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4Practicalconsiderations(Level3Doing/Advising)
4.1Introduction
4.1.1Thissectionidentifiesthemorecommonpitfallsorcomplexitiesthatcanarisefrompracticethatmay
influencetheadvicegivenortheselectionofachosenroute.Thiswouldsatisfythe'advising'requirementsofthe
level3APCcompetency.

4.2Primaryobjectives
4.2.1Itisareasonablepreceptthatthegreatertheconcentrationondefiningtheprojectandlinkingthe
prioritisationofobjectivestothebusinesscase,thegreaterthelikelihoodoftheclient'sobjectivesbeing
achieved.Itisrecommendedthattherelativeimportanceofthekeyobjectivesarediscussedwiththeclient
organisation,whichcanthenhighlighttherelationshipbetweentheinitialbusinesscaseandtheprojectpriorities.
Thismaythenformasoundbasisforthebriefandthepreparationofaprojectexecutionplan(see4.3)and
shouldideallyinvolvearangeofstakeholders,includingfutureusers.
4.2.2Usually,whenthebusinesscaseisdeveloped,themostimportantcriterionisidentifiedasthatwhich,ifnot
realised,isthegreatestrisktocorporatestrategy.
Forexample,wherebuildinguseismostimportant,performanceindesignwillbevitalwherethebuildingis
beingconstructedtoenableaparticularmarkettobeserved,timemaybecriticalandincaseswheretheclient
hasapreciseorlimitedbudget,costcontrolwillbemostimportant.Inmostcases,however,morethanone
criterionislikelytoresultfromthebusinesscase.Owneroccupierclientsmayemphasisefunctionandprice
certainty,developersmaylookforlowcostandspeed,whileinvestorclientsmayrequirequalityofdesignand
speed.
4.2.3Astheprojectproceeds,emphasismaytemporarilychange,asfactorssuchasprogress,designaspects
andcostreceiveparticularattention.Uponcompletion,however,theclientwillusuallybemainlyconcernedwith
whethertheprimaryobjectivesestablishedattheoutsethavebeenachieved.Forsomeclientsitcanbeeasyto
losesightoftheinitialobjectivesastheprojectitselfbecomesadistraction.

4.3ProjectExecutionPlan(PEP)
4.3.1ThePEPhasanimportantfunctionintheapplicationofaprocurementstrategy.Itaimstoensurethatthe
client'sobjectives,asidentifiedinthestrategicbrief,arecarriedthroughtoreality.Itisthereforeaprimarytool,
whichcanbeusedtoensurethattheprojectiscompletedtothesatisfactionoftheusers,ontime,withinbudget
andtotherequiredqualitystandards.ThePEPisusuallypreparedbytheprojectmanager,ifappointed,butis
intendedfortheuseofallmembersoftheprojectteam.Tosomeextent,thedetailofaPEPwillbedependent
uponthechosenprocurementroute,andtheformatoftheplanmaywellbedictatedbytheclientorbythe
constraintsofspecificprojects.Theformanddetailoftheplanmayalsochangeastheprojectevolves.Thekey
objectiveatalltimesshouldbetoensurethattheplanbothdocumentswhathasgonebefore,intermsof
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decisionsthathavebeentaken,andlooksaheadtosetaframeworkforfutureaction.
4.3.2ThefollowingisagenericlistofthetopicsthatanyPEPmightinclude:
Overview:ashortsummarydefiningtheobjectivesandthescopeoftheprojectinfunctionalterms.This
shouldspecifytheproblemthattheprojectisintendedtoaddress,theprojectgoalsandhowtheprojectfits
intotheclient'sbusinessplans.
Specificobjectives:identificationoftheparticularfunctionalobjectivestobeachieved.Theseshouldinclude
time,costandqualityconstraints,aswellasanoutlinedescriptionofthekindofaccommodationrequired
andthefunctionalstandardstobeachieved.Theplanshouldalsodefineanyconstraintsarisingfromthe
needfortransparencyandaccountability,andshouldspecifyhowmuchflexibilitythereisinrespectofthe
timeandcostconstraints.
Theproposedprocurementstrategy:thechoiceofanappropriateprocurementrouteisperhapsthemost
importantdecisionintheentireprocess.Theplanshoulddocumentnotonlywhatprocurementstrategyhas
beenchosen,butalsoprovidetheunderlyingrationale.

