How can the NPRA involve contractors early in E39 project?

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1 How can the NPRA involve contractors early in E39 project? NTNU,DCEE

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3 What is ECI and it s benefits ECI is all bout involving the contractor in the early stage of project development, to integrate construction knowledge into planning and design phase by working together as a team with owner and consultant. ECI benefits Increase constructibility Implementation of new and innovative solutions Better knowledge of the project before execution phase Client and contractor get to know each other before they start to work together Delivery of project on time, on budget and high quality

4 What are the barriers to ECI? Cultural change compare to traditional project delivery methods It demands teamwork Contracting practice is different from the traditional project delivery methods International and national legislation Can be resource demanding for the contractor

5 Major ECI approaches used internationally 1. Integrated Project Delivery (IPD) 2. Alliancing 3. Competitive Alliancing 4. Partnering 5. Best Value Procurement 6. Competitive dialogue

6 What is Competitive dialogue (CD) Procurement procedure introduced in 2004 by the EU public procurement directive for particularly complex projects. In 2014 the conditions to use the procedure become simplified. Starting from the conditions to use the procedure is also simplified in Norway. CD benefits It is a flexible procurement procedure that enables a dialogue concerning all aspect of the contract with several contractors. the client can have a dialogue phase and discuss all aspects of the projects with the pre-qualified and short-listed contractors before the contract signing

7 A client may use CD if 1. The needs of the contracting authority cannot be met without adaptation of readlily available solution 2. The purchase includes design or innovative solutions 3. The nature, complexity, legal or financial composition of the procurement or associated risk make it necessitates negotiation 4. The client cannot adequately formulate the requirements specifications 5. The client in a prior open or limited tender competition received only unacceptable offers.

8 CD phases

9 CD models as used in six Statens Vegvesen projects

10 Methods of conducting the dialogue phase 1. Merging solutions:- The client invites several solutions then narrows to a single merged solution 2. Sketch solutions:- The client ask for sketch solutions then progressively more detailed solutions 3. Consecutive:- The dialogue is based on topics (first on technical and then on financial) 4. Consultative:- The client ask for amendments/comments on provisionally preferred solutions 5. Successive stage:- The dialogue takes place in several stages to reduce the number of solutions and bidders involved

11 What is It is a performance based procurement system developed by Dr. Dean Kashiwage in 1991 It is bases on Information Measurement Theory (IMT) Quality based selection methodology

12 Pre-qualification Education of BVP approach 1. Change in paradigm 2. How to succeed 3. Use of metrics 4. Process details Pre-qualification criteria 1. Keep to a minimum 2. Financial, legal, company standards etc

13 Selection Selection criteria and Weights 1. Level of expertise (35 %) 2. Risk assessment (5 %) 3. Value added (5 % ) 4. Interview (20 % ) 5. Price (35 %) Content 1. Simple, non-technical 2. Project specific 3. Centered on performance metrics

14 Clarification Phase Vendor clarifies their proposed scope Vendor lead Detailed and milestone schedule Risk items and risk mitigation No work should be done There is no negotiation of scope

15 Execution Phase Award project Vendor track deviation from project plan (WRR)

16 Comparison of CD and BVP

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