Prepare a report for DID identifying a proposed procurement strategy and related contract strategy / strategies for the project.

Assignment Brief 

Background

You are working for a property consultancy firm engaged as project managers for the refurbishment and extension of an industrial estate recently acquired by a client of your firm, a successful high end privately owned residential property developer (Dalrymple Quality Homes Ltd (DQH)). The scheme is being taken forward by your firm’s client to provide a base for its new modular construction and construction robotics divisions.

DQH has created a wholly owned subsidiary (Dalrymple Industrial Developments Ltd (DID)) to own and manage the industrial estate. The project has two phases. The first involves the refurbishment and recladding of the four existing single storey steel-framed buildings on the estate. These buildings range in size from 2,500m2 to 8,000m2. These units will be leased by DID to the construction robotics division (Dalrymple Robotics Ltd).

The second phase involves the construction of two 50,000m2 high bay steel framed buildings, together with associated infrastructure works and landscaping on land purchased by your client adjacent to the industrial estate. The buildings will be leased by DID to the modular buildings division (Dalrymple Modular Ltd).

The client’s intention is to seek planning permission for the second phase of the project extension to the industrial estate during the course of the refurbishment works. Its present intention is to implement the permission for the extension as soon as possible after grant of planning permission but it wants the ability to defer or postpone indefinitely construction of the second unit should the circumstances of its business change.

Task

Prepare a report for DID identifying a proposed procurement strategy and related contract strategy / strategies for the project. [The report should make clear the options considered and the reasons underpinning the selection of your favoured option over the others considered].

Your submission should take the form of a short report (in the order of 2,500 – 3,000 words), supported where appropriate by tables, diagrams etc. either in the body of the text or as appendices. Such tables etc. do not form part of the word count.

You must provide a clear justification for your recommended approach to packaging the project and procuring the works and services contracts required for the project.

Coursework: Written submission (Report) (70% weighting)

This will be based on a hypothetical project and will require you to prepare a report summarising the procurement and contract strategies you would recommend in order to secure a successful outcome for the client.

Eligibility of students for an ‘alternative assessment’

No alternative assignment is offered for this module

2500-3000 words

Sample Answer

Dalrymple Industrial Developments Ltd (DID): Procurement and Contract Strategy Report

1. Executive Summary

This report provides a recommended procurement and contract strategy for Dalrymple Industrial Developments Ltd (DID), supporting the two-phase industrial development project. Phase 1 involves the refurbishment and recladding of four existing units, while Phase 2 includes the construction of two new high bay units. This strategy considers the project`s complexity, potential risks, the client`s business objectives, flexibility requirements, and value for money.

2. Introduction

Dalrymple Industrial Developments Ltd (DID), a subsidiary of Dalrymple Quality Homes Ltd (DQH), is overseeing the redevelopment of an industrial estate to house two new divisions: Dalrymple Robotics Ltd and Dalrymple Modular Ltd. The project`s two phases differ in complexity and scale, necessitating a tailored procurement and contract approach. This report outlines suitable procurement strategies, evaluates available options, and justifies the preferred strategy for both phases.

3. Project Overview

3.1 Phase 1: Refurbishment & Recladding

• Refurbishment of four single-storey steel-framed buildings (2,500–8,000 m²).

• Urgent timeline to accommodate Dalrymple Robotics Ltd.

• Operational estate, minimal disruption required.

3.2 Phase 2: New Build Development

• Construction of two 50,000 m² high-bay buildings.

• Associated infrastructure and landscaping.

• Planning to be submitted during Phase 1.

• Flexibility required: Option to defer or cancel one building.

4. Procurement Strategy: Key Considerations

A good procurement strategy must balance time, cost, quality, risk, flexibility, and client control. DID’s objectives require:

• Fast mobilisation for Phase 1.

• Design and quality control to meet high-tech facility standards.

• Flexibility in Phase 2 implementation.

• Risk management and cost certainty.

• Value for money and contractor performance assurance.

5. Procurement Strategy Options Considered

5.1 Traditional Procurement

• Features: Design by client, then competitively tendered.

• Pros: High design control, transparent tendering.

• Cons: Slower delivery; fragmented responsibility.

5.2 Design and Build (D&B)

• Features: Contractor is responsible for both design and construction.

• Pros: Fast-track potential, single point of responsibility.

• Cons: Less design control, possible compromises in quality.

5.3 Construction Management (CM)

• Features: Client appoints multiple trade contractors, coordinated by a Construction Manager.

• Pros: Flexible, overlapping design and build, fast track.

• Cons: High client involvement and risk; cost uncertainty.

5.4 Management Contracting

• Features: Management Contractor manages package contractors.

• Pros: Good for complex projects, phased work, and overlapping trades.

• Cons: More expensive; performance risk with separate trade packages.

5.5 Two-Stage Tendering

• Features: Contractor engaged early based on outline scope; final cost agreed in Stage 2.

• Pros: Collaboration, early involvement, risk mitigation.

• Cons: Less competitive final price.

Continued...