This thesis is about look intoing and measuring the procurance scheme adopted in Crossrail undertaking. A literature reappraisal is structured under first four chapters: ( 1 ) An Introduction ; ( 2 ) Crossrail Project ; ( 3 ) Literature reappraisal I ; and ( 4 ) Literature reappraisal II. This is done to present the issue.
This thesis deals with the different procurance scheme applied for cross rail undertaking. Cross rail being one of the biggest transit undertaking in Europe, have really complex procurance methods which should be really good planned. The thesis observes the methods of procurance adopted by cross rail by comparing it with different criterion procurance methods and best patterns used in the state. Research is carried out on three different countries of procurance. They are skilled resource procurance, type of contract used and presentation of value for money. The initial study carried out indicated that there is a skills deficit in Crossrail undertaking and besides some of the countries were identified which needed farther elucidation in utilizing NEC3 contract.
The thesis was carried out based on the questionnaire developed as a consequence of literature reappraisal. Interviews were conducted based on the questionnaire. From the consequences of the research it was possible to reason that Crossrail following robust undertaking direction techniques to present the undertaking successfully. However it would be excessively early to make a decision since the undertaking is still good under advancement.
First I would wish to thank Mr Barry Wood for all his advice and aid. It was a great aid to hold a supervisor like you. It was truly interesting in discoursing procurance with Mr Wood.
Second thanks must travel to the employees of Crossrail and TfL for holding to take portion in the interview. I would besides wish to thank Mr Rupert Bruce for supplying some diaries related to my subject.
Finally many thanks to all my friends and the Godhead for being a great support and motive throughout my work.
Rational for the research
The go oning demand for developing transit substructure undertakings is increasing twenty-four hours by twenty-four hours. This is seting enormous force per unit area on public sector for development. Transportation system has been a chief map of authorities since long clip. In the present scenario, it is hard to pull off and fund mega transit undertaking because of the fiscal crunch. This reduced the ability of authorities to implement large and alone undertakings by itself. Project bringing is the method by which authorities encourages the private sectors and other bureaus for the development of substructures. Transportation megaprojects include immense capital investing, adept and competitory contractors, long period of clip and a perfect bringing scheme to present the undertaking in clip, quality and within budget. To do such mega undertakings successful, a strong procurance scheme is required. A procurement scheme is to develop a model maintaining in head the aims and results of the undertaking. The contractual and commercial scheme will be defined at the design and building phase itself which will aline the undertaking squad towards accomplishing the aim. A good procurance scheme will hold a positive impact on undertaking ‘s public presentation in footings of clip and cost.
Client dissatisfaction is ever related to late bringing of undertaking, over budget and hapless quality of work. This happens because less importance is given to value for money. The Latham study ( 1994 ) proposed alteration towards more collaborative civilization. Partnering through the contract concatenation was seen as the most efficient manner. The Egan study ( 1998 ) set out five key drivers which are of import for the building industry. They are committed leading, client focal point, integrated procedures and squads, a quality driven docket and committedness to people. This made a enormous alteration in the industry. Advanced attacks in procurance and other countries of building are encouraged. Value for money is given more importance than cost decrease.
This thesis is chiefly focussed on the procurance scheme in Crossrail undertaking. Crossrail is one of the biggest transit undertakings in Europe. Cross rail is the new high frequence, convenient and accessible railroad for London and the South East. The undertaking value is deserving ?14.8 billion.From 2018, Cross rail trains will go from Maidenhead and Heathrow in the West to Shenfield and Abbey Wood in the east via 21 kilometers of new tunnels under cardinal London. It will associate Heathrow Airport, the West End, the City of London and Canary Wharf.
Crossrail obtained the Royal Assent in 2008. Crossrail is divided into four distinguishable subdivisions. They are Cardinal subdivision, western subdivision, north-eastern and south-eastern subdivisions. After Crossrail starts operation, 24 trains are expected to run per hr. This will add 10 % to the transit capacity of London. Crossrail will besides cut down the journey clip between many cardinal finishs of London.
CRL will be straight purchasing and pull offing a comparatively little figure of contracts with Tier 1 contractors. They, in bend, will be purchasing a broad assortment of goods, plants and services from a big figure of smaller providers and contractors which form the supply concatenation for bringing. “ Cross rail ‘s attack to procurance is aligned with the UK authoritiess accomplishing excellence in building rules, including a just allotment of hazard and wages, early engagement of the supply concatenation, minimising of interface hazards, incentivizing public presentation and choice of providers on the footing of best value ” ( NEC,2009 ) .
The purpose of this thesis is to place, and look into different methods of procurance and the issues involved with it in the Crossrail undertaking. Cross rail being one of the biggest transit undertaking in Europe, will hold really complex procurance methods which should be really good planned. The thesis will detect the methods of procurance and the steps adopted to get the better of the issues involved in cross rail.
In order to accomplish the purpose, the following aims will be used,
To analyze the skilled resource procurance scheme of crossrail since crossrail will confront deficit of skilled resources through its different phases of undertaking.
To set up the logic behind the type of contract used in securing different contractors and different plants involved in Crossrail.
To analyze and detect on how the procurance scheme for cross rail is developed to obtain value for money.
Outline Methodology of the Research
The research procedure will be broken down into two cardinal phases in order to run into the purpose and the aims indicated earlier. These are,
1.4.1 Literature Review
This phase of the research procedure provides a comprehensive reappraisal of the relevant literature on different types of traditional methods of procurance. A reappraisal of cross rail ‘s policies and process will besides be done. This is to develop a better apprehension of the best patterns in procurance and will assist in the apprehension of cross rail procurance scheme. The literature reappraisal will organize the foundation for the research and provided a elaborate background to the topic to enable the remainder of the thesis to be conducted.
The 2nd chapter will give more thorough debut on the crossrail undertaking. This chapter will reexamine the undertaking, its vision and aims and the different procurance schemes adopted.
Chapter three and four trades with different constructs of procurance. A literature reappraisal explicating NEC3 contract, value for money and accomplishments issues in crossrail will be done.
Chapter five starts with an account of how the instance study country was chosen and thenceforth sets out in item the research methodological analysis. It describes the tools used to do this probe, describes the features of the research sample, and the methods used to interpret the consequences.
Chapter six shows the work conducted and the consequences obtained.
