Ofce

Fit-Out
Guide
Building
Consultancy
02 I Ofce t-out guide Building Consultancy
Since its emergence
as an alternative to
Traditional Procurement
(TP) during the 1950s
and 60s, Design & Build
Procurement (D&B) has
become a popular
choice for construction
clients. The approach has
been rened over recent
decades and utilised
with success across all
sectors and project types,
including new build,
refurbishment and ofce
t-out.
D&B works best when dealing with simple
designs and construction processes. The
ofce t-out sector can fall within this
category where limited technical design
expertise is required.
Whilst D&B ofce t-out contractors have
secured signicant market share, it is
important to recognise that D&B is not the
only option available. In reality there are
a myriad of different procurement routes
which can be conveniently grouped into
two primary forms D&B and TP.
What is D&B
Procurement?
There are a number of terms used to
describe this approach, including Design
& Build, Design & Construct, Turnkey and
Package Deal. Ultimately these are all
forms of Design & Build, varied in some
way to meet changes in the clients
required level of service. The common
factor in all is that the contractor provides
the design and construction service under
a single contract.
The majority of D&B t-out contractors
sub-contract at least part of the design
element, particularly in relation to
mechanical and electrical works and
other complex elements.
What is Traditional
Procurement?
With TP there is a separation of the design
process from tendering and construction.
The Design Team will design and specify
the works to a sufcient level of detail to
enable a number of contractors (in direct
competition) to submit lump sum bids.
The process of design and construction
is therefore sequential, whereas with D&B
there can be a degree of overlap as the
contractor can start on site before all the
designs are nalised.
TP is often considered to be time
consuming due to the sequential
design > tender > construct process.
Assessing the needs
and adopting the right
approach
The selection of the most appropriate
procurement route should always be
based on an objective assessment of
the clients needs - considering, as an
absolute minimum programme, cost and
quality expectations. There are no hard
and fast rules; no procurement route is
perfect and there will always be benets
and drawbacks to weigh up but GVAs
Building team is very well placed to offer
this independent assessment. Some of the
advantages and drawbacks of the D&B
procurement route are detailed overleaf.

Design & build
Is it the only choice for ofce t-out?
We have successfully
delivered schemes
ranging from 100,000
to 13 million and
are able to provide
the majority of key
services in-house with
best in class sub-
consultants available
as needed
Building Consultancy Ofce t-out guide I 03
Benets of D&B
1. Works very well on small scale projects
of simple nature i.e. up to 5,000 sq ft.
2. Fast track programme and
mobilisation of contractors, often with
an early start on site.
3. A single point of contact covering
design and construction.
4. High level of in-house expertise,
focused on ofce t-out alone.
5. Extensive resources with a dedicated
team made available when a
commission is received.
6. A lump sum price can be provided to
give the client cost certainty (although
overspends are still very common).
7. Free services provided up-front,
including space planning visuals
etc. This is often perceived as a big
plus by clients despite the cost being
recovered later in the project.
Drawbacks
1. On large projects D&B t-out
contractors are unable to pass on the
savings that traditional contractors
can through economies of scale and
favourable supply chain agreements.
D&B t-out is generally not suitable for
projects over 10,000 sq ft.
2. Designs can often become
homogeneous and bland our
experience shows that when pitched
against each other most t-out
contractors produce very similar
proposals.
3. The D&B approach is not suitable for
inexperienced clients due to the lack
of impartial input (unless they employ
an experienced professional to
monitor the process).
4. Contract documents are often
prepared by the contractor and
these can be vague and open to
interpretation. This can lead to quality
issues as the D&B contractor can
downgrade the specication to save
money, without incurring any penalties.
5. The level of mark-up applied to a
typical D&B t-out contract is in the
region of 20%, and can rise to as
high as 30%. Traditionally procured
contracts will typically provide a prot
level of between 5% 10%.
6. Contracts are tendered on the basis
of concept as opposed to cost.
There is often minimal open market
competition when it comes to
agreement of the contract sum.
7. D&B t-out contractors can overlook
key statutory and health and safety
requirements. We are frequently asked
to regularise problems, in particular
non-compliance with Building
Regulations and failure to properly
manage Landlords Consent.
8. Rectication of defects and
management of defects arising post
completion are often inadequately
covered in the contract.
9. The majority of specialist D&B
companies will sub-contract the vast
majority of packages and are often
known to sub-contract the entire
job. This introduces another layer of
overheads and prot and also serves
to cloud the lines of communication
and liability.
10. Introductory fees and up front costs
associated with winning a pitch are
simply added to the bottom line
when agreeing the contract sum and
can be charged at a premium level
at this point there is generally no
competition.
Our capabilities
GVA has an excellent track record in
project managing ofce t-outs for both
landlords and end user clients. We are
industry recognised, being awarded the
BCO Award for Best CAT A Refurbishment
2008, the North Region Award for Best CAT
B Fit-Out and short-listed for the Southern
Region Award 2008. Our clients can
cherry pick from the following suite of
services.
Feasibility and budget advice
Interior design
Space planning
Workplace consultancy
Procurement and tendering procedures
Relocation/migration advice
Project management
Contract administration
Employers agent
BREEAM assessment
Due diligence/surveys
Licence for Alteration liaison
Advice on Building Regulation consent
and statutory approvals
Specialist package consultancy
including:
Signage design
IT design and installation
Mechanical and electrical
Audio visual
Security
08449 02 03 04
gva.co.uk
For further information
please contact:
Paul Hewitt
020 7911 2331
paul.hewitt@gva.co.uk
Ian Bragg
020 7911 2749
ian.bragg@gva.co.uk
Layne Mercer
0161 956 4410
layne.mercer@gva.co.uk
GVA Grimley Limited is a principal
shareholder of GVA Worldwide
Office fit-out
requirement
established
Scheme
defined
2,000 10,000
sq ft fit-out
Over 10,000
sq ft fit-out
Definition
Standard D&B
Direct appointment by client. Assumes the client
is informed and fit-out is of a basic nature
Regulated D&B
Building, Project Management & Consultancy
appointed to vet contractor(s), review
proposals, monitor costs and performance
acting as Employers Agent
Traditional Procurement
Project Managed by Building, Project
Management & Consultancy, professional
team appointed, sequential design and
procurement, works carried out by traditional
main contractors
Under 2,000
sq ft fit-out
Fast track
programme
required
Regulated
D&B
Standard
D&B
Managed
programme
High design concept/
Bespoke project
High standard of
quality required
Maximum cost control
Traditional
Procurement
Basic fit-out
Informed client
The owchart above provides a simplistic guide to selecting the
most suitable procurement method based on project size.