Scenario
You have recently been appointed as an Assistant Estimator for a large contracting organisation
based in London United Kingdom. The estimating
... [Show More] department has just received tender
documentation for the construction of housing units within a 30-mile radius of the organisation’s
main office. Although the estimating department is experiencing a high volume of tenders, most of
them have been for either schools or healthcare centres. In the last staff meeting, the Managing
Director indicated the need for the organisation to diversify by considering projects within the
housing sector and specifically private developers. Receiving tender documents for the housing
units seems to be the perfect opportunity for not only entering into the desired market but widening
the organisation’s portfolio to include private developers.
Construction work is scheduled to start during the winter months, with an indicative duration of 10
months. During the previous year, the construction was greatly affected by a harsh winter, which led
to almost two months of construction work grounding to a halt. This was due to heavy snowfall and
very low temperatures. Apart from the snow, the construction industry also experienced a month of
wet conditions due to heavy rains.
The contract documents provided include but not limited to drawings and a survey report detailing
possibility of existing services. The report identifies the soil type as being generally clay, with an
area measuring approximately 1m2
that seems to indicate the presence of rock. In addition, the site
is located in an area known to have previously been a waste dumping ground for the local authority.
The client is a first-time developer, with very limited knowledge in construction. Although the client
claims to have some experience with small developments, it is evident from the initial meetings that
there is need for guidance to be provided with regards to having realistic expectations.
Task
The Chief estimator has asked you to write a report, that discusses your organisation’s approach for
the preparation of the tender. The report should include five sections addressing the items listed
below.
a. Identify and analyse two key considerations relevant to the scenario that will influence your
organisation’s decision whether or not to submit a tender.
(Approximately 400 words)
b. The client is looking to procure the project using a design & build procurement route with no
bills of quantities provided. Your organisation has the option of using operational estimating
as an alternative pricing method.
• Discuss the operational estimating approach, the constituents of the rates, benefits and
risks as an alternative pricing method to your organisation. Illustrate your discussion by
including an example of pricing of the foundation for one of the houses.
(approximately 400 words)
c. As an experienced contractor, it is critical that guidance is provided to the client regarding
sustainability.
• Critically analyse two example proposals that can contribute towards reducing CO2
emissions. The proposals need to be relevant to the design phase of the project.
(approximately 400 words)
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d. You are responsible for the assessment of project risks and uncertainties during the tender
estimating process.
• Identify and discuss two project risks directly related to the project scenario that should
be considered and how they can be mitigated.
(approximately 500 words)
e. The client is considering using modern methods of construction (MMC) which will involve
offsite manufacturing. This alternative to construction will require assembling of component
parts on site using a crane.
• Explain how preliminary items are priced with specific reference to hiring of a crane.
Illustrate your discussion using a pricing example based on the estimating data
below.
(approximately 400 words)
Crane hire pricing data Cost
Contract period 20 weeks
Hire of crane £400/week
Transport to & from site £1,200/trip
Hire of driver 25hrs per week @ £28.50/hr
The report should contain a cover sheet, contents list, an introduction (approximately 150 words)
and a conclusion (approximately 150 words). An executive summary and recommendations are not
required. [Show Less]