Refurbishment Of The Old Hospital Building Construction Essay

Refurbishment Of The Old Hospital piddleing Construction Essay health issues argon the primary concern of the government and needs to be wanglet with proud priority. This digest is about first principle infirmary trust which is under per smorgasbording disposed(p) the available hospital infrastructure. The desired result is to improve the hospital infrastructure and provide relief to the local anesthetic community.There are two creams available1) sensitive Build suffer2) Refurbishment of the old hospital building.The new build interpret seems to be a sound financial investment with regards to the public domain procural. Bene pass aways to be derived from this would be lower working(a) costs, lower maintenance costs, lower energy consumption, better budget control, high caliber, ameliorate functionality, and seas provided completion of the project. In Public sector procurance great deal of preference should also be given to the full life prise of the project benigna nt of than short circuit term capital cost.This report is a consideration of different procurement options with respect to addressing the objectives of the client and to achieve best value for money with a focal point on the public sector procurement. It also presents a project management plan that includes various tasks which needs to be carried out for successful completion of the project. The wee Breakdown structure (WBS), linear responsibility Chart (LRC) and Action Plan (AP) are utilise to illustrate the type and scope of work which needs to be done over the entire life of the project.By taking every(prenominal) these factors in to consideration the integrated approach in the form of Design and build- Novation is adjudged as the best form of procurement. The main points which make this formation reliable are speed of construction, single point responsibility (usually a contractor who would be trusty for managing the designing and construction of the project) savings in c ost along with maintain design standards throughout the phases of the project. (Masterman, 2006, pp. 66-90)INTRODUCTIONThe project is to provide a 6 storey hospital building providing acute care, accident and emergency, maternity and outpatient provision according to NHS Estates own design standards. Majority of the building will be given to yardbird services.The new build project option would comprise non only of the hospital building but also the associated road works, parking, hard and soft landscaping drainage and external works along with office accommodation, restaurant, and warehouse and delivery areas. The new build site is derelict and has been demolished to the ground level. It was used by heavy industry and has slabs and foundation remaining. The site is also subjected to subsidence and requires ground stabilization. There is a derelict pedestrian bridge which needs to be demolished. withal there are mineshafts which need to be blocked before the commencement of const ruction as it would be a major safety hazard.The refurbishment option of the existing building would involve square refurbishment and remodeling of the existing building. This would require intricate phasing and planning to allow its healthcare activities to continue. This would hinder the progress of the project which could in turn affect project completion times. The trust thunder mugnot afford this as they have limited time in their work force to make the facilities movemental. Moreover substantial refurbishment and remodeling would involve costs which will be highly uncertain.The client is familiar with only conventional or the traditional procurement clay. Traditional schema requires design to be completed well before the material construction commences. The sequential, fragmented and confrontational nature of the traditional system apprize result in lengthy design and construction periods, poor communication between clients and the project team and problems of buildab ility. (Masterman, 2006). The client has only 48 months to get the improved facilities operational. Hence, due to time constraint the client needs recommendation for new types of procurement systems to cope up with project deadlines and budget.STAKEHOLDERSA project stakeholder is a soul or a group of people who have a vested cheer in the success of the project and the environment deep down which the project operates. (Olander Landin, 2005, p. 1).The inference is that stakeholder go off be an individual(a) or a group of individuals which have the ply to be a threat or a eudaemonia for the project. invent managers should try to address the concerns of all stakeholders with efficacious communication to avoid conflicts and controversies in the project to ensure smooth completion of the project. (Olander Landin, 2005, pp. 1-8). Lack of integral engagement with stakeholders could also clear to failure of the project. They form an integral part of the project and one of the cru cial factors in smooth completion of project. On the other hand, Business also has some stake in the individuals or groups for utilise their resources or their influences for running the business. (Walker Marr, 2001)For this purpose they have to be analysed in the following way Identification of stakeholdersStakeholder mapping by Power/interest matrix Power/predictability matrixStakeholder ManagementIDENTIFICATION OF STAKEHOLDERSDifferent stakeholders that can be associated with this project will be ABC hospital trust, City council local authority, Project manager, Architects, Contractors, Material Suppliers, Site Engineer, Structural consultants, NHS, Health and safety regulations, Wild life conservation, Insurance comp both, General Public- end users(patients and visitors),Hospital employees, Fire department.STAKEHOLDER MAPPINGStakeholder mapping can be done by arranging all the stakeholders of this hospital project into Power/Level of interest matrix and Power/Predictability matrix.Power / Level of refer Matrix for this projectStakeholders with low level of interests and low power are easy to manage and would require minimal effort. (Newcombe, 2003)Stakeholders with high level of interests and low power to influence them needs to be