University of Glasgow

Development Projects

Guiding Principles

February 2013

Contents Page

1.0 Application 01

2.0 Executive Responsibility 01 3.0 Purpose 01

4.0 Aims and Objectives 01-02

5.0 Clients and Promoters 02

6.0 Types of Projects 02

7.0 Project Management (Refurbish and Major Projects) 03

7.1 RIBA Design and Development Stage 03-047.2 Pre Contract EDM Responsibilities 05-067.3 Post Contract Stage EDM Responsibilities 06-07

8.0 General background and Approach 07-08

9.0 Changes 07

10.0 Contingencies 08

11.0 Risk Assessment 09

12.0 Project Implementation Plan 09

13.0 Selection and Appointment of consultants 09-10

14.0 EMIS Refurbishment and Major Projects 10

15.0 The Project Management Process 10-11

Development Projects

1.0 Application

This guide applies to all building development projects carried out on the University estate in Gilmorehill, Garscube, & field stations

2.0 Executive Responsibility

The Director of Estates and Buildings is responsible for all Development projects. The Director reports to Estates Committee.

Estate CommitteeThe Estate Committee reports, via the Finance Committee, to the University Court who have ultimate responsibility for the Estate.

Capex CommitteeCapital expenditure related to all projects is also considered and approved by the Finance Committee and Court

3.0 Purpose

To give project management guidance in connection with building and engineering works to:

• The Estates Development Team• Academic and Administrative Colleges, Schools, Research Institutes and University

Services• Professional Consultants and Contractors employed by the University A detailed description of the project management process is included in the Project

Management Guide

4.0 Aims and Objectives

The aims and objectives of this guide are to ensure that:

• There is a common and consistent approach to Project Management• Colleges, Schools, Research Institutes and University Services understand the project

management process, and their roles and responsibilities as customers• Productive teamwork, communication and consultation exists between all parties• Strategic issues are understood and taken into account• Project risks are identified, ranked, owned and managed, and possible abortive costs

minimised• Value for money, best practice and quality control procedures are adopted• Environmental impacts are evaluated and minimised• A high standard of provision of access for the disabled is incorporated in the design• High priority is given to Health and Safety issues both during construction and for future

use and maintenance• Reliable as-built information is compiled and retained for future use• The return on capital investment in energy conservation is calculated and financially

sound measures adopted• A robust progress and cost control reporting system is adopted with input from all

interested parties

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• Cost in use and life cycle cost issues are considered• The Universities’ legal and financial position is protected• Professional consultants and contractors are properly briefed and appointed

• There is compliance with:

a) Statutory Legislationb) University Regulations and Standing Ordersc) Internal and External Audit requirements

5.0 Clients and Promoters

As “end users”, the Academic and Administrative Services, Colleges, Schools, Research Institutes and University Services can be regarded as customers in the building procurement process with Estates and Buildings acting on their behalf as professional advisors.

The Project Manager should:

• Ensure that the Client brief is finalised and funding approved, at the earliest possible time, and be prepared to delay or stop the process until these requirements are met

• Create an environment where all those involved in the project are encouraged and given the confidence to challenge each other and the University in a constructive way

• Ensure appointments and contracts are well drafted so that everyone knows their responsibilities and those of others including the University

6.0 Types of Projects

A variety of projects are undertaken each year by the Estates & Buildings on behalf of their customers including:

• Refurbishment of existing buildings and facilities• Alteration and conversion works• New extensions• Minor Works• New buildings• New facilities within existing buildings• Replacing services plant and installations

The Estates and Buildings Management appoint and supervise consultants to provide professional services and contractors to execute building and engineering works on behalf of the University. Consultants and Contractors are selected and appointed in accordance with the University’s Standing Orders. Frameworks are available for Professional Services and Building Contractors.

