Cost and Time Methodology and Principles
Based upon; Whole project cost and Whole project timeThe technique used was to build a solid and stable pyramid using the foundations of scope programme and contract to establish a comprehensive cost plan to which an appropriate risk assessment was applied.
1. All sound analysis is based upon a thorough understanding and development of a comprehensive Scope of works.
2. The Programme has been developed in conjunction with consultants and contractor with the input of specialists who have verified and confirmed the contract completion date and through to opening.
3. The Contract and Agreements have been re baselined and amended to reflect a more appropriate transfer of risk achieved through the ‘Box in a Box’ strategy securing greater contractual cost certainty. This has the effect of securing the agreements achieved in the Scope and Programme sections.
4. With these agreements secured the Cost allowance has now been constructed with a significant level of confidence due to the certainty achieved by the proceeding steps.
5. The process is completed by the application of the appropriate level of Risk pertaining to a project of this nature at this time.
THE FOUNDATION PILLARS
COST
RISK
SCOPE
PROGRAMME
CONTRACTS & AGREEMENTS
Week -519th -23rdth Oct
Week -4
Week -3
Week -2
Week -1
26th -30th Oct
2nd -6th Nov
9th -13th Nov
16th -20th Nov
CONFIDENCE
Green
Current Confidence
Strategy for transfer of risk gaining cost certainty
BCCDeliver design forStructural elementsWarranted by ARUP
D&B style set up for fit out – Risk transferred to WD
WHOLE PROJECT SCOPE• Scope is the foundation of the pyramid
• Fully Incorporates the BMT Facility Requirements document
• Fully Incorporates BCC direct requirements
• Verified with the specialist related performance criteria of the building
• Discovery phase scope largely complete
• Utilised ‘Kill Sessions’ to control and deliver immediate design demands
• Implemented the Design Responsibility Matrix (DRM)
• Whole project scope is captured in whole project programme and whole project cost plan
• Interrogated the WD price for comprehensive inclusion
• MEP scope now crystallised as a result of workshops
BUILDING THE PYRAMIDSCOPE
COST
RISK
PROGRAMME
CONTRACTS & AGREEMENTS
Week -519th -23rdth Oct
Week -4
Week -3
Week -2
Week -1
26th -30th Oct
2nd -6th Nov
9th -13th Nov
16th -20th Nov
CONFIDENCE
SCOPE
Box One(Traditional)
3 DecApr 23 Oct 23
Tactical Decision
Works Ongoing
Cabinet Approval
Sep 21
Watertight
Commissioning
Box Two(D&B)
Curtain Up
Curtain Up
Watertight
WD Fit Out
Steelwork Frame & Envelope
Rectification of all discovery items
Jan 21 Jan 22
BMT Soft Opening
Programme & Time – JB/SW
WD PC Date
Whole Project ProgrammeUnderpinned by:• Based on defined Whole Project Scope and ‘box in a box’ risk
transfer
• Created ,designed , analysed, tested by qualified technical specialists
• We have control of the Whole Project Programme• Fact based, formed by experts• Aligned to the Whole Project Cost Plan
• Based on defined Whole Project Programme• Won back time/contingency • Headroom Apr-Sept (Completion to opening) • Clear design responsibilities – Design Responsibility Matrix
• Appropriate client capacity • Reinvigorated governance, process ,controls• Clear direction and leadership • Clear appointments• Risk Register
BUILDING THE PYRAMIDPROGRAMME
COST
RISK
CONTRACTS & AGREEMENTS
Week -519th -23rdth Oct
Week -4
Week -3
Week -2
Week -1
26th -30th Oct
2nd -6th Nov
9th -13th Nov
16th -20th Nov
CONFIDENCE
SCOPE
PROGRAMME
Contracts
WD Contract
• Returning to the fundamentals of NEC Contract Option A• ‘Box in a Box’ risk transfer for contractor• Deed Of Variation (DOV)• Defined and increased responsibilities • Responsibility for the internal fit out • Contractor is clear as to their defined responsibilities • Scope, cost ,design, programme and responsibilities are now
aligned
Clarity of responsibility between the parties
AppointmentsProfessional Services -Recalibration of agreements to TA role for ‘Internal Box’-Amended duties
Envelope Box-Existing traditional appointments-End of discovery times
Internal Box -Transferred responsibility -Reduced TA role-Clear defining of the scope of services and timetable required
Consultant Appointments-Responsibility for the internal fit out - Scope, cost ,design, programme and responsibilities are now
aligned- MEP design has been transferred - Built client side resource- Increased design manager resource - Council-Client side Project Management Office (PMO)
