Built Environment BSc Architectural Design Technology BSc

Built Environmentbsc Architectural Design Technology Bsc Building Su

Analyze the key procurement issues and recommend the most appropriate procurement strategy and system for the Greater Manchester Strategic Alliance's (GMSA) proposed Advanced Manufacturing Research Centre project, considering value for money, socio-economic and environment sustainability, and the Public Services (Social Value) Act 2012. Additionally, identify a suitable main form of contract aligned with the procurement strategy to help the organization achieve its strategic objectives. Also, explain how the selected procurement strategy facilitates embedding socio-economic sustainability into procurement decision-making and outcomes.

Paper For Above instruction

The development of a major advanced manufacturing research centre in Greater Manchester presents a complex procurement challenge that necessitates a strategic approach balancing cost, quality, sustainability, and social value. Given the ambitious project scope—including multiple highly specialized buildings, external works, and the aim for carbon neutrality—the GMSA must select a procurement strategy that ensures timely completion, high standards, and sustainable outcomes.

Understanding the Project Context and Client Objectives

The GMSA's project is characterized by its high-profile nature, innovative design aspirations, and sustainability commitments. The project comprises diverse components—large-scale main building, engineering centre, learning centre—and involves multiple stakeholders, including universities, colleges, and industry partners. The client emphasizes value for money within a limited budget of £71 million, with a strict completion deadline of August 2017 to align with the academic calendar.

They also aim for the project to be carbon-neutral and to embody strongly aesthetic and qualitative standards, reflecting an architectural statement. Socio-economic and environmental sustainability principles are central, especially in light of the Public Services (Social Value) Act 2012, which requires considering social benefits in procurement decisions.

Procurement Issues and Considerations

The key procurement issues include risk allocation, project complexity, the need for timely delivery, quality assurance, and embedding sustainability. Risk management is vital, especially regarding the tight deadline and high standards; selecting the appropriate procurement strategy influences project risk distribution among the parties. Furthermore, integrating sustainability—environmental and socio-economic—requires procurement approaches that incentivize innovation and social value contributions.

Legal and contractual considerations also impact the choice of procurement, emphasizing transparency, fair competition, and compliance with public procurement legislation. Furthermore, affordability and the potential for community engagement and local economic benefits suggest employing a procurement system that fosters local supply chains and community involvement.

Analysis of Alternative Procurement Strategies

Several procurement options are available, each with strengths and weaknesses:

  1. Traditional Procurement: The client employs design-bid-build, with separate design and construction phases. This approach offers clarity and well-understood contractual relationships but may limit opportunities for innovation and sustainability integration since design and construction are sequential.
  2. Design and Build (D&B): A single contractor undertakes both design and construction, facilitating faster delivery and integrated responsibility. D&B can promote innovation in sustainable design due to early contractor involvement but offers less control over detailed design quality.
  3. Construction Management (CM): The client hires a construction manager who manages multiple trade contractors. CM provides flexibility and potential for early engagement, advantageous for high-quality, sustainable outcomes; however, it can pose coordination challenges.
  4. Public-Private Partnership (PPP): Although more complex, PPP arrangements can involve private sector efficiency and innovation, including sustainability elements, but may entail lengthy procurement processes unsuitable for tight deadlines.
  5. Framework Agreements: Using pre-established frameworks allows rapid procurement and access to pre-vetted suppliers, supporting timely delivery.

Optimal Procurement Strategy Recommendation

Considering the project’s scale, complexity, deadline, and sustainability goals, the recommended approach is a Design and Build (D&B) procurement strategy. It offers several advantages aligned with GMSA's needs:

  • Accelerated project timeline, crucial given the tight deadline.
  • Integrated design and construction, fostering innovation—particularly in achieving carbon neutrality and aesthetic standards.
  • Potential for early contractor involvement, enabling sustainable solutions from the outset.
  • Potential for cost certainty, helping manage the budget effectively.

However, this approach requires rigorous selection procedures to select a suitably capable contractor committed to sustainability objectives and social value.

Selection of Contract Type

To match the D&B procurement system, a Design and Build Contract (e.g., NEC4 option A or the JCT Design and Build Contract) is appropriate. This type consolidates design and construction responsibilities into a single contractual document, streamlining project delivery and clarifying risk allocation. The contract should incorporate provisions to embed sustainability and social value, such as requiring the contractor to achieve specified environmental standards and community engagement targets.

Embedding Socio-economic Sustainability in Procurement

The chosen procurement strategy can facilitate socio-economic sustainability by integrating relevant requirements into the contractual framework and procurement processes:

  • Pre-Qualification and Evaluation: Prioritize suppliers and contractors with proven commitments to social value initiatives, environmental sustainability, and local economic contribution.
  • Specification of Social and Environmental Outcomes: Embed measurable social value objectives—such as local employment, apprenticeships, or community engagement—into contractual obligations.
  • Incentivization: Include performance bonds or incentives tied to achieving sustainability benchmarks, fostering innovation in social value delivery.
  • Partnerships and Collaboration: Foster early contractor involvement, ensuring sustainability considerations are embedded from project inception.

This approach aligns well with the Public Services (Social Value) Act 2012, which emphasizes the importance of considering wider social benefits during procurement. By explicitly linking contractual obligations to social impact outcomes, GMSA can ensure the project contributes to local socio-economic regeneration and promotes inclusive growth.

Conclusion

The recommended procurement strategy for the GMSA's Advanced Manufacturing Research Centre is a tailored Design and Build approach, utilizing a comprehensive NEC4 Design and Build Contract incorporating sustainability and social value clauses. This strategy addresses the project’s tight schedule, high-quality aspirations, and sustainability criteria, while also facilitating socio-economic benefits aligned with legislative obligations. Furthermore, early contractor involvement will promote innovation and sustainability integration, ultimately delivering a facility that meets architectural, environmental, and societal objectives within the allocated budget and timeframe.

References

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  • HM Government. (2012). The Public Services (Social Value) Act 2012. London: HM Government.
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  • JCT. (2016). JCT Design and Build Contract 2016 Edition. RIBA Publishing.
  • National Audit Office. (2014). Improving Public Sector Procurement. NAO Report.
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