Our third Blog examines the Customer Trade Contract control benefits with Construction Management (CM). We also detail Scribe’s procurement process and how we harness these advantages.

Trade Contract Control Benefits of Construction Management

Under CM the Construction Manager co-ordinates and carries out the Trade Contractor procurement. They lead and administer the process but the Customer retains full control. As the party entering into the Trade Contract, the Customer has the full and final say.

Scribe will develop a comprehensive procurement strategy for Customer approval. Then manage and track progress against a detailed procurement schedule.

We maintain a database of trusted supply chain partners. Where suitable we conduct prequalification to ensure the right Trade Contractors are tendering.

Scribe develop the tender in liaison with the Design Team. We engage with the shortlisted tenderers, resolving any queries during the tender period. Then we secure their most competitive price, programme, and (where applicable) design.

We analyse the tender returns to ensure compliance. Scribe cross reference opportunity and risk to ensure the Customer benefits from each specialist’s project review. Our tender analysis always focuses on best value for the Customer, not lowest price. Where appropriate, the analysis can involve a scoring mechanism and Customer specific KPIs. All presented value engineering proposals are for the full gain of the Customer.

Upon analysis, we present a recommendation for the Customer’s sign-off. Included is a summary of the Trade Contractor’s competence, work package scope, and the proposed contract details. Once approved we facilitate execution of the Trade Contract for our onward administration.

Under CM, the Customer can be an integral part of the procurement process. From full transparency of tender returns to attending tender meetings. They can contribute to the evaluation process and gain insight of the Trade Contractor’s ability to deliver. Surety via bonds and guarantees is also still available direct from the Trade Contractor carrying out the works.

In Design & Build or Traditional procurement methods, the Customer may believe their risks are passed on to the Main Contractor. But the vast majority do not self-deliver and have to Sub-Contract that work out. Customers have little to no control over who these parties are. They have limited visibility over their suitability and standing to deliver. Customers may not be party to or have control over their design intent. The proposed delivery team is not inspected by the Customer. And there is seldom any knowledge of sub-sub-contractors further down the supply chain. All too often, if a significant Sub-Contractor fails then the Main Contractor fails.

Where Main Contractors do self-deliver, in-house trading is often forced upon the Customer. Even where the design or budget does not allow this, loosing the benefit of the wider market.

Under Design & Build or Traditional contracting, the Main Contractor retains all buying gains. The Customer’s benefit of value engineering is watered down when presented. And the Customer has no true understanding of actual cost of their project.

CM provides a transparent procurement process. The Customer maintains entire control and retains full visibility. This is especially crucial under the Building Safety Act 2022, where competence is of paramount concern. Scribe’s experienced professionals manage this process, acting exclusively on behalf of the Customer.

Summary

Construction Management provides Customers with added control and transparency of procurement. The benefits of controlling Trade Contractors with Construction Management include:

• Full transparency and involvement of the tender process available
• Customer approval of each Trade Contractor before appointment available
• Clarity over project risk allocation
• Customer retains full commercial betterment of buying gains and value engineering
• Bonds, guarantees and warranties available, direct with the specialist carrying out the works
• Compliance with the Building Safety Act competence principles

Contact Scribe to apply the appointment benefits of Construction Management on your project. Please comment below, and read our other Blogs.

contact@scribe.co.uk