A well-managed capital project will follow a defined process, comprising several stages; these often form milestones or stage gates within the process. Typical stages are:

● Agree project structure  - PID, charter, decision protocol

● Exchange information with the design team

● Prepare and agree a concept design (functional design specification)

● Issue engineering technical standards 

● Issue enquiries incorporating commercial and contractual issues (see The Contract)

● Evaluate tenders (see Enquiry and Tender Response)

● Appoint contractors

● Manage project through design and installation to commissioning and acceptance tests

● Documentation 

● Training 

● Defect rectification and handover

Our approach to project management incorporates the basics of PRINCE2 with some simplification to suit specific project requirements while remaining agile and responsive.

We are often asked to assist clients with relocations. These may be driven by the needs of the business to expand or downsize or simply by the unsuitability of existing premises for a changing requirement.
 

A particular feature of relocation is the client's need to maintain continuity of service to customers throughout the project. Relocation projects can be deceptively complex and will involve some or all of the following:

● Distribution studies and location planning
● Site finding
● Investment analysis and alternative funding arrangements
● Management of employee expectations and concerns
● Layout and design of factories, warehouses, plant, equipment and services
● Building contract (see Building Projects and Contract)
● New plant and services installations
● Dismantling, transport, re-assembly and re-commissioning of existing manufacturing plant
● Customer service considerations
● Transitional inventory management and production scheduling
● Continuity of back-office support function and administration
● External communications
● Disposal of redundant plant and equipment
● Site de-commissioning and disposal

Managing the project timeline is particularly important in relocation projects in order to minimise business disruption. Another problem with major relocation projects is that key operational managers can “take their eyes off the ball” when faced with the complexity of the tasks involved. As a consequence, business performance suffers to a greater extent than anticipated.

Relocation projects arise quite rarely within individual businesses and local management often lack relevant experience. At I.C.E., such projects are frequently managed and our external assistance can be of great value in securing a successful outcome.

Due Diligence

In addition to our mainstream project management, we also offer confidential investment appraisal and due diligence studies for external investors, banks and institutions worldwide.

We review business plans and proposals, market evaluations and capital investment plans. We critique operating income forecasts and generally advise the potential investor on the appropriateness of the proposal, highlighting any qualifications, clarification or modifications to plans that may be required to protect the investor's best interests. 

Development and new build projects are our particular speciality but we also operate in developed markets and for companies contemplating acquisition or re-structuring. Sponsors can be advised on how to prepare submissions to funding authorities. 

We can also advise clients on potential sources of project finance and can arrange necessary introductions.

There are two fundamental routes available for undertaking a significant building project: 

Traditional – Client’s professional team (architect, structural engineer, quantity surveyor) designs the building and a building contractor is selected by tender to execute the works. 

Contractor’s Design – The client’s team produces a detailed schedule of requirements, against which tenders are invited directly. The successful contractor is at liberty to design the building in the most cost-efficient manner, providing the schedule of requirements is met. Selecting the right contractual approach is of crucial importance.
 

As a general rule, building projects that are highly specialised, complex or have the potential to cause significant major disruption to your ongoing business activities should follow the traditional route. More straightforward projects, where speed and cost certainty are important than detailed control are candidates for contractor’s design. 

If the contractor’s design route is followed, the preparation of a fully detailed and comprehensive schedule of requirements is critical importance. This document really must be “right first time” since any subsequent changes or variations will be very expensive both in terms of time and cost. Our specialist advice should be sought unless you are very familiar with this work. 

All types of building project require expertise in contract administration and project management. A formal approach is usually the most productive, with written confirmation of instructions and responses to requests for information, coupled with very pro-active management of the schedule. A list of the 28 key project management tasks, essential to every building project, is available if you wish to learn more

This is a key step in any project. It is the basis for the contract between you and your supplier and the reference point that defines the agreement between you at that time.

Only in the most extreme cases of time pressure should you proceed to contract without a formal enquiry and tender response and, even then, you should arrange for the documents to be prepared and agreed by side letter as soon as possible.

Be sure to allow enough time for an adequate tender reply. A complex building project with heavy services involvement could take 6 weeks or more to price accurately, whilst simple supply of standard equipment can be tendered in a few days.

The first decision is to whom to send your tender enquiry.  It is important to be sure that any of the tenderers who receive your enquiry are competent and qualified to do the work. If you have doubts or reservations, they should not be on your list.

The number of tenderers on a list will depend on the scale and scope of work envisaged but it should typically be between four and six. Ideally, all tenders should be submitted at the same time and you should arrange for the opening of physical or electronic tenders to be witnessed and recorded by a third party. Once you have opened the tender returns, price is one important factor but there are other matters that enter into a thorough tender evaluation.

Following tender return and evaluation, you are ready to select and appoint your chosen contractor. The lowest tender will usually (but not always) be successful. If there are points that remain for clarification, you may wish to retain the second-best tender for possible future consideration. In any event, always write to the unsuccessful tenderers to thank them for their submissions and advise them of the outcome. A lot of time and expense is involved in responding to tender enquiries and you may require them to tender again for other work in the future.

All good projects start with good design. This should reflect what you need rather than what your contractor wishes to supply. All too often we find projects which are failing because of inadequate attention to specifying project requirements from the onset. Both client and contractor think they understand the requirements – by the time they realise they do not, it is usually too late.

Time spent initially defining the project requirements is almost invariably well spent in terms of performance and value for money.

DO NOT

● Let your contractor or supplier specify what you need

● Attempt to design in detail the plant and equipment you require unless you are particularly expert

● Be inflexible in your approach. Use the expertise of contractors and suppliers

DO

● Define your requirements in quantifiable terms 

● Specify time scales precisely

● Refer to standards that are accepted broadly within your industry or region

● State the time and operational constraints within which the work must be conducted

● Produce outline layouts electronically for ease of distribution

● Consult as widely as possible with your in-house team

The most important document in any project is often overlooked. Decide in advance what form of contract is appropriate to your work and what documentation is needed to support it.

Very often, clients breathe a sigh of relief when tenders have been received, appoint a contractor by letter or purchase order and give no further thought to the legal contract between them. This is almost always mistaken; we strongly recommend formal exchange of contracts where the value is in excess of £250k.

Use an appropriate standard form of contract to protect the interests of both parties and, should the contract go seriously pear-shaped, this will provide a legal framework within which to seek redress. Your intent in documenting the contract is to focus the minds of the parties on their obligations. Hopefully, once signed, the contract can be filed away and never referred to again!

NEVER attempt to write your own contract even if you are a qualified lawyer!  Standard forms of contract have significant advantages:

● There is usually a body of well-established precedent guiding the application of the contract.
● Arbitration is usually available and this is less expensive than litigation. 

Judges tend to take a very dim view of bespoke contracts that have been written by one of the parties and will always interpret them in the most generous way possible to the other party. If a contract is thought to be unfair it may even be ruled that it is invalid.