Projectcontrolmechanisms:thissectionoftheplanshouldprovidedetailsoftheplannedadministrative,
contractualandfinancialmechanismsthroughwhichtheprojectwillbecontrolled.Inshort,itshoulddefinehow
theprojectwillbemanaged.Itisprudentforthissectiontospecifythingssuchas:
reportingstructures,togetherwithanykeydatesforcommitteemeetings,andsoon
procedurestoaccommodateongoingprojectreviewsandchanges
anyparticularclientrequirementsorrestrictions(forexample,ontheuseofsubcontractors)and
value,qualityandhealthandsafetymanagementprocedures.

Itisparticularlyadvisabletospecifytheproceduresforprojectcompletionandthehandingoverofthecompleted
facilitytotheclient.ItisrecommendedthatthePEPspecifieswhowillberesponsiblefortakingpossessionofthe
buildinganditsfuturemanagement,whatdocumentationwillberequiredandwhattrainingneedstobeprovided.
Projecttimeschedule:thisshoulddefineallaspectsoftheprojecttimescale,includingcriticaldatesand
milestoneevents.Theprojectschedulewillplainlyevolveastheprojectproceeds,andshouldeventually
comprisebothoutlinelongtermanddetailedshorttermprogrammes.Theproposedtimescalesshould,of
course,meettheclient'sdeliveryrequirements,butitisalsoimportantthattheyarerealistic.Imposing
unrealistictimeconstraintssimplyincreasestherisktotheclientoffailuretomeetkeytargets.
Projectbudget:projectbudgetsshouldusuallyincludenotonlycapitalconstructioncosts,butalsoongoing
andrecurrentexpenditureduringtheprojectlifecycle.Thebudgetwillprobablybecomeprogressivelymore
detailedastheprojectproceeds.APEPshouldincludedetailsoffundingsourcesanddocumentcost
monitoringandreviewprocedures.
Personnelandlinesofresponsibility:thePEPdocumentswhoisresponsibletowhom,andforwhat.APEP
shoulddefinethelimitsofauthorityandresponsibilityforallofthekeyplayersintheprocess.
Evaluationmethods:thePEPshoulddocumentthecriteriaagainstwhichthecompletedprojectwillbe
measured,andnotehowthemeasurementwillbecarriedout.Itisprudentfortheseissuestobeconsidered
atanearlystage,inorderthattheprojectteamknowhowthefinaloutcomeislikelytobeevaluated.Project
evaluationmaybeimpossibleunlesstheevaluationcriteriaarefixed,butclients'objectivesfrequently
changebetweenprojectinitiationandprojecthandover.Ifmajorchangesarelikelytooccur,forexample,as
theresultofrapidlychangingtechnology,thenthePEPshouldmakeprovisionforthese.
Potentialproblems:itisprudenttoidentifypotentialareasofriskthatmightcompromisethesuccessful
completionoftheproject,togetherwithanoteofappropriateriskmanagementstrategies.

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4.4Factorsoutsidethecontroloftheprojectteam
4.4.1Considerationshouldbegiventothepotentialimpactofeconomic,commercial,technological,social,
politicalandlegalfactorsthatmayinfluencetheclientandtheprojectteamduringthelifetimeoftheproject.
Thesemayinclude:
changestothecostandavailabilityoffinance
developmentsinexistingtechnologyornewtechnologicaladvances
increasesinthelevelofinflation,affectingtheproductsortradesusedintheworks
changesinthelocalornationaldemandforconstruction,affectingtenderpricelevelsand
changestolegislation,affectingthedesignoftheworksorthemethodsofachievingthatdesign.

4.4.2Ifsimpleriskanalysisisadopted,ajudgmentcanbemadeastowhetherriskallowancesshouldbe
budgetedforinthescheme,inordertocopewithlikelyoccurrencesofthisnature.Wherechangestotechniques
ortechnologyareanticipated,alevelofflexibilityofdesignmayberequired.

4.5Clientresources
4.5.1Itisprudenttousetheclient'sknowledge,theexperienceoftheclientcompany'sorganisation,and
informationregardingtheenvironmentinwhichitoperates,indetermininganappropriateprocurementstrategy.It
isadvisabletoascertaintheextenttowhichtheclientispreparedorabletotakeafullandactiverole.Whether
involvedcloselyornot,theappointmentofaclientsponsor,projectmanagerorrepresentative,withauthorityto
makeorconfirmdecisionsonbehalfoftheclient,isrecommended,toavoiddelaysindecisionmakingor
confusionastoauthority.
4.5.2Itisadvisableforclientstoensurethattheyarrangeprojectfundinginawaythatreflectsboththeir
contractualcommitmentstopayandtheircorporatebusinessfinancialstructure.Land,legal,consultantand
statutoryfees,alongwithpaymentsforconstructionwork,mayberequiredatdifferenttimesthefundswillneedto
beinplaceandavailableattheappropriatetimes.