BUILDING THE PYRAMIDCONTRACTS & AGREEMENTS
COST
RISK
SCOPE
PROGRAMME
Week -519th -23rdth Oct
Week -4
Week -3
Week -2
Week -1
26th -30th Oct
2nd -6th Nov
9th -13th Nov
16th -20th Nov
CONFIDENCE
SCOPE
PROGRAMME
CONTRACTS & AGREEMENTS
PRINCIPLES OF COSTING
The solid base allows
• A Cost Plan built from first principles.• For the Whole Project and reflects clearly the full
agreed programme, scope and risk allocation• Contract Sum agreed with Willmott Dixon • Based upon fixed programme extending to
‘curtain up’ in October 2023• Based upon fully integrated appointments and client
side costs• This Whole Project Cost Plan has significant level of
cover in terms of Risk and Contingency allowances and also identifies opportunities
BUILDING THE PYRAMIDRISK
COST
SCOPE
PROGRAMME
CONTRACTS & AGREEMENTS
Week -519th -23rdth Oct
Week -4
Week -3
Week -2
Week -1
26th -30th Oct
2nd -6th Nov
9th -13th Nov
16th -20th Nov
CONFIDENCE
Green
Current Confidence
SCOPE
PROGRAMME
CONTRACTS & AGREEMENTS
COST
RISK
Bristol Beacon –‘PROJECT MOTHBALL’
Option 2 – Stop (Project Abandonment) Option 3 – Pause (Project Termination)
Option 2- StopCompletion: 11th May 2021
Both options have been developed with the PMO, WD, Design Team and advice from Planning Consultants
PROJECT MOTHBALL
SCOPE• Scope is the foundation of the pyramid • Two Identified options for ‘Project Mothball’• The design and work necessary to achieve each of these two
options will be outlined• Both options are based and costed on a 10 year life
Option 3- PauseCompletion: 29th October 2021
OPTION 2 - STOP
Key scope Features :• Stop work immediately and make safe • High level of regulatory risk • Site will have a secure perimeter• Emergency/Basic Life Safety Systems Installed• Transfer temporary works and scaffold ownership to BCC• Temp works/scaffolding in surrounding streets remain in
place• Risk around structural stability and envelope degradation • WD decant and clearing of compound
Hall remains open to the elements – No roof
Option 2Stop
Completion: 11th May 2021
OPTION 3PAUSE
Key scope Features:• Partial completion of existing contract • Steelwork and structural elements completed (Inc Roof) • Envelope complete including surrounding area • ’External Box’ Secure and Stable / façades completed • Completion of basement waterproofing • Emergency/Basic Life Safety Systems Installed• Reduced regulatory risk and minimum external
degradation
Hall is ‘Safe, Warm and Dry’ – watertight and weatherproof
Option 3Pause
Completion: 29th October 2021
Cost and Time Methodology and Principles
COST
SCOPE
PROGRAMME
CONTRACTS & AGREEMENTS
SCOPE
PROGRAMME
COST
RISK
Green
Current Confidence
The same methodology has been applied here as the option to complete.
CONTRACTS AGREEMENTS & REGULATION
TERMINATION AND AGREEMENTS
Option 2-StopKey Point Implications
-At risk of degradation and water ingress/flooding
- Degradation to asset over time. Not appropriate for 10 year duration and will require ongoing maintenance -
-Ongoing burden of temporary works, scaffolding and regular inspections required
-High ongoing maintenance and inspection costs
-Risk of Heritage intervention
-Negative Impact on adjacent/ surrounding streets and roads
-Prospect of enforcement from planning, listed building, building control
-Challenge from funding bodies
- Potential loss of Warranties and Insurances
-Waste of previously fabricated/engineered components
-Cost of abandonment/fees/works
-Extensive cost associated with termination of contracts
-Extreme difficulty , higher cost and loss of knowledge in any future remobilisation
JB
Option 3 – PauseKey Point Implications
-Stable and watertight envelope
-Less impact on surrounding streets and roads
-More appropriate for 10 year duration and will require ongoing maintenance/inspection
-Greater preservation of the asset and its heritage items
-This option is based on existing contract arrangements
- Extensive cost associated with termination of contracts
-Ongoing security/maintenance required
-Ongoing regulatory risk
-Risk of challenge to heritage and public benefit
-Considerable difficulty , higher cost and loss of knowledge in any future remobilisation
JB
COST
SCOPE
PROGRAMME
CONTRACTS & AGREEMENTS
SCOPE, DESIGN & TECHNICAL RESOLOUTION
PROGRAMME
COST
RISK
Green
Current Confidence
CONTRACTS AGREEMENTS & REGULATION
BUILDING THE PYRAMIDCONTRACTS & AGREEMENTS
TERMINATION AND AGREEMENTS