How best to tender a project out?

[u587162]

I have a very large redevelopment project for my home which will take approximately one year to complete. Could you please advise how I should be tendering this out and what contracts (JCT I keep hearing) I can use to provide a schedule of works and get accurate quote?

Any tips on how best to avoid contractual problems later. I'm choosing not to use my architects project management service which will cost me 5% of the build price which I cannot afford. Chances are I will use someone I know very well but I still want to get several quotes to compare. I'm new to this whole process. Thanks.

 

[KenGMac]

u587162, Hi

You are entering a mirky area which is full of huge financial pitfalls.

If you are Un-Lucky to have seen some of the TV programmes about large value and very fancy new builds and re-furbs with all of the pitfalls of the [if you excuse the expression] well meaning home owner taking on the roll of a Project manager without any previous experience is a really, really daunting task.

You will need, a set of highly detailed plans from your Architect right down to the ironmongery, type of windows, door types, grade and exact type of flooring, Carpets. wall types, finishes, papered or painted, types of Skirting. the kitchen, and the bathroom, just do not go there the options are totally mind blowing, as you possibly know already.

Now imaging part way into the build the builder comes and tells you that need to make a decision about what alternate material to use for the doors, the skirting's, the kitchen or bathroom, all you need to do without a PM is to spend time and source the materials yourself at a cost that you can bear.

Another thing you need will be fully annotated Structural Engineers Drawings, and finally you need a bills of Quantities compiled by a Quantity Surveyor so you can hand the bills Of Quantity to your preferred set of builders to get them to supply costs to you.

Very few if any large supposedly well planned construction projects go ahead without a hitch or two, some large and some small issues, but don't forget a hold up cost your money!

if you run with the Architects PM at a cost that is in excess of what you can fund and something goes wrong you have a better chance of a claim against the Architectural firm because they were offering a seamless service.

it as seems likely you run the PM with a friend and something goes wrong there is then a bun fight between all trying to apportion blame for the increase in costs, this is why PII [Professional Indemnity Insurance] is so costly to all Architects.

Only hint I have is if you want to try? to smooth out some future problems is to issue the bills Of Quantity to the Builders, then call a meeting where all the tendering builders, you your Architect and Quantity surveyor have a face to face meeting and any Builder un-sure as to what EXACT cost to include is thrashed out with all relevant persons and participants present, this way all builders are pricing against a consistent end.

Whatever you decide to do, I for one would be interested to know how things go for you?

ken

 

[cjard]

Do you have a full time job?

Do you have a family?

Does your Someone manage building projects professionally?

 

[u587162]

Hi

Detailed reply, thanks.

I do have a full time job and yes a family.
The builder I was going to use is a school friend from 20 years ago but I have seen his work on several projects he has worked on and is working on. Main thing for me is that it is built safely and in good quality.

I was going to have the kitchen and bathrooms fitted by dedicated companies and I was just going to have him construct the shell and do the plumbing and electrics and finishing but not selection of doors, skirting Or other items which are custom liking. So the price will reflect the fitting of the customised fittings but not the purchase of them by him.

The guy will project manage this himself, it's pretty much what he does professionally for the last few years and only gets involved in the building work himself if necessary. He has been quite knowledgeable on local planning rules etc and even corrected my architect after I was given wrong advice.

The key question however still remains. What is the best contract to specify all works and quality therein?

Structural engineering construction diagrams will be given by my architect whose first actual profession is as a qualified structur engineer. I don't know about bills of quantities - never heard of that before?

Thanks.

 

[HawkEye244]

I think Ken's advice is sterling, if it was me a +5% PM cost could save you a fortune in time and errors. If you can't afford this addition what will happen if the job runs over schedule and over budget as they almost always do? If you feel somehow left out of the proces by electing an architect to do the PM job, get yourself into all face to face meetings. Usually intermin meetings ( often monthly) will discuss progress/completion along with work outstanding and any variations (there will usually be some depending on size and nature of the job). Nothing to say you can't go down every week or even every day to keep an eye on things/ At least this way you have an input without the hard-line responsibility of juggling many different things at once with little experience.

From memory jct major works building contracts are those for projects in excess of a million http://www.jctltd.co.uk/category/minor-works-building. Less than those and you may be looking at minor works contracts but it's difficult to know not knowing what's involved. Your architect should be best to advise, they will know straight away

Also just to add, to save some money on materials consider buying the sanitary ware, ironmongery, doors etc yourself, as contractors like to add on a premium just for purchasing and delivering something. For baseline materials like bricks and timber always use the builder because they will get trade discounts etc, as long as they don't lump in too much on top that is. Special items where they are unlikely to get a discount, let's say you want a really rare handmade tile somewhere, you are just as best off phoning about yourself to try and get best price because very often they will just have a price, and it will be no different than what the trade gets minus of course their overhead and profit fee ontop.

Bills of Quants are very uncommon these days except in major developments. Unless your house is a palace it is unlikely to justify such a thing as a bill of quants, in fact a quantity surveyor will need to be employed just to put one together which can lead to many thousands !

Most likely your project will need engineers drawings, a specification, a schedule, working drawings (plans/elevations) drawn up and provided by your architect

 

[cjard]

I do have a full time job and yes a family.
The builder I was going to use is a school friend from 20 years ago but I have seen his work on several projects he has worked on and is working on. Main thing for me is that it is built safely and in good quality.

Safety would largely be the preserve of your building inspector and adhering to regulatory standards; quality and the associated accuracy, minimising wastage and errors is more what your PM is for.. And it certainly is a full time job. When comparing PM quotes consider how present you're expecting your man to be; if he's charging you 10K for the equivalent of two days on your job a week you're essentially getting him for 25K a year before tax which would be incredibly cheap for someone who's the final word in stopping your most expensive life project going off the rails. I made the mistake (?) of doing the PM myself (as well as the architect/design, and even some of the building work), I also have a family and FT job and I'm finding it really hard work sharing the time out so that every demand on my time is met adequately.
There are days when I've just got to leave the contractors to it, and then I'll get time to visit site and make a list of everything that's gone wrong (rather depressing the regularity) and take either my time or money to sort it out..

Do I wish I'd hired someone to manage the project? Possibly. I'm not certain that I'd be in a vastly better position right now, or that I'd have saved myself his fee but I'm certain the wife and child would have appreciated it, and I'd probably sleep better. A builder friend of mine who's very good offers his services out at £25 an hour, and if he's managing a large project, he does that for an extra £5 an hour if he's working on the project for the duration, or £15 an hour if it's all he's being asked to do on the project. He doesn't work full time at the PM rate though

If you want comments on the value youre getting from your PM quotes, you will probably need to put some absolute numbers to it rather than percentages - if all you can say is that 5% blows your budget to pieces I'd be recommending to avoid taking the project on because that's not been a realistic contingency for the majority of projects I've undertaken

 

[u587162]

For how long would you expect a PM to stay on site for assuming this is a 6-9 month project?

Are you concerned that the builder who tries to project manage this will have a bias to cut corners to save money? What else would you call a builder friend who has project manages for the last 5 years but has the experience of building himself in his earlier years but now contracts out to workers he employs to do the work whilst he overlooks. Surely this is the type of PM you want right?

Thanks.