Case Study Flashcards
(42 cards)
Being a consultant from AtkinsRealis, how did you manage any conflicts of interest?
- Looked to identify if any Atkins colleagues were working are had the ability to influence the projects I was working on.
- No confilcts identifed.
- Regularly reviewed to see if any party to party conflicts had developed.
If I had identified a confilct:
- Inform Client immediately.
- Remove myself from the project.
- Client insists I progress despite conflict: informed consent and information barrier, with regularly reviewing the controls in place.
How was the 10% contingency calculated? Why didn’t you undertake a formal risk analysis?
I advised the Client to undertake a formal risk analysis in line with indsutry guidance.
However, being planned renewals risk was relatively low and extensive inhouse benchmarking data existed.
Benchmarking against similar schemes, identified a 10% allowance being the standard approach.
Given the works exceeding the budget, how did you manage Client expectations?
I ensured to reiterate to the Client that due to their increase in scope, the existing funding was insufficient and additional funding would be required.
To try and reduce the funding requirements, various value engineering options were considered such as incorporating other works alongside the UPS installation.
You mentioned the use of value engineering, what are the stages to this?
The RICS Value Management and Value Engineering guidance note, lays out 5 stages:
1 information gathering
2 creative thinking
3 analysis, evaluation and shortlisting
4 development
5 presentation
What potential savings could utilising the internal delivery team have provided?
Unit rate was £4K less per site, a saving of £28K across the 7 sites.
As well as significantly reducing the PM time required for contractor management.
How long would a procurment outside of the framework have taken?
Anywhere between 5 - 9 weeks:
- Preparation of Tender Documents: 1-2 weeks
- Advertisement and Invitation to Tender: 1 week
- Tender Submission Period: 2-3 weeks
- Evaluation of Tenders: 1-2 weeks
- Award of Contract: 1 week
What did you consider when suggesting a procurement outside of the framework?
Potential benefits:
- New innovative solution.
- Competition amongst suppliers resulting in cost savings.
Potential Drawbacks:
- Governance for by passing the framework.
- Time delays as a result of the procurement process.
What governance and assurance would be required for bypassing the framework?
- Procurement and sourcing strategy
- Conflicts of Interest
- Justification for bypassing the Framework.
- IR35
- Value for Money
- NR Procurement Executive Panel.
Using schedule 5 of the new procurement act - direct award justification:
- Unavoidable Urgency
- Maintenance of Critical National Infrastructure.
What could be the consequences for bypassing a framework?
Claims from the framework supliers.
Fines from the Crown Commercial Services
How would you have assessed supplier quotes?
I would have assessed them against NR internal benchmark rate and the current supplier’s rate.
Have suppliers’ price against a pricing document in the format of RMM to ensure comparison on a like for like basis.
Support from the engineer on the technical delivery aspects of the tender returns.
Ensure to assess tender returns against the clearly set out award criteria as explained to bidders.
What was the cost implications of on boarding a team of digital experts for the new commercial reporting?
From discussions in the background with the Digital Innovation Lead from Atkins I gave a broad outline of what needed to be developed to improve the current reporting systems and some of the key Client requirements.
From this discussion, Atkins informed me they would require a meeting with the Client to fully understand their requirements and that such an activity depending on its exact complexity would take two members of the digital team roughly two weeks to develop.
This would come to an approximate cost £10K depending on exact requirements.
How long did it take you to devlop the new reporting system?
Developing the system alongside my role, took roughly two months.
What additonal benefits did the commercial reporting system provide?
Categorisation of cost data according to RMM to be utilised for benchmarking on later schemes.
How would you conduct stakeholder engagement on future projects?
- Identify the key project stakeholders early on.
- Establish format of communication.
- Develop engagement plan.
- Regular interaction and feedback ensure stakeholder requirements are fully understood and achieved.
- Provide stakeholders with updates and take on board their feedback.
What actions could NR take to ensure performance of the subcontractor?
Use of liquidated damages, assessing loss to be incurred by Client. Difficult to assess but could be in relation to cost incurred for delaying the reopening of the railway:
- Possessions
- Rentals need to be extended.
- Battery recharging
- Warranties extension required.
Other mechanisms such as KPI’s for performance against program and this impacting work reallocation under the framework.
Why was the funding for the project insufficient?
Due to an underdeveloped business case and poor records on plant and equipment, additional works were added to the scope resulting in funding being insufficient.
How do you prevent the issues of an under developed business case on the South UPS project from reoccuring?
As part of the process for securing the additional funding we engage in a lesson learnt workshop. During this workshop, I emphasised the importance of having a fully developed business case to prevent the need for additional funding at a later date. Also, on have clearer records on the condition of existing plant and equipment.
How did you calculate the internal preliminary cost on the South UPS project? And how did I ensure it was sufficient?
I took the current hourly rates for the PM and Engineer and using the Consumer Price Index adjusted the 2023-24 rate for the next two financial years, percentage adjustments were 6.43% and 8.32% respectively.
I made an allowance for both staff at 20% utilisation for the contracting period and calculated the internal preliminary cost accordingly.
Actual expenditure against forecast was monitored on a periodic basis to ensure project spend was in line.
Stage Amount Months Monthly
Original £ 41,000 8 £ 5,125
Revised £ 58,000 27 £ 2,148
Final £ 168,000 12 £ 14,000
There was an issue with insufficient funding being secured for the preliminary cost when the first amount of additional funding was secured and as a result the departments OPEX took a hit.
What were the different funding allocations to the South UPS project?
Original Budget - £581,000
Current Budget - £1,730,000
Final Budget - £3,389,900
What were the key components of the RAM’s business case?
- Scope of Woks and Volume being Delivered.
- Commerical proposal: unit rate & pounds in the ground.
- Business justification for the works.
- Options considered for the delivery of the works.
- Programme
- Efficiency Oppurtunities
How did you advising different delivery options show value was being delivered?
One of the sections of the business case was focused on showing the different options considered for the delivery of the works.
Comparing the different delivery options in terms of advantages, disadvatnages and value showed that continuing with the current subcontractor was delivering value.
Aside from advising delivery options, how else did you support the RAM’s business case?
I advised on the projects unit rate for delivery of a UPS and how this compared to NR’s benchmark.
I also provided pounds in the ground metrics.
Was your time as the projects Commercial Manager not part of the internal preliminary costs?
Normally on a project, the Commercial Manager’s time would be part of the projects preliminary costs, however the way NR operate Commercial cost are covered by a seperate budget and therefore did not need to be included in my preliminary calculations.
How would option 2 - internal delivery have reduced Contract Administration cost?
Approximately half on the additional preliminary cost, £84K related to the PM time. With the internal team carrying out delivery this could have been halved, providing a saving on £42K.