informed about the major closes of the project. (Newcombe, 2003)Stakeholders with low level of interest but with high power should be dealt with carefully and should be kept satisfied, failing to which their level of interests will rise and they will become stakeholders with high power and high level of interest. (Newcombe, 2003)Stakeholders with high level of interest and high power are key players and should be given top priority. The strategy of the project should have their consent at all times. (Newcombe, 2003)Power / Predictability Matrix for this projectAccording to Power/Predictability matrix following inferences can be obtainedStakeholders with low power and low predictability are manageable.Stakeholders with low power and high predictability will seldom cause any problems.STAKEHOLDER MANAGEMENT PROCESS.Project success criteria should be carefully evaluated in terms of time, cost and performance which might be influenced by or affect or concern the stakeholders directly. For effective execution of the project, resources should be available on time. These resources many a times would be at the discretion of the stakeholders. So after carefully analyzing stakeholder groups and interest levels along with predictability, stakeholder epitome with respect to stakeholders attitude should be carried out. (Turner, 2003, pp. 103-107)Stakeholder attitude can be accessed by the current level of co-occurrence for the project by key stakeholders. With progress of the project, the stakeholders attitude towards the project can change which needs to be carefully monitored by the project manager. The different attitudes of the stakeholders can be summarized as followsChanging the negative stakeholders attit ude will require efforts by the project team. Key stakeholders should be the main focus of the team as they can affect the success of the project. When the stakeholders current commitment towards the project match their required commitment level then they must not be ignored, as ignoring them might change their attitude towards the project which is not desirable for the progress of the project. (Turner, 2003, pp. 109-110)STAKE HOLDER OBJECTIVESThe main objective of the stakeholders would be to get high quality of health care operational within precincts of time, budget and quality.Future developments should be sustainable.CLIENT OBJECTIVESTo select the best procurement route to achieve better value for money and to ensure the requirements of the stakeholders are met.To ensure the new facilities are in accordance with NHS design panel.To ensure that the project is completed within the time draw of 48 months given to them from the government.PROCUREMENT SYSTEMSProcurement is a strate gy to satisfy clients development and/or operational needs with respect to the provision of constructed facilities for a trenchant life daily round-By International Commission on Building (CIB W92) during its 1997 meeting. (Masterman, 2006, pp. 26-27)It can also be define as the process that involves design, specification and acquisition of goods and services. (Carter Kirby, 2006)Procurement not only should encompass the method in design and construction of the project but also the cultural, economic, managerial, political and environmental issues raised by their implementation (McDermott Rowlinson, 1999) compartmentalization OF PROCUREMENT SYSTEMSProcurement systems can be classified as followsSeparated procurement systemIntegrated procurement systemManagement oriented procurement systemDiscretionary system1)Separated procurement systemsThis type of system also known as the conventional system has the responsibilities for design and construction allotted to withdraw teams suc h as design team, quantity surveyors, contractors etc. For proper execution of the project the client has to deal with all the members of the project team and is himself responsible for documentation and lucks gnarled. Traditional system of procurement comes under this category. (Masterman, 2006, p. 28)2)Integrated procurement systemsThis type of system deals with responsibilities for the design and construction bestowed usually on the contractor. Hence in theory, the client has to deal with only a single organization. Design and build, novated design and build, package deal, turnkey approach are examples of this type of procurement system. (Masterman, 2006, p. 29).3)Management-oriented procurement systemsThis type of systems has the management opinion of the project carried out by an organization in co-ordering with designers, consultants to execute various activities of the project. The client will have a greater involvement in the project as compared to other procurement syste ms. Management contracting, construction management and design and manage come under the category of management oriented procurement systems. (Masterman, 2006, p. 29)4)Discretionary systemsThis system many a times can be argued that in reality this is not a procurement system, instead it can be means of irresponsible the project. The definition by Construction Industry Board (CIB) W92 states that It is a strategy to satisfy clients development and / or operational needs. The selection of the procurement system depends on the client and he lays down a framework for the overall administration of the project. Partnering and British Property Federation system are examples of this type. (Masterman, 2006, pp. 28-29,131-136)SELECTION OF PROCUREMENT road FOR HOSPITAL BUILDINGSelection of a procurement route involves many factors to be considered such as Project cost, completion time, quality standards required, size of the project, risks involved, complexness of the project. Based on all the above factors Design and build novated system seems to be a suitable option for the hospital project.The main factors to be considered in this project keeping in mind the requirements of ABC hospital trust areProject completion timeProject management efficiencyProject costsProvide relief to the community. outflank value for moneyProject completion time is a major factor to be considered as any delay in this project completion would result in closure of the hospital which would have a major impact on quality of health care in the city. Delay in