Procurement and Contracting Strategy Review and Recommendations

Basic Subject Matter of Assignment
Retrospective analysis of procurement and contractual arrangements adopted for procurement of the Edinburgh Trams infrastructure project.
Course Context
Construction Procurement and Economics.
What does the Assignment require?
Review and analyse the various approaches to procurement for the project. The key questions to be considered and analysed are:
1. Design and build, separating design from construction or a novated approach as used for the first phase (wisdom of this).
2. The decision as to whether to have a separate framework contract for service diversions or to include it in the main infrastructure contract.
3. Should a collaborative contract such as NEC4 be used or should a recourse contract such as FIDIC be employed (commenting on wisdom of these for future potential extensions of the tramway, given past cost and time overrunning)?
4. Use of a lump sum contract or a target cost contract?
5. Use of Bills of Quantities or Activity Schedules
What form should the Assignment take?
A report should be submitted along with a (summarising) slide presentation as if for a virtual class presentation plus any background information (appendices) such as spreadsheets that may be relevant. No compulsion in those (appendices).
The general thrust of the recommendations in the Updated Business Case Report* seems to be the reverse of those adopted for the original 2008 contract. This may be a simple reaction against the failures in that approach or may be based on sound reasoning. Please examine the suggestions in the report in this context and also question the reasoning in the original project which were based on reasoned judgements even though they went badly wrong with the benefit of hindsight.
* (this is the business case; begins on page 4 of the PDF).
Harvard (reference list at back of report).
Word Count Constraints
2500 (max) for report. Slide presentation no upper limit on slides; suggest 20 max.
Apportionment of Marks
 Main body of report. – [65 Marks]
 Overall coherence of report – [15 Marks]
 Quality of slide presentation – [20 Marks]
High-Level Thoughts on Report Approach
The report should have a brief introduction or executive summary (one of, not both) and then should simply deal with the five key questions under discrete headings/sections. It should then feature a recommendations section in conclusion, summing up how the strategy failures could’ve been avoided and what to do next time with potential extensions. The slide deck should just be a briefer distillation of the report.
Suggested References (final business case). (project execution plan)

Railways: Docklands Light Railway (DLR)
The Oxford Handbook of Megaproject Management (Oxford Handbooks); Bent Flyvbjerg (2018)
Megaprojects and Risk: An Anatomy of Ambition; Bent Flyvbjerg (2003)
Any other textbooks (etc) dealing with choice of procurement/contracting strategy for large projects

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