My report is based on the 2012 Olympic Games project in London, the selected contractor submitted detailed documentation and project details which were evaluated & reviewed by the clients. All the documents deal with all type of administrative procedure, procurement strategy among others.
The report also explained all items involved in the construction industry coming from the project history, the pre-construction and post-construction stage. This report will benefit the client as to the successful completion of the project due to organize administrative procedure of procurement strategy.
1.2 Project Brief or History
The London 2012 Olympic Games, the Project Brief was a high level document that outlined the objectives and operational requirements for each project. As the project progressed through the different Royal Institute of British Architects (RIBA) stages of the design process, the brief was developed to form
Initial Brief
Design brief
Project Brief
The initial brief was used to set out the initial ODA requirements of the project and informed the development of the design through RIBA design stages A/B. It captured the data from the Project Initial Document and the London Organizing Committee of the Olympic Games and Paralympic Games (LOCOG) Venue Requirements and described what the Design team was required.
The design brief defined what will be the next phase of the project that should be delivered and informed the RIBA Stages C/D. It focused on the technical requirements and the measurable criteria defined during Design development.
The Project Brief
The London 2012 Olympic Games projects are including 1 to 10 Milestone base as below
Milestone -01, Construction of the Olympic Stadium
Milestone -02, Construction of the Aquatics Centre
Milestone -03, Construction of the Velodrome
Milestone -04, Construction of the International Broadcast Centre/Main Press Centre(IBC/MPC)
Milestone -05, Construction of the Handball and Basketball Arenas
Milestone -06, Construction of the Lee Valley White Water Centre
Milestone -07, Construction work on Eton Manor and the Royal Artillery Barracks
Milestone -08, The External Structure of the Olympic Village
Milestone -09, Construction of all Permanent Bridges
Milestone -10, Construction work at Stratford Station
Including the project photo Appendix -B
Under the Project Brief, the following are included:
Project Name- 2012 London Olympic games
Project Value- £9,298m-the Public Sector Funding Package
Contract Period – Construction took four years from 2007 to 2011.
Project Procurement Method- design and build
Awarded Main Contractor Name-
Sir Robert McAlpine
Barr Construction
Carillion
ISG
Balfour Beatty
Consultant Name :
Architect
Populous
Wilkinson Eyre Architects & KSS Design Group
Hopkins Architects, Grant Associates
Zaha Hadid Architects
Structural and services engineers, Planning
Buro Happold
Expedition Engineering
Hyland Edgar Driver
Ove Arup & Partners, BDSP
SKM
Savilles Hepher Dixon
Project client – IOC, LOCOG, ODA, Lee Valley Regional Park Authority,
02. Chapter
2.1. Identified Various People / Organisations
London 2012 Olympic Games Organization’s involved in key Project Stakeholders
Olympic Delivery Authority : (OAD)
The London Organizing Committee of the Olympics Games: (LOCOG)
The Greater London Authority (GLA)
British Olympic Association (BOA)
The Government (MPA, 2006).
And also in additional
The Mayor of London
Olympic Park Legacy Company
London Development Agency (LDA)
British Paralympic Association (BPA)
The Olympic Board (OB)
International Olympic Committee (IOC)
International Paralympic Committee (IPC).
Their main functions are to collectively advice and provide assurance to the board (MPA, 2006). These stakeholders have different perceptions as to what constitute success. While they all have different responsibilities towards the success of the game, their individual objectives has to be met. It is worth noting that their varying objectives were well reconciled as per the game. Shared understanding was created among them and reconciliation of objectives was easy because one of the predominant overarching aims of both the UK government and IOC for the games is sustainability among the Consultant, the main Contractor, the Sub-Contractor and the Supplier.
The more details including the Appendix-A
2.2. Financing Structure/Final Cost
The financing structures are two distinct aspects of the London 2012 Olympic Games, the preparation for the games by the ODA and LOCOG operational budget running the games.
