Building Consultancy
Office Fit-Out Guide
Design & build Is it the only choice for office fit-out? Since its emergence as an alternative to Traditional Procurement (TP) during the 1950s and 60s, Design & Build Procurement (D&B) has become a popular choice for construction clients. The approach has been refined over recent decades and utilised with success across all sectors and project types, including new build, refurbishment and office fit-out. D&B works best when dealing with simple designs and construction processes. The office fit-out sector can fall within this category where limited technical design expertise is required. Whilst D&B office fit- out contractors have secured significant market share, it is important to recognise that D&B is not the only option available. In reality there are a myriad of different procurement routes which can be convenie ntly grouped into two primary forms – D&B and TP.
02
I Office fit-out guide Building Consultancy
What is D&B Procurement? There are a number of terms used to describe this approach, including Design & Build, Design & Construct, Turnkey and Package Deal. Ultimately these are all forms of Design & Build, varied in some way to meet changes in t he client ’s required level of service. The common factor in all is that the contractor provides the design and construction service under a single contract. The majority of D&B fit-out contractors sub-contract at least part of the design element, particularly in relation to mechanical and electrical works and other complex elements.
What is Traditional Procurement? With TP there is a sepa ration of the desig n process from tendering and construction. The Design Team will design and specify the works to a sufficient level of detail to enable a number of contractors (in direct competition) to submit lump sum bids. The process of design and construction is therefore sequential, whereas with D&B there can be a degree of overlap as the contractor can start on site before all the designs are finalised.
TP is often considered to be time consuming due to the sequential design > tender > construct process.
Assessing the needs and adopting the right approach The selection of the most appropriate procurement route should always be based on an objective assessment of the client’s needs - considering, as an absolute minimum programme, cost and quality expectations. There are no hard and fast rules; no procurement route is perfect and there will always be benefits and drawbacks to weigh up but GVA’s Building team is very well placed to offer this independent assessment. Some of the advantages and drawbacks of the D&B procurement route are detailed overleaf.
We have successfully delivered schemes ranging from £100,000 to £13 million and are able to provide the majority of key services in-house with “best in class” subconsultants available as needed
Benefits of D&B
Drawbacks
1. Works very well on small scale projects of simple nature – i.e. up to 5,000 sq ft.
1. On large projects D&B fit-out contractors are unable to pass on the savings that traditional contractors can through economies of scale and favourable supply chain agreements. D&B fit-out is generally not suitable for projects over 10,000 sq ft.
2. Fast track programme and mobilisation of contractors, often with an early start on site. 3. A single point of contact covering design and construction. 4. High level of in-house expertise, focused on office fit-out alone. 5. Extensi ve resources with a dedicated team made available when a commission is received. 6. A lump sum price can be provided to give the client cost certainty (although overspends are still very common). 7.
Free service s provided up-front, including space planning visuals etc. This is often perceived as a big plus by clients despite the cost being recovered later in the project.
2. Designs can often become homogeneous and bland – our experience shows that when pitched against each other most fit-out contractors produce very similar proposals. 3. The D&B approach is not suitable for inexperienced clients due to the lack of impartial input (unless they employ an experienced professional to monitor the process). 4. Contract documents are often prepared by the contractor and these can be vague and open to interpretation. This can lead to quality issues as the D&B contractor can downgrade the specification to save money, without incurring any penalties. 5. The level of mark-up applied to a typical D&B fit-out contract is in the region of 20%, and can rise to as high as 30%. Traditionally procured contracts will typically provide a profit level of betwee n 5% – 10%.
6. Contracts are tendered on the basis of concept as opposed to cost. There is often minimal open market competition when it comes to agreement of the contract sum. 7.
D&B fit-out contractors can overlook key statutory and health and safety requirements. We are frequently asked to regularise problems, in particular non-compliance with Building Regulations and failure to properly manage Landlord’s Consent.
8. Rectification of defects and management of defects arising post completion are often inadequately covered in the contract. 9. The majorit y of specialis t D&B companies will sub-contract the vast majority of packages and are often known to sub-contract the entire job. This introduces an other layer of overheads and profit and also serves to cloud the lines of communication and liability. 10. Introductory fees and up front costs associated with winning a pitch are simply added to the bottom line when agreei ng the contract sum and can be charged at a premium level – at this point there is generally no competition.
Building Consultancy Office fit-out guide I
03
Definition Office fit-out requirement established
Standard D&B Direct appointment by client. Assumes the client is informed and fit-out is of a basic nature
Regulated D&B Building, Project Management & Consultancy appointed to vet contractor(s), review proposals, monitor costs and performance acting as Employers Agent
Scheme defined
Under 2,000 sq ft fit-out
Traditional Procurement
2,000 – 10,000 sq ft fit-out
Over 10,000 sq ft fit-out
Fast track programme required
Managed programme
Basic fit-out Informed client
Regulated D&B
GVA has an excellent track record in project managing office fit-outs for both landlords and end user clients. We are industry recognised, being awarded the BCO Award for Best CAT A Refurbishment 2008, the North Region Award for Best CAT B Fit-Out and short-listed for the Southern Region Award 2008. Our clients can “cherry pick” from the following suite of services. • Feasibility and budget advice • Interior design • Space planning • Workplace consultancy • Procurement and tendering procedures
High design concept/ Bespoke project High standard of quality required Maximum cost control
Traditional Procurement
The flowchart above provides a simplistic guide to selecting the most suitable procurement method based on project size.
Standard D&B
Our capabilities
Project Managed by Building, Project Management & Consultancy, professional team appointed, sequential design and procurement, works carried out by traditional main contractors
• Contract administration • Employers agent • BREEAM assessment • Due diligence/surveys • Licence for Alteration liaison • Advice on Building Regulation consent and statutory approvals
Specialist package consultancy including: • Signage design • IT design and installation • Mechanical and electrical • Audio visual
For further information please contact: Paul Hewitt 020 7911 2331
[email protected] Ian Bragg 020 7911 2749
[email protected] Layne Mercer 0161 956 4410
[email protected] GVA Grimley Limited is a principal shareholder of GVA Worldwide
• Security
• Relocation/migration advice • Project management
08449 02 03 04
gva.co.uk
