Determining the correct procurement strategy and contract for any project, as well as the robustness of the Employer’s Requirements, are key to risk mitigation for the client.

When a client’s full brief is still to be established, we would propose a single-stage Design & Build procurement route, but with design completed up to RIBA Stage 4 and with a JCT Design & Build 2016 contract with amendments. We work with construction lawyers to tighten up some areas of the JCT D&B contract that could otherwise leave our client exposed.

In order to determine the tender list, Modus would propose to undertake a Prequalification Questionnaire process on a selected number of potential tenderers. These potential tenderers shall be required to answer a list of questions based on the requirements of the client and the funder, which is then used to decide whether or not it will engage with that tenderer for the full tender process. The questions during this process shall be centred around the appropriateness of a potential tenderer including legal status, business and professional conduct, financial position, insurances and capability.

As aforementioned, in addition to selecting the correct contract, Modus will work with construction lawyers to ensure that performance bonds, parent company guarantees and collateral warranties are all a prerequisite of the overarching contract to produce both the client and the funder with maximum protection.

Would you like more information on how we assist in the procurement and contract selection process? Contact one of our team.

The key to avoiding conflict is to take the appropriate action to mitigate the opportunity for it to arise; principally this is done by setting clear expectations and standards and removing ambiguity.

This starts at the very outset of the project by:

• establishing roles and responsibilities
• defining the programme
• considering and mitigating the risks
• developing the design information and specifications to fully define the project requirements
• selecting the appropriate form of procurement and type of contract
• selection of the contractor
• monitoring and control of the construction process

However, the financial and time constraints/pressures for both the client and contractor, which are often at opposites with the other parties, makes conflict unavoidable, hence the need for a Building Contract.

If the contract documentation is clearly defined and robust in setting the requirements and roles and responsibilities, rather than causing the conflict, it can become a useful tool for resolving conflict. It is only when there is ambiguity in the contract documentation that the contract causes further conflict.

Ultimately all parties in the construction process, whether they are the client, contractor, architect, project manager or site labourer, are all working towards achieving the same goal; the construction/delivery of the scheme/building with as little pain and aggravation as possible.

If those parties can collectively work collaboratively with each other, that process will be achieved successfully. The key is creating an environment of mutual trust and understanding. At Modus, we pride ourselves on our ability to be able to build strong relationships with our client and contractor teams and act as the cornerstone between those parties. We believe that this is achieved by providing sound, impartial advice, treating both parties fairly and reasonably and by acting with integrity. Taking this approach has shown that even in the most difficult of conflicts, Modus are able to navigate and negotiate a resolution with a positive outcome.

In our capacity as Quantity Surveyor, Modus are responsible for accurate cost forecasting, effective budget management, cost control and financial reporting and all commercial elements of any project.

Pre-construction

Our initial priority will be to develop a Stage 1 feasibility/viability cost estimate, using gross internal floor areas and published m2 rates to establish a base-line cost for the building, and then inclusion of site-specific works and abnormal costs. The aim of this exercise is to establish a high-level budget to allow the client to test the viability of the scheme.

Being involved in all Design Team meetings will allow us to give advice or any design changes, alternative construction methods and materials or discussions that may occur during the design phase. During this phase, and as designs progress, we will prepare Stage 2 and Stage 3 Cost Plans and update these as necessary.

Throughout the design process, Modus will challenge the Design Team on their design and specification proposals to ensure the Client receives maximum value for their project, whilst maintaining quality. This will include, but not be limited to:

• Feasibility Studies on multiple outline designs
• Options appraisals on various building elements
• Different construction methods
• Alternative products

We would also hold Value Engineering Workshops at various stages of the design to ensure best value for the Client is at the forefront of the design teams mind throughout the process.

The procurement strategy and contract selection can significantly reduce the financial risks associated with the construction phases of the project. There is no form of contract which offers a fully fixed price with no risk of cost increases. However, provided the rest of the contract documentation, design, specification, surveys, reports etc are robustly developed to fully capture the contract requirements, the Design & Build (D&B) form is best suited to achieving this. When acting as Project Manager and Employer’s Agent, we will utilise the project risk register to identify, manage and mitigate the financial risks, and will monitor and advise on the suitability of the tender/contract documentation.

Taking this approach with the design, specification, surveys, reports etc does incur additional upfront fees and costs to the client, however it reduces risks and in the long-term it reduces the overall project costs.

If the tender/contract information is not suitably developed it can impact the project on several fronts; firstly, there will be less appetite to tender the scheme, secondly, the tender will be less competitive as the contractor will allow for increased risk in their price and lastly, it introduces the opportunity for the contractor to claim increased costs in the construction stage.

Assuming that the client is willing to take this approach and incur the fees upfront, we would propose opting for a single-stage competitive tender process, rather than a two-stage negotiated process, as this delivers defined costs earlier, with the highest level of competitiveness and without the additional contractor fees for their input into the design development.

During construction

As Cost Consultant, Modus will attend monthly site meetings to assess the value of works completed in the period so that we can make a recommendation for payment.

