Post on 24-Dec-2015
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RICSThe Royal Institution of Chartered Surveyors
LondonQuantity Surveying & Construction Faculty
The Built Environment Group
Corporate Professional Local
Faculties & Forums www.rics.org
CityRail 2007Shanghai, People’s Republic of China
11th September 2007
Estimating & Bidding for Rail Infrastructure Projects – a Whole Life Cycle approach
Michael Byng FRICS, AAIQS, ACIArb, MPWIChairman
Quantity Surveying & Construction Faculty
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RICSThe Royal Institution of Chartered Surveyors
London
Corporate Professional Local
Faculties & Forums www.rics.org
1. RICS, Built Environment Group - Who are we?
Building Surveyors - 25,000 Members
Building Control Surveyors - 2,500 Members
Project Management Surveyors - 30,000 Members
Quantity Surveyors - 40,000 Members
Some members belong to one or more of these faculties; the total number of members in the BEG is 75,000 (57% of whole membership)
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RICSThe Royal Institution of Chartered Surveyors
London
Corporate Professional Local
Faculties & Forums www.rics.org
2. Built Environment Group – What do we do?
Quantity Surveyors - Costing of Construction works- Life Cycle costing- Construction procurement- Construction payment and dispute
resolution
Project Management - Client ManagementSurveyors - Programme Management
- Contract Administration- Project Monitoring
Building Surveyors - Building Pathology- Neighborly Issues- Design and Specification- Property Management
Building Control - Development of Building codesSurveyors - Design Audits
- Construction Inspections and Approvals
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RICSThe Royal Institution of Chartered Surveyors
London
Corporate Professional Local
Faculties & Forums www.rics.org
3. Built Environment Group – What the RICS Does?
Regulates the profession
Develops the profession
Develops members
Sets standards
Represents the Members Interests
Promotes member services
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RICSThe Royal Institution of Chartered Surveyors
London
Feasibility studies
Procurement
Commercial management
Dispute resolution
Whole Life Cycle Asset Management
Scope of advice
Project work – CAPEX
Maintenance - OPEX
Quantity Surveyors and the Railway Industry– What do they do?
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Rail infrastructure projects – issues to be addressed (1)
Time and budget
Optimum time for delivery against optimum capital cost
Capital cost – meeting the business case
Ensuring competitive tenders
Limited supply versus increasing demand
Equitable management of risk
Other competing concurrent schemes
Problems in dealing with an international market
The supplier’s needs
The supply chain’s ability to meet the purchaser’s requirements
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Rail infrastructure projects – issues to be addressed (2)
Minimise disruption to existing operations
Speed of construction
Availability of a skilled workforce
Innovative working methods
Use of High Output Plant
The effect of design decisions on operating costs
Is the maintenance strategy available at tender stage; if so – what is it?
Is the cost of maintenance affordable?
Ease of maintenance during the life of the assets
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Estimating and bidding should include
Design, construct and delivery of capital projects
Extended maintenance obligations – set against tendered Whole Life Cycle cost targets
The supplier’s obligations to maintain
Supplier to be responsible for maintenance of the assets for an agreed period of operation
The annual cost of maintenance to be agreed at tender stages
Benchmarked against asset performance Key Performance Indicators (KPI’s) with Variation of Price (VOP) adjustments
Adjustable against purchaser’s future decisions to upgrade or improve assets
Rail infrastructure projects – a “Whole Life Cost” procurement strategy
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Design decisions should take into account
Labour skills, plant & equipment available to maintain the assets
The impact of construction on sustainable development
Health & Safety requirements to protect the work force
Strategic asset management experience
Proposals for effective “Planned, Preventative Maintenance
The provision of modern maintenance and track renewals plant to minimise disruption to revenue earning operations.
Rail infrastructure projects – a “Whole Life Cost” procurement strategy
The Supplier’s obligations to maintain must include
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The Business Case/CAPEX and OPEX
Procurement and delivery must be seamless
Design decisions should consider maintenance and operating requirements
Team working – supplier and purchaser’s design team should work together
Choice of supplier should reflect the operating and maintenance costs of his capital proposal
Rail infrastructure projects – procurement solutions (1)
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Rail infrastructure projects – procurement solutions (2)
The effect of design decisions on operating costs
Supplier should be asked to warrant maintenance costs and
Should have his performance benchmarked against Key Performance Indicators (KPI’s)
Maintenance and operation Ease of maintenance during the life of the assets
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Measurement management software from inception to completion
Creating the business case – approximate estimating on a “Whole Life Cycle Cost” basis
Procurement and evaluation of tenders – reconciling suppliers’ offers for CAPX and OPEX with business case
Commercial management – of design, construction and maintenance
Project monitoring of supplier performance – monitored against agreed benchmarks (KPI’s)
Rail infrastructure projects – “Whole Life Cycle Cost” approach – the Quantity
Surveyor’s involvement
For details of the tools used by Quantity Surveyors and the range of services offered, see the next two slides
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Rail infrastructure projects – tools used by the Quantity Surveyor to deliver these services
Involvement from inception to completion
Measurement management systems – linked to computer aided design (CAD)
Measurement linked to industry standard programming & planning software – linked to Primavera © or other industry standards
Project management of resources – labour and plant managed by reference to the programme approved in the business case
Asset management software related to the maintenance activities – activities monitored against PPM targets; for Health and Safety records and against “Whole Life Cycle Cost Plan”
This is a selection of software – there are other industry standards
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Project monitoring at each stage of the process – 5 levels:
Estimates
Cost plans
Composite Quantities for tendering
Full Bills of Quantities for detailed negotiations of individual work sections
Whole Life Cycle Cost planning
These techniques are applied by both purchaser and supplier
Rail infrastructure projects – “Whole Life Cycle Cost” approach – the Quantity Surveyor’s
involvement – in diagrammatic form
Estimating
Cost Planning
Full Quantities
Whole Life Costing
Composite Quantities
Co-ordinated projects controls through an integrated process
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Summary
The purpose of the process is to create for purchasers and suppliers alike:-
“The Bankable Proposition”.
For further information please contact Michael Byng at michael.byng@michaelbyng.com
Estimating & Bidding for Rail Infrastructure Projects
– a Whole Life Cycle approach