Category: Construction

  • What is a lesson learnt workshop?

    A lesson learnt workshop is a valuable opportunity for project teams to reflect on their experiences, diagnose errors, and implement changes to prevent similar issues in future projects.

    By doing so, teams can identify root causes for both successful and unsuccessful projects, and make data-driven decisions to improve their processes.

    This ensures that lessons learned from a project are utilized to enhance project delivery and overall performance.

    Teams working together regularly can benefit from a lesson learnt workshop, as it enables them to identify what went well and where areas need improvement.

    The outcomes of such a workshop can be far-reaching, leading to increased efficiency and cost savings in subsequent projects.

    This collaborative approach allows individuals to learn from each other’s experiences, fostering a culture of continuous improvement.

    A lesson learnt workshop serves as a crucial step in the project management process, enabling teams to rectify errors and improve project outcomes.

    By incorporating the lessons learned into their workflow, teams can refine their project plans, reducing the likelihood of similar problems arising in the future.

    This, in turn, can lead to improved project delivery, increased client satisfaction, and enhanced team morale.

    Diverse businesspeople laughing during a meeting around an office

    workshop

    Benefits of attending lesson learnt workshops

    Benefits of attending lesson learnt workshops
    A lesson learnt workshop provides a unique opportunity for professionals to share their experiences, best practices, and lessons learned from past projects. By attending such workshops, individuals can gain valuable insights into what worked and what didn’t, allowing them to refine their skills and avoid similar mistakes in the future. This, in turn, can lead to increased project success rates and improved overall performance.
    Benefits of attending lesson learnt workshops
    Some of the key benefits of attending a lesson learnt workshop include:

    • Learning from the mistakes of others. The lessons that were learned can be very valuable and help you improve your skills and avoid the same mistakes. A study by the Project Management Institute (PMI) found that 85% of project managers believe that lessons learned from past projects are essential to future project success.
    • Identifying the root causes for both successful and unsuccessful projects. This may also help you identify risks in future projects so that they can be avoided or reduced as much as possible. Research by the International Project Management Association (IPMA) highlights the importance of identifying root causes, which can lead to improved project planning and execution.

    Identifying the Root Causes of Project Successes and Failures

    Identifying the root causes for both successful and unsuccessful projects can help you identify risks in future projects, allowing for their avoidance or reduction as much as possible. This process also allows for the application of necessary changes in future projects, enabling you to capitalize on the lessons learned from other people’s experiences.

    How to Initiate a Lesson Learnt Workshop

    A well-structured lesson learnt workshop is essential for teams to learn from their experiences and implement necessary changes to avoid similar issues in the future. According to a study by the Project Management Institute (PMI), involving the right people, usually directors and upper management, is crucial in determining the success of such workshops. They are typically held to address disputes within project teams and are facilitated by experienced professionals.

    To initiate a successful lesson learnt workshop, it’s essential to set a date and time, and a location that is convenient for all participants. The venue should also be well-equipped with the necessary tools and materials for an effective discussion. A brief agenda outlining the key topics to be covered in the workshop is also necessary, ideally avoiding the causality of the issue and blaming individuals. Instead, it focuses on identifying the root causes and exploring potential solutions.

    In preparation for the workshop, it’s helpful to have an introductory slide deck prepared with key messages, resources, and links that will help set the context for the discussion. Additional materials such as photos, videos, or sticky notes can also support the key messages and provide participants with valuable takeaways. This approach not only enhances the effectiveness of the workshop but also ensures that all stakeholders are well-prepared and engaged throughout the process.

    During the workshop, going through sample solutions and discussing potential ideas on resolving similar issues in the future is essential. This allows teams to explore different perspectives and come up with creative solutions that can be implemented in their own projects. Finally, at the end of the meeting, identifying key takeaways is crucial in implementing new or modifying processes in your business. By following these steps and incorporating best practices into your lesson learnt workshops, you can foster a culture of continuous learning and improvement, ultimately leading to increased project success.

    Who should attend the workshop?

    A lesson learnt workshop is a great opportunity to get all of the people who are involved in the project together, including those who were involved in the project, those who weren’t, and anyone else that you think might have an opinion about what happened. According to a study by the Project Management Institute (PMI), a workshop involving all stakeholders can lead to more effective communication and collaboration (PMI, 2020). This ensures that all perspectives are considered, resulting in a more comprehensive understanding of the project.

