SITE SELECTION

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Agenda Item 5
North East Academy Xchange Building - procurement

• SITE SELECTION
• a site search was completed in February 2004
• the search identified a possible 5 sites
• selection criteria indicated Glasshoughton as the
  most suitable site
• the site is controlled by Waystone in Partnership
  with Yorkshire Forward
• Waystone would act as Developer Partner for the
  site, providing both the site and building
• procurement of a site and a prospective developer
  partner is subject to the OJEU process
• an OJEU process was published to advertise for a
  Developer Partner within the North East Learning
  Community to deliver the Xchange Building

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North East Academy Xchange Building - procurement

• OJEU DEVELOPER PARTNER
• an accelerated restricted procedure was published
  in March 2005
• pre-qualification questionnaires were received in
  April 2005
• invitation to negotiate documents were issued to
  prospective developer partners and submission
  received on 09 May 2005
• further clarification in relation to the
  submission documents received has been requested
  (deadline 17 June 2005)
• review of the clarification documents will be
  required prior to further negotiation with
  developer partners
• detailed negotiation is required before
  contracting to give cost certainty on
• land value
• developer profit
• construction overheads, preliminaries and profit
• construction costs
• following successful negotiations building to be
  procured under a standard JCT Design and Build
  Contract

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North East Academy Xchange Building - procurement

• DESIGN AND BUILD PROCUREMENT (post negotiations)
• college will enter into a guaranteed maximum
  price contract with the developer partner to
  construct the building, under a standard JCT
  Design and Build Form of Contract.
• PRE CONTRACT / PRE CONSTRUCTION PHASE
• college will appoint their own design team -
  architects, cost consultant, structural and
  services engineer and planning supervisors
• proposed to take the design to an advanced RIBA
  Stage D - E prior to contracting with the
  developer partner to give greater specification
  certainty
• construction costs will be agreed on an
  open-book basis with the developer partner
• construction costs will be monitored by college
  appointed cost consultant to check commercially
  sound
• construction costs will be agreed with the
  developer partner PRIOR to entering into a
  contract
• agreed costs and specification will form basis of
  Contractor Proposals
• CONSTRUCTION COSTS AND CONTRACT ARRANGEMENTS WILL
  BE SUBJECT TO LSC APPROVAL PRIOR TO ENTERING INTO
  A CONTRACT TO PROCEED.

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North East Academy Xchange Building - procurement

• POST CONTRACT / CONSTRUCTION PHASE
• architect will be novated to the developer
  partner under the contract
• cost consultant, structural and services
  engineers will remain appointed by the college in
  a monitoring capacity
• developer partner will appoint the college
  architect (novation) during the construction
  phase and their own engineering design team
  (structural and services)
• payment will be by monthly valuation under the
  terms of the contract as agreed by the colleges
  cost consultant and developer partner
• variations will be agreed (specification and
  cost) prior to any further instructions being
  issued
• college appointed Employer Agent will monitor
  consistency of specification during construction
  phase to ensure compliance with Employer
  Requirements

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North East Academy Xchange Building - procurement

• PROCUREMENT APPROACH - KEY BENEFITS
• a Standard JCT Form of Building Contract is used
• single point responsibility with main contractor
  / developer partner
• cost certainty is obtained before construction
  starts and prior to entering into a contract
• appointment of consultants throughout allows
  monitoring and design over-view during the
  construction phase
• detailed employer requirement documentation /
  advanced specification will minimise the
  contractors design input and maximises potential
  cost savings to areas of minimal specification
  that a contractor can most contribute
  efficiencies - main structural items e.g.
  structural frame
• reduction in project construction time is
  possible because of over-lapping construction
  activities and buildability aspects
• ALLOWS COLLEGE VALUE ENGINEERING OPPORTUNITIES
  PRIOR TO CONTRACTING
• ACCEPTED PROCUREMENT ROUTE CONSISTENT WITH LSC
  APPROACH ON OTHER COLLEGES.

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North East Academy Xchange Building - procurement

• VALUE ENGINEERING (VE) - THE OBJECTIVES
• the objectives of VE are to
• examine all or certain parts of the design
  against it relative cost
• brainstorm the options for value improvement
• opportunity to review the cost plan and
  investigate potential cost savings
• make recommendations for improving value
• VE investigates, analyses, compares and selects
  amongst various options to produce the required
  function and client user requirements
• VE aims to produce a range of design options for
  the whole project or parts of it, which are
  tested against the clients value objectives and
  criteria to remove unnecessary cost without
  sacrificing function, reliability, quality,
  required aesthetics etc
• value function / cost. Function is a key aspect
  of value engineering
• VALUE ENGINEERING PRE-CONTRACT CAN BE COST
  EFFECTIVE
• VALUE ENGINEERING POST-CONTRACT WILL CARRY A COST
  PREMIUM