The Client’s Role

(It is recommended that this be read in conjunction with Part 1, Section 1)

3.1.1.1 INTRODUCTION

3.1.1.1 This subsection explains the client’s responsibilities through the life of a project. Although it is written for building projects, much of the advice is applicable to other types of project. In carrying out their role, clients, depending on their knowledge and expertise, will need help from their G

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consultants, project managers and other advisers, whose roles are also explained in this section. It is advisable, wherever possible, that clients obtain advice from an objective and independent adviser who will then not be involved as a consultant on the project.

This subsection aims to assist both current and future clients in setting policy and formulating strategy. It outlines their task and explains how it should be carried out. It has been written with the lay client in mind, but will also assist experienced clients and their advisers.

The success of any project will depend on the motivation given by the client.

Experienced clients may take a leading role in the procurement process; less experienced clients will need to seek advice or to appoint an adviser to assist them. Where projects are of a large or complex nature it may be advisable to consider the appointment of a project manager, who will manage the whole project on behalf of the client.

3.1.1.2 A building project represents a discrete piece of work with clear start and finish dates, providing specified benefits at accepted cost. It is unlike any other manufactured product because it has:

• a unique demand – the client’s specific need for accommodation (but future adaptability and possible disposal must not be ignored);

• a unique location – the site available for the building;

• unique constraints – the cost and time parameters for the project; and

• a unique end product – the finished building.

3.1.1.3 It has three other particular characteristics:

• the final product, although itself unique, is built up of many standard parts assembled in accordance with a series of standard rules and practices;

• its construction involves major expenditure over a comparatively short period of time; and

• the construction of a new building requires a large team of individuals and firms with particular expertise to work together to complete the project satisfactorily. This team will normally only be formed for this unique project and then be disassembled. It is unlikely that the same team will work together again, and if it does, the project is likely to be different.

Each project is, therefore, a prototype and involves a learning curve.

Project testing is rare.

3.1.1.4 (a) Effective management is vital in any construction project. The client’s prime role is to define the project and to establish a structure for the management of the project to make sure that it works.

(b) A crucial part of any effective management structure is effective communication. To perform effectively all parties should have timely access to all information relevant to their tasks and the project’s objectives and status.

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(c) The client can have substantial influence on the design of the project in respect of both functional efficiency and of overall appearance, and, therefore, has to take particular care to:

• develop a business case for the project identifying primary needs and analysing costs and benefits

• understand fully the purpose of the building; ensure that the requirements of the users are accommodated; and communicate those requirements to the designers;

• appoint architects and engineers with the proven ability of designing buildings which satisfy users’ requirements and harmonise with and contribute to the quality of the built environment. The selection of the right people is emphasised as a key to success.

(d) This subsection sets out the role and responsibilities of the client through all stages of the project.

(e) The diagram on the next page indicates the primary activities in the procurement process and when activities are performed. As can be seen the client’s role is significant with a wide range of activities to perform and implement before both the design and the construction processes. In the performance of these activities clients can expect to be supported and advised by their advisers or (if appointed) the project manager.

3.1.1.5PRIMARYACTIVITIESINTHEPROCUREMENTPROCESS Pre-design phasePre-construction phaseConstructionPost-construction Client’s roleAppoint adviser (3.1.1.6) Develop the business case for the project* (3.1.1.9) Define client’s responsibilities (3.1.1.7) Project definition (3.1.1.10) Project briefing (3.1.1.12) Appointment of PM (if appropriate) (3.1.4.7) Appointment of design and cost consultants (3.1.4.8) Procurement strategy* (3.1.1.13) Value management (3.1.4.16) Procurement strategy (3.1.1.13) Design overview* (3.1.4.12) Cost control overview* (3.1.4.13) Whole-life costs (3.1.4.15) Value engineering (3.1.4.17) Time control overview* (3.1.4.14) Quality control overview* (3.1.4.18) Appointment of constructors (3.1.4.9) Confirming the business case (3.1.1.9) Design overview (3.1.4.12) Cost control overview (3.1.4.13) Time control overview (3.1.4.14) Quality control overview (3.1.4.18) Change control overview (3.1.4.19)

Commissioning (3.1.1.17) Occupation and takeover (3.1.1.18) Procurement strategy

Procurement strategy development (3.1.2) ImplementationResources (3.1.4.3–5) (Client) Organisational structure (3.1.4.6) Contractual arrangements* (3.1.4.10) Systems and controls* (3.1.4.11) Implementation policy (3.1.4.2) Contractual arrangements (3.1.4.10) Systems and controls (3.1.4.11)

Systems and controls (3.1.4.11) Diagram to indicate the activities in the Procurement Process *Indicates the activity will continue into the next phase ( )Indicates the subsection of this document referring to the activity

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3.1.1.6 INDEPENDENTCLIENTADVICE

(a) With the potential for the involvement of many consultants and/or constructors in a project, and the range of contracts associated with their employment, all but the most experienced client may need advice. The advice offered should be informed and unbiased and it should be based upon a logical analysis of the needs of the client, the type and character of the project and the range of appropriate strategies available.