The Secretary of state for culture, media and sport announced, in an oral Statement to the house, that the budget for the preparation of the 2012 London Olympics had increased from an initial estimate budget of £ 2.375 billion, at the time of the bid the estimated cost of the Games was £4 billion: £3 billion for the Olympic Park and an element for elite and community sport; and £1 billion as part of the wider Lower Lea Valley regeneration (excluding tax and wider security costs).
Following a review by the Government a revised funding cost was announced in March 2007 of £9.325billion, as details below Table-01.
The Budget as Announced for the Games on 15 March 2007
Item
Description
Amount Million (£)
1
Core Olympic Costs -Olympic Delivery Authority(ODA)
3,081.00
2
Infrastructure and regeneration costs associated with the Olympic park and other venues
1,673.00
3
Contingency (Excluding Tax)
500.00
4
Total ( Net of Tax )(1+2+3)
5,254.00
5
Other (Non ODA),Olympic Cost
388.00
Other Provisions
Policing and Wider Security
600.00
Tax (on ODA Costs)
836.00
General programme Contingency (including tax)
2,247.00
6
Total Provisions
3,683.00
Grand Total (4+5+6)
9,325.00
Overall Revised Budget
9,325.00
Table -01
The 2012 Olympic Games over-all budget (9.325 Billion (£) were distributed to all stockholders and summarized as follows on Table-02.
Public Funding Available
Item
Description
Amount Billion (£)
1
Exchequer
5.975
2
National Lottery
2.175
3
Greater London Authority
0.925
4
London Development Agency
0.250
Total Cost(1+2+3+4)
9.325
Table -02
However, on 24 March 2010, the Awarded budget was reduced to £ 27m and breakdown as follows Table 03:
Item
Description
Amount Million (£)
1
Olympic Delivery Authority(ODA)
ODA Base Cost Including VAT
6,100.00
Programme Contingency
968.00
Funders Contingency
1,004.00
Total Available to ODA
8,072.00
2
Non-Olympic Delivery Authority(ODA)
Elite and Community Sports
290.00
Paralympic Games
66.00
Look of London
32.00
Security
600.00
Security Contingency
238.00
Total Non ODA
1,226.00
3
Total Public Sector Funding Package (1+2)
9,298.00
Overall Original Budget
9,298.00
Table -03
The 2012 Olympic Games over-all Revised budget (9.298 Billion (£) were distributed to all stockholders and summarized as follows on Table-04.
Sources of Funding
Item
Description
Amount Billion (£)
1
National Lottery
2.175
2
London (GLA and LDA)
0.875
3
Central Government
6.248
Total Cost(1+2+3)
9.298
Table -04
Unveiling the government’s final quarterly budget update, the sports minister, Hugh Robertson, said that at a “conservative estimate” the final cost of the Games would be £8.921billion against an overall original budget of £9.298billion
2.3. Project Procurement Structure/Methodology
The specific new construction of Olympic stadium, the project leadership has been established, and then the procurement method will be accepted. The project was procured on a design and build basis.
A method where the contractor is responsible for undertaking both the design and the construction of the work in return for a lump sum price.
There are variants on this option depending on the degree to which initial design is included in the client’s requirements. Appointment of a contractor is often by two stages tendering, thus keeping a competitive element, but not expecting every tenderer to produce full proposals. The client’s requirements can range from a simple accommodation schedule to a fully worked out scheme design, but generally should be matched by the contractor’s proposal
For design and build procurement there are three main types of contract:
Package Deal or Turnkey Contract
Design and Build Contracts – Contractors Design Obligations
Contractor’s Design for Specific Elements Only
The project procurement plan includes the following:
Sourcing materials with low embodied carbon
Minimizing waste at source, promoting use of secondary materials
Policies on eco
Ecologically sensitive materials: e.g Timber and Food
Ethical procurement and fair employment
Sourcing healthy materials and ensuring health and safety on site (ODA, 2009:1)
The procurement plan is being implemented by a rigorous procurement process. All partners and collaborators will have to meet individual and overall criteria in order to contribute to the successful outcome of the plan. This will have to be made visible through product and service supply, engagement in relevant projects, promotion of behavioral change, consumers, employees and supply chains (ODA, 2009).
