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De-scoping Strategy for RBF Units

The document presents a case study on commercial challenges related to descoping in a construction project involving 40 Ready Built Factory units in Dammam, KSA. It outlines the project details, the proposed options for descoping due to budget constraints, and the recommended approach of removing 5 units from Scope B to maintain project timelines and costs. The author highlights achievements in cost management, stakeholder engagement, and lessons learned from the project.

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0% found this document useful (0 votes)
233 views14 pages

De-scoping Strategy for RBF Units

The document presents a case study on commercial challenges related to descoping in a construction project involving 40 Ready Built Factory units in Dammam, KSA. It outlines the project details, the proposed options for descoping due to budget constraints, and the recommended approach of removing 5 units from Scope B to maintain project timelines and costs. The author highlights achievements in cost management, stakeholder engagement, and lessons learned from the project.

Uploaded by

rc6599111
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Assessment of Professional Competence P R E S E N TAT ION

Case Study Topic :


Commercial Challenges on Descoping

Pathway : Quantity Surveying and Construction


APC Session : May 2025
Name : Saneej Ahamed Mohamed Mohideen
Professional Number : 0903473

1
Case Study

1. Introduction

2. My Approach

PRESENTATION
3. My Achievements
AGENDA
4. Conclusion

5. Competencies Achieved

2
1. Introduction

Project Summary

Description Details

Employer › Confidential.

Cost Consultant › Confidential.

Project Management Consultant › Confidential.

Lead Design Consultant › Confidential.

Main Contractor › Confidential.

Contract Value › 92 Million.

Form of Contract › Bespoke.

Procurement Route › Traditional Lumpsum

Location › Dammam, KSA

Project Duration › Jan 2024 - Jan 2026

3
1. Introduction

Project Details

40 Ready Built Factory (RBF) Units

⤹ Second Industrial City, Dammam, KSA

4
1. Introduction

Background of the Key Issue


▪ Project included 40 Ready Built Factory (RBF) units, split into: RBF RBF
❑ Scope A: 25 units

❑ Scope B: 15 units
25 15
▪ Originally, each scope was planned to have its own contract.

▪ To save time and costs, Scope B was merged into Scope A’s contract via an addendum.

▪ Contractor’s familiarity with the project and lower overall bid price.

▪ BOQs for Scope A and Scope B remained separate, causing:

❑ Scope A units to be cheaper.

❑ Scope B units to be more expensive.

▪ Due to budget constraints, the client needs to de-scope a small part of the project scope. but they are
unsure where to make the adjustments. I recommended descoping 5 RBF units to keep the project on track.
5
2. My Approach

Proposed Options

Options Analyzed:

✓ Option 1: De-scoping 5 RBF units from Scope A


• Initiate this work later with same contractor

✓ Option 2: De-scoping 3 RBF units from Scope A and 2 RBF units from Scope B
• Distributing the adjustment across both scopes.

✓ Option 3: De-scoping 5 RBF units from Scope B


• Keeping Scope A unchanged.

6
2. My Approach

Option 1 A

De-scoping 5 RBF units from Scope A, Initiate this work later with same contractor.

Advantages

▪ Strengthens the employer-contractor relationship by addressing contractor concerns and reducing


potential disputes.

Disadvantages

▪ Increased project costs, as the higher-priced Scope B units replace the lower-cost Scope A units.
▪ Inefficiencies and added expenses from shifting resources and restarting work in Scope B.
▪ Potential project delays due to resource reallocation, work stoppages, and Scope B’s slower progress.

7
2. My Approach

Option 2
A B

De-scoping 3 RBF units from Scope A and 2 RBF units from Scope B,
distributing the adjustment across both scopes. +
Advantages

▪ Creates a balanced solution that addresses both employer and contractor interests, leading to a more positive
working relationship.

▪ Minimal impact on the project schedule, as it involves less disruption compared to Option 1 and allows work to
continue more smoothly.

Disadvantages

▪ Slight cost increases for both parties due to adjustments in Scope A and Scope B, which need to be evaluated
against the benefit of reduced delays.

8
2. My Approach

Option 3 - (Recommended) B

De-scoping 5 RBF Units from Scope B While Keeping Scope A, Unchanged

Advantages

▪ Cost Savings: De-scoping Scope B, eliminates the higher-cost units, providing direct financial benefits to the
employer.

▪ Reduced Complexity: Removing work from the less completed Scope B (5%) avoids challenges in managing its
completion.

▪ No Expected Delays: Since Scope A (40% complete) remains unchanged, the project timeline is more likely to
stay on track.

Disadvantages

▪ Potential Impact on the Contractor’s Business: Since Scope B has higher-priced units, de-scoping it may reduce
the contractor’s profit margin. However, this is unlikely to significantly harm the employer-contractor relationship.
9
2. My Approach

Final Decision

After conducting a quantitative analysis of the three options, I assessed their impact on cost, project
timeline, and quality. The results of this evaluation are summarized in the table below.

Finally, we have chosen the option 3 with the acceptance and


approval of the client and de-scoped 5 RBF units from scope B.

10
3. My Achievements

Achievements

My achievements in this project were significant with key highlights including:

▪ Kept project on budget and schedule by removing 5 factory units.

▪ Saved costs by choosing cheaper Scope A units.

▪ Built trust with client and contractor through fair negotiations.

▪ Improved skills in contract changes and cost management.

▪ Enhanced teamwork with weekly stakeholder meetings.

▪ Strengthened decision-making with quantitative cost analysis.

11
4. Conclusion

Key Issue:

▪ Budget limits forced the client to de-scope a small part of the project scope.

▪ Client was unsure which parts to cut.

My Suggestions:

▪ Proposed removing 5 RBF units to address budget constraints.

▪ Suggested descoping 5 RBF units from Scope B.

▪ Aimed to keep the project on schedule and within budget.

Lessons Learned:

▪ Detailed tender documents ensure accurate pricing and avoid disputes.

▪ Weekly stakeholder meetings align teams and prevent issues.

▪ Strategic procurement choices cut costs and minimize risks.


12
5. Competencies Achieved

Core Technical Optional Technical Mandatory

Contract Practice Contract Administration Ethics, Rules of Conduct and


Professionalism

Project Finance - Client Care

Quantification and Costing - Communication and


Negotiation

Procurement and Tendering - Conflict Avoidance,


Management
and Dispute resolution
procedures
Construction Technology and - Diversity, inclusion and
environmental services teamworking

13
Case Study Presentation

14

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