Procurement and Contracts Case Study

Evidence shows that the design of schools can promote the performance of pupils and a more creative approach to teaching and learning. Studies of pupil performance found that capital investment in school buildings had a strong influence on staff morale, pupil motivation and effective learning time. Studies on the relationship between pupil performance, achievement and behaviour and the built environment have found that test scores in well-designed buildings were up to 11 per cent higher than in poorly designed buildings. Good design can help recruit and retain staff, cutting the costs of staff turnover. And, in another education sector, around 60 per cent of students and staff have indicated that the quality of building design affected their choice of university. CABE .

The local education council has recently merged two public high schools into a single organisation and consequentially requires constructing a school building to accommodate the new Community College organisation. This will be the first new school to be constructed in the area in 20 years. Inspired by the above CABE statement, the council seeks a new landmark building to be constructed on the site of the current High School to accommodate 1500pupils. The project has a regeneration role beyond that of a school, and must offer facilities to the local community. Its layout and content are required to reflect this. After school hours the building is to be used for lifelong learning classes to accommodate around 900 mature students. The building must provide public access to resources shared by the school and local community (a crche, sports hall and library) while keeping members of the public separate from pupils. The building is required to accommodate a variety of teaching spaces, classrooms, science laboratories, and craft, design and technology rooms. An auditorium and canteen must also be provided in addition to a staff room. This model is based on the councils new strategic goals where they intend to adopt a student-centred learning approach, where students learn in a resource and technology-rich environment, within modern teaching facilities. Within this model, new teaching methods enhance student learning by developing the student as a communicator, a thinker and a problem solver.

The project budget is 100 million and the required floor area is 14,500 m. The building must be completed for the start of academic year 2022. The local community must be involved in the design process as their satisfaction with the project is vital.

The Client has now selected the traditional procurement route with lump sum payment for this project. The client is concerned about the project not meeting the deadline and exceeding the budget.

Using JCT form of contract, what is the conditions guiding payment clearly outlining the obligations and liabilities of the parties?