Building Resource Manual_Project Management Guidelines for Childcare Facilities

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To request this document in an alternative format, contact:

PobalHolbrook HouseHolles StreetDublin 2Tel: 01-2400700Fax: 01-6610411Email: [email protected]: www.pobal.ie

Building Resource ManualProject Management Guidelines for the Construction,

Refurbishment or Extension of Childcare Facilities

Funded by the Irish Government under the National Development Plan 2007-2013

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This manual has been prepared by Pobal, on behalf of the Office of the Minister for Children and Youth Affairs (OMCYA), to support community and voluntary groups through the steps of a community building project. Pobal collaborated in the development of this manual with PM (Project Management) Group and Crean Salley Architects. Pobal would also like to acknowledge the contributions of Alice Griffin (DESSA), Michael Hamill (Healy Kelly Turner & Townsend) and Ann Lane (St. Annes Day Nursery, Cork),

The manual specifically focuses on the requirements for buildings funded by the Governments National Childcare Investment Programme (NCIP) and all guidance provided is relevant at the time of print.

The manual is specially tailored to support voluntary committees embarking on a community building project and aims to provide the tools for effective project management. While each community building project is unique, they all go through the steps of planning, tendering and construction. This manual provides a guide, including templates, to help community groups through each stage of the process.

How to use the resource manualThis Resource Manual is available to be used by all project team members working on community construction projects. It is recommended that each team member reads through this manual at the start of the project and keeps the manual available as a reference point throughout the life of the project.

While many groups will be at different stages of the process when they first read this manual, those groups approved funding should read it in conjunction with the Capital Information Guide for Community Providers. Those groups who wish to apply for capital funding towards the cost of the project should read the Resource Manual in conjunction with NCIP application guidelines available from your local City/County Childcare Committee.

This manual describes the steps covering the key stages of developing a childcare building and highlights the decisions which must be made at each stage. It does not cover design decisions in

great detail. These are already covered in the earlier publication, We like this place, published by Pobal in 2002.

A brief overview of the content in each of the 12 stages is provided below:

Stage 01. Getting started

The initial steps of getting started such as; identifying the local childcare need, setting out clear roles and responsibilities of the Project Committee and producing a draft plan.

Stage 02. Project management plan

Developing the Project Management Plan and agreeing the project schedule and budget.

Stage 03. The site

Site investigation, certifying the proposed site/premises are suitable. This section also contains information on the requirement to have a legal charge/mortgage for NCIP capital funded projects.

Stage 04. Appointment of design team

The importance of appointing a design team, the various professionals which make-up a project team structure.

Stage 05. Contractual arrangements

Information on the public procurement guidelines and the form of government contracts to be applied for NCIP capital funded projects for construction and design consultant contracts.

Stage 06. Working with the architect

Working with the architect to develop the project brief from sketch design to complete design and production of a pre-tender estimate.

Stage 07. Planning permission

The planning process, the various types of planning permission and time-frame involved through this process.

Introduction

Building Resource Manual Project Management Guidelines for the Construction, Refurbishment or Extension of Childcare Facilities

Stage 08. Construction tendering & contract

The tendering process for selecting and appointing the building contractor.

Stage 09. On-site

Start of construction stage through to final sign-off and completion of the childcare facility.

Stage 10. Project risks

Risk analysis, listings all risks associated with the project and rating them appropriately between high, medium and low risk.

Stage 11. Design ideas

Pointers for designing the childcare facility including information on sustainable design and building energy rating.

Stage 12. Review & feedback

Incorporating an effective review system over the life-time of the project along with a final checklist.

Why project management is importantTaking on a major capital project of this nature may be a significant challenge for a community group, but it does provide a great opportunity to create the ideal facility, the right size in the right place and to design for your community.

While many groups may see the benefit of a project like this, they may be daunted by all the different tasks that must be completed. Building a community facility requires a clear understanding and vision of what the end service outcomes will be; this challenges voluntary committees to articulate these needs effectively to ensure the building professionals (architects, contractors etc.) deliver the required facility on time and within budget.

This is best achieved through the effective use of project management techniques. Project management is a structured way of managing a project from start through to completion. All projects go through the same processes. This manual outlines the steps that must be taken and sequences them in a structured manner.

By completing each task before moving on to the next task, you will be able to successfully manage your project and produce a superb resource for your community.

The Project Management modelProject management involves three basic steps.

1. Plan the project.

2. Do the project.

3. Check that the project is adhering to the plan.

As planning the project is the most important step in running the project, this manual concentrates on developing a project plan. If a good project plan is developed it can give the group confidence to implement the plan.

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Building to your design gives you the opportunity to produce the ideal facility.

START

PLAN THEPROJECT

CHECK THEPROJECT

DO THEPROJECT

FINISH THEPROJECT

Stage 01 Getting started 04

Stage 02 Project management plan 11

Stage 03 The site 18

Stage 04 Appointment of design team 22

Stage 05 Contractual arrangements 27

Stage 06 Working with the architect 34

Stage 07 Planning permission 38

Stage 08 Construction tendering & contract 43

Stage 09 On-site 47

Stage 10 Project risks 50

Stage 11 Design ideas 52

Stage 12 Review & feedback 64

Appendices 1 - Useful contacts 67

Appendices 2 - Project plan 72

ISBN No. 978-1-904262-34-3

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Contents


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Stage 1

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Getting Started

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Getting StarteddContents

Identifyingtheneedforchildcare

FormingtheProjectCommittee

TheimportanceandroleofaProjectCommittee

Keypersonnel/professionalsandtheirrole

TheOfficeoftheMinisterforChildrenandYouthAffairs(OMCYA)

Pobal

Meetings&decisionsoftheProjectCommittee

Projectplan

Contentsofsampleprojectplan

UsefulpromptswhenformingtheProjectCommittee

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Getting started

For community groups interested in setting up or expanding a childcare service, there are a series of steps to be taken to bring the project through to reality. Getting started requires some basic groundwork.

This stage gives a guide to where to start, who to contact and how to prepare for the stages ahead. It will give a brief understanding of:

Identifying a need for childcare in the locality;

Forming the Project Committee;

Developing the project plan.

Ideally these steps should be completed in the time between discussing your project idea with your local City/County Childcare Committee and before receipt of the letter of indicative funding from the Office of the Minister for Children and Youth Affairs (OMCYA).

Identifying the need for childcareThe starting point for any childcare project involves identifying the need for childcare in the locality through a combination of knowing the area, market research and reviewing the needs analysis undertaken by the local City/County Childcare Committee (CCC). This work will also help to identify the type of service required, such as full-day care, part-time, sessional, and/or out-of-school services.

At this early stage, it is essential to be clear about the extent of the need for childcare in the area, both at present and in the future. Gathering accurate and real information about the area, will provide clear direction when the building project moves to more advanced stages. It will enable the management committee to ensure the facility built matches clearly with the current and future needs of the community.