Our key responsibility is to ensure that the client is not exposed financially and is not over-paying the contractor for work or activities not completed. We therefore undertake a detailed site review to fully assess the extent of works completed. This coupled with our desktop analysis and assessment of the contract pricing schedule allows us to accurately establish the appropriate percentage of works completed.

Invariably, there will be some variation costs throughout the construction stage, and these will also form part of the valuation process. We will only pay the full value of variation costs that are fully substantiated by the contractor and agreed by us.

Modus employees are traditionally trained surveyors who can accurately measure all aspects of constructions works and have extensive knowledge of the market conditions and rates. As a result, we can undertake our own assessment of any variation costs, which puts us in a strong position to be able to challenge the contractors’ values and negotiate our position to achieve best value for the client.

It is our preference to agree any variations as they arise as this allows us to provide accurate monthly cost reports to update the client on the projected final account. Furthermore, this approach generally reduces potential disputes on completion of the project because the final account is agreed as the works progress.

Additionally, we will:

• prepare monthly cash flow forecasts
• review, and agree, extensions of time
• prepare loss and expense claims
• agree drawdowns with the fund surveyor
• generally advise the client of their financial risks

Sound like an essential service your next construction project could benefit from? Get in contact to discuss your requirements. Our Quantity Surveying service can be coupled with other services such as Contract Administration, Employer’s Agent and Project Co-ordination to provide a more complete offering.

“Recognise the best & inspire the rest”

We’re excited to share that Modus have been shortlisted in two categories at the 2022 South East Constructing Business Excellence Awards! These include SME of the Year and People Development.

Now entering their 16th year, the SECBE awards celebrate the most inspiring, innovative, and collaborative efforts within the industry. The awards are open to the whole sector from buildings to infrastructure, all parts of the supply and demand chain, all disciplines, professions and trades.

SME of the Year looks for ‘outstanding organisations who have achieved business changes across the board to improve in all aspects’ ranging from:

• Evidence of business growth
• Investment in employees
• Productivity improvement
• Supply chain engagement
• Development and performance targets

People Development looks for ‘an organisation that is leading edge in the way they support and develop their existing team and attract new entrants into the industry’, including:

• Investment in training and reskilling or upskilling workforce
• Encouraging new talent and entrants, possibly working in collaboration with other organisations
• Encourage employees and supply chain to be more aware of local communities, the environment and the image of the industry
• Ensure diversity and inclusive policies are central to development planning and business strategy
• Evidence a development strategy with monitoring and measurement of achievement and effect

Modus Directors, Martin and Michael, will be interviewed by two different judging panels on 6 & 7th April, with the award ceremony being held on 39th June at the Royal Lancaster Hotel in London.

Fingers crossed for a 2022 win 🤞🏼

We are absolutely over the moon to announce that Modus have won KEiBA Employer of the Year 2021!

KEiBA, the Kent Excellence in Business Awards, are managed by the KM Media Group along with Kent County Council and recognise deserving businesses across the county.

Having been established for only 7 years, it is a huge achievement to win this award. We do everything we can to produce the best people through training, mentorship and employee investment, ensuring that our clients receive the highest standards of quantity surveying and construction consultancy services.

Award judge, David Ward from David Ward Associates, had the following to say in his comments:

“Possibly one of the smallest companies to have ever won Employer of the Year, Modus Construction Consultants are worthy winners. They thoroughly deserve the award for going above and beyond anything you would expect from a company of their size in regard to staff development and progression. The investment in the training and progression of their team to ensure they met the highest possible standards was inspirational and the very high retention rates were testimony to the way this was appreciated by the employees.”

Modus are beyond proud to have pushed the boundaries of the award, being one of the smallest to have ever won. Award criteria covered aspects such as sales turnover and profit levels over the last few years, key objectives for the coming three years, equality and diversity, how we retain a motivated workforce, staff development and training and what differentiates us as an employer of choice within our industry. Awards accreditations and achievements within our business were also recognised as part of the entry.

You can read a snippet of our entry below:

As a small but ambitious firm, we are proud of how far we have come in the last 7 years. As a business, we are proud of what we have achieved and the service we provide our clients, investing in our staff, securing repeat business, and working towards our goal of being the region’s number one Quantity Surveyor.  We are clear in where we see the business going within the next 5 years and know we have a dedicated and experienced team to help us get there.

Since inception in 2013, Modus has grown in both in staffing levels and turnover. The company is now supported by 10 full time members of staff consisting of two Directors, six Quantity Surveyors ranging from senior to trainee, an Office Administrator and a Marketing & Bid Co-ordinator. 

In recent years we have seen our business grow considerably. As a result of our staff becoming more experienced and qualified, along with our reputation growing in the market, we have been able to secure more and higher-value, projects. We have seen a stable increase in turnover and our profit as a percentage of turnover is consistent.

Despite facing a worldwide pandemic over the last year, Modus were in a fortunate enough position to hire 3 new employees. These included two surveyors, one of which was an Apprentice, and a Marketing & Bid Co-ordinator. Unlike many industries, the construction sector was able to remain open, meaning we have been able to continue our growth strategy despite unprecedented circumstances, with our staff reaping the rewards of their hard work.  No staff were furloughed and our 20/21 turnover increased by 16% on our 2019 turnover. Our predicted turnover for 21/22 is on track to further increase with 84% of work for this period already secured. 