Chapter Seven will name out the chief points from old chapters to reply the inquiries which were set as aims in chapter 1. This chapter will besides include recommendations and suggestions for future work.
The Crossrail Undertaking
Crossrail undertaking is proposed to back up the transit demands and economic development of London and southeast parts. “ The undertaking comprises new tunnels running west-east through cardinal London linking straight with bing surface rail paths to Maidenhead and Heathrow in the West, and to Shenfield and Abbey Wood in the E ” ( Crossrail Environmental Statement, p3 ) . Crossrail is an urban transit service, alternatively of a long distance type of railroad transit. ItA isA a type of undertaking in which different type of building plants are involved and all these plants are carried out throughout the path together.
Crossrail is a undertaking which has different spouses for bringing like Crossrail Central, London Underground, Network Rail, DLR, Canary Wharf Group and Berkeley Homes. “ Crossrail has five burrowing thrusts, 21 kilometer of twin dullard tunnels under the Centre of the capital covering with the complexnesss that this involves ” ( Crossrail, 2010 ) . Crossrail besides consist of building of eight new resistance Stationss which will be connected to the already bing Underground and inveigh webs and four over land goads including a connexion to Heathrow Airport. Crossrail limited has changed signifier a promotional organic structure to a universe category organic structure which is extremely efficient and able to present a universe category railroad after deriving the Royal Assent. “ Crossrail limited was a 50/50 joint venture company between Transport for London ( TfL ) and the Department for Transport ( DfT ) until 5 December 2008 when it became a to the full owned subordinate of Tfl ” ( Crossrail, 2010 ) . “ Crossrail ‘s path has four distinguishable subdivisions: a cardinal subdivision, within cardinal London, and western, north-eastern and south-eastern subdivisions widening into outer London and parts of Berkshire and Essex ” ( Crossrail Environmental Statement, p6 ) . New twin dullard tunnels will be constructed in the cardinal subdivision and in some parts of south-eastern subdivision.
The Central Section
The cardinal subdivision consists of the bulk of the building works. “ New Stationss will be built along the cardinal path of the line at Paddington, Bond Street, Tottenham Court Road, Farringdon, Liverpool Street, Whitechapel and Canary Wharf ” ( Crossrail, 2010 ) . The new twin-bore tunnels will widen between Royal Oak in the West and Pudding Mill Lane ( near Stratford ) and the Isle of Dogs, in the E. Access will be provided to the West and east terminal of the platforms by the building of two entrywaies and ticket halls in all the new Stationss except the Isle of Dogs station and likely Whitechapel station where this installations will non be provided. For every Crossrail station, connexions will be given to the already bing Stationss which will let the riders to reassign to other services, such as the Underground, Docklands Light Railway, other mainline services such as Thameslink, and coach services. Shafts will be provided at regular intervals throughout the path which will be used for exigency entree, flight and airing. These shafts will be linking the tunnels with the surface. Some of these shaft constructions will be near to the new Stationss, whereas others will be located on their ain. In add-on, some impermanent shafts will be constructed for burrowing intents, and will be filled in one time building is completed. ( Crossrail Environmental Statement, p30 )
The Western Section
In the western subdivision, there may be a demand to alter the bing Great Western mainline between Maidenhead and Paddington, such as new or realigned path. Added to that, an overhead electrification will be installed along the path West of Stockley Road ( Hayes ) . For this intent, hard-on of steel gauntries will be required at approximately every 50m intervals. Destruction or Reconstruction of legion Bridgess will be required as a consequence of overhead electrification in order to supply overhead clearance for the electric wires. Major technology plants like building of a overpass will be required at Stockley to let entree for Crossrail trains to and from Heathrow Airport. New turnouts for stabling Crossrail trains will be provided at Maidenhead, West Drayton and Old Oak Common. The Stationss at Maidenhead, Slough, West Drayton, Hayes & A ; Harlington, Southall, West Ealing, Ealing Broadway and Acton Main Line will be remodelled to assorted manners in order to suit Crossrail trains and to supply more improved and efficient installations for riders such as new ticket halls, escalators, Bridgess and lifts. At a farther five Stationss, platform extensions will be required to function the Crossrail trains. ( Crossrail Environmental Statement, p39 )
The north-eastern subdivision
The proposed plants in the north-eastern subdivision are redevelopment of Romford and Ilford Stationss, extension of platform at nine different Stationss, a new terminal and turnouts West of Romford station, building of an subway in order to supply entree for trains, “ new turnouts for building intents at Alders creek and Pit sea ; new turnouts for stabling trains at Gidea Park and Shenfield ; and a new cargo cringle ( a individual path dedicated to freight trains ) between Goodmayes and Chadwell Heath, to replace an bing cringle at Manor Park ” ( Crossrail Environmental Statement, p44 ) .
The south-eastern subdivision
East of the Isle of Dogs, the twin-bore tunnels from the cardinal subdivision will go on under the River Lea, before emerging on the North London Line at a portal near Victoria Dock Road and Custom House station. New shaft constructions will be built at Blackwall Way and the Limmo Peninsula. New twin-bore tunnels will be driven beneath the Thames to associate North Woolwich with Plumstead station on the North Kent Line. New portals will be located at each site and shaft constructions will be constructed at Warren Lane and Arsenal Way, in Woolwich. Two new paths will be provided beside the North Kent Line between White Hart Road in Plumstead and a point about 1,200 m E of Abbey Wood station, to function up to 12 Crossrail trains per hr in each way. This will necessitate plants to two route Bridgess and replacing of two overcrossings. Custom House station and Abbey Wood station will be reconstructed. Silvertown station, which is likely to hold been closed already under powers to build the Docklands Light Railway extension to Stratford International, will be demolished. Passive proviso will be made for a new Crossrail station at Silvertown, should this go desirable undermentioned renovation of nearby sites. New overhead electrification will be required throughout this subdivision. In order to suit this, the bing Connaught Tunnel, which runs between Royal Victoria Dock and Royal Albert Dock, will be reconstructed. Manor Wharf, in Belvedere, will be refurbished and used to lade excavated stuff onto flatboats. ( Crossrail Environmental Statement, p48 ) .