The Estates and Buildings manage this process using EMIS. EMIS enables the Estates and Buildings Estates Development Manager (EDM) to Project Manage, to monitor and record the design procurement and delivery process, providing an audit trail for the project. It provides technical checklists for each stage of the project to ensure compliance with specified procedures before proceeding to the next stage.

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7.0 Project Management (Refurbish and Major Projects)

7.1 RIBA Design Development Stage The EDM will discuss the proposed scheme in principle with the “Customer” or “End User” within the academic and administrative departments concerned. The Customer may be represented by one or more of the following:

• Head of College, Head of School, Head of Research Institute or their representative • University Secretary or representative • Non Academic Department and their representatives• Director of Estates and Buildings Management

Having understood the concept the AD, Planning Manager, Senior EDM or EDM will:

• Develop an initial in-house brief and forecast budget and agree it with the Customer in conjunction with College/School/RI and Assistant Director (Development Projects) prepare a Capex Application for submission to Capex Committee for approval

Capex Committee will decide if the application aligns with the University’s Capital Plan and strategic direction

• Capex Committee will approve or defer the application • Estates Planning Manager will prepare Project Initiation Forms and arrange with

Estates Finance Manager budget authority to proceed. AD, SEDM and Planning Manger will meet with the appropriate EDM and formally hand over the project

• Professional Services consultations will be selected from Framework schedule Consultants will be interviewed and appointed by the AD

• For major projects above OJUE threshold a professional services tender will be prepared supported by procurement services group and issued to the market in open competitive tendering

• EDM will agree terms of appointment via the framework or tender offer and make a recommendation for appointment to AD or Secretary of Court for major projects

• Check the appropriate level of Professional Indemnity Insurance cover is in place for each consultant.

• Instruct the professional team to proceed with design development via the RIBA Stage Process.

• Finalise brief in conjunction with Customer and professional team.• Meet with AD / Planning Manager / SEDM at each RIBA Stage and review design

development against customer brief and review budget forecast against Capex Committee approval. Sign off by Customer is required by Customer at Stages D and prior to tender issue

• For major projects Professional Services consultants are required to complete ‘readiness to tender’ forms, prepare and issue to Estates Director a pre tender cost estimate. Project Board approval or Chair of Project Board’s approval will be sought prior to issue of construction tenders for major projects

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• The project brief and design development process should be detailed and comprehensive, highlighting potential risks, difficulties and benefits. Scoping/briefing design development must include as appropriate :

– The project objectives and the evaluation criteria adopted– A summary of the options reviewed stating the reasons for selecting the

option considered– The scheme proposal– A cost-benefit analysis– A life-cycle costing– A preliminary budget clearly stating contingency and inflation allowances

included in estimate, listing exclusions and highlighting principle risks and unknowns

– Proposed funding arrangements as agreed with the Director of Finance together with appropriate elements of the business plan where appropriate

• Backlog maintenance figures Arrange meeting with Operations team to review brief, design development and

specification Risk Register CDMc Health and Safety File Carbon Management Plan Green travel Plan Asbestos Survey and report Accessibility survey and report Note of meetings will all customers, stakeholders and support services • An outline procurement construction programme • Cash flow forecast• An environmental impact assessment for major projects • An assessment of the impact of the project on other departments and services• Investigation work carried out which may include:

a) Measured surveysb) Soil investigationc) Drain surveysd) Services surveyse) Asbestos surveysf) Structural surveysg) Planning enquiriesh) Review of all existing documentation

• Exceptional Health and Safety Process/Procedures

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7.2 Pre Contract EDM Responsibilities

Following AD / SEDM / Estates Planning Manager authority the principal pre-contract stage tasks include:

• Preparing project execution plan (PEP) Arranging for consultants’ appointment agreements to be engrossed and

instructing the professional team to proceed up to tender stage• Ensuring the professional team has copies of the feasibility study and a note of any

conditions imposed on the project by the University. This will be their brief Arranging for outline proposals to be developed and costed

Ensuring the cost plan is circulated to all members of the professional team and accepted by them. They should all have contributed to its production and agreed it in draft prior to issue