4.6Projectcharacteristics
4.6.1Indecidinguponaprocurementstrategy,thesize,complexityandlocationoftheprojectshouldbecarefully
considered,withparticularattentiongiventoprojectswithnovelelements.Ifaproposednewbuildingis
especiallylargeorcomplex,theremaybeagreaterriskofcostortimeoverrun,or,asmentionedin2.4.7,a
refurbishmentofanolderpropertymayruntheriskofencounteringanunknownamountofasbestos.Withany
'novelty'factor,estimatesoftime,costandperformancemaybesubjecttogreatererror,withanincreasedriskof
oneormoreoftheproject'sobjectivesfailing.

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4.7Costissues
4.7.1Estimatesofthecostoffuturebuildingsmadeatanearlystagearenotoriouslyinaccurate,butareusually
necessaryfordecisionpurposes.Itisrecommendedthattheclientismadeawareoftheleveloflikelyaccuracy
(oruncertainty)ofanyestimatesandunderstandstheneedforriskallowance.
4.7.2Wherethereistheneedforpricecertainty,thiscaninfluencebothprojecttimingandtheprocurement
strategytobeused.Generally,ifpricecertaintyisrequired,designshouldbecompletebeforeconstruction
commences.However,asdesigncantaketime,thismaycausedelay,except,ingeneral,wheredesignandbuild
strategies(see2.5)areadopted.
4.7.3Inflationmayalsoaffecttotalcostwherethereisalevelofvarianceincreasedpriceclausesexistthatcan
compensatethecontractorforsuchavariance.
4.7.4Changestodesignduringthecourseofconstructionshouldbeavoidedifcostcertaintyistobemaintained.
Changes,whetherinitiatedbytheclientorthedesignteam,oftenhavecostandtimeimplicationsontheproject
wellinexcessofthechangeitself.Itisthereforeadvisablefortheclienttofixadateafterwhichnosignificant
changesshouldbeintroduced,ortoselectastrategythatenablessuchchangesandacceptstheconsequences
(see4.9).

4.8Valueformoney
4.8.1Clientswillbekeentoachievegoodvalueformoney,butfewoutsidethemostexperiencedgrouparelikely
trulytounderstandhowthismightbeachievedormeasured.Securingmaximumvalueformoneyfroma
constructionprojectoftenrequiresafundamentalreevaluationoftheclient'sunderlyingvaluesystemthroughthe
adoptionofvaluemanagementtechniques.Thisisfrequentlyadifficultandtimeconsumingtask,whichmany
clientsfindverychallenging,butisnonethelessadvisableiftheprojectistobeultimatelysuccessfulintermsof
achieving'valueformoney'.
4.8.2Itiscommonforinexperiencedclientstoaskforthehighestqualityatthelowestprice,tobecompletedin
theshortesttime.Theclient'sprojectmanagermayhavetodevoteconsiderabletimeandefforttoarriveata
workablecompromisethatmeetstheclient'srealobjectives.

4.9Abilitytomakechanges
4.9.1Itispreferabletoidentifythefullneedsofaprojectduringtheearlystageshowever,thisisnotalways
possible.Inaddition,rapidlychangingtechnologyoftenresultsinlatechanges.
4.9.2Changesinthescopeofaprojectveryoftenentailincreasedcosts,especiallyiftheyariseduring
construction.Changesintroducedafterthedesigniswelladvancedorafterconstructionhascommencedoften
haveadisproportionateeffectontheproject,intermsofcost,delayanddisruption,comparedwiththenatureof
thechangeitself.Ingeneral,thedesignprocesswillgothroughaprogressiveseriesof'freezes'asitdevelops,
buttheclientorprojectteamshouldsetafinaldesign'freeze'date,afterwhichnosignificantchangesto
requirementsordesignareallowed.
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4.9.3Someprocurementstrategiesarebetterthanothersathandlingtheintroductionofchangeslaterinthe
projectandreducingthepossibilityofhavingtopaysomeformofspecificpremium.Acollaborativeapproach
wherecostissubjecttoatargetcanofferbenefitsinthisarea.