As the process evolves, the exact type of childcare service required will need to be expanded upon in significant detail, but clarifying the basic need at the outset will ensure the facility delivers and responds to the need identified. This manual will help in building up the picture, over a number of stages, in order to ensure that when professionals are engaged at later stages in the process, their direction is clearly

grounded in the needs of the community.

At this stage the basic size and type of service needs to be determined.

What age group will be catered for?

Will the service provide full day, part-time or sessional care?

What facilities are needed to accommodate special needs?

Many of these questions are addressed in the NCIP Project Proposal Summary which will have been completed with the assistance of the CCC when applying for funding. If the numbers used in that proposal were not properly researched and verified at that time, it is important to back-track and get these numbers right at this stage.

Having identified the objectives of the project (the provision of childcare places), we can now examine possible ways of providing that service. It may not be necessary to take on a construction project. It may be possible to purchase or lease an existing building. All options for providing the service should be carefully examined.

Having examined all the options a preferred solution can be selected. Details of the preferred solution should be documented as an output specification for the project. This may be something simple like: build a 2,000 sq ft building to provide childcare places for 50 children.

Forming the Project CommitteeA need for a new or extended childcare facility has by now been established. Contact will have been made with the County/City Childcare Committee (CCC). In moving forward, one of the first things to establish is a working committee whose specific role is to manage this new building project. We call this committee the Project Committee. In some instances a childcare management committee may already be in place. However, it is good practice to form a separate core group of people with specific expertise to see the building project through from beginning to end.

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Note for NCIP applicants: The community group is likely to have completed an Expression of Interest form, may also have progressed to the next stage and completed the Project Proposal Framework with the CCC. Indicative approval for capital funding from the Office of the Minister for Children and Youth Affairs may even have been received. The setting up of a Project Committee will assist in satisfying the NCIP requirements that follow, after funding approval and before money can be drawn down.

This stage explores the idea of establishing an effective Project Committee. It will identify:

What a Project Committee is and why it is important;

The role of the Committee;

Key personnel/professionals and their particular roles.

The importance and role of a Project CommitteeEstablishing an effective and efficient Committee is important to the overall success of the project. It ensures that there is a team of people with specific expertise to manage the project, from the early stage of applying for capital funding, right through to the finished development.

The community group should endeavour to source local expertise, either within the existing group or outside it, such as an engineer, architect, builder, accountant, solicitor or childcare worker. Where possible, people with these areas of expertise should be invited onto the Committee to work on a voluntary basis.

Some community groups may already have an established appropriate voluntary committee that is working very well. In this case it may only require reviewing membership, identifying gaps and inviting expertise onto the committee, as required. In reviewing the skills of the group, the team should be very mindful that the construction of a childcare facility requires a very different set of skills than those required to operate the childcare facility.

Key personnel/professionals and their roleThe Committee will be more productive as a small team with defined roles, as opposed to a large team where roles are unclear. This will also assist in the decision making process. A team of five to six is ideal for most projects.

It is also necessary to appoint a person to co-ordinate the committee and lead the team, such as a project manager, chairperson or co-ordinator. This person needs to co-ordinate and oversee the projects development from the beginning to the end. The lead person must also ensure that there is open communications between all members of the team.

Persons with specific expertise should be encouraged or invited onto the Committee. Ideally they will be pro-active and have appropriate experience relevant to the project. While it is preferable that all team members attend all meetings, it is perfectly reasonable that some individuals will only attend meetings pertinent to their role. It should be emphasised that their role is one of guidance/advice until such time as expertise is required on a professional basis.

The following are some examples of possible roles within a Project Committee.

Project manager (Chairperson/ Co-ordinator)The project manager will be required to co-ordinate and oversee the project from beginning to end. This does not require that this individual does all the work, but the project manager needs to co-ordinate the efforts of the other team members.

An effective project manager does not need to be a building expert. S/he sets the agenda for the group and keeps the group progressing to the schedule and the budget.

The project manager may also act as spokesperson for the group and link with relevant external bodies such as Pobal.

It is important to know the type of building required right from the start as this may have a considerable impact on budget and schedule.

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7Architect/engineerAn architect or building specialist will advise on site and construction matters at an early stage until the appointment of the Design Team. S/he may also advise on site suitability and procedures to procure a Design Team.

Childcare advisorAn experienced childcare advisor will bring valuable experience to the project in terms of having a good working knowledge of the needs of the childcare service. S/he may also advise on the drawing up of plans and appropriate layout and provision of rooms.

Financial advisorThis person should be competent with financial matters and will play an essential role in monitoring the budget, maintaining records and advising on financial matters throughout the project.

Legal & insurance advisorA person with legal background or relevant legal experience will advise on the setting up a legal structure for a company, limited or otherwise, and advise on title documents, executing a mortgage charge, site procurement, contract documents and legal requirements.

It may be difficult for the group to get this expertise on a voluntary basis so the group may decide to appoint a solicitor to complete these tasks and provide general legal advice to the group.

Outside the core Project Committee, there are many other individuals and stakeholders who can have a positive or negative impact on the project.

Project sponsorThe project sponsor may not be part of the Project Committee, but is a key person ensuring the success of the project.

The sponsor is someone who has authority to make key decisions on the project; for example, if the development is on church property, the parish priest may be the project sponsor.

Support from key project sponsors is important to the success of the project.

City/County Childcare Committee representativeEach city and county has a City/County Childcare Committee (CCC) dedicated to supporting local childcare services and playing a key role in implementing the NCIP. One of the roles of the CCC is to carry out a needs analysis of the city/county to identify gaps in the provision of childcare service. The CCC is the first point of contact when considering setting up or expanding a service and provides support with:

Accessing information on the NCIP at local level

Facilitating applicants through the stages of the funding process

Expression of Interest forms

Completing Project Proposal Framework

Supporting quality development of childcare services

The CCC is charged with providing an initial assessment of the funding proposals against the criteria of local need, value for money and quality of the proposal.

A City/CCC representative would have useful information (both local and broader) and expertise to bring to any childcare project. For community groups seeking capital funding, in particular, the CCC can act as an advisory link between the committee and Pobal, especially at key stages throughout the project (such as application, finance draw down and reporting stages).

The Office of the Minister for Children and Youth Affairs (OMCYA)The Office of the Minister for Children and Youth Affairs (OMCYA) within the Department of Health and Children has responsibility for government policy relating to childcare, child protection and welfare, juvenile justice and early years education.

The OMCYA is responsible for the National Childcare Investment Programme (NCIP) which involves

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the allocation of grant aid for the development of childcare facilities. With regard to applications for childcare funding, the OMCYA, as part of the Department of Health and Children:

Directs the policy and sets the criteria for funding

Chairs the Programme Appraisal Committee

Makes the final decision on all applications

Communicates funding decisions to the applicant, CCC and Pobal.