2.2 Crossrail Delivery Strategies
Crossrail has procured a Program bringing spouse and a Undertaking bringing spouse. The undertaking bringing spouse is Bechtel, which is responsible for the bringing of cardinal subdivision of crossrail. The plan bringing spouse is the Transcend pool made up from Aecom, Nichols Group and CH2M Hill. Program bringing spouse will be responsible for the overall direction of the undertaking. ( NCE, 2012 )
Figure 2.1 – Crossrail Delivery Strategy. Beginning: Michael A Kay, p155, 2009
2.2.1 Crossrail Program Delivery Partner
The function of Transcend is to organize throughout the undertaking. Since the crossrail undertaking is split into many little contracts and little subdivision of plants, the major map of plan bringing spouse will be to pull off the interface in unifying the different constituents of work into a individual and efficient railroad system. To accomplish this, plan spouse will be working closely with National Rail, London Underground Limited and Rail for London. The plan spouse is besides responsible for the work of Stationss which are in private funded by developers like Canary Wharf Group and Berkeley Homes.
The plan bringing spouse will be closely working with crossrail limited as an incorporate bringing spouse. Staff for the plan bringing squad will be chosen on the footing of efficiency and regardless of the employer. Integrating the two squads in the early phase will be safe for the clients and hazards can be shared. In the ulterior phase, if everything is running swimmingly, CRL can engage more of its ain staff and can cut down the figure of staff in plan spouse. This will increase more in-house control. The function of plan bringing spouse is really wide as compared to the undertaking bringing spouse. ( NCE, 2012 )
2.2.2 Crossrail Project Delivery Partner
The undertaking bringing spouse will be responsible for the bringing of Central Tunnel Section ( CTS ) in which Stationss and systems are besides included. Bechtel will pull off the procurance of all the contracts which will be responsible for bringing of cardinal subdivision. Although the contract will be between CRL and the contractors, the undertaking bringing spouse will be moving on behalf of CRL. The CTS is really good defined and hence will necessitate more traditional attack of undertaking direction. The chief duties of undertaking bringing spouse will be execution of technology design, pull offing interface within the cardinal subdivision, procurance, proving and commissioning. ( Michael A Kay, 2009 )
Both bringing spouses are expected to hold strong inputs in finalising the procurance scheme. Both should do of import determination like size of contract and incentivization construction to acquire maximal end product and quality.
2.2.3 Crossrail Stakeholders
Crossrail being a mega undertaking will hold many stakeholders. The tabular array below shows all the authorities and private stakeholders of Crossrail:
Department for Transport ( DfT )
Co – Patron. Main interface to national authorities and HM Treasury
Conveyance for London ( TfL )
Co – Patron. Main interface to local authorities, the Greater London Authority ( GLA ) and the Mayor of London ‘s office. Owner of the cardinal subdivision.
Crossrail Limited ( CRL ) ; antecedently Cross London Rail Links Limited ( CLRL )
Delivery agent. Once a 50/50 joint venture of TfL and DfT, now a entirely owned subordinate of TfL. Main interface to the bringing supply concatenation, including both the undertaking and plan bringing spouses.
National Rail ( NR )
Industry spouse. Responsible for the operation, care and reclamation of the National Rail web. Infrastructure director of crossrail terminal to stop rail systems. Main interfaces to develop operating companies ( TOCs ) and Freight Operating Companies ( FOCs ) .
London Underground ( LUL ) ; a TfL subordinate
Industry spouse. Responsible for the operation, care and reclamation of the National Rail web. Infrastructure director of the cardinal subdivision Stationss, except Paddington. Main interface to the PPP and PFI LUL contractors.
Rail for London ( RfL ) ; a TfL subordinate
Operator franchising authorization or shadow operator of crossrail. Infrastructure director of crossrail Stationss at Paddington, Isle of Dogs and Woolwich.
Docklands Light Railway ( DLR ) ; a TfL subordinate
Industry spouse. Responsible for the operation, care and reclamation of the Docklands Light Railway conveyance system and for supplying crossrail limited ( CRL ) with entree for proposed alteration of the DLR
British Airports Authority
Owner of the Heathrow goad
Canary Wharf Group ( CWG ) and Berkeley Homes Group ( BH )
Developers that have agreed to do parts towards the cost of Stationss at the Isle of Dogs and Woolwich severally.
( Table 2.1 – Crossrail Stake holders and functions. Source – Michael A Kay, 2009 )
Literature Review – I
3.1 Skills Issues for Crossrail
Bing a mega transit undertaking, Crossrail will be confronting many accomplishments shortage in different sections of its plants. Harmonizing to Crossrail Skills and Employment Strategy, July 2010, the undermentioned accomplishments issues will be faced by Crossrail:
3.1.1 Ageing work force
Across the building industry and technology Fieldss there is an ageing work force and for many old ages youth were non attracted towards the industry because they did non treated it as an attractive calling option. The major issue is that the age profile of Registered Engineers has been lifting steadily for 20 old ages. Now the status is that about 50 per centum of the Registered Engineers have either crossed their retirement age, or will be making their retirement age in 10 old ages. “ In London, the issue is peculiarly blunt with 38 per cent of the technology work force aged 45 to 64, and merely 10 per cent aged 16-24 ” ( Crossrail Skills and Employment Strategy, 2010 ) . Although there was a singular growing in building industry since the early 1990s, the enlargement the work force was non even. It was different among different age groups. “ The figure of older workers aged 55 old ages and over in the industry has increased by 65 per cent since 1990, while those aged 24 and under has fallen by more than 40 per cent over the same period. ” ( CITB Construction Skills, 2011 ) .
3.1.2 Underground building accomplishments spread
Crossrail will hold a immense demand of skilled tunnellers.But the chief job is that since the last 30 old ages, the building industry which is involved in belowground plants, has suffered from cyclical extremums and troughs of work due to which it failed to keep an experient work force because the work were missing continuity of employment. Not merely Crossrail but there are a figure of major undertakings in London like a figure of National Grid tunnels ( 2009-2016 ) , Thames Water tunnels – Thames Tunnel ( 2012-2020 ) and Lea Tunnel ( 2009-2014 ) , and London Underground ( LU ) line ascents from 2010 onwards. “ On an international degree, there is the ?2.5bn enlargement of the Copenhagen Metro, and the 3bn Dublin Metro will be delivered between 2009 and 2018 ” ( Crossrail Skills and Employment Strategy,2010 ) . There is no estimation of labor available for this undertaking but the sum of financess required for this undertaking indicates that a immense figure of work forces will be required to put to death the work. The consequence of these full undertakings will decidedly make a tunnelling accomplishments deficit and this can merely be overcome by giving proper preparation to a important figure of building workers.