2.4. Main Forms of Construction Contract/Tender Document
The New Engineering Contract (NEC) was used to facilitate all the necessary documents during the bidding and awarding stage. Both parties, the Client and the Contractor, agreed and closed the project based on the NEC contract.
The NEC3 suite of contracts was selected because it provided the following key attributes in response to ODA, s Requirements.
A flexible approach, providing a range of contract solutions relative to the level of design information available and procurement option being considered.
The pro-active management of risk as an inherent and fundamental element of the entire contract forms.
A collaborative approach supporting timely delivery, which is fundamental to ODA.
Full visibility of cost (Except under option a contracts), supporting effective programme budget management.
ODA has number of obligations under the London Olympic Games Act 2006, particularly around risk, brand protection and stakeholder rights, which necessitated changes to the standard NEC3 Contract Forms. These changes included,
Additional collateral warranties for key interested parties
Restrictions in change of ownership of tier 1 contractors
Enhanced conflict of interest provisions
Items
NEC3 Contract and Option
Usage
Rationale
1
Engineering and Construction Contract Option- C (Target contract with activity schedule)
Major and complex venues and infrastructure
Target price was best fit to developing specification
2
Engineering and Construction Contract Option- A ( Priced contract with activity schedule)
Other venues
Designs were firm allowing cost certainty
3
Term Service Contrcat Option -A ( Priced contract with activity schedule)
Logistics and security contracts
Pricing schedules accommodated required flexibility in both volume of services required and scale ( through enhanced services schedules)
The New Engineering Contract 2005 version 3 Engineering and Construction Contract recommends that the various methods of ‘specifying’ the works should be adopted
Option A & C Activity Schedule
Option B & D Bill of Quantities
Option E & F A traditional ‘Specifications’ or drawing
The Olympic Delivery Authority used procurement through e-procurement system and methodology, particularly an evaluation system to enable delivery of its policy objectives and ambitions as follows:
Sustainability and Legacy
Design and Accessibility
Equality and Inclusion
Employment and Skills
Health, Safety and Security
Delivery of London Olympic Stadium in Time, Cost and Quality
Tender documentations are:
Activity schedule
Method statement
Working drawing
BOQ
Quantified Specification
Work Schedules ( the word ‘Item’ denotes pricing)
Specification + Contract Sum Analysis or Schedule of Rates
03. Chapter
3.1. Construction Technology Challenges
The London 2012 Olympic Games project was constructed with many construction challenges and new construction technologies. Some of which are as follows :
Low-carbon concrete with 40 percent less embodied carbon was used for concreting structures.
Surplus gas pipes were used to build the top ring of the Stadium.
Recycled containers were used as toilet facilities.
Demolished existing structures were placed on top of the ground that served as a solid base for the construction.
To reduce the loads on the project, 75 percent lightweight steel materials were utilized in the construction.
As part of the landscaping works. 500,000 plants were planted in the Olympic Park’s wetland areas
Due to new technologies that were adopted, only 10,000 tons of steel were used.
Tensile roofing’s were used as to cover the ground bowl-like stadium.
The project settled at 2,821 feet perimeter land and stands at 197 feet high.
The Delivery Partner was comprised of three construction industry leaders, who were responsible for the construction of all new venues and infrastructure needed for the London 2012 Olympic and Paralympic Games. The Olympic Park will house nine state-of-the-art venues including the Olympic stadium, velodrome and aquatics center. New Technology was used to fast track the project and attained the completion date of the Project.