PobalPobal manages the day to day operations of the National Childcare Investment Programme (NCIP) on behalf of the Office of the Minister for Children and Youth Affairs (OMCYA), and :

Provides support to and liaises with the City/County Childcare Committees and funded beneficiaries;

Undertakes checks of county portfolios of funding applications for accuracy, consistency and completeness;

Reviews all information and submits recommendations to the OMCYA Programme Appraisal Committee;

Manages the expenditure, implementation and monitoring of grant aid with all approved projects.

Meetings & decisions of the Project CommitteeOne of the first tasks of the committee is to decide how they will operate as a team. This is the first occasion where a skilful project manager is required.

Ideally the group will form a cohesive effective team which is able to make good decisions quickly. The team leader needs to find the right balance between being authoritarian or alternatively having endless debate and no decisions.

The group needs to make decisions on issues, such as:

Who will be the Project manager/Committee chairperson?

How often will they meet?

Who will be responsible for the different aspects of the project?

How will they make decisions?

How will they manage through busy periods or through holiday periods?

Investing time and effort in agreeing these rules of operation will save a lot of angst and disquiet later in the process. It is better that any awkward issues are openly discussed and all issues brought to the fore where they can be dealt with, otherwise issues tend to linger and cause ongoing disruption to the cohesive working of the team.

Project planHaving established the need for the project and created the Project Committee, the first task for the committee is to establish a project plan.

Experience shows that investing time at the start of the process, specifically in developing a good project plan, will have the greatest impact on delivering a successful project to a realistic timetable.

At a minimum, a project plan answers basic questions about the project:

Why? Why is this project being proposed? Is the need for the project clearly defined?

What? - What is the work that will be carried out?

Who? - Who will be involved and what are their responsibilities within the project? How will they be organised?

When? - What is the project timeline and when will particularly meaningful points be complete?

Where? Where will the facility be built? Is the site secured?

How much? - What is the project budget and how will it be managed?

Risks? What are the major risks associated with the project?

Developing the project plan can be a tedious and difficult exercise as it asks many detailed questions of the new committee. As the group agrees on these key


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9decisions, it should record its decisions in the project plan.

As the project evolves and more information becomes available, it may be necessary to update the project plan. For many projects, a good project plan developed at the start of the project will be sufficient to see the project through to completion.

Appendix 2 includes a template for a project plan. When completing the plan, the team should complete it as they see fit so as to personalise the plan to make it relevant to the team and to its project. While the plan should be documented, this can be handwritten if necessary.

Contents of a Sample Project Plan

Section 1 Project Committee

A brief description of the Project Committee including the team members and their roles within the team;

Contact numbers should also be listed.

Section 2 Project description

There are three headings in this section:

Current & future service provision: This is a verification of the information provided in NCIP application, Project Proposal Summary;

Description of the service to be provided;

Description of the proposed new facility.

Section 3 Budget This provides:

A summary of the planned expenditure and sources of funding for the project;

Details of cost control and cash flow projections should also be provided.

Section 4 The site Description of the site, whether or not a site has been identified or secured.

Section 5 Working with the architect

Describe the contractual arrangements that will be established with the various professional services including the method that will be used to procure those services.

Outline the work that the architect will be required to do.

Section 6 Working with the contractor

Describe the contractual arrangements that will be established with the construction contractor including the method that will be used to hire the contractor.

Section 8 Project schedule

Summarise the project schedule by listing the key milestones; for example, commence construction and complete construction.

Section 9 Project risks Identify the critical project risks; give brief description on why they are critical and how they are going to be managed.

Consider risks under each of the sections of this plan, e.g. Project Team, Service provision, Budget, Site, Architect, Contractor and Schedule.

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Useful prompts when forming the Project Committee Is there a clear understanding of the role of the

committee?

Is there a current committee in place? If so, is it working efficiently and effectively and what improvements can be made?

Is there a lead person to represent the team?

Are there available experienced professionals willing to join the Project Committee on a voluntary basis?

Are there any conflict of interest issues that need to be addressed?

Are all proposed members of the committee understanding and committed to their role as team members?

Have the why, what, who, when, where, how much and risks been assessed and clearly been documented.


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It is tempting to get stuck into the project before developing a project plan. Taking time to develop a plan will pay dividends later.

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Project management plan


Completing a good project plan is a very important step in the process of developing a successful project. This section of the manual lists the key areas which should be addressed within the plan. The key point about any plan is that the plan is owned by the entire team.

The process of developing the plan is as important as the plan itself. Take time to develop a good plan, and make it personal to your project. Do not copy a plan from another group. Somebody elses plan, even if it is a good plan, it is still their plan. It is not your plan.

A template for a project plan is included in Appendix 2 of this manual. This section gives a brief guide to completing that plan.

Project CommitteeList the names and roles/responsibilities of each member of the Project Committee.

Successful teams are teams where people have clear roles and responsibilities. The Project manager and other key members of the project team should be identified.

Where possible, there should be a financial, legal, building design and childcare advisor on the Committee. This stage should detail how the group makes decisions.

The project plan should identify who the owner of the complete facility will be and the legal status of that owner.

Project descriptionThe Committee will already have carried out an exercise to determine the need for a childcare service in the area as part of the NCIP project proposal. This exercise would have covered the type and number of childcare places to be provided.

At this point the committee needs to re-confirm these numbers so as to ensure that the project is based on accurate data.

The group also needs to consider other ways of achieving this objective; for example, is there another building available which the group may use?

BudgetProvide a summary of the planned expenditure and sources of funding for the project.

There are more details on budgeting and controlling project costs further on in this section under developing a project budget.

The siteIf the group has a site, provide details about the site; for example, location and dimensions. If a site has not yet been secured, describe how the site will be procured and the requirements for a new site.

There are more details on sites and site selection in Stage 3 of this manual and also in We like this place.

Working with an architectProvide details of the contractual relationships that will be entered into with the architect or any other professional services.

There are more details on procuring an architect and working with the architect in Stages 5 and 6 of this manual.

Working with the contractorProvide details of the contractual relationships that will be entered into with the contractor or any sub-contractors.

There are more details on procuring a contractor and working with the contractor in Stage 8 of this manual.

Project risksProvide a list of the major risks associated with the project, including the probability of their occurrence, level of impact and brief description of how the Committee will deal with each major risk.

There are additional details on project risks in Stage 10 of this manual.

Developing a project scheduleProviding structure

This may be an intimidating exercise as it is often at this point that individuals realise the volume of work

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ahead of them. This fear is unnecessary, as we now have a structured way to approach the task at hand.

Having developed a project description, the next thing is to decide what the team actually needs to do, and how to do it. To do this a list of all the tasks involved will need to be generated.

Having developed the list of tasks, we can then organise them in a structured way and assign responsibility to individuals for the different tasks. This list of tasks is referred to as a Work Breakdown Structure or WBS in project management literature. If any of these tasks are too complex to describe easily, break it down into another level of sub tasks, until a complete list of clear and simple tasks is reached.