3.1.3 Logisticss preparation demands
While unearthing for crossrail tunnels, a immense measure of excavated stuffs will necessitate to be removed from the site. Although Crossrail has to take much of the stuff by utilizing rail conveyance and besides by utilizing flatboats, some stuffs will be removed by utilizing route transit system. Besides, the route transit system will be required to present the stuffs required for the station site. Harmonizing to Crossrail, there will be about 3,500 frequent lorry drivers. In add-on to these drivers, there will besides be a little figure ( around 25 ) of secret agents at consolidation Centres, around 60 people with logistics accomplishments at site operations and about 20 at lorry keeping countries and cardinal control. ( Crossrail Skills and Employment Strategy, 2010 )
3.2 NEC3 – The Construction Contract
The NEC is a major effort to outline a simple and direct criterion signifier contract from first rules without trying to construct upon the criterion forms that already be. The specification prepared in 1987 set out the purposes of those outlining the NEC.
As per Fenwick Elliott, 2007, the purposes were to:
Attain an advanced grade of lucidity when matched to other bing contracts ;
Use of a simple linguistic communication which is normally used and avoid legal slang ;
Repeat indistinguishable phrases if possible ;
Specifically and unmistakably apportioning functions and duties to the right Person ;
Aim for lucidity above equity ; and
Avoid including inside informations which can be more adequately covered in a proficient specification.
To sum up, it can be said that utilizing three nucleus rules like flexibleness, simpleness and lucidity, the writers drafted nucleus clauses which are applicable to all NEC contracts. The nucleus clauses were so used as the footing for six chief options ( Nicholas Gould, 2007 ) .Under NEC3 these six chief options remain:
Option A ( priced contract with activity agenda ) ;
Option B ( priced contract with measure of measures ) provides that the contractor will be paid at stamp monetary values. Basically, a ball amount contract attack ;
Option C ( mark contract with activity agenda ) ;
Option D ( mark contract with measure of measures ) provides that the fiscal hazards are shared between the contractor and the employer in in agreement proportions ;
Option E ( cost-reimbursable contract ) ; and
Option F ( direction contract ) a cost-reimbursable contract, where the hazard is hence mostly taken by the employer. The contractor is paid for his properly incurred costs together with a border.
As per the experts of the NEC contract, the greatest strength of NEC is that it believes in partnering attack and at the same clip adopts a undertaking direction technique which is proactive. There are possibly three ways that this is clearly demonstrated in the NEC signifier. First one is the early warning system. Harmonizing to this system, early designation of jobs involved in the undertaking and happening an early declaration is encouraged. The early warning system says that an experient contractor would hold or ought to hold recognized the demand to give the warning neglecting which, the contractor will non be compensated for the issue. Therefore contractors are encouraged to be active in early warning processs so that any jobs originating in the hereafter can be avoided in the initial phases and unequal cost recovery can be avoided.
“ Second, those hazards for which the employer is non expressly responsible under clause 80.1 are hazards for which the contractor is apt. Finally, the mark cost option most clearly reflects the early warning proactive direction attack by impacting the fiscal bottom line of the parties, in peculiar the contractor ” ( Fenwick Elliott, p7, 2007 ) .
3.2.2 Target cost contracts
In traditional signifier of contracts, a ball amount contract is used to transport out the work on the footing of which contractor will be paid. This amount will merely be adjusted for the alterations which will be done by employers or for any other hazard points which will be mentioned in the contract for affair such as design mistakes. In this type of attack, the work will ever be awarded to those contractors who quote the lowest monetary value to make the occupation. In the present scenario, this type of procurance is extremely discouraged and seldom practiced particularly in the public sector section where best value or value for money is largely preferred.
It is now usual in the populace sector where best value applies for procurement systems to supply for payment to the contractor based upon its recorded costs. To do certain that there should be no cost overproduction which will be hard to command in the hereafter, a mark for these costs is fixed at the beginning phase. This mark is adjusted in such a manner that any alterations made by the employer and other monetary value hazard allocated to the employer under the contract are taken into history. Incentives are given to the contractor so that cost can be kept minimal. To guarantee this, a addition portion / hurting portion mechanism is fixed at the initial phase of the undertaking. The costs are recorded and compared with the mark cost. Any salvaging from the work will be shared between the contractor and the employer in a pre-agreed mode. Same thing happens when the recorded monetary value exceeds the mark monetary value.
3.3 Value for Money
Value for money is ever good to the client. It means that the undertaking is deserving making and is more refereed in concern footings instead than fiscal footings. Value for money is all about making a better working environment. The term value means to do certain that a right pick is made about acquiring best balance of benefits in footings of cost and hazard. Value direction is a defined and systematic attack for the analysis and development of a undertaking so that opportunities of accomplishing these demands are increased and value for money will be achieved. “ Value technology is a uninterrupted procedure in which all the constituents and procedures involved in building are critically appraised to find whether better value options or solutions are available. ” ( OGC, Risk and value direction, p7, 2007 ) . This helps in cut downing wastage and pull offing all those inefficient procedures involved in the different phases of building.
Value direction is really of import because it gives an option for stakeholders to give their input in the undertaking by promoting more engagement, teamwork and terminal user bargain in. The benefits which can be obtained by following value direction attack is more focal point on concern demands, more flexibleness to do the hereafter needs simple, taking stakeholders into consideration to acquire different positions and developing more options, sing assorted options by being advanced and originative, bar of unneeded wastage and inefficiency and encouraging teamwork to happen solutions. ( OGC, Risk and value direction, p8, 2007 ) .
Value direction purposes to maximise undertaking value within clip, cost and quality restraints. However, sometimes excess capital outgo is required at the start of the undertaking to better whole life undertaking value. It is of import that the value direction method is based on the whole-life cost of ownership alternatively of acquisition entirely. “ Issues of wellness and safety, sustainability, design quality, build ability, operation and care and disposal should all be considered during value direction reappraisals and rating of options ” ( OGC, Risk and value direction, p9, 2007 ) .