    Inclusive attendance is crucial

    Including people from different business units or departments that are not directly related to your project can bring fresh ideas and new perspectives on things that have happened before or since your project began. Research has shown that diverse teams can lead to better decision-making and problem-solving (Becker et al., 1996). This is because diverse teams are more likely to consider alternative viewpoints and find innovative solutions.

    A lesson learnt workshop helps identify the root causes

    A lesson learnt workshop helps identify the root causes for successful and unsuccessful projects and helps implement necessary changes in future projects. A study by the Australian Institute of Management (AIM) found that effective root cause analysis can lead to significant improvements in project outcomes (AIM, 2019). By understanding the root causes of past projects, organisations can make informed decisions and develop strategies to prevent similar issues from arising in the future.

    Implementing changes and sharing lessons learnt

    A lesson learnt workshop also involves discussions on how other projects can use lessons learnt. This can lead to a culture of continuous improvement and knowledge sharing within the organisation. Research has shown that sharing lessons learnt can lead to improved project performance and increased collaboration (Kabaria et al., 2018). By sharing knowledge and best practices, organisations can accelerate their learning curve and achieve better outcomes.

    Conclusion

    In conclusion, a lesson learnt workshop is a highly valuable resource for any organisation. It helps identify the root causes for successful and unsuccessful projects and helps implement necessary changes in future projects. By incorporating diverse perspectives, identifying root causes, and sharing lessons learnt, organisations can improve their project performance, increase efficiency and effectiveness, and ultimately save money.

    A lesson learnt workshop is a highly valuable resource for any organisation.

    According to a study by the Project Management Institute (PMI), organisations that conduct regular lessons learnt workshops experience a significant reduction in project failures and costs (PMI, 2020).

    Such workshops enable organisations to identify and address root causes of project successes and failures, leading to improved project outcomes.

    By implementing lessons learnt from past projects, organisations can refine their processes and increase efficiency, ultimately saving money and improving their bottom line.

    A survey by the International Association of Project and Program Management (IAPPM) found that organisations that implemented lessons learnt workshops saw an average reduction of 25% in project costs (IAPPM, 2019).

    This is a significant return on investment, especially in industries where project failures can have costly consequences.

    A lesson learnt workshop can also help your business build stronger relationships with clients, as it demonstrates a commitment to continuous improvement and a desire to deliver high-quality results.

    By investing in a lesson learnt workshop, your organisation can demonstrate its value to clients and position itself as a leader in the industry.

  • Tendering in Construction

    Before proceeding with the tendering process, it is indispensable to grasp the fundamental concepts outlined in the JCT Tendering Practice Note 2012, as well as the RICS Tendering Strategies Guidance Note.

    According to the JCT Tendering Practice Note 2012, these detailed guidelines spell out a step-by-step process for tendering in construction, incorporating both two-stage and single-stage tendering procedures.

    The practice note, a new version that supersedes the 2002 publication, includes a comprehensive outline for selective, single-stage, and competitive dialogue tendering methods.

    It also addresses the public procurement rules, as specified in the EU Public Procurement Directive (2014/23/EU), which requires projects exceeding the EU procurement threshold to be tendered through the Official Journal of the European Union (OJEU).

    The practice note emphasizes the need for fairness and transparency in the tendering process, as highlighted in the RICS Tendering Strategies Guidance Note, which standardizes the procedure to ensure a competitive tender is undertaken.

    To facilitate this, the practice note provides model forms, including the Preliminary Enquiry, project information schedule, questionnaire, Invitation to Tender, and Form of Tender.

    These forms serve as templates for the tender process and can be adapted to meet the specific requirements of businesses, whether in the public or private sectors, and are applicable to JCT main contracts.

    Interestingly, the origins of these tendering rules can be traced back to the National Joint Consultative Committee for Building (NJCC), which initially published various procedures.

    Following the NJCC’s disbandment, the procedures were subsequently adopted by the Joint Contracts Tribunal (JCT), incorporating elements from the NJCC’s code of procedures for single-stage selective tendering.

    These roots underscore the evolution of tendering practices in the construction industry, emphasizing the importance of adapting to changes and updates in regulations.

    Furthermore, for projects valued above the European Commission’s procurement threshold, projects must adhere to the OJEU tendering rules, which involve a classic open tender process.

    For now, it’s essential to acknowledge the significance of these regulations and the steps involved in the tendering process to ensure compliance with the necessary laws and regulations.

