Case Study Level 3 Flashcards
As your role developed over time, with you undertaking more strategic client-facing responsibility, how was this reflected in your/DSB’s appointment (terms and conditions), and fees charged for your work?
At the start of DSB’s involvement in the project, my line manager held the more strategic / client - facing role. As my experience developed, I took this on and he stepped away from these types of responsibilities.
We have a standard charge out rate per hour agreed with this client.
So overall, the net affect on our fees charged was nil.
How did you present your advice to the client in respect of the procurement strategy for the closure stores?
Initially I presented a written outline via email to ensure my advise was formally recorded. I then set up a meeting with the client to expand upon my written outline in the form of a presentation, which encompassed:
- summary the scope of the project in functional terms
- recap of the client’s and project objectives
- details of the strategy
- how the strategy would assist in achieving the client’s and project objectives
- timelines
- lines of responsibility
- closing with my caveats relating to the transparency required in the initial stages
In relation to the receiving stores, how did you then present this ‘bad news’ to your client?
Initially through email, I then followed up with a telephone call to take them through my email.
I then set up a Teams Meeting for the following day to take them through the detail of my projections and the relevant qualifications.
Explain how you determined from the tenders received that there was an average of £23K overspend per store?
I compiled a cost plan per store based on the tenders received, direct costs and fees, and compared the total with the budget per store.
The £23K average was determined by taking the total overspend of c £230K and dividing by the 10 stores. I cross check this against the median, which was also £23K.
I caveated to the client that the range in the data set was £16K and was only based on 3% of the programme.
By determining the cost of the scope of each project prior to tender, did this not still end up at the same position of requiring more funding, albeit you were forecasting the amount required rather than reporting the same message after the event?
Partly, yes. But, I was forecasting the amount required based on the scope, which allowed the client to make an informed decision as to whether they wanted to expend this value in a particular store. By doing this in sufficient time, the client had the option to amend to reduce the scope for example, rather than being backed into a corner and accepting the costs as they were a couple of weeks before starting on site.
In addition, the new process provided an approved scope and a process for managing change to this scope. This prevented scope creep and variations, and in turn, reduced the funding required versus that of the old process.
Can you give some specific examples of how you adapted your approach to dealing with your demanding client?
- It became clear the client preferred communicating more than daily via phone call rather than emails so I set up a weekly meeting with the client so the client felt they had a regular platform and time set aside with me to discuss any concerns or queries.
- The client would often call daily requesting updates on cost plans I was working on. On the second occasion of this happening, I set up a meeting with the client to remind them of my SLA’s, re-assuring them that we are working to the agreed timeframes outlined. I explained that the SLAs provide sufficient time for me to provide them with a good quality service and an accurate cost plan.
Why was JCT SBC used?
The JCT SBC Framework was set up by the Client with the advise of their legal team.
The client prefers to use one form of JCT contract for all of its works in existing stores. The Standard Building Contract was deemed sufficient by the client’s and their legal team for covering all types of works, ranging from minor works to re-fits.
Why were PO’s used and not contracts for each batch?
The client approved contractors were instructed under a ‘call off’ mechanism under their Framework Contract with the client.
However, the new contractors were not part of this contract and the Client’s In-House Procurement Team decided to issue the 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 T&C’s.
As the programme was over 2.5 years, how did you deal with inflation in the contractor prices and overall budget?
The approved contractor rates were fixed under the framework for the duration of the programme. But I built in aninflation forecast based on BCIS cost data for directs and the new contractor rates.
On Key Issue 1, through your chosen option, did one contractor win more than others and how did you manage the allocation?
The allocation was split fairly evenly between 5 of the contractors. The Northern Ireland based contractor had slightly less an allocation as less stores were closing in this region.
How did the agreed/approved budget compare with the current/final projections?
The project is currently projected a c 30% underspend.