Departments should move as intelligent clients by discoursing with providers all the elements of the contract monetary value including degree of service, timescale of the assignment, skill mix of the provider ‘s squad and how costs are to be remunerated. Optimizing the cost of presenting a service or goods over the full life of the contract instead than minimising the initial monetary value, presenting inducements into the contract to guarantee uninterrupted cost and quality betterments throughout its continuance, aggregating minutess to obtain volume price reductions, join forcesing with other sections to obtain the best monetary values and procure better price reductions from bulk purchasing is the best attack. Developing a more effectual working relationship with cardinal providers to let both sections and providers to acquire maximal value from the assignment by placing chances to cut down costs and follow advanced attacks.
Literature Review – Two
4.1 Inspiring Future Talent
It is really of import for the crossrail undertaking and besides the for the industry that more and more immature people get attracted towards the building and technology industry and take it as their calling waies. CRL will animate immature people by offering them with chances to work in the industry in the signifier of work arrangements and Apprenticeships with the aid of its supply concatenation spouses.
4.1.1 Young crossrail programme
Young crossrail programme, as the name itself suggests, was established in 2003 to assist, prosecute and promote immature people and their household members along the proposed path. The plans have two wide aims. One is to supply instruction about crossrail with the aid of presentations which will expose the exact and accurate information about the plan. The 2nd aim is to supply instruction through Crossrail as a context to back up the acquisition procedure and bing authorities enterprises. As the crossrail programme is in bringing phase at the minute, immature crossrail has been reviewed and the whole focal point of the plan is to back up and assist instruction and besides to increase the involvement of pupils and immature coevalss in developing their calling way in conveyance, technology, building and rail substructure undertakings. Young crossrail programme will be more focussed in working with primary and secondary schools which are within one mile country of the path. This will assist them in prosecuting with immature people and their household who will be most straight affected by the plan. Young Crossrail will go on to work with schools and widen its battle to the 16-19 age groups. ( Crossrail Skills and Employment Strategy, p16 -18, 2010 ) .
Since Crossrail is one of the esteemed and largest substructure undertaking in Europe, pupils with involvement in countries like conveyance, technology or building industries, can utilize it as a instance survey. Young Crossrail hence plans to hold an extra offering through a dedicated web site and downloadable web resources. Therefore, resources will be available to all the pupils, their households and besides to the instructors. The figure one precedence and cardinal value of crossrail is to guarantee each other ‘s wellness, safety and well-being. This is applicable to every individual individual who is involved in crossrail. This individual can be the 1 who is involved in the undertaking and besides all those who live or work near crossrail sites. Crossrail is developing a series of resources to pass on the dangers, which will be around the work sites or on busy lorry paths, to all the pupils of schools which are in close propinquity of crossrail paths. This is to run into the crossrail ‘s Target Zero programme for safety. ( Crossrail Skills and Employment Strategy, p16 -18, 2010 ) .
One of the most of import accomplishments set which will be required for a good hereafter of building and technology industry is Enterprise capableness. It is the ability to respond positively during alterations and besides to develop and implement advanced thoughts. As a consequence of this, these accomplishments have been chosen as an country of chief focal point for immature crossrail programme particularly for the 14-19 age groups. “ Delivered in partnership with STEMNET – the Science, Technology, Engineering and Mathematics Network – Ambassadors are available to go to negotiations and events at schools near to the Crossrail path, every bit good as Further Education colleges across London and the South East ” ( Crossrail, 2012 ) .
To day of the month, the above mentioned Crossrail STEM Ambassadors have conducted different types of activities to prosecute young person. Some of these activities include mentoring Sessionss, callings fairs, negotiations, networking events and competition judgment. The Ambassadors working in this are to the full CRB checked and are qualified to talk about the crossrail undertaking and besides to portion their work experiences. Even though the Young Crossrail plan is specifically meant for schools which are near to crossrail worksites, the Ambassador programme is a countrywide strategy operated by STEMNET. ( Crossrail, 2012 ) .
4.1.2 Work arrangements
Crossrail programme will back up 14-19 Diplomas, Young Apprenticeships, and wider vocational programmes through the supply concatenation, promoting providers to offer arrangements through the procurance procedure. It will be a contractual demand for the providers to offer a lower limit of 350 arrangements between 2011 and 2017. CRL will work with spouses to move as agent between contractors and schools/ colleges to happen pupils suited work arrangements. A coverage construction will be developed by CRL in order to track and supervise arrangements and do certain that everything is working decently. Crossrail launched a professional arrangement programme in June 2010. The chief intent of this plan was to supply the approaching graduates a opportunity to work with the biggest substructure undertaking in Europe. As a portion of this plan, the trainee alumnuss were engaged on a professional development strategy with any of the CRL ‘s strategy or its industry spouses like Network Rail, TfL or Transcend. This was done to assist the alumnuss in deriving experience in assorted countries like finance, HR or Engineering subjects of CRL. The period of arrangement varies from 3 months to a twelvemonth. Furthermore, CRL is besides offering work arrangements for instructors in schools. This will let them to hold exposure and experience in the undertaking. This will be really of import because instructors can maintain hereafter endowments up to day of the month by animating them and learning them about current industry accomplishments and techniques. They can promote pupils by sharing their experience on site and aid pupils to increase their involvement and degree of motive. The Crossrail programme will supply 400 Apprenticeships, through the supply concatenation. The different trades of apprenticeships offered, amongst others, will be Electrical, Mechanical, Finishing Trades and Tunnelling. ( Crossrail Skills and Employment Strategy, p18 -20, 2010 ) .
“ Contractors will be under duty to use learners and back up their acquisition via contractual demands. All Apprenticeships will be to a minimal NVQ Level 2 and be offered within a Qualifications and Curriculum Authority ( QCA ) model ” ( Crossrail Skills and Employment Strategy, p19, 2010 ) . Besides Level 3 apprenticeships will be delivered if necessary ; to back up the authorities aims which are to do certain that 70 per centum of workers under the age of 30 attains a Level 3 making. CRL will besides follow and take lessons learned from successful undertakings like the Olympic park. In the Olympic park undertaking, an Apprentice Manager was appointed to oversee all scholars by interceding with contractors, developing suppliers and all the functioning organic structures. This is to guarantee the best positive result for the scholar, employer and CRL. CRL is besides working in association with national organic structures peculiarly the National Apprenticeship Service ( NAS ) , to develop robust theoretical accounts for placing, monitoring and offering Apprenticeships. ( Crossrail Skills and Employment Strategy, p19, 2010 ) .