• Obtaining approval to any Capex approval scope or budget variance from Capex Committee via AD, SEDM or Planning Manager

• Agreeing the Framework or OJEU tender route, form of contract after considering risk transfer issues with AD, SEDM / planning Manager

• Monitoring design progress by chairing regular project meetings and writing minutes. The prompt issue of minutes following meetings is important. Progress checks between meetings are also essential for effective pro-active project management

• Appointing CDMc to prepare Health and Safety information at tender stage• Carrying out Health and Safety checks and financial check on consultants• If OJUE tender agreeing the tender list and ensure standing order procedures in

respect of tenders are carefully followed• Tenderers should pre-qualify by an agreed list with procurement Services Group

but the following items should be referenced • Financial check (always ask for a statement about off balance sheet liabilities)• Experience of contractor and his proposed team• Team approval• Reference• Inspection of similar work• The tender report to the Project Board should contain proposals for dealing with

any divergence from budget. Report to confirm:

– Tenders received– Proposed savings if they are required and implications– Contingencies included– PC Sum and Provisional Sum content making clear which are not backed up by

supporting quotations and therefore at risk Bond % (to be linked to non-payment condition)

– Parent Company Guarantee (to be linked to non-payment condition)– Sub contractor Warranties will be obtained from principle Subcontractors only

or those with a design liability (to be linked to non-payment condition)

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• Type of Contract Traditional or an alternative recommendation • Significant contract amendments Agreed KPIs Resource Schedule Procurement Programme• The contractors’ Programme and Method Statement• Method Statement• Cash flow projections• Insurance arrangements in particular Clause 22D (loss of LAD), Clause 22.2.1

(damage to other property not due to negligence) and professional indemnity for any contractor or Sub contractor designed elements. A typical tender report is included at Appendix B. Normal contract amendments and typical warranties are included at Appendix C

The EDM should:– Obtain approval to proceed from AD to proceed with Refurbishment projects

less than £ 1 m over £ 1m Project Board – Issue letter of Intent to contractor to mobilise team where appropriate. Note

condition that work is not to commence until contract is signed by the contractor and returned to the University

– Ensure contract documents are completed and executed (under seal, as appropriate) as soon as possible. This will normally be prior to contract commencement, exceptionally after contract commencement but never more than one month after commencement.

– Ensure all necessary insurance is in place. Renewal dates to be logged and renewals to be checked during project.

7.3 Post Contract Stage EDM Responsibilities

Having appointed the contractor and commenced work on site, the Post Contract stage begins

The EDM will monitor progress by arranging and chairing regular Project Team Meetings at monthly intervals at most, and regular site visits between meetings. He will also ensure all drawings and instructions are examined when received and actioned as appropriate

The Project Meeting agenda should include: Approval of previous minutes Matters arising Reports by each consultant Progress Report by contractor Outstanding Information Unconfirmed Variations Outstanding PC and PS Items Comparison with Cash Flow Accident Report Any other business

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The Project Manager should:– Ensure minutes of meetings are produced and issued promptly, and monitor

progress between meetings as previously noted– Keep Client informed by including them on circulation list

Ensure monthly Financial Statements are produced by the Quantity Surveyor in an acceptable form

Ensure Quantity Surveyor is working on the Final Account and require Financial Statement to disclose which elements they have actually measured and priced, if not actually agreed, and those that have still to be evaluated in detail

Ensure Contract Administrator issues instructions promptly and addresses claims in detail as and when they arise

In the event of poor service from a professional or a contractor, discuss concerns with the Assistant Director who will advise on appropriate action.

It is essential that the EDM is prepared to address the issue rather than soldier on with the wrong professionals or contractors

The terms of Appointment and Contract include provisions to deal with these matters

8.0 General Background and Approach

All development Projects are a constant challenge to deliver on time and within budget to an agreed quality standard. A University campus such as Gilmorehill has its own special challenges due to its national historic and planning importance. The Garscube campus sits within a rural setting. It must be recognised that all projects will have an impact no matter how small, on neighbouring buildings and our community partners. There are numerous problems such as noise, dust and access difficulties.