Under the terms of the NCIP, the committee needs to sign a contract within a specified timeframe. This timeframe will be specified on the letter of indicative approval from the OMCYA. In order to achieve this time line, the committee is advised to complete as much preparation work as possible before receipt of the letter. This preparation work can be completed without incurring significant costs.

Sequencing of tasks

Having developed the list of tasks we need to order the tasks to produce a project schedule. This is often carried out using software tools like Microsoft Project or Primevera but the process is more important than the software used. For many projects a schedule can be created on a spreadsheet or even on paper.

In sequencing the tasks, there are two things that must be done,

Establish dependencies; for example, work cannot begin on the roof until the walls have been built and given enough time to set.

Estimate work and time required; for example, it may require four months to complete the process of hiring an architect.

A common error at this point is to develop over-optimistic time requirements. It is human nature to ignore difficulties and to assume that the best case scenario will apply, even though we know that it rarely does.

In practice, a little slack should be built in to allow some tolerance against delays. Other similar projects should also be considered. Many individuals will have built their own house and will know how long the process requires from start through to finish.

Establishing controls

As the project moves from the planning phase into the doing phase, progress must be monitored against the plan. This can be done by establishing a series of milestones along the way.

Milestones are key points along the way to completing the project. Using these milestones, the committee can monitor progress and take the appropriate corrective action. For example, if the schedule stated that the Design Team should be in place on May 1st and that date has come and gone and the Design Team is still not in place, the group should review the situation to understand why the project is running behind schedule. The group also needs to understand the implications for the rest of the project and if there is anything it can do to recover the lost time.

Milestone Plan to be completed by

Form Project Committee 01 Jan 2008

Expression of Interest (EOI) Form submitted to CCC

01 March 2008

Project plan agreed 01 April 2008

Project Proposal Framework submitted to CCC

01 May 2008

Receive letter of grant approval from OMCYA

10 Jan 2009

Site secured 01 Mar 2009

Procure Design Team 01 May 2009

Apply for planning permission 01 Aug 2009

Planning permission secured 01 Nov 2009

Building design complete 01 Dec 2009

Issue tender document 01 Dec 2009

Fire Certificate secured 01 Dec 2009

Contractor hired 01 Mar 2010

Commence construction 01 Apr 2010

Practical completion & handover 20 Dec 2010

Fit-out complete 31 Jan 2011 13

An option worth investigating is that sites can sometimes be made available from a local authority as part of a community service. In some cases community groups have successfully secured a free site from their local authority.


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Developing a project budgetThe importance of proper budgeting in the construction and development of a new childcare facility cannot be over-emphasised. Developing a comprehensive and detailed budget is one of the key steps toward ensuring the smooth progression of the project.

In developing a project budget the group needs to consider all the costs associated with the project, not just the construction costs.

A list of typical costs which can be used as a prompt to ensure that all costs are identifioed is listed below.

At the outset of the project, the group will not have solid cost data available for many of the cost headings listed below. In this case realistic estimates can be used. These estimates may be based on known cost per square foot /metre or some other known cost data. As more solid information becomes available, it is important to update the budget.

Having developed a budget at the outset of the project, that budget needs to be managed throughout the life of the project.

There are three major issues to be aware of:

Actual costs varying from the original estimate,

Unforeseen costs,

Late design or brief changes.

Actual costs varying from the original estimate & unforeseen costsIt is critical to continuously update the budget as estimates become actual costs, and to balance the total project costs with the total funds available.

As the tendency is for all parties to underestimate costs, it is advisable to always include a contingency.

Another issue of which to be mindful is runaway design, where the architect and project group repeatedly tweak the design, adding cost throughout the project. An example of this is where the group agrees to a higher quality finish than was originally budgeted for.

Unforeseen CostsNo project is ever designed perfectly; there will always be unforeseen conditions or mistakes that will require a construction change order. The contingency budgets for these unknown additions to the project.

On a straightforward new build a 10% contingency is recommended. On a more complicated project like a refurbishment of an existing building, a 15% contingency is recommended.

If this contingency is not utilised in the construction, the group can use the funds for other useful purposes like furniture or equipment.

Protect the contingency. The temptation may be to surrender the contingency to the first item that comes in over budget. If this happens there will be no contingency for the remainder of the project.

Late design or brief changesLate changes to the brief are all too common on projects. These changes result in increased professional fees, increased construction costs and delays to the project.

Changes to the design or brief should not be accepted unless the implications on the budget have been clearly understood. This may require cutting costs back on other items to achieve the project within the overall budget available to the group.

Typical budget line itemsA: Acquisition

Building/land

Acquisition price of the land or building.

Building inspections

If purchasing an existing building a detailed inspection of the building will be required.

Legal costs

The cost of conveyance.

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JF

MA

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SO

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MJ

JA

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J

Form

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Rec

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sec

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Team

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Com

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Pre

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Fire

Cer

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secu

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Con

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Pra

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B: Professional fees

Project management, architecture and engineering

This cost covers the design of the building, preparation of construction documents and overseeing the construction. For budgeting purposes, approximately 15% of the total project costs should be allocated for professional fees.

Site surveys

Site surveys may be required to examine the foundation and soil conditions of the site. This helps determine if the site can support the design and construction of the project. Fees for such services depend on the nature of the survey required.

C: Construction

Renovation costs

Cost for renovating an existing building.

New construction costs

Cost for new construction of a building.

D: Project financing fees and costs

Legal fees

These may include conveyancing costs, establishing a legal entity, review of contracts, review of loan documents, etc.

Loan interest

If it is necessary to take out a bridging loan, interest may be incurred on this loan. It should be noted that loan interest is not an eligible expenditure under NCIP. Groups are recommended to consider their ability to repay loans over the short/long term.

Stamp duty

Stamp duty may become due and payable during the course of the construction project.

Commercial property rates

Commercial rates are a property-based source of income that is levied by local councils on the occupiers of commercial and industrial properties. This includes shops, factories, offices and land.

Insurance

The site must be insured during the course of construction. This responsibility can be passed over to the main contractor or the Committee can carry the cost itself. If the contractor is responsible for providing the insurance, verification should be sought that this insurance is in place before construction commences.

E: Furnishings and equipment

Programme equipment

Administrative and office equipment needed for operations. The needs and an estimate of costs should be determined.

Data & communication equipment

The costs of phone and computer cabling and equipment, if these costs are not part of the construction budget.

Security equipment

The costs of equipment and cabling for a security system for the facility.

Other furnishings

Other necessary furnishings for operations in the facility.

Outdoor Play Area

The costs of outdoor play area and landscaping if these costs are not part of the construction budget.

F: Project contingency

This is set-aside for cost overruns. On a straightforward new build, a 10% contingency is recommended. On a more complicated project like a refurbishment of an existing building, a 15% contingency is recommended.