4.1.3 Driver preparation
CRL has a specific mission to set up and execute preparation programmes for the full lorry and new wave drivers working on the programme. This will besides include a faculty on rhythm consciousness. “ A class has been developed based on an updated version of a programme developed for TfL ‘s Freight Operator Recognition Scheme ( FORS ) ” ( Crossrail Skills and Employment Strategy, p14, 2010 ) . It is designed for frequent lorry drivers who work on the Crossrail programme and in peculiar any LGV driver. The chief focal point of the programme is to a great extent upon the lorry driver ‘s consciousness of utilizing the busy London ‘s roads with open route users. The content of the preparation plan is developed in such a manner that it includes peculiar crossrail paths, the chief ground for hits with bicyclers, driver weariness and besides the legal facets on the impact of drugs, intoxicant and utilizing nomadic phones while driving. Adept sentiments and inputs are sought from the Centre for the Protection of National Infrastructure to develop the preparation programme faculties. Since it is non plenty merely to supply a safety preparation, CRL will further guarantee that the driver initiation preparation are monitored and reviewed often. Besides, if there is any demand to supply practical safety initiation preparation for lorry drivers, so an extra safety preparation plan for the same will be introduced to run into that demand. All the contractors and sub – contractors who will supply conveyance services to CRL will be deemed to register under TfL ‘s FORS or tantamount and should accomplish a minimal Bronze rank degree within two months of being awarded a crossrail contract. This will non merely guarantee the safety pattern but besides will show a committedness towards following best pattern. CRL besides expects all contractors to work towards silver and gold rank of the FORS strategy ( Crossrail Skills and Employment Strategy, p19, 2010 ) .
4.2 Tunnelling and Underground Construction Academy
TUCA is really of import, both for CRL ‘s bringing programs and besides its bequest to the industry. Although UK has executed many esteemed burrowing undertakings and has expertness and cognition in such undertakings, there is non a preparation installation in the UK on which the industry can depend upon and can go a focal point of the industry. As per the research conducted by crossrail, the current belowground building preparation commissariats in UK are non sufficient to run into the demands of crossrail programme ‘s work force demand either in footings of capacity or in footings of specialisms.
CRL will increase relationships and will besides advance preparation across the industry by set uping TUCA. With this, CRL will be assisting in developing new makings and in the betterment of wellness and safety criterions followed in the industry. “ CRL sees its function as the developer of TUCA, working closely with the SFA, Construction Skills and Tunnel Skills, industry organic structures such as the British Tunnelling Society and other cardinal burrowing clients such as LU, Thames Water, National Grid and EDF ” ( Crossrail Skills and Employment Strategy, p22, 2010 ) . From TUCA, Crossrail wants to guarantee that building industry additions maximal advantage and the academy helps non merely for crossrail undertaking but besides for other undertakings after it. The lone belowground building academy in Europe was the Hagerbach Test Gallery in Switzerland. “ The trial gallery provides research and development in belowground building and is place to the international Centre for Geotechnics and Underground Construction ( CUC ) and the International Centre for Safety in Tunnels ( ICST ) ” ( Crossrail Skills and Employment Strategy, p23, 2010 ) . Although Hagerbach is really different developing installation as compared to the one which is required in crossrail, CRL has developed a partnership with Hagerbach so as to guarantee complementary preparation between the two constitutions.
The design of TUCA is being established in combination with cardinal stakeholders from the industry, Crossrail programme spouses and academic/ instruction establishments. The installations involved in TUCA will be sprayed concrete liner ad the operation of a tunnel drilling machine. The chief purpose of TUCA is to animate and promote all those who join the academy for preparation. With the aid of its acquisition environment, educational and exhibition infinite, TUCA will assist in increasing the apprehension of the industry and by making so will pull and retain new endowments. The course of study of TUCA is developed chiefly to run into the belowground accomplishments deficit in the industry. Crossrail ‘s belowground accomplishments deficit will besides be met through this academy. The academy besides focuses on the accomplishments deficit of future similar undertakings every bit good. By closely working with its contractors and industry experts, CRL expects all the forces working with crossrail to obtain the belowground safety passport through TUCA. This will be irrelevant of the experience of the forces. By making this, CRL will do certain that a high degree of criterion is followed and a standard degree of competency is followed to run into the wellness and safety demand of CRL. ( Burrowing and Underground Construction Academy, 2011 ) .
In add-on to safety passport preparation, there will be many other programmes which will be made available to contractors. This will enable them to increase the accomplishments of their work force and besides present the crossrail programme with more efficiency. TUCA will present NVQ makings. NVQ stands for National Vocational Qualification. It is a competency based making which means that one learns a practical undertaking related to a peculiar work and will assist in developing 1s accomplishments to better the efficiency in executing a undertaking. ( Directgov, 2012 ) . CRL expects the contractor ‘s forces to obtain NVQ Level 2 making within a twelvemonth of beginning of their function. TUCA will offer NVQ degree 2 and 3 preparation in different countries of building like joinery, completing trades, and scaffolding. This will be done in partnership with other building skills suppliers. “ It is expected that TUCA will spouse with local FE colleges to supply Skills for Life and ESOL preparation to complement the proviso of NVQ makings ” ( Crossrail Skills and Employment Strategy 24, 2010 ) .
TUCA is expected to be used for many burrowing undertakings in future in order to develop and develop the work force. CRL will set up TUCA as an independent installation with the ability to be self-supportive in footings of finance and administration. TUCA will keep a strong relationship with Tunnel Skills and burrowing contractors, so that belowground building methods can be improved and accomplishments spread can be fulfilled. CRL will besides work in partnership with different universities for farther development and will besides offer both research and Masters Study chances. ( Burrowing and Underground Construction Academy, 2011 )
4.3 Optimised Contractor Involvement
Since Crossrail is a mega undertaking and its civil technology plants are excessively big and complex to be procured as a individual contract, the major challenge in forepart of CRL was to develop a contract bundle which will do certain of effectual competition and that which guarantee maximal end product with the available resources. The contract scheme should besides do certain that all the taking UK based and international contractors are attracted towards it and therefore promoting a healthy degree of competition. However, it is besides of import to guarantee that the contract scheme should be flexible plenty to respond to market status during the clip when work is put out to the market. By giving consideration to all these things, CRL decided non to utilize a traditional design and construct type of contract and alternatively of that adopted an Optimised Contractor Involvement ( OCI ) attack. The OCI attack is really efficient since it involves the contractor in developing and finalising the design procedure. This will be really good because it encourages early input from the contractor and besides minimizes the cost of tendering involved in the procedure. OCI is besides good in minimising the demand of design resources which are really less in supply at the minute in building industry. The peculiar benefits of this attack are seen as:
Contractors are encouraged to supply their input in developing and finalising the design procedure.