It is also extremely important that potential Health and Safety issues are identified early and that they are monitored and managed rigorously throughout the project lifecycle, ensuring full compliance with the CDM Regulations is always achieved. The University has specific duties to disclose hazards and to employ competent consultants and contractors in this regard.

The logistics of decanting people into alternative accommodation has to be carefully planned at an early stage in agreement with those involved. In order to minimise disruption during the academic year, the summer, Christmas and Easter breaks, when students have vacated their accommodation and teaching has stopped, provide the best opportunities for decanting. Project programming can also be determined by the need to complete a new facility in time for a new semester.

The EDM must understand the special circumstances that apply and make sure that they are also understood by the Customers /he serves and the consultants and contractors s/he is managing.

9.0 Changes

Controlling change on any project is essential since changes can always occur. They can have a material effect on time, quality and budget.

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Once the project brief has been finalised and approved by the Customer and AD, it must not be changed at a later date without the AD/SEDM/Estates Planning Managers approval. Budgets approved by University Committee must not be exceeded without Committee approval. EDM must advise AD/SEDM/Estates Planning Manager of any variance to the approved budget as soon as a variation recognised by the project team.

Although changes to the project may not incur extra costs, they can delay the project and divert attention away from completing it on time. In addition to this, all information relating toindividual projects and their stages must be recorded on EMIS. This must be done prior to the EDM accepting and implementing any proposed changes. This provides more financial control within the system and identifies any risk of the project becoming out of the control

At Contract stage there can be a number of undetermined Customer issues in relation to detail design and specification. These outstanding issues should be minimised and resolved prior to Stage D. Following ‘sign off’ at Stage D no customer changes can be accepted with approval of the AD or Project Board for major projects.

10.0 Contingencies

The scope and briefing stage should be underpinned by preparation of a budget plan and all subsequent Cost Plans and Financial Statements must include appropriate financial and programme contingencies to allow for unknowns and risks. The contingency allowances made should be clearly stated and carefully assessed by the EDM based on past experience and an evaluation of the nherent risks. The allowances should only be reduced or varied after they have been set for sound risk assessment reasons and never just to accommodate customer or design team pressures.

Although every effort must be made to produce a budget estimate that is as accurate as possible, it cannot contain all known costs at an early stage. The Customer together with the EDM and his team, should consider all associated costs relating to the project and include them in the overall cost plan. Realistic contingencies must be built into the overall scheme and these should be re-assessed in a controlled fashion by the Project Manager and the Quantity Surveyor every time a cost report is prepared. The important stages regarding variations in contingencies and when they should be reviewed are:

• Initial budget that is normally based on limited information• Review of costs after the brief and design are frozen and signed off at the appropriate

stage• Pre tender estimate• Post tender evaluation• Various stages of the construction phase. (Monthly reports)• Practical completion

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11.0 Risk Assessment

A risk assessment should be produced to identify and quantify the risks associated with the project. This should be reviewed as the risk reduces in line with the progress of the design. The risk analysis will provide some comfort to the University Finance Director and Client regarding the level of exposure the University has at any one time. A typical Risk Assessment is available on EMIS.

12.0 Project Execution Plan (Major Projects)

A Project Execution Plan (PEP) should be prepared as early as possible in order to establish the ground rules, the scale of the project and expected deliverables. The plan will include the following information:

• Project brief• Approved Feasibility Study• Brief description and general information• Aims and objectives• Programme• Names of the people who will be taking on key roles• The method of funding for the project and any audit related issues• Details of the Design Team members and their roles

The customer will be represented by their appointed College/School/RI/University Services representative who must have full delegated authority for the project. Where the work involves two or more Colleges /Schools or Support Services s it is essential that an agreement is reached where one of the ‘representatives’ has overall delegated authority.