(b) This advice can be offered by a member of the client’s design team or can be a separate function. It may be more difficult for a design team member to remain impartial in carrying out this process and it is recommended that any expertise retained should be retained solely for this purpose. This function may encompass:

• Assistance in preparing the business case (the business case) underpinning the project

• Identifying the needs and requirements of the (briefing) client

• Defining the project (project definition)

• Matching needs and project characteristics (procurement strategy) with appropriate procurement strategy

• Facilitating the associated selection and (implementation) contractual processes and policies

(c) The decision as to which procurement strategy to select should be based upon information from the client and information about the project.

(d) A best practice guide is available to assist in this process¹.

(e) Possible sources for independent client advice include a suitably qualified and experienced construction professional such as a chartered surveyor.

3.1.1.7 CLIENT’SRESPONSIBILITIES

(a) The client should set policy and outline strategy including:

• setting and prioritising the project objectives;

• clarifying client attitude to project risk;

• establishing procurement strategy;

• arbitrating between conflicting demands; and

• evaluating the completed project against the objectives.

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1Construction Industry Board, Briefing the Team, Thomas Telford Publishing, London, 1997.

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(b) The client also has a threefold management function:

• to provide financial resources and land for the project;

• to manage the client input; to co-ordinate functional and administrative needs; to make decisions when needed; to resolve conflicts; to act as the formal point of contract for the project; and

• to supply the technical expertise, to assess, procure, monitor and control the external resources need to implement the project (throughout the procurement process).

(c) In particular the client should be satisfied, as far as possible, that:

• the project brief is clearly defined as far as possible and linked back to the client’s business case for the project;

• the project brief is comprehensive and clear and has the full support of the users;

• any constraints demanded by the project funder(s) are known and their impact understood;

• the critical assumptions made in preparing the initial estimates and programmes are valid, realistic and achievable;

• advisers have developed cost estimates which are comprehensive and include all capital and resources costs;

• allowances made in the feasibility and viability assessments to cover possible risks are sufficient (contingency allowance);

• an adequate risk analysis has been completed;

• substantial sensitivity analysis and ‘what if’ studies have been carried out to assess the effect of possible changed criteria on the viability of the project;

• plans are in place for adequate project management including systems for cost, time and change control, and that health and safety has been adequately addressed;

• land will be purchased and available for the commencement of the work.

(d) The client should also co-ordinate and resolve conflicts between all interested sections of the client organisation including:

• user groups – who will work in the building;

• specialist groups – responsible for technical systems within the building, e.g. communications, computers;

• facilities management – who will manage the completed building including maintenance and security;

• finance and accounts – who will plan and control expenditure and pay bills as they arise;

• legal advisers – who will advise on and monitor the client’s formal relationships with outside parties.

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(e) The client is responsible for ensuring that all necessary decisions are made on time. Timely decisions are necessary to avoid delays and increased costs;

the decision-making process requires as much planning and management as any other activity. This will include:

• scheduling the key decisions to be made;

• identifying the decision makers and their required procedures;

• ascertaining the time required for making decisions;

• establishing a formal programme for decisions;

• pre-warning decision makers of forthcoming submissions – making sure ‘items are on the agenda’;

• preparing on time fully detailed submissions and/or presentations in full compliance with procedural requirements;

• following up submissions throughout the decision making process; and

• promptly communicating decisions made to the parties affected by them.

3.1.1.8 KEYCLIENTACTIVITIES

Notwithstanding overall responsibility for the whole of the project, the client will have an active personal involvement in the key activities explained in the following subsections.

3.1.1.9 DEVELOPING THEBUSINESSCASE FOR THEPROJECT

(a) The client’s purpose in initiating a building project may be driven by the need for the project as a functional unit or long-term investment.

(b) The client will need to review project feasibility in terms of time and cost against benefits which will stem from the proposed project. In doing so he/she will have to consider the returns expected, the value (in use) of the projected asset against projected land costs, construction costs, cost of fees, fitting out and commissioning costs, operating and maintenance costs and the opportunity cost of money.

(c) The importance of each of these issues will be relative to the objectives of the client and to the extent to which the client is able to cope with risk.

(d) Further influences in the case of a development project may include likely annual rental, period between rent reviews, and growth of rental value. In terms of the project development, total development time and taxation issues may also be influential on the decision process.

(e) It is important that the client seeks advice in terms of investment appraisal of the planned project and that any appraisal considers ‘what if’ questions to ensure that the impact of changes of key components in the appraisal are clearly understood. A chartered surveyor will be able to assist the client in these matters.

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3.1.1.10 PROJECTDEFINITION

The importance of a clear project definition to the successful completion of the project and in ensuring appropriate performance of the project cannot be over emphasised. The inexperienced client will need professional help from the advisers or design team in the preparation of the definition. The project definition is a comprehensive statement of the client’s objectives and parameters for the project based on close consultation between the client and users covering:

• project description;

• function of building;

• equipment and special services/requirements;

• target programme; and

• site.