completion time would also result in delayed commissioning of medical equipments. Design and build Novated system enables design and construction stages to be overlapped in the project enabling speedy completion of the project. Commissioning of medical equipments and making quality healthcare operational within 48 months can be achieved by utilize this procurement system.Walker (1997) agrees to Smith and Wilkins (1996) that non-tradition al procurement systems are more likely to enhance construction performance. (Morledge, Smith, Kashiwagi, 2006)As design and construction stages are overlapped it helps in improving communications between the client (ABC hospital trust) and the contractor. Hence overall project management efficiency is improved along with shorter project completion time.Certainty of project costs in this kind of procurement system can be achieved as there is no ambiguity in the clients requirements. Evidence also exists to support the widely held belief that when using this system the initial and final costs are lower than when using other methods of procurement basically as a result of diminished design costs, the integration of design and construction elements and the in-buildability of detailed design. This evidence was given march on support by the University of Readings report when it was established that projects procured using this system were a minimum 13 percent cheaper than those using mo re conventional approaches. (Masterman, 2006, p. 79) lively hospital can continue to provide some relief to the community till the new hospital building is constructed.Best value for money can be achieved by assessing on the completely life cost of the hospital rather than the initial capital costs. (Morledge, Smith, Kashiwagi, 2006). Whole life costs will not only include construction costs but also operational and maintenance cost over the life cycle of the project.WHY NEW BUILD aimBenefits of choosing a new build project with design and build- novated type of procurement (New build) as compared to refurbishment are as followsRefurbishment Existing Hospital.Design Build Novated ApproachRequirements of the client1)Uncertainty of Project costs as refurbishment can bring out many unknown costs involved in it.Certainty of Project costs.Project costs should be certain and should not exceed the estimated costs.2)Uncertainty in completion time required for the project as the hospita l would be in operation during refurbishment.Project completion time is certain. High speed of completion as it overlaps design and construction phase. Construction is 12% faster as compared to conventional systems. (Masterman, 2006, p. 78)Project should meet the 48 month deadline and should be fully operational.3)Being an old building, it will be difficult to incorporated energy efficient methods or new technology leading to higher operational costs.New buildings can accommodate for energy efficiency which would lower the operational costs of the building.Low operational cost of the building.4)Though the report show that refurbishment costs are lower as compared to new building, uncertainty in time and costs will lead to choosing new build.Construction costs arehigher but certain.Low construction costs.5)Whole life cycle costs would be more because of high operational costs throughout the life time of the project.Whole life cycle costs will be less and good value for money can be a chieved.Best value for money.6)Less energy efficient building. High costs would be involved to employ energy efficient methodsSustainability can be achieved with lower costs of accommodating energy efficient methods.Sustainable Construction.7)Difficult to accommodate changes in design of building.Can be built as per the latest design required to incorporate changes in technology.Flexibility in design to accommodate changes in technology.8)Existing health care facilities would be partially available to the public as refurbishing activities would be going on simultaneously.Existing health care facilities will be available to the public in the old hospital.Maintaining the existing healthcare facilities and upgrading them for future.SUPPLY CHAIN MANAGEMENTSupply chain management can be defined as the network of organizations that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in th e hands of the ultimate customer. (Vrijhoef Koskela, 2000)Supply chain management involves selection from different sellers and buyers inorder to get greater benefit from them rather than just focusing on an individual.Well managed write out chains often save upto 20% of the total supply chain costs whereas a poorly managed supply chain can ruin the prudence of the company. (Gattorna, 2003). Present advances made by commercial companies in understanding the ways in which the supply chain works leads to significantly enhanced expectations for people who are responsible for procuring, commissioning and managing the construction activities. (Morledge, Smith, Kashiwagi, 2006, pp. 41-42).EFFECT OF PROCUREMENT ON SUPPLY CHAINThe most problematic area in the procurement process lies in the different stages of the construction supply chain between the interfaces of organizations. (McDermott Rowlinson, 1999, p. 58) In design and build Novated approach, the contractor is responsible for design and construction of the project. Being the sole person or agency it reduces the interfaces between organizations leading to efficient supply chain management. Also, the contractor might be having business relations with suppliers which would enable faster and effective communication between them regarding the requirements of the project.EFFECT OF PROCUREMENT ON QUALITYThe designers have a task to integrate all the requirements in the project like fit for purpose, sustainable considerations, durability, strength, the aesthetics of the building, construction methods, selection of materials etc. This system has the same design team throughout the progress of the project providing better co ordination and clear objective for achieving high quality sustainability in the project.RISK MONITORINGConstruction projects require decisions to be made. Risk management is the technique used for decision making process. It is critical to