4.10Projecttiming
4.10.1Mostprojectsareneededwithinatimeframeorbyaspecificdate.Thiswillinfluencewhethersubsequent
activitycanoccurasplannedandinmanycasesmayseverelyaffectthosefactorsidentifiedascriticalorhigh
priorityinthebusinesscase.
4.10.2Selfevidently,settingunachievableprogrammeswillresultinoverruns.TheUKconstructionindustrymay
haveareputationfordeliveringprojects'late'.Thiscanbetheresultofoveroptimism,oralackofreliabledata.
Realismmayfrustrateanimpatientclient,butunexpectedlatenessmayhavemoresevereconsequencessuch
aswhereexpecteddatestoopennewfacilitiesaredelayed.
4.10.3Theprogrammeoftheprojectcanbeinfluencedbymanyfactorsaparticularlylargeorcomplexprojectis
likelytorequiremoretimefordesign,specificationandconstructionthanasimplesmallbuilding.Itishighly
advisabletoallowforadequatedesigntimeintermsofthetotalproject,particularlyifdesignisrequiredtobe
completebeforeconstructioncommences(where,perhaps,costcertaintyisrequired).
4.10.4Designcanbeacomplexandlengthyprocess,anditisnotuncommonforthisstagetotakeaslongasthe
completionoftheworkitself.Designapprovaltimecyclesshouldbeaconsiderationinthisprocess.
4.10.5Whenappointingadesignteam,assurancesshouldbeobtainedaboutresourcelevelsandtheabilityof
theteamtomeetkeydatesortocompleteprogrammes.Itisnotusualtoimposecontractualdatesupon
designers,althoughtheirprogressisprobablythekeytotheoverallcompletiondate.
4.10.6Certainfactorsmayinfluencetheplannedordesiredtimefordesign,dependingonwhentheyoccur.For
example,decisionstoprogresswithaprojectmaybeinfluencedbythegainingofplanningapproval,bythe
successfuloperationofacompulsorypurchaseorder,bylandpurchaseorbysomeothernonspecificbutcritical
factor(suchasobtainingfundingapproval).
4.10.7Asoutlinedabovesomeprocurementstrategies(suchasdesignandbuild,constructionmanagementand
managementcontracting)enableanoverlapbetweenthedesignandconstructionstages,withconstructionable
tostartearlierthaninsequentialstrategies.Thisoffersthepotentialforearliercompletion.Itmaybeprudentto
reviewtheplannedprocurementstrategyinthelightofdesignprogressatkeymilestonesintheproject,suchas
obtainingplanningpermission.
4.10.8Timehasbothacostandavalue.Ifthevalueofacompletedprojecttotheclientonaweekbyweekbasis
isidentifiable,thevalueofrelativelyearlycompletioncanbeassessed.Thismayformanimportantfactorinthe
decisionmakingprocessandisoftenreferredtoasthe'time/costtradeoff'.Forrelativelyearlycompletion,this
mayencompassearlyincomeflowfromacommercialmarket,andshouldenablereducedinterestandinsurance
chargestoberealised.Relativelylatecompletionislikelytoattractgreaterinterestandinsurancecharges
(amongothers)andpotentiallossofopportunity.Thedevelopmentofcalculationsthatidentifythesesumscanbe
ausefulmanagementtool.

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4.11Constructiontimes
4.11.1Totalconstructiontimeisgenerallyreliantupondesign.Morecomplexstructureswillalmostcertainlytake
longerbothtodesignandtoconstruct,andmayrequiremoreresources.Somegeneralguidanceonconstruction
timesisavailablethroughtheRICSBuildingCostInformationService(BCIS).Inmostcases,designandother
activitiesarenotincludedinthesetimes.

4.12Performance
Therequiredperformanceoftheproject,measuredintermsofbothitsresponsetotheneedsoftheclient(as
expressedinthebusinesscase),andthequalityofindividualelements,shouldbeclearlyidentified.If
performanceisoverspecified,apremiumwillusuallybepaidforexceedingactualrequirements,thereby
affectingthecostobjective.
Overspecificationmayalsoleadtotimeoverruns.Conversely,failuretorecognisethetrueperformanceobjective
mayleadtoanunsatisfactoryproduct.
Apostprojectreviewwillevaluatewhethertheclient'sinitialobjectiveshavebeenmetandshouldcapture
learningforfutureprojects.

4.13Accountability
4.13.1Anotheraspecttobeconsideredatanearlystageisthelevelofaccountabilitynecessarytomeetthe
requirementsoftheclientorganisation.Forexample,towhomwilltheclienthavetojustifyexpenditure?Must
everypennybeaccountedfor(asinapubliclyfundedproject)oraretherequirementslessstringent?
4.13.2Often,bothpublicandprivatesectorprocurementstrategieswillbeaffectedbyprescribedprocessesor
financialconsiderations.EuropeantenderingregulationandNHSproceduresaretypicalexamples.

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