Investment Grade Proposals would usually involve using the information from the survey (depending on the depth of information captured whilst on site) and would include costed works from suppliers (without estimations) to create an investable project, able to be presented to a business director/board. Additional financial modelling would be expected to include lifecycle costs and Net Present Value calculations, so the project(s) can be compared to other investment opportunities available to the business.
Following project approval, there are various ways projects can be procured, depending on the competencies within the business. Whichever way the project is tendered and contracted, there are standard steps that need to be followed in order to end up with a delivered project that resembles the initial expectation.
Health warning: Projects can diverge from the original intent if these steps are not followed.
- Research the types of systems and available that would provide the output that is required for the project. This may include looking at systems in regions outside of the UK, as well as legislation associated with the systems. This will include manufacturers and installation providers that would be able to be used for the project.
- Create a set of rules in order to check the suppliers are competent and able to maintain the equipment, i.e. initial due diligence.
- Write a document that shows what the business expects from the supplier and contractor, including enough detail to negate the likelihood of scope and cost creep, should items and services be needed that were not identified at pricing stage.
- Write a technical specification for the project, that states what needs to be delivered, ideally without specifying a particular piece of manufacturer’s equipment.
- Issue the Tender pack to the shortlisted suppliers
- Select a supplier based on tender review criteria and following contract review and approval, appoint a client side project manager to track works are in accordance with the initial intent, including verifying that expected savings or generation has been achieved.
- There could be an additional contract for the ongoing maintenance of the equipment procured and this needs to be incorporated into the businesses’ standard approach to maintenance and dilapidations.
It is common to use standard contracts for these types of project (NEC, JCT), however some projects may be highly bespoke and need input from legal teams to create contracts for them.