James Wood – Piletech Manager
So why would involving a sub-contractor early benefit my project?
The past decade in the New
Zealand Construction market has seen an evolution in how Clients procure their
assets: from the ‘entry price trumps all’ tendering market to the-focused-on-the-end
game procurement models of design and build, Alliancing and latterly Public
Private Partnerships. This progression has typically delivered greater value
through early (and later) involvement of the Contractor to ensure alignment and
delivery of the key project drivers.
Typically, screw piling is a
design and build part of a project’s scope. The Consultant provides a
performance specification as part of the tender documentation and a pile design
and pricing is presented by the sub-contractor. This is typically completed in
less than two weeks; little time is left for value to be added.
However, real value can be
delivered through earlier involvement. The input of a specialist Engineering
team refines the design through minimising scope, reducing risk and ensuring
build-ability. This then flows through to input into the consenting process, procurement,
removing testing from the critical path and generally ensuring that the
construction phase is the encore rather than the first act.
A significant proportion of our
projects, with a variety of Clients and Consultants, are secured through
nomination. These Customers understand and trust that value can be delivered to
their project through our early involvement. A quick survey around the office
shows that these are some of our most successful projects with the best
outcomes for clients, Main Contractors and Sub-contractor
.
On the other end of the scale, we
are seeing projects coming to market that have been designed for competitive
pricing. This is predominantly focused on the rebuild in Canterbury. In these
cases there is often little thought given to rationalising overall scope of the
project, or understanding of the implications of procurement, the risks associated
with poor specifications and overall allocation of piling risks. In many of
these projects, Clients will ultimately fail to reap the value they are seeking;
the tender phase simply provides competitive tension around what has been put
forward in the documentation.
We are continuously finding more
areas where earlier involvement provides value to a project. Only last week one
Consultant mentioned that they liked working with us because it reduced the time
they invest in the piling; they could focus on the subsequent phases of the
project, increasing their and the Client’s probabilities of a successful
outcome.
Early involvement with a
sub-contractor prior to the tender phase can appear counter-intuitive – “How do
I know I am getting value for money if I can’t compare a few prices?” However, others
have understood the benefits and taken the ‘leap of faith’ - becoming some of
our most successful, repeat customers. They understand the overall drivers and ensure
that the team is aligned, setting the project up for success.
So, on your next project are you
going to be early enough to catch the worm?
We would love to hear your
feedback on this or any of the topics in the screw files. Please feel free to post
below and we will be sure to get back to you.