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Sample Typical project budget

Total project budget Notes Total cost

A. Acquisition

Building/land Purchase Price 237,000Building Inspections Estimate 3,000Legal costs Estimate 7,000B. Professional fees

Professional fees % of construction costs 80,000Site surveys Estimate 10,000C. Construction

Renovation costs Per square foot

New construction costs Per square foot 400,000D. Project financing fees and costs

Legal fees Estimate 25,000Loan interest Estimate 3,000E. Furnishings and equipment

Program equipment Estimate 40,000Data & communication equipment Estimate 25,000Security equipment Estimate 15,000Other furnishings Estimate 25,000Outdoor play Area Estimate 15,000Stamp duty Based on purchase price

Commercial property rates Published rates

Insurance Brokers advice

F. Contingency 10% of project cost 100,000

G. Miscellaneous 20,000Planning permission

Fire Certificate

Capital contributions

Utilities connection costs

Site security

Start up costs

Other

Total Development Cost 1,000,000

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Design

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Arrangements

ArchitectPermission

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Plan

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The site

Contents

Introduction

Brownfieldsite

GreenfieldSite

Protectedstructures

Archaeologicalsites

Sitepurchase/lease

Legalcharge/mortgage

Recommendation

Prompts

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IntroductionOnce the basic style and scale of the service are clear it is now a case of looking for a premises or site.

The suitability of the site is crucial to the success of the project and it is advisable to engage professional help if in any doubt as to the suitability of a potential site/premises.

This stage examines:

Some of the typical sites that may be considered;

Site purchase or lease options.

Remember that all sites are different and each requires individual consideration. It is vital that when assessing sites, the team considers any potential pitfalls that may result in additional building costs, such as poor ground and drainage, site gradient, difficult access, no adjacent services such as electricity, gas, sewage, drainage, etc. The committee, or committee member who is responsible for this element of the project, should consult with an engineer or architect on the sites suitability from the outset.

Community groups are advised to consult the local authoritys Development Plan for the area to check the category of zoning for any site considered.

Sites, or land, can be zoned by a local authority for residential, industrial, agricultural or community use only. This may impact upon the possibility of securing planning permission for a childcare facility on a particular site.

If there is any suspicion of unusual or risky ground conditions, it is essential to investigate the risk before committing to the site. It may be necessary to have site investigations undertaken at an early stage (including soil analysis and examination of ground conditions) by a civil/structural/geo-technical engineer if so advised by the Design Team (see Stage 4).

Note for NCIP applicants: If the building is being grant aided by NCIP, specific requirements are set out in the funding contract relating to ownership of the property/site.

Brownfield siteA Brownfield site is defined as a site that has previously been developed and may have potential for redevelopment. It may involve reusing an existing building by converting, renovating or extending it, or demolishing it and building a new one.

When considering redevelopment, it is advisable that professional advice be obtained to confirm if the proposed development is permissible and to ascertain the level of work and costs involved.

There is no particular benefit in developing a Brownfield versus a Greenfield site. It all depends on the suitability of the existing building whether or not it is worth developing. In some cases, it may cost less to develop a new building. It is essential to secure professional advice from an architect, engineer or quantity surveyor to assess any benefits either way. Legal advice should be obtained before making any final decisions.

Greenfield SiteA Greenfield site is defined as undeveloped land. Again, the committee is advised to obtain professional advice and to consult with the local authority on the suitability of the site and the possibility of obtaining planning permission.

Protected structuresSometimes buildings are protected for historical reasons or for reasons of architectural merit. These are listed in the City or County Development Plan for the area, which can be viewed at the planning office of the local authority.

Care should be taken regarding such structures and professional advice obtained to ascertain the planning authoritys requirements if it is proposed to alter or extend such structures. In all cases requiring change to a protected structure, the permission of the local planning authority is required.

In many cases specialist professional advice may be required from conservation architects. Most local authorities have in-house conservation architects that can provide this advice.

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Archaeological sitesShould a site be zoned as being of archaeological interest, it will be necessary to carry out site investigations before carrying out any work.

This can be expensive and time consuming, as under legislation the client/owner may be responsible for funding any excavation and investigation required. Professional advice from an archaeologist is essential and should be sought at an early stage.

Site purchase/leaseA site may be purchased outright or leased.

Community childcare services are always encouraged to secure the maximum lease possible in order to safeguard the interests of the childcare service and ensure its longevity.

Note for NCIP applicants: If leasing premises, a long-term lease will normally be required as part of the funding contract, depending on the amount of funding approved.1

Legal charge/mortgageUnder the NCIP, projects approved for 200,000 or more in capital funding are subject to the creation of a legal charge (a lien or mortgage) over the property in favour of the Office of the Minister for Children and Youth Affairs. The threshold of 200,000 relates to the purchase, building or refurbishment of a property, not including the costs for fixtures and fittings. The purpose of this is to ensure that the monies are used for the purposes granted and that where this does not occur, there will be an obligation to repay the grant monies.

It is important that the group has the authority to provide this lien. If the site is leased or the group is granted use of the site by another organisation, for example, a church body or sporting organisation, the lien will need to be authorised by the owner of the property.

1These requirements are set out in detail in the NCIP Application Process Toolkit held by each CCC

RecommendationThe lease or purchase of a site is very important and before it takes place, legal and other specialist Design Team advice is essential. It is advisable to secure planning permission prior to purchasing a site, i.e. purchase the site subject to securing planning permission.

It is also advisable that a written report from legal advisors, architects and engineers as to the suitability of any site for the proposed project is obtained. This will allow the assessment of any additional works and hitherto unforeseen costs to be included in the overall budget cost prepared by a quantity surveyor.

PromptsThe following is a list of possible questions that should be asked in assessing the suitability of any site. These questions are particularly relevant in cases where the community group does not already have a site, but should also be used to examine the suitability of a site that is already leased/owned or that the group has in mind. The most appropriate person(s) responsible for each question is suggested in brackets, where relevant.

Have we already got a site?

Do we need to find a site?

Is the geographical location of the site suitable?

Is the site zoned for the proposed use under the local authoritys Development Plan for the area?

Will planning permission be easily obtained? (architect)

Can the site be purchased subject to planning permission?

Are there likely to be objections to the proposed development?

If purchasing the site, is the cost coming from within the project budget?

Can the site be purchased from the local authority at a reasonable cost?

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Do we have sufficient professional advice to purchase/lease the site?

Has legal advice been sought?

Is the site serviced with essential services, such as drainage, electricity, water, sewage, telephone lines etc., and suitable for development? If not, what are the costs required to service the site? (architect)

Are the costs of site development included in the budget?

Is the site suitable to take the foundations of a new building with reasonable costs? (engineer)

Will additional works be required to secure the foundations? If so, what will the costs be? (engineer and quantity surveyor)

Is the site level to allow easy access? (architect)

Is the orientation of the site suitable? (For example, what is the orientation of the site for maximising the passive solar gain for the new build?) (architect)

Will the site require additional costs to develop before work on the building begins? (architect)

Is legal title clear to lease or purchase?

