Substructure Commercial

Commercial departments on construction teams identify and develop business opportunities and manage profitability of a project from start to finish

The construction of the Substructure is usually procured in the Groundworks package. Sometimes the subcontractor is awarded both the Substructure and Superstructure elements.

I recommend familiarising yourself with the Groundworks order to understand what has been allowed for.

On a project level, the commercial elements are usually managed by a Quantity Surveyor (QS).

The QS is responsible for the following: The examples given are specific to Substructure.

1. Project Initiation and Feasibility:

Understand the project's scope, purpose, and requirements. e.g. what substructure elements have been detailed in the drawings and specification.

Assess the feasibility of constructing these from a cost perspective.

2. Budgeting and Cost Estimation:

Develop a preliminary cost estimate for the groundworks package based on the elements required, site conditions, equipment, labour, and any other associated costs.

Collaborate with relevant stakeholders to align the budget with the project's overall financial plan. These include the client, project team, legal and compliance teams.

3. Tender Process:

Prepare tender documents that outline the technical specifications, scope of work, contract terms and conditions.

Invite groundwork contractors to participate in the tender process, these are usually selected from the company's supply chain list.

Evaluate bids received from contractors, considering both technical competence and cost proposals.

4. Contract Award:

Analyse and compare the bids and make recommendations to the client or project management team based on technical expertise and cost-effectiveness.

Assist in negotiating the contract terms with the selected groundworks contractor, ensuring clarity on deliverables, milestones, payment terms and variations.

5. Contract Administration:

Monitor the groundwork contractors performance throughout the project to ensure compliance with contract specifications, quality standards, and safety regulations.

Review and approve any proposed variations or change orders, assessing their impact on project cost and programme.

6. Cost Control and Reporting:

Track and report project costs, including actual expenditures, committed costs, and forecasted costs.

Compare actual costs against the estimated budget and provide regular reports to the client and project team.

7. Valuation and Payment Certification:

Verify the groundwork contractors work progress and quantities completed.

Certify interim payment applications submitted by the contractor, ensuring accurate valuation of completed work and compliance with the contract terms.

8. Final Account and Settlement:

Collaborate with the contractor to finalise the account, ensuring that all works and variations are accurately accounted for.

Assess any claims, disputes, or additional costs raised by the contractor and negotiate settlements as required.

9. Project Closure:

Verify the completion of the Substructure works and associated documentation, such as as-built drawings and warranties.

Provide the necessary information for the project's final closeout, including financial reports, records, and documentation.

Other considerations

There will likely be some elements which will be required during the construction of the project but won't necessarily be in the permanent structure design and specification.

It is important to ensure these have been allowed for in the Groundworks package. Examples include:

·       Foundations for site accommodation

·       Foundations for brickwork silos

·       Tower crane base

·       Ducts for temporary services

·       Haul roads required during the construction process

·       Drainage for site accommodation

It is important to request a programme from the subcontractors to ensure they plan to finish works within the timeframe allowed for in the project programme.

The construction industry is moving towards manufacturing off site. Is there the possibility of using pre-cast for any of the Substructure elements?

How many projects of a similar scale have the subcontractors done previously?

How do the quality milestones required tie in to payments?

Do the subcontractors have any proposals for value engineering they can suggest?

Definitions

Superstructure - the portion of a building above the foundation and substructure. Includes walls, floors and roofs

Groundworks Order - Documents detailing specifications for constructing substructure and any groundworks with site specific constraints

Quantity Surveyor - Individual responsible for managing costs and contracts, ensuring efficient and cost-effective project execution

Project Scope - Document outlining the projects goals, tasks, constraints and deliverables. Guides project planning and execution.

Load bearing capacity - Maximum weight a structure can support safely under given conditions

Supply chain list - A list of preferred subcontractors who comply with minimum requirements specified by Main Contractor and have likely been used successfully on previous projects

Bids - Proposals submitted by specialist subcontractors to perform specific parts of a project, outlining costs, scope and terms.

Warranties - Legally binding agreement providing assurance that products and services will meet specified standards

Permanent structure - what is actually being built

Value Engineering - a systematic and collaborative process used to optimise project costs whilst maintaining or improving performance and quality.

Posts to Follow

This is the last post on Substructure. From next week we plan start on Superstructure with:

·       Overview

·       Design

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