The last couple of years has seen Modus be successful on several large public sector frameworks, thanks to our motivated and dedicated staff. These include: NHS Shared Business Services Framework, NHS London Procurement Partnership, Medway Council Framework,Medway Hospitals Framework, London Borough of Kensington & Chelsea Framework and Assura.

Something that stood out to judges is the investment in our employees and our successful Apprenticeship Scheme. Over half of our workforce (4 out of 6 of our Surveyors) joined us through the scheme. We take on one or two apprentices a year, who, after one year of employment, are enrolled on a BSc Honours in Quantity Surveying. The degree course is funded by Modus and trainees are allocated a dedicated training day per week in which to study. This study day is paid for by the company. Following on from the degree course, employees benefit from a structured training programme towards becoming Chartered. This arrangement allows for us to retain our staff by opening up career progression opportunities. We also encourage staff to suggest training opportunities for themselves that may support them within their role.

As a result of our training programme, our employees benefit from promotions through career progression as their experience grows. So far, we have supported and funded 3 employees through their complete degrees, with another 2 currently studying . Our Office Administrator, Claudia, recently completed her AAT Accounting Foundation Level 2 Certificate at East Kent College.

Being a smaller practice, we are able to provide a friendly, supportive place to work. As a company we pride ourselves on having a

stimulating and fun working environment. Modus has a relaxed atmosphere and our offices are modern and open plan, with up to date technology accessible to all. Our mentoring strategy, whereby each of the company’s Directors is a mentor to a member of our team, has been a great success, particularly with junior members of the team who find the mentoring invaluable.

Generally, our employees have enjoyed pay rises increases of approximately 15% to 30% year-on-year, way over the national average of 3.4%. Modus has just set up a private healthcare package with AXA which was rolled out and offered to staff from April 2020. Modus holds regular team lunches and team building events, as well as an annual summer event and Christmas party. Client and corporate hospitality is also shared between all members of staff.

We would like to express our gratitude all 2021 KEiBA judges, as well as Kent County Council and the KM Group, for awarding us this prestigious accolade. Congratulations to all other winners and finalists. Bring on KEiBA 2022!

Not only were we lucky enough to win KEiBA Employer of the Year this year, our Surveyor, Sam Prideaux MRICS, also won Best Construction Apprentice at the South East Construction Awards.

We are beyond proud of Sam, who completed his Apprenticeship, Degree with the University College of Estate Management and APC exam to become Chartered in just 6 years.

It’s unusual for the award to be given to someone who is no longer an apprentice, however Sam’s exceptional journey from a school leaver to a Chartered Member of RICS in such a short time, stood out to judges. Sam joined Modus in 2015 as our first apprentice. Since then, he has helped Modus grow to the successful business it is today under the mentorship of our Directors, Martin and Michael.

The submission covered questions such as ‘What sets this apprentice out from the others’, ‘What is their contribution to the wider team’ and ‘What has the impact been on them as a person’.

We asked Sam to write a few words about how he found his apprenticeship:

“Overall, my apprenticeship was a really positive experience and enabled me to obtain both technical and personal skills that have bettered me both as a person and a professional.  I was able to obtain a university degree and professional qualification with no financial debt, whilst being trained and gaining technical experience which I wouldn’t have had if I decided to go to university full-time.  It has also given me the opportunity to build amazing relationships with both colleagues and clients on a professional and personal level, which I feel is extremely valuable in life.

I have great ambitions within the construction sector. The first of which is to broaden my experience and skill set to ensure I can bring as much value to my clients and colleagues as possible.  I also recognise the great need to promote sustainability within the built environment and want to ensure I am involved in projects that positively impact both people and the planet.”

Congratulation again to Sam, we can’t wait to see what else you can achieve in your career at Modus!

If you are thinking about entering the construction industry through an apprenticeship, send us an email on info@modusltd.co.uk and we’ll be happy to chat you through the process.

We’re excited to announce that we will be exhibiting at the South East Construction Expo #ConstructExpo on 21st October 2021. This is the first time we’ll be exhibiting at the show at the South of England Event Centre and can’t wait to see some familiar faces, as well as meeting new clients! Come and see us on Stand 66 to discuss how we can work together to reduce contractual and financial risk on your next construction project.

Not only will there be over 100 exhibitors and 2000 delegates, there will be a number of guest speakers, a networking breakfast, a women in construction networking lunch, a gala dinner and more!

If you’re in the construction sector, it’s an event you won’t want to miss. We look forward to seeing you there.

Register for your free ticket at Book | South East Construction Expo (constructionexpouk.co.uk)

Well done to our very own Sam Prideaux MRICS for being shortlisted for Construction Apprentice of the Year at the South East Construction Awards! 🤩 In just 6 years, Sam has completed his apprenticeship, degree course and RICS APC exam, achieving Chartership status earlier this year 👏

Fingers crossed for the 21st and good luck to all other finalists 🤞