A day in the life of a...
Andrew Wooldridge-Irving, Associate Director, GVE Commercial Solutions
I STARTED my working life in the construction supply industry some 40 years ago, where I joined from school and received work based training, distance learning and formal education as part of a Timber Trades Training Association initiative. After a few years, I took a short course that introduced me to the world of quantity surveying. This influenced me to make a career change. I consequently commenced employment with an established small quantity surveying practice in the late 1980s, where I embarked upon a five-year ‘day release’ degree course.
Since graduating in 1993 I have gained a broad working experience providing cost and commercial services. This was undertaken both individually and as part of a wider team, either operating as an external consultant, or as part of a client, contractor or subcontractor team, as an employee and also selfemployed.
I currently work for GVE Commercial Solutions as an associate director and find myself part of a very similar organisation to the one I was with some 35 years ago. Although the organisations are similar in many respects, the quantity surveying profession, however, has seen significant changes over this period of time.
Progressive development
Most professionals in the construction industry start out as a general practitioner although it is often the case that you become more specialised over time, either due to the workstreams that you are associated with or because of a personal interest. In my case this was in relation to NEC contracts that I first encountered in 1999 and which sparked my curiosity from the outset. This interest has progressively led me into other topics of interest, including contract interpretation, mapping of contract processes and procedures, contract obligations and requirements database, cost auditing and construction payments.
A natural development of interest in NEC contracts is writing and publishing articles and preparing and delivering presentations, both in person and online. This has proven to be of significant benefit at a personal level as it challenges, expands and refines both my knowledge and understanding. The extensive research required each time also assists in gaining familiarity with current developments for each topic of interest.
One of the key challenges is trying to balance knowledge with practical application and experience to prevent my knowledge from developing differentially, which requires appropriate experience to ensure the knowledge leads to understanding. I believe this is an ongoing challenge for anyone and why it is important to continue practising within a suitable environment.
Civil engineering infrastructure
The contract administration functions of; payments, variations, scope changes, programme issues and reporting occur on most projects, regardless of the size, complexity or industry within which they operate.
My initial experience of major civil engineering infrastructure was the Jubilee Line Extension project, where I worked for five years from the mid-1990 s. It was evident this type of project contrasted in many ways with those I had been involved with previously, including the scale and complexity, the management and organisation structure and the extended timescales.
Despite these differences, however, it was apparent there was commonality with the cost and commercial functions of a project, regardless of the size and type of work or service being delivered. The contract administration functions of payments, variations, scope changes, programme issues and reporting occur on most projects, regardless of the size, complexity or industry within which they operate.
My current role as a commercial manager on a civil engineering railway infrastructure project is the latest of numerous major projects that I have been directly involved with since the Jubilee Line Extension. Although there are similarities between these, there are also some important differences that have emerged over time, including; use of software packages and IT generally, induction procedures, health, safety and welfare, corporate governance, diversity, equity and inclusion, contractual arrangements, hybrid working and site access and security, to name just a few.
Working day
Describing tasks undertaken on a typical working day is a challenge in itself as, the cliché would suggest, no two days are the same. Although some tasks are completed within a short period of time, others continue for much longer even forming part of a continued process such as the payment assessment cycle. I am fortunate to work with a great team of people that means I am able to focus on tasks that achieve the most positive contribution.
Briefing papers
My initial experience of major civil engineering infrastructure was the Jubilee Line Extension project, where I worked for five years from the mid-1990s.
If all contractual actions complied with the procedures under the contract then it would make the administration process relatively straightforward. It is almost certain, however, that at some stage a project will encounter a contractual issue that creates a difficulty in knowing how it should be dealt with.
To approach this situation I usually prepare a briefing paper to record all pertinent issues and log all events in chronological order, making reference to relevant communications and documentation. This task is undertaken in an objective and impartial manner, which is necessary to avoid being influenced by any emotive involvement or other forms of bias, either consciously or subconsciously.
One of the difficulties is that contractual issues are not just about the contract, so it is necessary to establish and record the facts of a situation. This may require engaging with particular subject authorities, including engineering, design, programme, legal, finance, to ensure that information is as factually correct as possible.
Although I provide opinion and recommendations on interpretation, the briefing paper is often used to form the basis of any discussions and negotiations, allowing for revisions to take account of developing positions. Once a matter has been determined, the final briefing paper provides a record as a future reference especially as memories fade over time.
Defined cost reviews
Describing tasks undertaken on a typical working day is a challenge in itself as, the cliché would suggest, no two days are the same.
The selection of main options C, D and E under NEC contracts has led to an increase in defined cost reviews being undertaken. These are important for a number of reasons, although there are usually sensitive commercial issues to be addressed including confidentiality and data protection and the perceived intent of the task itself.
The starting point is always the contract that sets out the definition of defined cost and whether there are any additional requirements, such as supplemental notes or provisions within the schedule of cost components. Other requirements to consider include, what records are to be kept, the format these are to be retained and presented in, the inspection and auditing rights, any requirements in relation to how defined costs are to be incurred, expended and finalised and who can be directly involved with the process itself.
It is usually beneficial to state the intention of the defined cost review, which may be one of several reasons, including ascertaining people rates to use for payment and/or compensation event assessments, contract compliance, verification of financial systems integrity or finalisation of defined cost.
Without doubt the most complicated part of a defined cost review is in relation to people cost, not least with data protection and confidentiality issues but also because this cost comprises a significant number of different components. Some of the challenges relate to; employment terms and conditions, overtime and the CIJC working rule agreement, bonus payments, severance payments, subsistence, travel and accommodation, including any scale rate agreements with HMRC, salary sacrifice and adjustments to employer’s NI and determination of actual hours worked for each category of people.
Payment assessments
The payment application and assessment procedure under an NEC main option C, D and E contract takes a comparatively significant amount of time and effort to prepare both the application for payment and the corresponding payment notice (certificate). This is due to the volume of cost information that is associated with the definition of defined cost under these NEC contract forms.
Although it is not realistically feasible to verify the entire information during the limited time available within each payment assessment cycle, it is possible to carry out an overview analysis and review specific categories of expenditure, which works most effectively with an export of the cost ledger into an Excel spreadsheet.
The process involves separating costs into recognised categories, to provide both an interim and cumulative expenditure profile over time. This information can then be used to highlight patterns of expenditure, to identify any extraordinary interim costs, to provide the basis for further investigation into causation, to assess the accuracy of previous forecasts, to facilitate cashflow forecasting and to provide a greater understanding of the project cost ledger.
Presentations
As a development of an established skillset, I also, from time to time, prepare presentations, that deal with particular contract and commercial issues. These are intended for both the commercial team and also for learning purposes to the wider team on the basic principles of NEC contracts.
Summary
One of the challenges of working on a major project of any type is that changes will inevitably occur over time, including the working location, the people involved and the work undertaken, which are often imposed by external influences, for example budgetary constraints.
Regardless of the project or conditions, however, it is always important to ensure the contract and commercial approach is founded upon a thorough and detailed understanding of the contracts, applying compliant processes and procedures and also the attention to detail. All of which provides an essential learning experience for every level of resource, which means that every day can be a school day.
Andrew Wooldridge-Irving, Associate Director, GVE
awooldridge–irving@gvecs.co.uk