Are there any easements on the site, i.e. do other persons have a right to access or utilise the site?

Is the site subject to planning restrictions; for example, historic interest, area of conservation, archaeological interest?

For projects approved 200,000 or more in capital funding, will there be difficulty creating a legal charge (a lien or mortgage) over the property in favour of the OMCYA?

Has the engineer carried out site suitability tests and approved the site?

If leasing the site, do the terms of the lease allow the group to meet the NCIP contractual conditions on the length of operation of service? 2

All of the above questions should be addressed at the earliest possible time.

2 These conditions are set out in the Capital Information Guide for Community Providers available on www.pobal.ie.

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Stage 1

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Appointment of design team

Contents

Introduction

WhyappointaDesignTeam?

DesignTeammembers

ProjectTeamstructures

IntegratingtheDesignTeamandthecontractorintoaProjectTeam

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IntroductionBy this stage of the process, the Project Committee is in place and a project plan has been agreed. The next important step is the appointment of the Design Team. Before proceeding through the process of tendering for and selecting a Design Team, it is important to be familiar with the various types of professionals with whom the Committee may be in contact with throughout the development and implementation of the project including the different forms of contract that are available to be used.

In this stage we will look at:

The different design professions that may be required;

Different project team structures (between the architect, engineers, contractors, sub-contractors);

Form of contract for the appointment of design professionals and contractors.

We will also look at the process to appoint a Design Team.

Why appoint a Design Team?Designing and building a new childcare facility is a complex issue requiring the input of many different specialists. An architect can design the building, but a structural engineer may also be required to verify that the foundations will support the building. A quantity surveyor may be required to manage the costs of the project. Other specialists may also be required, depending on the nature of the project and the site.

As the Design Team costs will normally account for between 10% and 15% of the complete project cost, this is a significant component of the total project cost. However securing a good Design Team should produce a superior building which will be more efficient to operate and maintain.

A well-conceived project can be built more efficiently and economically. The Design Team can help the group through the various regulatory steps and produce a superior design. This can include issues like energy efficiency and effective use of natural daylight. By specifying the correct quality finish, the architect

can ensure that the project remains within budget.

A good Design Team will guide the project through each phase such as agreeing concept designs, securing planning permission, costing the project, appointing the building contractor and supervising the construction through to completion.

Design Team membersDifferent projects will require different Design Teams based on the complexity of the project. While a range of these specialities may be required, one organisation may be able to provide one or more of the required services.

The following are suggested members of a Design Team:

Health and SafetyThe Project Committee will be considered as a client under the Health and Welfare at Work (Construction) Regulations 2006. The first duty of the client will be to appoint (in writing and before design works starts) a Project Supervisor for the Design Process (PSDP)3.

It is a legal requirement to make this appointment.

The role of the PSDP is to ensure that the design is safe to build and safe to operate. As this is a design safety role, it is preferable that the lead designer fulfils this role. Even though many architects may not wish to be the PSDP, this should be included in the scope of services for the architect.

The client will also appoint a Project Supervisor for the Construction Stage (PSCS). The role of the PSCS is to ensure that the designs are safely constructed. The main contractor is the ideal person to fulfil this role.

ArchitectThe architects skills include concept design, detailed design, contract administration and project management. The architect is trained to deal with all aspects of building and advising on the need for other expertise when required.

The architect has the expertise to act as the lead designer co-ordinating the different design professionals. S/he also manages the contractor on

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site and, in addition, acts as the main contact point between the committee and the other designers and contractors.

Quantity SurveyorThe quantity surveyor is a professional trained to provide financial advice to the client and architect from early on in the project. The quantity surveyor will co-ordinate all costs from the start (including site purchase, building construction, professional fees and local authority charges) and present the client from the outset with a financial package or framework within which to work. The quantity surveyor will, at various stages of the project, produce budget updates to help control spending and complete the project within the approved budget.

Structural/Civil EngineerThe structural/civil engineer will work with the architect and Design Team from early in the project. S/he will advise on the suitability of the site (and existing building, where appropriate) and site services, including water and drainage. The engineer will also deal with structural elements such as foundations, columns, beams, etc. and will assist the architect by designing a cost effective structure. The engineer will carry out a site inspection and attend site meetings during the construction works, ensuring the design is being carried out by the contractor to the required standards.

Mechanical/Electrical EngineersThe mechanical and electrical engineers will also work with the architect and Design Team from early on and will advise on the environmental requirements of the building, such as heating, ventilation, internal drainage, lighting, electrical services, insulation and energy conservation. The mechanical and electrical engineers will also liaise with service providers, such as the ESB, Bord Gis, telecommunications providers and the local authority.

Other consultantsThe above listed consultants form the nucleus of the appointed Design Team. From time to time, however, other specialist advisors may be required depending on the project and its specific requirements. The lead designers role would be to advise the committee should such appointments be required. Other specialists possibly required could include the following:

Planning consultant;

Landscape architect/designer;

Interior architect/designer;

Conservation architect;

Archaeologist;

Fire consultant;

Asbestos specialist;

Timber specialist;

Damp and dry rot specialist;

Acoustics specialist.

The above list is not exhaustive but indicates a range of other possible specialists which in seldom cases may be required.

Project Team structuresProjects are usually carried out by teams including;

The client represented by the committee and led by the project manager (often committee chairperson).

Design Team (consultants), usually led by an architect, but also containing civil/structural mechanical & electrical engineers, quantity surveyors, Health & Safety and specialist consultants.

Contractors and sub-contractors.

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Design Team structureThe Design Team contains different specialities which can be procured in two different arrangements.

a. Lead designer with separate contracts for the different specialities

Under this arrangement the lead designer, usually the architect, is appointed as the lead designer and is required to co-ordinate the services of the other designers. These services are recruited separately by the client and are contracted directly by the client.

Many architects and engineering services firms are familiar with this arrangement.

With this arrangement the client needs to establish separate contracts with each service provider. This may involve tendering and reviewing quotes for each service, which may be a difficult administrative task for the client.

The client does have control over each speciality but needs to remain close to the project to ensure that each team member is co-operating properly with each of the other team members.

In the event of a dispute, the client may find it difficult to identify the source of the problem as each consultant may attempt to pass the blame onto another organisation.

This arrangement is suitable for large multi-million euro projects but may be too cumbersome for projects funded under NCIP.

b. Single appointment of lead designer for provision of all the services

This organisational arrangement is becoming more popular, especially for smaller publicly funded projects (less then 2.0m). Under this arrangement the lead designer provides all of the required services. The lead designer may have this capability in-house or may need to subcontract some of the services to appropriate specialists.