Reduced tendering costs.
“ The contractor would be brought into the ownership of the design through the choice procedure and by the demand to give early warning of jobs and through the usage of inducements to understate the cost effects ” ( Crossrail Briefing Material, p94, 2008 ) and
“ Flexibility in the timing of the award of contracts to suit in with Programme gateway clasp points where necessary ” ( Crossrail Briefing Material, p94, 2008 ) .
The OCI attack consist of a choice procedure which is of two phases and besides a contract of two stage in which the committedness to building will be made at the terminal of the first stage of the contract. In this procedure, the employer will ab initio finish the design to the extent in which tendering procedure can be started. The design in this phase will non be in a really elaborate signifier. The stamps will be invited on the footing of this design with any contractor design elements being specified but wholly the design inside informations and demands during this phase will be minimal. After the pre – making phase of the tendering procedure, a two phase choice procedure will be followed. The first phase will be based on the appraisal of proficient and choice competency of the contractor. This will assist in farther short listing of bidders and the figure of bidders traveling to the 2nd phase will be reduced. In the 2nd phase, the short listed bidders will be allowed to transport out a reappraisal of the employer ‘s design in order to accomplish maximal efficiency and develop a value engineered solution.
After the reappraisal and at the terminal of 2nd phase, the shortlisted bidders will subject their concluding commands including the mark monetary value of contract. Normally the contract is awarded on the footing of commands which offer maximal value for money. “ The first stage of the contract would supply the chance for farther value technology, building planning and mobilization and the timing of the terminal of the first stage can be programmed to co-occur with the demands for overall Programme reappraisals needed before committedness to building is given ” . ( Crossrail Briefing Material, p94, 2008 ) .
4.4 Responsible Procurement
Responsible Procurement is a method in which it is ensured that the goods which are obtained, the plants and services which are executed are done in such a manner which will non endanger the life style of future coevalss. CRL has identified many countries and issues which will be really of import for crossrail undertaking. The aim is to make a better quality of life for London ‘s communities now and in the hereafter. “ The Crossrail Programme will play a major function in assisting to present this vision and will be aligned with the GLA Group Responsible Procurement Policy, 2008, which identifies three cardinal rules:
Strong and diverse economic growing.
Social inclusivity to let all Londoners to portion in London ‘s future success.
Cardinal betterments in environmental direction and usage of resources.
The GLA Group Responsible Procurement Policy, 2008, aims to better sustainability through procurance across the following seven subjects:
Promoting a diverse base of providers ;
Promoting just employment patterns ;
Promoting work force public assistance ;
Meeting strategic labor demands and enabling preparation chances ;
Community benefits ;
Ethical sourcing patterns ; and
Promoting greater environmental sustainability.
CRL will follow and implement the GLA group responsible procurance policy and will incorporate it as a portion of crossrail ‘s procurance policy and processs. “ Internal counsel stuff is being developed that turns policy into actions appropriate to the specific features of the goods, works or services in inquiry ” ( Crossrail Briefing Material, p90, 2008 ) . The Processes will dwell of different templets for different phases like pre – making, stamp invitation demands and different contractual commissariats. This will be designed in such a manner that responsible procurance will be promoted and encouraged and will be in line with the committednesss made by CRL during its development phase. In order to do certain that responsible procurance policy committed by the contractors during the procurance phase are presenting the coveted consequences, proper degree of reexamining and supervising system will be employed. ( Crossrail Briefing Material, p94, 2008 ) .
5.1 Scope of Chapter
This chapter is aimed at explicating how the procurance scheme in Crossrail undertaking was investigated. It describes the tools used to do this probe and furthermore explains the features of the research sample, and the methods used to interpret the consequences.
5.2 Statement of Research Aim
The purpose of this research is to look into survey and discourse the scheme adopted by CRL in the procurance of Crossrail Project.
5.3 Research Questions
The research trades with three chief countries in Crossrail procurance. They are skilled resource procurance, type of contract used and value for money. Hence the research inquiries are designed based on this to find the followers:
What can be done to decide the issue of ageing work force in Crossrail undertaking?
What can be done to cut down the deficit of belowground building accomplishments spread?
What is the principle behind utilizing NEC3 type of contract in Crossrail undertaking?
How is value for money demonstrated in Crossrail procurance?
5.4 Method of Data Collection
The research methods that are used to roll up informations which are relevant for this thesis are literature reappraisal and interviews.
5.4.1 Literature reappraisal
Literature reappraisal is “ a systematic hunt of published work to happen out what is already known about the intended research subject ” ( Robinson & A ; Reed, P 58, 1998 ) . A literature reappraisal helps in many countries like set uping the demands of the research, increasing the degree of apprehension of the research worker and it besides helps the research worker to avoid researching in the country where research is already conducted. The intent of literature reappraisal is non merely to understand the subject but besides to derive maximal cognition about the jobs and issues at manus. The literature reappraisal for this undertaking was carried out to acquire a general cognition and context of the subject. It focussed specially on the literature available in the UK. The literature was collected from assorted beginnings like Crossrail web site, Libraries and by forces from the industry. From the literature reappraisal, information was collected about
Skills issues faced by Crossrail.
Types of contracts used in Crossrail undertaking
The scheme used in prosecuting contractors
The significance of responsible procurance
The significance of Optimised Contractor engagement
Different programmes employed by Crossrail to turn to accomplishments shortage
Meaning of Value for money
Based on the literature reappraisal, a questionnaire was developed based on the countries which required further elucidation for developing the research end product. This questionnaire was used to interview the forces from the industry who straight or indirectly are associated with Crossrail undertaking.
Interviews are really utile because really of import and specific informations can be obtained through it. The interview besides helps in roll uping a general overview of ideas of industry experts. Here the industry experts were contacted through electronic mail and telephone to set up interviews. The interviews were so carried out based on the questionnaire which was developed by literature reappraisal. During the interview, permission was sought to enter the whole interview procedure so that any information which was non noted down during interview can be recalled at the clip of informations analysis and reading. This technique was helpful in acquiring more adept sentiment from the people who are working closely with Crossrail undertaking. The forces selected for interview were from Crossrail and TfL. By making literature reappraisal and interviews, both qualitative and quantitative information were collected.