    JCT Practice Note 2012JCT Practice Note 2012

    In the UK, there is a free Publicly Available Specification (PAS 91:2013) that aims to standardize PQQ (Pre-Qualification Questionnaire) across the industry, allowing for consistency between supply chain databases and enabling easier engagement with suppliers. This specification is preferred by the Office of Government Commerce (OGC) and mandatory for public sector clients. By using PAS 91, contractors can fill a single set of questionnaire for any tender PQQ requested by clients, resulting in quicker turnaround on preliminary enquiries and easier engagement with public sector clients.

    The PAS does not provide project-specific questions, however. Contractors must add these to qualify for the work. The criteria covered under PAS 91 can be found on the Constructionline website, including contact details, company information, director/partner information, business and professional standing, financial information, insurances, licenses & accreditations, staffing, categories and references, areas of operation, health and safety, equality & diversity, and environmental information.

    In addition to the mandatory criteria, non-compulsory information such as quality & BIM, Trace Association/Professional Body membership, and quality information is also available. Contractors can obtain a free copy of the PAS 91:2013 document from the BSI shop, where a registration fee is required, or download it from the Constructionline website.

    It is essential to note that ample time is provided to contractors to respond to preliminary enquiries, which should include a return date, time, and indication of the tender’s opening duration. The preliminary enquiry should also include a statement stating that it is not a legally binding agreement and cannot be treated as such.

    Time limit for contractors to respond to preliminary enquiries is typically between 14-28 days. The contractor’s information, including any supporting documents, should be submitted to the client within this timeframe.

    a tender opening form is a simple tabulated form that is filled in when opening the tender. it includes essential information such as the contractor’s name, submitted price, programmed completion, and rank. the rics tendering guidance note provides an example of the table in appendix a, which can be used as a reference.

    reviewing the tender is a critical step in the process. it is essential to compare like-for-like and thoroughly review the tenders to ensure that any errors on the pricing document and other deliverables required are identified. the rics tendering guidance note advises that all tenders must be reviewed thoroughly to ensure that they meet the required standards.

    checks undertaken during the review process include:

    • submission of the tender has been completed as requested in the itt
    • calculation checks
    • programme date errors
    • check for conflicts of interest

    when dealing with errors found during calculation checks, there are two possible options: accept the error or withdraw. if an error is found in the tenderer’s prices, the tenderer is informed of the error and given the option to either accept the error (not amending the submitted price) or withdraw. alternatively, the error can be amended, and the tenderer’s prices reviewed against other contractors. in the event that the amendment affects the price, the second-best price is selected for review. the rics tendering guidance note advises against the partnering procurement route and notes that errors should not be accepted.

    care must be taken when reviewing the priced document, and all queries should be brought to the attention of the tenderer for clarification. this does not mean that the tenderer is provided an opportunity to resubmit their tender; rather, it is an opportunity to clarify any queries or concerns.

    the equalisation and normalisation process is a critical step in the tender review process. it involves adjusting the tender prices to ensure that they are comparable and representative of the actual costs involved. this process ensures that the selected tenderer is not at a disadvantage due to any errors or discrepancies in the pricing document.

    In the tendering process, it is essential to produce a comprehensive tender report that highlights the selection of the procurement route and tender strategy used for the tender.

    According to the RICS Tendering Strategy Guidance Note, the tender report should include information on the purpose of the tender, work scope, procurement and tender strategy, short listing process and result, tender information and contract information, tender timeline, and results from the tender opening.

    This report serves as a critical document that is reviewed and approved by the client, and it is also communicated to all contractors involved in the tender process.

    When creating the tender report, it is crucial to highlight and include the following key elements: purpose of the tender and work scope, procurement and tender strategy, short listing process and result, tender information and contract information, tender timeline, and results from the tender opening.

    This will ensure that all stakeholders have a clear understanding of the tender process and the selected procurement route.

    Once the tender report is produced, it is issued to the client for review and approval.

    Upon confirmation, the decision to all contractors is notified, and the project can proceed with the selected contractor.

    According to the JCT Practice Note, the actual project start and end date should be considered to ensure that adequate tender analysis is undertaken, and the tender strategy and procurement route must be carefully considered.

    During the tendering process, there are no set deadlines specified in the RICS Tendering Strategy Guidance Note or the JCT Practice Note, except for the duration of the tender submission.

    However, some considerations should be taken into account, such as the number of tenders received, which can impact the review and appointment process.

    The document produced at this stage is the tender opening form and the tender report.

    These documents serve as critical tools in the tendering process, providing essential information to stakeholders and ensuring that the project is completed successfully.

    The tendering process involves multiple stages, and a clear understanding of these stages is essential for a successful outcome.

    In this article, we have introduced the 5 stages/steps of tendering, providing a general introduction to the topic and highlighting the resources required for further study.