As the client has only one contract, it is easier to establish this Design Team. It is the lead designers responsibility to ensure that the different team members cooperate. In the event of a defect or a dispute, the client is in a strong position as there is only one contractual relationship.

It is anticipated that most NCIP applicants will pursue this structure.

Integrating the Design Team and the contractor into a Project TeamThere are many different project team structures which can be pursued of which the most common are:

Traditional;

Design and build.

Each method has its own merits.

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CLIENT

MECHANICAL& ELECTRICAL

ENGINEER

CIVIL/ STRUCTURAL

ENGINEER

QUANTITYSURVEYOR

HEALTH &SAFETY

OTHER CONSULTANTS

LEAD DESIGNER/ARCHITECT

CLIENT

MECHANICAL& ELECTRICAL

ENGINEER

CIVIL/ STRUCTURAL

ENGINEER

QUANTITYSURVEYOR

HEALTH &SAFETY

OTHER CONSULTANTS

LEAD DESIGNER/ARCHITECT


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TraditionalTraditional structure is the most common organisational structure used in Ireland.

The traditional form of contracting is where the client appoints a Design Team to produce the design, and subsequently appoints a main contractor to construct the building in accordance with the design.

Traditional Organisational Structure

The contractor is usually appointed after the design is completed having been selected through a tender process. The price from the contractor is based on a Bill of Quantities4 which describes the works.

While there is no contractual relationship between the lead designer and the main contractor, the lead designer will typically oversee the construction to ensure that the building is completed as per the designs.

Most projects should use this approach unless the committee has a compelling reason to pursue an alternative arrangement.

Design & buildUnder this arrangement the client appoints the contractor to provide the completed building to the agreed cost and schedule. Instead of working to a Bill of Quantities and a completed design, the contract documents would typically include an output specification setting out the functional requirements that the facility should accommodate together with the expected functional life, maintenance requirements, etc.

The contractor assumes responsibility for completing the design and the construction of the facility. This arrangement has advantages as it requires only one contract and passes many of the risks over to the contractor.

As the contractor is now responsible for design, the client has less influence over the design. This has advantages as it removes a large burden from the client however it also removes a lot of control. As the contractor is responsible for design decisionss/he will ensure that the design is the most economic solution that can be found, even if this is not entirely to the clients satisfaction.

The client needs to very carefully specify the requirements for the building and should appoint an architect to complete this task. An example of the type of difficulties that can occur is where the client specifies wooden floors and the contractor supplies a chip-board floor. Technically this is in compliance with the specification, but is very different from what the client anticipated.

This solution works well on civil projects like roads, but is not ideal for a childcare building project.3 Appointment is made by sending an AF1 form to the Health & Safety Authority. Further details are available at www.hsa.ie

4 A Bill of Quantities (BOQ) is an itemised list of materials, parts, and labour (with their costs) required to construct the building. It is usually prepared by a quantity surveyor and used by contractors to develop a price to construction the building

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CLIENT

DESIGN TEAM LED BY

DESIGNER

CONSTRUCTION TEAM LED BY

MAIN CONTRACTOR

NOMINATEDSUB-CONTRACTORS

(SPECIALIST)

DOMESTICSUB-CONTRACTORS

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Contents

Publicprocurementguidelines

DoestheGovernmentCapitalWorksManagementFrameworkapply?

Contractforconstructionservices

Publicworkscontracts

Processfortheappointmentofdesignconsultants

Evaluationcriteriatoselectaleaddesigner


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Contractual arrangements


Public procurement guidelinesPublic procurement ranges from the purchase of routine supplies or services to formal tendering and placing contracts for large infrastructural projects. To cover this range, there are different procedures depending on what is being purchased, with simple procedures for simple purchases and more complex procedures for more complex projects.

The key point about public procurement is that the process should be open and fair. For projects of value less than 50,000, there is very little difference between public procurement guidelines and what normally happens in the private sector. For example, if a private service provider wanted to get a builder to do a garage conversion or an architect to design the conversion, they would get three quotes, choose the winner and enter a contract with the winner.

Groups funded under NCIP should adhere to the following public procurement procedures for capital grants:

for goods/services with a value less than 5,000 (excluding VAT) one written quote is required;

for goods/services with a value between 5,000 and 10,000 (excluding VAT) three written quotes are required;

for goods/services with a value between 10,000 and 50,000 (excluding VAT) three written quotes or tender process is required;

for goods/services greater that 50,000 (excluding VAT) must be advertised and the contract awarded after a tender process.

Standard Conditions for Engagement of Construction Consultants and Public Works Contracts for Construction Projects

The Irish Government has introduced a new Government Capital Works Management Framework to be used on construction projects as a sub-set of the broader public procurement procedures. The framework consists of two parts:

(i) Standard Conditions for Engagement of Construction Consultants

(ii) Public Works Contracts for Construction Projects

These requirements were introduced by Government to assist publicly funded capital projects avoid cost over-runs (i.e. the increase in project cost between the tender price accepted and the final completion cost) of building contracts, and also to assist with implementation of standardised conditions for the employment of construction consultants.

The procurement process is fundamentally the same, whether purchasing goods or construction services or construction itself. The only thing that is different is that a different contract is used.

Which form of contract should be usedA project that is more than 50% publicly funded, when entering into a contract, must use a Public Works Contract, the types of contracts to be used are the following:

Purchase of goods - e.g., furniture. Any purchase contract

Construction services - e.g., to hire an architect. The government contract - standard conditions of engagement for construction related services should be used;

Construction works - Public works contract should be used.

One important point on public works contracts is that they are fixed price contracts. In order for the contractor or architect to give a fixed price for the job, the client has to provide a fixed specification for the job. It is therefore important that the client be sure of what is required from the architect, and also that architect complete the design before the appointment of the contractor.

Does the Government Capital Works Management Framework apply?If a construction project is subsidised by 50% or more with public funding, then groups must comply with the Government Capital Works Management Framework. This means that all public works contracts and standard conditions for engagement of consultants must be used. If the construction project is funded, but public funds are contributing less

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than 50% of the total cost, the Government Capital Works Management Framework does not apply to the project, however, funded groups must comply with normal public procurement procedures.

In determining whether or not Government Capital Works Management Framework applies, the group must consider the project as a whole.

On this basis, most community based groups will be subject to the Government Capital Works Management Framework as they typically receive over 50% funding.

Contract for construction servicesA contract titled, Standard conditions for the engagement for construction consultants has been developed and must be used to appoint consultants who work on construction projects which are over 50% publicly funded.

Under this contract, all professional services, including architects, civil engineers, etc., are referred to as consultants.

If multiple consultants or designers are to be appointed to work on the project, each consultant must be appointed using this contract. Alternatively a lead designer can be hired to a supply all the services. That lead designer can sub-contract the various specialities to sub-consultants. In this way, the client has only one contract to manage.

Public works contractsAs part of the Government Capital Works Management Framework, a suite of six public works contracts has been developed for the appointment of construction contractors on publicly funded construction projects.