As the time is the essence, the constructions were done on a 24 hour basis as the design required new methodology to meet the criteria of the Project Specifications
Methodological challenges that are anticipated include:
Achieving adequate coverage of project-level evaluations, within the bounds of practicality, across legacy and sub-legacy themes, geography, demographics, project size/type etc;
The complexity of the task and the interdependencies that exist between outcomes and impacts of different projects and programmes;
The aggregation and synthesis of different measures and indicators, which may also be of varying quality;
Assessing the impact and additionality of interventions in a consistent fashion;
Ensuring value for money and benefits are being measured or estimated using credible evidence;
Measuring intangible impacts using experimental measures such as subjective well-being and through custom techniques such as media content analysis;
Measuring wider strategic impacts and added value generated through coordination of the organisations involved in planning and delivering legacy
3.2. Health and Safety Records/Achievement
The HSE has published the first in a series of research reports on the London 2012 Olympics as part of a concerted effort to circulate the health and safety lessons learned from the Stratford project among the wider construction industry.
There are so many magnificent aspects of London 2012 when it comes to Safety issues and this was achieved through the excellent safety record, especially during the construction phase.
The park was built with zero construction fatalities. It shows the approaches to gain a good occupational Safety and Health. Some of the achievements are as follows:
The Royal Society for the Prevention of Accidents (RoSPA) honored the Olympic Delivery Authority in a ceremony.
More than 12,500 workers helped construct the venues and the ‘Big Build’ of the site was hailed as the safest construction of an Olympic Stadium.
The Executive started working with the Olympic Delivery Authority (ODA) soon after London was awarded the 2012 Olympic and Paralympic Games and set out clear targets of what standards were expected, encouraging strong leadership and sharing of good practice. Up to this month, the HSE has received reports of only 114 injuries and eight dangerous occurrences that occurred during the project’s 66 million hours of work.
And also the ODA’s commitment to health and safety has been recognised by the British Safety Council (BSC) with its 5-star award, following an independent, rigorous audit of the ODA’s health and safety management system and processes, in which the ODA received a score of 98 per cent.
The ODA was also awarded the Sword of Honour, one of the most prestigious international health and safety accolades that an organization can receive, which is designed to encourage and reward organizations that work to best practice. All applicants must have already received 5 stars from the BSC
04. Chapter
4.1. Conclusion
Based on the above submission, it can be concluded that the Construction of the facilities needed for the 2012 London Olympic Games were successfully done and completed to the satisfaction of the Client. This achievement was due to the following:
Thorough evaluation of the Project Requirements as reviewed and evaluated by the Client.
An organized procurement strategy within the UK and International market environments.
Teamwork and coordination among the stakeholders
Utilizing the familiar form of contract in UK
Proper implementation of all construction methodology accepted in the construction industry.
Proper planning and implementation to meet the required completion date.
Utilizing new construction technologies and materials.
Likewise, a complete record for health and safety were properly organized. A strict implementation of a Safety Plan were followed resulting to no fatalities or major injuries recorded.
With respect to the financial aspect of the project, variation orders and cost were not clearly indicated as this will have a big impact on the total and final cost of the project involved.
Nevertheless, the over-all aspect of the report can be recommended as it clearly shows that all necessary strategies and construction methodology will have a successful outcome as expected by the client specifically the completion of the project as per the time schedule, work quality and project cost.
05. Chapter
5.1. Bibliography
Olayide Mutiu Adedeji, Senior Quantity Surveyor, February 20,2013
Company : CEG International
Contact : Tel- +974-44551188
Fax +974-44551144
E-Mail: [email protected]
Web: www.ceg-qatar.com
Post: P.O. Box -3973, Doha Qatar
Mohamed Azhar, Senior Quantity Surveyor, February 22,2013
Company : CEG International
Contact : Tel +974-44551188
Fax +974-44551144
E-Mail: [email protected]
Web: www.ceg-qatar.com
Post: P.O. Box -3973, Doha Qatar
Elajun E. Custodio, Civil Engineer, March 20,2013
Company : CEG International
Contact : Tel- +974-44551188
Fax +974-44551144
E-Mail: [email protected]
Web: www.ceg-qatar.com
Post: P.O. Box -3973, Doha Qatar
Mahmud Anees Senior Quantity Surveyor, March 15,2013
Company : KESO
Contact : E-Mail: anees @yahoo.com
Web: www.ceg-qatar.com
Post: P.O. Box -3973, Doha Qatar
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