During the early phases of this project, due to the emergency nature of the procurement, and the uncertainty of what we would find once the cladding was removed United Living were unable to provide a comprehensive fixed, lump sum tender.
Lewisham Homes decided to continue working with United Living for the subsequent Phase 3 works however this was acknowledged by the Project Team as not being a traditional competitive tender process. Lewisham Homes required an independent analysis of the tender submission prior to procuring the works.
United Living were initially appointed under a JCT Intermediate Building Contract with a fixed overhead, profit and prelim model to provide Lewisham Homes with some level of cost certainty.
United Living engaged in a 3 quote “business case” process with the Contract Administrator which enabled us to build up trust throughout the team as United Living provided total transparency on their costs and that of their supply chain.
These quotes were reviewed by the Project Team and following agreement of what the most commercially advantageous quote was United Living appointed the most appropriate supply chain.
United Living provided copies of invoices to the Contract Administrator on an Open Book basis upon completion of the works to substantiate costs claimed.
The Final account is based on actual cost following a review of the evidence provided to the Contract Administrator.
As part of the Phase 3 tender review process the Employer’s Agent undertook a similar Value for Money exercise following submission of United Livings tender. The build-up of United Livings fixed costs were subject to intense scrutiny by the Employer’s Agent to establish value for money. Furthermore as part of the tender review process United Living provided 3 quotes for the main elements of work including Terracotta cladding, window renewal and the installation of smoke control and Automatic Opening Vents (AOVs).
Value for money is evidenced by the commercial teams, through both a rigorous and transparent approach to supply chain appointment, covering professional services, materials, products, labour and preliminary requirements.
Throughout all phases of the contract Commercial Review meetings are held on a monthly basis. A standard suite of contract reporting was developed as the contract progressed to summarise the information contained within the monthly application. Internally this included a high level, phase by phase summary, a detailed summary separated out into individual phases and trade packages. A separate report to enable London Borough of Lewisham to report to MHCLG was also issued on a monthly basis by United Living. All of these reports summarised the previous certified amount, the movement in the month, the total applied for to date and an estimated cost at completion.