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Contextualise knowledge to demonstrate understanding legal system, common forms of contract and meaning of the key clauses in a standard contract

Assessment Description

Project Scenario

Anglia Ruskin University (ARU) is to build a new School of Medicine on its Chelmsford campus. The £20 million project has been in development since 2014 and awaiting approval from the General Medical Council and the allocation of places from the Government for opening by September 2021.

The Essex-based medical school is a significant development in the region and is viewed by stakeholders as part of the solution to the ongoing issues faced by the region. ARU has worked closely with a broad range of partners across the regional health economy in planning the School. The proposed project will include the construction of state-of-the-art skills facilities, specialist teaching space, lecture theatre, and a cadaveric anatomy suite.

ARU being a public body procures its major projects through the SCAPE Procure, a national framework designed to achieve measurable time, quality, cost and community benefits on every public sector project.

Both SCAPE and ARU are reasonably familiar with both NEC3 and JCT Contracts and are confident of being able to prepare their own tender document, but would like you to develop a contract strategy that ensures timely completion of the project, minimise confrontations and provide best return on the investment.

Develop a contract strategy for the project, and based on it write a short report to advise ARU on the most suitable procurement system and form of contract for the project.

Tasks

The report should not exceed 1500 words, and has to:

  1. Develop a contract strategy which include procurement plan, a flow diagram mapping the tendering process, a schedule of tender documents to be supplied to interested bidders and tender evaluation criteria to be used.
  2. Critically analyse procurement routes to justify selection of the most suitable procurement for the project.
  3. Critically evaluate the main differences between JCT and NEC3 standard forms of contracts.
  4. Draw succinct but clear conclusions that justify recommendations for the contract strategy that ensures timely completion of the project, minimized confrontations and best return on the investment to ARU

Credit will be given for argument supported by reference to relevant clauses from the Conditions of Contract. Credit will not be given for copying out clauses from the Conditions of Contract without evidence that you understand their relevance to the problem under consideration.

While some parts of the contract strategy could benefit from using table and illustrative figures, justifications need to be clearly discussed and supported by compelling evidence from research and practice. Excessive use of bullet points may affect the flow of your arguments thereby affecting the quality of the report.

Intended learning outcomes for the assessment

  1. Contextualise knowledge to demonstrate understanding legal system, common forms of contract and meaning of the key clauses in a standard contract
  2. Demonstrate, by their appropriate preparation and use, a full understanding of the inter-relationships between contract documents.
  3. Apply critical and rigorous arguments to justify a particular contractual approach
  4. Critically evaluate project situations and make informed judgement to advise clients on appropriate form of contract for particular circumstances.
  5. Use effective communication to demonstrate rigorous argument throughwritten reports and taking part in group discussions

Sample Answer

Contract Strategy Report for ARU School of Medicine Project

1. Introduction

Anglia Ruskin University (ARU) proposes to develop a £20 million School of Medicine at its Chelmsford campus. As a public sector body, ARU must ensure transparency, value for money, and risk mitigation in its procurement and contract strategy. The project’s successful delivery hinges on selecting an appropriate procurement route and standard form of contract that promotes collaboration, timely completion, and best value. This report proposes a suitable contract strategy, evaluates procurement options, compares JCT and NEC3 contracts, and presents recommendations for ARU.

2. Contract Strategy

2.1 Procurement Plan Overview

ElementDetails
Client Anglia Ruskin University (ARU)
Project School of Medicine, Chelmsford Campus
Estimated Value £20 million
Procurement Route Design and Build (via two-stage tendering)
Contract Form NEC3 Engineering and Construction Contract (ECC) Option A or C
Key Objectives Timely completion, value for money, collaboration, risk reduction
Contractual Priorities Clarity of responsibilities, early risk mitigation, flexibility, collaboration

2.2 Procurement Flow Diagram (Clean Flowchart)

Step No.Activity
1 Project Preparation
 
2 Prequalification (PQQ)
 
3 Invitation to Tender (ITT)
 
4 Tender Submission
 
5 Tender Evaluation
 
6 Preferred Contractor Selected
 
7 Stage 1: Design Development & Target Cost Agreement
 
8 Contract Signing (NEC3 Option C)
 
9 Stage 2: Construction Phase

2.3 Tender Document Schedule

DocumentPurpose
ITT Instructions Guidelines for bidders
Employer’s Requirements Functional brief, performance criteria
Preliminaries Site conditions, constraints, project objectives
Design Brief (Stage 1) Concept design, key deliverables, project milestones
Pricing Document Breakdown of cost estimates, target pricing
Contract Conditions (NEC3 ECC Draft) Legal framework, risk register, programme requirements
Health & Safety Requirements (CDM 2015) Legal compliance, risk assessments

2.4 Tender Evaluation Criteria

CriteriaWeighting (%)
Technical Capability 30%
Programme & Timeliness 25%
Cost/Value for Money 25%
Risk Management Approach 10%
Sustainability & Social Value 10%

Continued...

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