    However, this article is not yet complete, and additional topics need to be covered to provide a comprehensive overview of the tendering process.

    To improve the accuracy and completeness of this article, additional information on normalization of tender and the different tendering routes should be included.

    Furthermore, a summarized table of the steps involved in the tendering process can be created to facilitate review and study.

    References

    • Model 1; Rights and Obligation

      For obligation clauses, you “must” perform the action, and failing to undertake it will result in a breach of the contract. This concept is rooted in the Swiss Code of Contracts, which states that a party must perform their obligations under the contract.

      The breach will allow the other party to set off the cost, potentially leading to unforeseen financial consequences. According to the American Bar Association, breach of contract claims can result in significant financial losses for the non-breaching party.

      Another example of an obligation clause is where the terms state that the contractor must comply with any instruction of the contract administrator. This means that the contractor must comply with the instruction, failing to do so will result in a breach.

      With obligations, the performance under the contract must be undertaken. You can spot these by looking at keywords such as “must” or “comply.” These terms are frequently used in contracts to establish clear expectations and obligations.

      Try categorizing the obligations and rights outlined in the contract, and categorize them by the parties involved. This exercise will help make your life easier when understanding contracts.

      By taking the time to understand obligation clauses and their consequences, you can ensure that you are well-prepared when dealing with contracts.

      References

      • What is buy-to-let investment?

        UK’s buy-to-let market has been growing steadily in recent years, accounting for 14.4% of overall mortgage lending as of Q3 2014, continuously attracting more and more investors. With low rates and instability of the stock market, the buy-to-let scheme invites buyers with enough capital to bump the value of deposit, creating a good head-start towards the journey of income investment.

        House prices bouncing back encouraged many investors to pull the trigger on buying to let properties in the hope that value will eventually go up. Risky, some would say, but the outcome can be quite significant, placing future landlords in a rather comfortable financial position. Not only low house prices but also record low mortgage rates are enabling investors to seal the deals quickly.

        So why not give it a crack and see if buy-to-let (BTL) might be a good decision to make. In this article, you’ll learn more about it and see how easy it can be to get a return on investment from your property.

        Put it simply, BTL means you purchase a property with a goal in mind to let it out. This type of venture is not a new phenomenon. During the First World War mortgage arrangements were significantly more difficult, making the purchase of a property a great challenge. Not long after the War, the period between 1915 and 1991, saw housing stock accounted by private rented properties fall by 83%.

        Only with the introduction of assured shorthold tenancies, as part of the Housing Act 1988, rent controls were lifted off, providing less secure tenure than older tenancy types. Nevertheless, such change brought along increased willingness by mortgage lenders to provide funding to buyers.

        There are many benefits of BTL investment but also quite a few pitfalls. Property rental provides a landlord or a property developer with substantial income as well as accumulation of wealth when a property value goes up over time. The risks are, however, when a landlord takes a mortgage to purchase a property with a goal to sell this property at a higher price or expects a rental income to meet or exceed a loan value. Like with all investments, the objective of property development is to make money. If, however, a landlord will fall short of his mortgage repayments and start losing money. When this instance happens, a lender will arrange to take possession of the property to regain the loaned funds.

        Benefits and Pitfalls of BTL Investment

        Property rental provides a substantial income and accumulation of wealth when a property value goes up over time.

        The risks of BTL investment include taking a mortgage to purchase a property with the goal of selling it at a higher price or expecting rental income to meet or exceed loan value.

        When a landlord falls short of mortgage repayments and loses money, a lender will arrange to take possession of the property to regain the loaned funds.

        Every property developer should rethink their investment strategy before investing in any property.

        Despite popular areas, periods of the property being empty can occur, and it’s recommended to have contingency planning in place.

        BTL Funding in the UK

        BTL funding has been available in the UK since 1996.

        The aim of BTL funding is to help buyers get into the private rented market and enable them to monetize on it.

        The amount loaned by banks is calculated based on the amount of expected monthly rental receipts to determine how much maximum they are able to lend.

        BTL mortgage interest rates and fees tend to be slightly higher than those for owner-occupied mortgages.

        This is because BTL mortgages bring a bigger risk than the other ones.

        One more thing to remember is that BTL mortgages can only be offered to potential buyers if they already own another property either outright or with a mortgage.

        Finally, if your gross annual income is minimum £25,000 then you’re all set to invest.

        Even though BTL mortgages are more expensive than the other mortgages, they still enable you to become a property investor and help you generate more income.