A contract titled Minor civil engineering and building works designed by employer is to be used on building projects with a total value less than 5,000,000 (including V.A.T.) and greater than 500,000.A contract titled Short public works contract must be used on building projects with a total value less than 500,000 (including V.A.T.).

All of these contracts are available to download from www.constructionprocurement.gov.ie

For more information on public procurement, please refer to Pobals Guideline for Public Procurement available at www.pobal.ie

Further information is also available at www.etenders.gov.ie

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Public procurement: step by step flowchart

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Value of Contract

Obtain written quotes from

competitive suppliers

Select lowest price /most suitable

Send brief specifications to a number of suppliers(at least three) seekingwritten quotes/tenders

Evaluate offers objectively against

specified requirements

Select most suitable offer

Notify/debriefunsuccessful bidders

Draw up tender documentation

Set basis for award (lowest price / MEAT)

For MEAT setaward criteria

(weighted)

Advertise on etenders,appropriate media or

invite suitable tenderers(at least five)

If price is base for award, select lowest

compliant bidIf MEAT, evaluate tenders using weighted

scoring sheet based on award criteria(including prices)

Invite most competitive to present

on / elaborate on bids if necessary

Select most suitable offer

Award contract based on successful tender

Debrief unsuccessful tenderers

Notify unsuccessfultenderers

Less Then5,000

5K - 50K 5oK - EUThreshold

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Process for the appointment of design consultantsThe following is a step by step guide through the process of appointing design consultants in accordance with Government Capital Works Management Framework.

Step 1: Ensure that the project definition is sufficiently clear.

Step 2: Establish whether Government Capital Works Management Framework applies.

Step 3: Decide on the appropriate structure for the Design Team and the contractor.

Step 4: Decide on the appropriate procurement procedure.

Step 5: Write scope of services.

Step 6: Complete a request for tender and advertise for tenders.

Step 7: Evaluate the returned tenders.

Step 8: Interview tenderers if necessary.

Step 9: Analyse tender bids and select winning bid.

Step 10: Issue letter of Intent to the successful tenderer and letter informing unsuccessful tenderers of their position.

Step 11: Prepare and sign contract documents.

Step 1: Ensure that the project definition is sufficiently clear

This project definition has been dealt with as part of the project plan and should be fixed at this stage. Any changes to the project definition after this stage are likely to increase the cost. It is most important to get the project definition right as many projects fail due to errors at this stage.

Step 2: Establish whether the Government Capital Works Management Framework applies

If the project is in receipt of over 50% funding then the Government Capital Works Management Framework applies.

As most community groups receive funding in excess of 50% of the total cost of the project, it is assumed that the Government Capital Works Management Framework applies.

Step 3: Decide on the appropriate structure for the Design Team and the contractor

Will the project be constructed using the traditional approach (Design Team to produce the design, and a main contractor to construct the building) or will it be Design & Build (contractor to provide the completed building to the agreed cost and schedule)?

Further steps assume a traditional approach; that is a Design Team will produce the design, and a main contractor will construct the building.

The committee must now appoint a Design Team. This can be done on the basis of

a. Lead designer with separate contracts for the different specialities

b. Single appointment of lead designer for provision of all the services

The merits of both options are covered under Project Team structure section in Stage 4 of the manual.

The same procedures must be utilised whether a single appointment or multiple appointments are to be made. The major difference is that if multiple appointments are to be made, separate competitions must be run for each contract.

Further steps assume single appointment of lead designer for provision of all the services.

Step 4: Decide on the appropriate procurement procedure

If the anticipated value of the contract is less than 50,000, the group may prepare a specification for the work and get three quotes to do the work. The group may then choose the most suitable offer from those three quotes.

If the anticipated value of the contract is greater than 50,000, the project must be advertised and a tender competition must be held.

There are two possible ways to run the tender competition.

a) Open procedure

In the open procedure, the contract is advertised, either on e-tenders (www.etenders.gov.ie) or other appropriate media. The notice invites tenders and anyone may apply to be awarded the contract. The 31


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time limit for receipt of tenders by the client can be no less than 52 days (normally 60 days) from the date of despatch of the notice.

During this period there is an opportunity for applicants to raise questions which the client may answer. These questions are typically clarifications of the brief.

In evaluating the tender the client may reject any tender it deems unacceptable. Only tenders which meet the minimum requirement are evaluated.

b) Restricted procedure

The restricted procedure is a two-stage process and allows a short listing of candidates before releasing the tender documentation. In the first stage, a notice is published which states that a contract is to be awarded and invites applications to be placed on a shortlist. The closing date for applications must not be less than 37 days (normally 42 days) from the date of despatch of the notice.

This stage allows a shortlisting process to take place. The client, in deciding whether a candidate gets on a shortlist or not, may look at each candidates technical ability to provide the service as well as the candidates financial standing to complete the contract.

The client must set out the evaluation criteria in the published notice. If a potential candidate feels it could not meet the standards required, it need not apply to be placed on the list.

Those who have been shortlisted are invited to tender for the contract. The second stage is the submission of tenders. The client issues the tender documentation which must be returned to the client within a minimum of 40 days.

Further steps assume that an open procedure will be applied. This can include a minimum standards requirement.

Step 5: Write scope of services

The scope of services specifies the work that the winning designer will carry out. Great care is required in developing the Scope of Services as any work that is not included will be considered an extra. On the other hand, if every possible task is included the

client will be paying for services which may not be required.

Step 6: Complete a request for tender and advertise for tenders

Complete tender documentation needs to be prepared and advertised on e-tenders. A sample tender document is available from Pobal which can be edited to suit the groups requirements. This sample tender document includes a comprehensive scope of services which can be modified as required.

Step 7: Evaluate the returned tenders

The returned tenders must be evaluated in accordance with the evaluation criteria chosen.

Step 8: Interview tenderers if necessary

There is no obligation to interview any or all of the tenderers. Interviews should be considered optional and purely to clarify issues within the tender documents.

Step 9: Analyse tender bids and select winning bid

A tender bid analysis report should be prepared and the winning bid selected.

Step 10: Issue letter of intent to the successful tenderer and letter informing unsuccessful tenderers of their position.

Care should be taken with all correspondence with tenderers to protect the committee from any claims.

After the clarification process has finished, the decision to award should be communicated by letter. The form of letter is available in a set of model forms which can be downloaded from www.constructionprocurement.gov.ie. This model letter can be edited to suit the requirements of each project.

These letters have been drafted by solicitors as there is a possibility of accidentally creating a contract if these letters are not correctly scripted.

This letter to the winner states that it is the intention of the client to enter into a contract with the consultant, but that there will be no contract until the contract is signed. This gives the winner time to get the appropriate documentation in place, for example, a tax clearance certificate.32

Documents

Building Resource Manual_Project Management Guidelines for Childcare Facilities