Case Study Level 1 Flashcards
What is IPMS2?
International Property Measurement Standards for internal measurements for whole or part of a building
Can you define ‘shell’ in the context of real estate property, what does it include/exclude?
A shell is defined as a secure, watertight, insulated structure finished externally but not internally. It will exclude:
- wall, ceiling, floor finishes
- skirtings, window boards, or other trims
- mechanical, plumbing, gas, ventilation or electrical services installations, except for a single soil stack, rigid MHVR ducts if passed through joists and conduits through any waterproofing
- non-structural internal partitions
- internal doors
- incoming telephone, cable or broadband supplies
- permanent incoming supplies for electrical, gas & utility services
How was the project phasing determined?
The client had determined the phasing by grouping the stores into 3 phases based on either the lease expiration date or break date
How were the framework contractors appointed?
The client had directly awarded the 4 main contractors, following a review of their upcoming workload.
How were the additional contractors selected for inclusion in the programme?
The contractors had carried out some minor works under a different department for the client; the capital replacement department. They had expressed an interest in carrying out works under the Property department and the client identified the closures as an opportunity to trial them.
How long was the duration of the framework?
5 years
How did the serial rates under the framework operate? Were they fixed or could they be adjusted for inflation over the time period of the framework?
They were fixed for a period of 3 years, and then would be subject to review dependent on market conditions and inflation over the time period.
How were the rates for in-store environments inapplicable for your use?
They were built up for working in occupied and trading stores, and were therefore based on working out of normal hours and returning the site to an environment acceptable for trading at the end of every shift.
Obviously as the stores I was dealing with were closed prior to the contractor starting on site, there was more flexibility in terms of closing site at the end of each shift and working hours. By using these rates, the client would be paying a premium for something that was not required in these environment.
What was the basis of the Purchase Order used to instruct new contractors? What were the risks of the approach?
The client’s in house procurement team decided to provide the new contractors with a Standard PO per store based on the agreed tender, prior to starting on site. The PO is accompanied by the client’s generic T&C’s.
Utilising PO’s to instruct contractors outside of a standard form of construction contract carried risk as the PO’s do not adequately or fairly make provision for all circumstances, such as:
- no contractual rules for change or managing change, including how they were to be defined or costed or the impact on time
- no contractual rules for completion
- no express terms for payment
- the risk was ambiguity and how this could materialise into a dispute
- therefore there’s a reliance on statute for both payment and dealing with dispute, rather than express terms
Where were the 6 contractors based? What was their respective geographical coverage or were they all national contractors?
Contractor 1 - based in Hertfordshire, was allocated London & SE England
Contractor 2 - based in Merseyside, was allocated Wales and SW England
Contractor 3 - based in Glasgow, was allocated Scotland
Contractor 4 - based in Coventry, was allocated Central & East England
Contractor 5 - based in Belfast, was allocated Northern Ireland
Contractor 6 - based in Newcastle, was allocated Northern England
Could the existing rates for in-store environments not be used and adjusted?
I could have negotiated the rates to form star rates for the approved contractor as a variation from their agreed rates under their contract.
However, the new contractors were not contractually signed up to any agreement in relation to cost.
The request from the client was to also see how the new contractors were pricing works, so I needed to avoid instructing them to price on the same basis as the approved contractors and encourage an element of competition.
