News

Summer 2009

The current economic climate within the construction industry has resulted in a decline in confidence among many employers, although in terms of “value for money” there has never been a better time to build with tenders regularly coming in below budgeting expectations.

The current competitiveness of tenders may result in on-site difficulties, however, as insufficient profit margins can lead to a drop in quality and a willingness by both main contractors and sub-contractors to seek ways of adding cost once they are on site.

In order to maintain quality and to ensure that a contract will run as smoothly as possible it is therefore important that careful thought is given to methods of procurement and selection of contractors / sub-contractors.

Single stage selective tendering will generally generate a lower tender price than a two stage procurement route. Given that contractors may be looking to gain an advantage once a contract is let we often recommend, where appropriate, the use of bills of quantities as these give a more even basis for tender and reduce the contractor's risk and provides the best basis for valuing changes.

Two stage selective tendering or negotiated contracts will result in higher tender levels than traditional competitive single stage procurement, but ensuring that a contractor is able to receive a reasonable profit expectation without pressuring his sub-contractors will we believe, benefit the employer in terms of quality and probably time.

Whichever procurement method is selected, clear and detailed tender documentation is essential to enable contractors to put forward comprehensive tenders and to reduce the scope for cost escalation once a project proceeds on site.

Completed Projects

We have seen the completion of the Mansel Court refurbishment and Grafton Centre Car Park refurbishment for Cambridge City Council as well as a major refurbishment at the Somerfield Hospital in Maidstone (value £2.5m).

The multi-phase development of Linton Health Centre has also been successfully completed and work on four large private residences have either reached or are nearing final completion, as has the work at the Jarman Centre at Newmarket (Girl Guild Centre).

In addition to these several minor works projects for the University of Cambridge, Estate Management have also been completed.

Projects on site

Projects at present on site include the refurbishment of private hospital accommodation for BMI (value £2m), the relocation of a Field Station for the University of Cambridge (value £1.3m), refurbishment of a Student Hostel for Kings College Cambridge (value £4.4m) and the construction of a new Clubhouse and Changing Rooms for Huntingdon Town Football Club (value £830k).

Also currently under construction are projects for the University of Cambridge at The Judge Business School (Lecture Theatre), the New Museum site and George Nuttall Close (flat refurbishment).

Works are also nearing completion for Cambridge Crystallographic Data Centre (improved ventilation works) and and Huntingdon Gymnasium (phase 1 alterations and extensions).


Future projects

Work is about to commence on site for new accommodation for Murray Edwards College (value £200k) and laboratory refurbishment at the Downing Site for the University of Cambridge (value £650k)

Currently out to tender using single stage procurement (Bills of Quantities) is the refurbishment of existing offices to provide teaching accommodation for the Cambridge Centre for Sixth Form Studies.

Office relocation

Our new address is

Moor Barn Farmhouse
Madingley Road
Coton
Cambridge
CB23 7PG

Tel  : 01954 212299
Fax : 01954 214581

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Sherriff Tiplady Associates Ltd