Procurement

  Background A specific road in your country between two major cities has become too narrow with closely spaced interchanges. The number of vehicles between two major cities amounts to 6,600 per day, 4,700 of which cross the state border. The share of heavy-duty vehicles is 30%. During peak periods, the large traffic volumes may cause up to 27 kilometres long queues of lorries at the border. The insufficient road capacity does not meet the transport needs, and traffic volumes are expected to double during this decade according to a recent study by the road traffic department. A high number of pedestrians and cyclists also used a section of the road. On this stretch of road there is an average of twelve (12) personal injury accidents and at least five (5) road fatalities each year. Benefits The benefit of the new road will include fast and convenient travel and the area will become more secured and comfortable. By year 2025 the number of traffic accidents resulting in injury will be reduced by say 60%. Travelling will be 15 minutes quicker than present, and planning journeys will become more predictable. Environmental issues Noise, pollution and safety issues that have been burdening people living along the road will disappear. Excellent noise barriers will significantly reduce noise pollution. Groundwater in the area will be protected. Careful study of important environmental and cultural attractions has been made and will be taken into consideration during construction. Creating opportunities The new road will create a great opportunity for development in the region, trade, tourism and commercial life will become busier due to significantly improved transport connections. The new road will attract investment and increase passenger numbers. Project timetable The motorway opens to traffic 2021 with PPP service agreement for 20 years. As one of the experts in this subject in your country, you have been called upon to write a report for the Ministry of Transport about the principles of PPP, its merits and demerits in the context of the proposed project. You are required to critically examine the formats of PPP and suggest a suitable format for the project. Also, evaluate the viability of the Private Finance Initiative and Public-Private Partnerships as a procurement route for the new project in comparison with basic procurement routes.     Task B: Contracts Coursework 50% You are required to design an NEC3 ECC contract and give a sound professional advice to the Principal of the Heriot Watt University on post contract stage issues. The Heriot Watt University is planning to build a £102 million Postgraduate Student Accommodation and Outreach Centre project in its Malaysia campus. The project will provide state-of-the-art accommodation facilities for 2,910 postgraduate students, as well as an outreach centre which will become the focal point for the University’s community-based teaching activities and continuous professional development courses. You should outline your assumptions. You are required to write a report to advise the Principal of the HWU: a) The general principle of law governing construction contracts b) Design an NEC3 ECC contract by selecting appropriate Main Options, Secondary Options and appropriate Z clauses to achieve this goal. Explain how your selections will provide appropriate contract features. c) The conditions guiding payment in the NEC 3 ECC conditions of contract d) The contractual standing in terms of conditions governing contractual programme e) Explain dispute resolution methods in NEC 3 ECC contract that can be used for the project and explain the rationale for your choice You are required to have a separate analysis section where you will compare the advice given based on the NEC3 ECC condition of contract (c-e) with a chosen condition of contracts either JCT011 SBC/Q or the FIDIC Red Book form of contract.