The plan should provide some indication of timescale/programme, and whether it is in support of other activities, such as providing space for a new course that will be starting in “x” months or a year’s time. The programme should include reference to the committee structure timetable for seeking authority to proceed.

The scale and size of the project will provide an indication of the type of design team required and whether the actual design will be done in-house or contracted out. It should be possible to advise if the project will need to be completed under CDM regulations and any planning issues would need to be considered at this stage.

13.0 Selection and Appointment of consultants and contractors

The stage at which consultants are appointed will vary depending on the size, type and complexity of the project. Different types of consultant may be required at different stages, and therefore an overall view of this resource should be taken and an appropriate strategy adopted. The selection of consultants and contractors must comply with the University Standing Orders and the Estate Committee Regulations.

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When competitive tendering is undertaken for the consultants, the two-stage method must be adopted and the most appropriate bid, which provides best value, be accepted. There needs to be a stringent evaluation of capability, resource and relevant experience during the consultants’ and contractors’ selection process.

On larger projects, intensive research should be undertaken on the financial standing and past performance of consultants and contractors, by taking up technical references direct with previous Clients. The University has adopted the use of ‘Constructionline’ to determine contractor performance. Both sets of information help to confirm the level of expertise and experience of those concerned.

The EDM should interview both parties, sometimes at both pre-tender and post-tender stages, to determine their suitability for employment. Great care should be taken before appointing a multi-disciplinary practice for more than one major duty, as it can lead to the dominant discipline sidelining the others and to internal company charging mechanisms influencing resources applied to the project.

In addition to this, it is important to ascertain a contractor’s “track record” in relation to claims and Health and Safety issues. When preparing for projects over £1M the final contractor list must be agreed with the Director and Assistant Director of Estates and Buildings.

The EDM must ensure that the process of selecting consultants and contractors is given sufficient time to allow proper investigations to take place. This selection process must be undertaken in line with the standing orders. Again it is emphasised that it is vital that consultants are properly briefed and their required services clearly established and confirmed in writing. This applies to ALL phases of the project with clear boundary conditions whether continuity of the phases or commission is involved or not.

Fees should be on an inclusive lump sum basis wherever possible and include all normal disbursements. Stage payments should be set and hourly rates should be agreed. Appointments must be confirmed in writing using the most appropriate conditions of engagement for consultants such as professional institutions’ terms and conditions with appropriate amendments. The lead consultant should be clearly identified. The respective appointments should confirm the names and duties of the other consultants and impose conditions on them all to co-operate with each other.

14.0 EMIS Refurbishment and Major Projects

Without exception all project details must be recorded on EMIS

15.0 The Project Management Process

The project management process is generic and will support all types of projects, irrespective of size and value. The project management principles referred to in this paper will be followed in respect of all University projects.

Every project goes through the same design and thought process. The purpose of the system is to ensure that each stage is considered and the Project Manager records the process.

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All variations to the budget must be approved by the AD / Estates Planning Manager / SEDM or where over £1M Project Board accordingly.

The EDM may represent the Assistant Director depending on the size and type of the project. At all stages of the project, the customer has a role to provide information in a timely fashion to the EDM enabling all relevant data to be incorporated before progressing to RIBA next stage.

The process includes the following stages:• Outline Project Intentions/Inception/Idea• Option Appraisals• Feasibility• Agreement to proceed• Initial Design• Final Design• Tendering and project approval• Construction Phase• Cost Control• Commissioning• Handover• Evaluation

The amount of effort put in during the development of the brief and in the initial stages of the process is reflected in the final product. When any of the early stages is skipped or ignored for perceived expediency, the overall project suffers. It is therefore important that all stages are recorded and considered. The degree to which the team needs to examine each stage will be based on the size and type of the project.

The process being advocated can be applied to all types of projects. The stages and terminology are common and the process can provide a robust format upon which a service, product or facility can be delivered.

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