compound and hoardings

- Watching, lighting security, etc.- Temporary services (water, electricity, telephone)- Temporary roads- Scaffolding- Temporary buildings- Removal of rubbish- Special travelling expenses, lodging allowances




BSc (Hons)


• Tender adjudication

- The process of converting the net cost estimate into a tender or bid

for the client

- This is an important decision making process, the result of which will

not only affect the tender price, but will influence the contractual

commitment and ultimately the survival of the business- Possibly takes the form of two tiered meetings

- Estimate review

- Assessment of mark-up (carried out at directorate level and

involves commercial decisions)




BSc (Hons)


Items for considerations at tender adjudication would include:

- The project (job description, type of tender)- The commitment- Parties involved- Project planning- Project or site overheads- Resource requirements- Contract conditions

- Financial issues- Estimate summary- Other tenderers- The market- Mark-up (consider: risk, overheads, profit, discounts)

The best price and the right price will vary and be different for each tenderer




BSc (Hons)


Activity 1

You have been instructed by the managing director of your company toprepare a site visit report for a proposed industrial development scheme in

Kuala Terengganu, Malaysia.

You arrive on site in the late afternoon and have approximately three hours

of daylight in which to conduct your investigations.

Question

Working individually for 10 minutes, prepare a list of items you consider

relevant for the formulation of the report which will be used for tender

assessment, pre-tender planning and pricing the scheme.

From the items identified in a) select three which you feel will have thegreatest impact on construction operations.




BSc (Hons)


SUMMARY

- The planning process is an essential part of any project andinvolves the assimilation and assessment of much informationcombined with decision making

- Stages within the planning process include pre-tender planning,

pre-contract planning and contract planning- The extent of planning at each staged depends on the type, size and

complexity of the project- Pre-tender planning involves several activities from decision to

tender to establishing the net cost estimate- Tender adjudication involves the necessary commercial decisions to

establish the final tender bid to the client

Documents

The Planning Process & Pre-Tender Planning