The background

A Fictional Birmingham New Street Station is of one of the busiest railway stations in the UK outside London with over 140,000 passengers every day, more than double the number it was designed to cater for. The Station comprises of 13 platforms and the Pallasades Shopping Centre. It is frequently ridiculed as one of the most unwelcoming of all the major train stations in the UK. New Street Gateway will make New Street station an icon for Britain's second city. It will transform the experience for passengers; improve links to and through the city center and act as a catalyst for growth for the local area's economy. The project will create a new start for one of the busiest, most important stations in the country.

The development incorporates the following:-

• Construction of a new atrium to be the Centre piece of the redeveloped station flooding the concourse with natural light
• Cladding the station building with iconic stainless steel façade
• A concourse that is three-and-a-half times bigger than at present and enclosed by a giant, light-filled atrium
• More accessible, brighter and clearer platforms, serviced by over 40 new escalators and over 15 new public lifts
• A stunning new station façade
• Better links to and through the station for pedestrians, with eight new entrances.
• Construction of a new John Lewis department store
• The demolition of Stephenson Tower to make way for the new John Lewis department store.

On 14 February 2017, the government announced that the Department for Transport will be providing £160 million on top of the £128 million that is to be provided through a government White Paper named Delivering a Sustainable Railway. A further £100 million will be provided by the Department for Business Enterprise and Regulatory Reform and will be channeled through the regional development agency (Advantage West Midlands). The announcement brought the total amount of Government spending on the project to £388 million as it agreed to meet all the funding grants sought by the different stakeholders, including Birmingham City Council and Network Rail. The private sector organizations e.g. John Lewis Department store is expected to provide additional investment into the project.

The key clients’ success criteria for the project are as follows:

5. General specification – highest specification required in transforming the station to be fit for the 21^st Century and a place that its passengers deserve; one that reflects modern and forward-thinking architecture and people.
6. Time scale – very tight with a considerable financial loss if delayed.

Your task:

Your Contract Management Consultancy firm has been approached by the Client, Network Rail and Birmingham City Council, to provide them with advice on the realization of this project.

Critically examine the PAYMENT STRATEGY and PROCUREMENT METHOD advice you will give to the Client. Your discussion should include a suitable process for identification, short-listing, assessment, and selection of a suitable contractor for this project presenting an overview of the tasks that will be involved in your chosen procurement strategy from design to completion. You should provide an indication of some of the advantages and disadvantages associated with your chosen procurement option. Your report should provide an outline of the key players the client must employ, including a reflection on the role of the Contracts Manager to deliver this project in line with your chosen procurement, highlighting (e.g. using diagrams) the contractual relationships amongst the proposed project team.

Answer rating: 100% (QA)

There are many different procurement methods and payment strategies that could be adopted for this project and the most suitable option will depend on ... View the full answer