have sufficient knowledge regarding the impact of th e decision. Delay in making decision for gathering more information would result in delays in the project which would be highly detrimental and decisions made without sufficient information could have huge impact on the project. Hence, Risk identification and analysis form the basic steps to be performed in any project. (Smith, Merna, Jobling, 2006)Risk identification should be done for the entire project life cycle rather than only construction phase. Selection of suitable procurement route will ensure that risks are dealt in the best possible way. Risks not identified at the inception stage would require negotiations with the contractor which may or may not be successful. If successful then it would involve increased financial implications on the part of the client leading to cost over-runs.Risk identification can be done by three different methodologiesBrainstorming sessions.Analysis of historical data.Use of Industrial checklists.Assumption analysis.Delphi technique.The primar y motive of risk identification is the recognition of potential sources of risk rather than perfect predictions of the future. Be any kind of procurement, risks are bound to be involved. We can just minimize the risks involved by selecting procurement system based on the requirements of the client and objectives of the project.Cheung (1997) suggests that risks should be allocated using the following priorities person or organization best able to control risk effectively, who can absorb it financially, who has most information to control it, who benefits most from astute it or for whom risk is normal in it business role. This can be used to allocate risk properly to the right agency which will benefit project progress. (Morledge, Smith, Kashiwagi, 2006, pp. 18-19)EFFECT OF SELECTION OF PROCUREMENT ROUTE ON RISK ALLOCATION.In design and build novated approach, it is the responsibility of the contractor to deal with design, construct and commissioning. Sometimes, operation and main tenance are also included in contractors scope of work for ensuring that it is upto the clients specification. All the risks associated are borne by the contractor rather than the client. The inference is that the clients involvement in the project would be minimal. This approach increases the risks for the contractor when compared to conventional approach. Once the specifications are finalized it is difficult for client to alter them. Altering the specifications would result in increased premiums. So it is essential to prepare the specifications carefully to avoid cost associated risks involved in the project. (Smith, Merna, Jobling, Risk allocation in Contracting Cycle, 2006).BEST VALUE FOR MONEYABC hospital trust can achieve best value for money by choosing the new build project as it would lead to reduced whole life cycle cost, lower operational and maintenance cost. Being a new building, it would be easy to accommodate for energy efficient new technologies. It would lead to su stainable construction practices which wont be possible or will be difficult to implement in refurbishing the hospital building. Design and build-novated procurement system gives high speed of construction(early completion of the project) along with certainty of cost making it the ideal procurement system for this project with respect to value for time and money.BENCHMARKING surgical processPerformance can be measured during construction byMilestone CompletionExperienced Project Managers know that it is important to check the intend and actual completion dates of project milestones and physical evidence that the work is actually completed. (Schwalbe, 2006)Performance Review meetingsPeriodic project performance review meetings with the management help in tracking the project and control project schedules. A tracking Gantt chart that compares planned and actual project schedule information can be used for reporting the information to the stakeholders of the project. (Schwalbe, 2006) Worker moraleThe morale of workers and their work behavior will give a clear indication of the schedule performance. For example If the project team members are working for extra hours every day then it will be a clear indication that the schedules are not hard-nosed and the project manager would have to add more resources or reschedule it.Performance can be measured after construction by UK Best Practice Program (BPP) by evaluating the Key Performance Indicators (KPIs) Client Satisfaction Product, Client Satisfaction-Service, Defects, Predictability-Cost, Predictability-Time, Profitability, Productivity, Construction Cost and Construction Time. (Kagioglou, Cooper, Aouad, 2001)Performance of the hospital project can also be measured in terms of productivity. Productivity of this project can be defined as the ratio of the output of a yield process to that of the input production process. In relation to the construction industry it can be calculated by ratio of work units completed during a period to its associated costs in terms of man hours or dollars. According to Thomas Kramer work hours, quantities and productivity are evaluated with baseline values used in project estimates. Effectiveness of the current performance can be measured by comparing current performance to the historical data or planned productivity. (Cox, Issa, Ahrens, 2003)RECOMMENDATION CONCLUSIONThe recommendation for ABC hospital trust is to construct a new hospital building using design and build Novated procurement system. This approach would reduce project completion time and increase cost effectiveness for the project. Quality at site, sustainability in construction activities can also be achieved with great success. Selection of this kind of approach would deliver good value for money for public sector procurement. This report also recommends periodical assessment of risk and stakeholders simultaneously with the progress of the project for avoiding conflicts. With careful monitor ing of interests of the stakeholders in the project and appropriate risk management, the hospital project can be completed in an effective manner. Finally the end result to be achieved by this project would be win-win solution for all.