5.5 Rational of the Research Questionnaire
The research questionnaire which was used for this undertaking is in Appendix A. The inquiries are categorised into 3 chief subdivisions. A brief description of them is as follows:
5.5.1 Skilled resource procurance
This portion of the questionnaire was designed on the footing of skilled resource factor. This subdivision sought to obtain respondents see on assorted issues that were highlighted in the literature reappraisal chapters. These issues included the influence that different Crossrail programmes like Young Crossrail and TUCA have over skilled resource procurance of Crossrail undertaking.
5.5.2 Type of contract
The 2nd subdivision of the questionnaire was designed to obtain replies on the type of contract used by Crossrail. Here besides, the issues that were raised in the literature reappraisal were highlighted. Issues such as interface direction, 70:30 Technical Price ratio in command appraisal and the logic behind the render choice standards were used.
5.5.3 Value for money
Section three covered the 3rd and concluding factor under probe. In this subdivision, the respondents were asked to place the countries and activities employed by Crossrail which demonstrated value for money in the field of procurance. Besides other factors which should be considered in megaprojects like Crossrail is used as a inquiry in order to obtain some excess information from the past cognition of the respondent.
5.6 Research Sample
In order to roll up research sample, it was clear on which facet of the industry should be selected. It was decided to choose sentiments from different people. Due to this determination was taken to try each of the country that exists in contact with the Crossrail undertaking straight or indirectly. In entire 15 people were contacted through electronic mail and telephone. The initial response was overpowering with 15 out of 15 answering, although interview were done merely with three people because most of the people contacted were from Crossrail and many of them advised to interview the procurance manager and Head of accomplishments for acquiring Thursday most appropriate response. Two of them declined for the interview. From here, the staying three respondents were contacted once more and interviews were arranged. The type of respondent who agreed to take portion in the interview is as follows:
First interviewee was the Procurement Director of Crossrail Project.
Second interviewee was the Project Manager of Transport for London.
Third interviewee was the Head of Skills and Employment of Crossrail.
5.7 Method of Analysis
The information in the undermentioned chapter will be analysed by utilizing the response received from interviews. The issues raised in the literature reappraisal will besides be taken into consideration.
Analysis of the Consequences
6.1 Scope of Chapter
This chapter reports the findings of the interview and includes the analysis of responses of the questionnaire. Although the informations aggregation method was non a pure questionnaire type method but a questionnaire was developed for the interview and hence responses were sought on the footing of it. To acquire more lucidity on questionnaire response, this chapter is divided in the same three subdivisions like the questionnaire. They are:
Skilled Resource Procurement
Type of Contract
Value for Money
Here section-wise analysis of the questionnaire will be done.
6.2 Response on Skilled Resource Procurement
Questions 1 to 5 were based on skilled resource procurance. These were inquiries which chiefly focused on the accomplishments issues faced by crossrail. Questions were asked about the success of the undertakings like immature crossrail and TUCA, which Crossrail has started to get the better of accomplishments issues. The response was to concentrate on what large public plan agencies in existent footings to authorities. Government is much focused on adding back economic and societal sustainability facets. So by disbursement such a immense sum, it will be made certain that economic system should acquire maximal benefits from it. TUCA is a truly good illustration of that. Crossrail has secured a service supplier called NCC ( National Construction College ) and they run the academy. They are an expert in this field and have accreditation to run such academy. Crossrail is non a preparation supplier and wanted an expert to come in and therefore NCC was chosen and was to the full facilitated them to run the academy. Programs like immature crossrail are for adding value for the hereafter. The authorities has got a concatenation of major undertakings like Thamess tideway, HS2 etc. These accomplishments can be utilized in such undertakings. Besides there is a batch to make in footings of operational stage of Crossrail after 2018. There will be accomplishments requirement during that phase every bit good and these accomplishments can be utilized at that clip. TUCA started operation in September 2011 to develop people to work in tunnel digging. The preparation installations which are included in TUCA are Spray Concrete Lining and a tunnel mock up workshop. This will assist pupils in deriving experience in belowground building plants. From TUCA, more than 70 Apprenticeships are employed in Crossrail undertaking. These apprenticeships are employed by the Tier 1 contractors of Crossrail as a contractual duty. These Numberss are expected to lift as the undertaking progresses.
TUCA will offer preparation for around 3500 people throughout the life rhythm of the undertaking. Thousands of these people will be employed in the building work of Crossrail during the peak period of 2013 to 2015. TUCA will non merely train and supply people for the building work of Crossrail but besides will be retained as a specializer preparation supplier for future burrowing undertakings.
6.3 Response on type of contract
Question 6 to 11 chiefly focused on the type of contract used by Crossrail. Questions were asked on the benefits of utilizing NEC3 type of contract. Other inquiries were based on the standards for command appraisal and about pull offing the interfaces. Crossrail has used NEC3 type of contract chiefly because NEC3 offers a suite of contract. It offers service contract, goods contract and whole scope of plants contract. NEC3 is embedded with a whole clump of undertaking director processs. There is argument over NEC3 that it is really administrative but that ‘s non ever the instance because NEC3 asks you to account for alteration. It focuses on answerability and transparence. The other interesting fact about NEC is embedded corporate administration. In this, the undertaking director is responsible for his actions. In other signifiers of contract, sometimes the contractor has to wait to acquire an direction but in NEC the contractor continue to continue with the work. The thought of the contractor sitting about and wait till the direction is given to him officially will non be suited for megaprojects like crossrail. The hours or yearss contractor delay for instructions will be really high and will besides detain the agenda of the undertaking. NEC allows the contractor to transport on with the work and instructions will be given while the work is carried out. An of import activity for CRL will be the direction of interfaces. An Interface Management Plan ( IMP ) will be generated that defines the controls to be applied to guarantee each contractor and other parties satisfy their interface duties. This will be supported by a database that identifies all interfaces and allocates duties. Each interface will hold a specification signed off by the interfacing parties that will go one beginning of demands for their design. Crossrail is utilizing 70:30 proficient monetary value ratios instead than the usual 60:40 ratio. It is hard to tender in a fixed monetary value or ball amount contract in a large undertaking like Crossrail. Crossrail is looking at the output and hence purchasing mark monetary value contract and non be monetary value contract. Crossrail is sharing