3.1.1.11 ESTABLISHINGPRIMARYOBJECTIVES

(a) In establishing the primary objectives for the project it is necessary to prioritise these objectives to ensure that when developing a procurement strategy appropriate emphasis is given to the most important objectives.

(b) Since there can be a tension between the long-term objectives set for the project in the business plan and the short-term objectives set for the project by the project team, the identification of priorities is very important.

(c) One way to achieve this is to consider ‘what if’ scenarios to establish the importance of key factors:

• what if the project does not meet its functional requirements?

• what if the project is delivered late?

• what if the cost of the project exceeds the budget?

(d) By carrying out an analysis in this way relative importance can be given to each aspect by weighting that aspect against a total.

(e) This is the initial control document for the early planning of the project;

without it little constructive work can be done. If all the information required for the project definition is not readily available, it is better to issue it in an incomplete form and progressively update it.

3.1.1.12 BRIEFING

(a) Once the project definition has been completed the briefing process will be carried out. This is when the design team and cost consultants are able to flesh out G

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For example:

%

Function 50 Each of these can be subdivided to produce clarity, e.g.

cost can be divided into capital and running costs, time into speed or reliability of delivery date and function into layout, environmental quality and specification.

Completion 20

Cost 30

100

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the project prior to extensive design work. The process commences with concept design building upon project definition and progresses through to a project brief which should encompass the client’s aesthetic, spatial and service requirements.

(b) While it may be difficult for inexperienced construction clients to visualise the descriptions outlined during the briefing process it is worth spending time seeking consensus on its content to avoid waste in the later design process.

(c) The Construction Industry Board (1997) have produced an excellent guide called Briefing the Team which summarises the processes involved.¹

(d) Following the development of the brief for the project the design process will commence (see 3.1.4 – Implementation).

3.1.1.13 DEVELOPMENT OFPROCUREMENTSTRATEGY

The client is responsible for selecting the procurement strategy most suited to the project and deciding how it is to be administered. The client may need to take consultant advice on which strategy is most appropriate considering the prioritised objectives and attitude to risk. This is a three-stage process which may be key to project success:

• selecting the strategy;

• implementing the strategy; and

• planning the administration of the contracts underpinning the implementation of the strategy.

The processes of procurement strategy selection and implementation are dealt with in 3.1.3 and 3.1.4.

3.1.1.14 (a) Strategies may include:

• traditional – design by consultants completed before lump sum tenders are obtained;

• design and build – detailed design and construction by the contractor for lump sum; design and construction may overlap. Where a concept design is produced by the consultants before the contractor is appointed, the strategy is called develop and construct;

• management contract – design by consultants; management contractor appointed early and work package contracts let progressively in the contractor’s name; design and construction overlap;

• design and manage – outline design by the consultants; as

‘management contract’ but detailed design by the management contractor; design and construction overlap; and

• construction management – design by consultants; construction manager appointed early to produce and manage trade package contracts made directly with the client; design and construction overlap.

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3.1.1.15 (a) The extent of collaboration possible between those who design the project and those responsible for delivery will vary with the strategy adopted.

(b) Selection strategies may include selection by competition for price; on the basis of the quality of the bid as well as price alone; or by negotiation. In some cases a high level of collaboration is possible enabling those responsible for delivery to adopt a ‘Partnering’ approach to project delivery.

(c) Partnering is not so much a contract strategy as a way by which the project team can be drawn together for their mutual benefit. Partnering is usually most advantageous where the client has a range of projects to procure but can be adopted for single projects.

(d) The principles associated with Partnering are based on inclusiveness and depend upon a trust being established within the team. There is also a focus on achieving the best outcome for the client as well as a satisfactory outcome for each participant. The primary principles include developing mutual objectives, simple approaches to dealing with disputes and a focus on continuous improvement which can be measured.

(e) This approach represents a change in the culture traditionally adopted by the UK construction industry which has previously been based on price-bid approaches and will need to be carefully managed. However, evidence is beginning to emerge of real all-round benefits being achieved particularly by regular and experienced construction clients.

(f) The Construction Industry Board have published a most useful guide to partnering¹.

(g) The number and style of contract documents will depend on the contract strategy selected.

3.1.1.16 (a) Where direct consultant appointments are made each will be subject to a separate form of contract, but where a design and build strategy is selected, designers may be appointed by the contractor. In the case of construction management, the client will be required to enter into many individual trade contracts.

(b) Contract implementation can be complex and may encompass the additional appointment of consultant advisers or the novation of designers from the client to the contractor. In addition, forms of warranty and collateral contracts may be involved. The consultant advisers can assist the client in the selection of appropriate contracts and the documentation associated with them.

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1Construction Industry Board, Partnering in the Team, Thomas Telford Publishing, London, 1997.

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In document Construction Handbook (Page 191-200)