SPECIFICATIONS

TYPES

The first type  of specification provides virtually all of the technical information that a supplier needs to fabricate materials or equipment à does not have to perform significant design work, frequently referred to as detailed design specification.

The second type of specification provides performance criteria for the materials or equipment à does not provide all of the necessary design detail to fabricate the materials or equipment., commonly referred to as a performance specification.

Detailed Specifications

Advantages :

• The buyer has a complete understanding of the goods or services being procured since the buyer provides its technical requirements in the detailed specifications.
• The design of the procurement item is compatible with the balance of the project design since the buyer performs the detailed design for both the item and the balance of the project.
• The buyer does not need to review designs produced by suppliers. The buyer also does not need to be concerned about the design capability of a supplier.
• Technical requirements are explicitly defined making it easier for the buyer to inspect supplier fabricated materials and equipment.
• The supplier can begin fabrication work as soon as the order is placed and materials are procured since the supplier does not have to prepare detailed design documents.
• The supplier or contractor and the buyer have a well defined basis for a fixed price contract.

Disadvantages :

·        Detailed specifications are costly and time consuming for a buyer to prepare.

·        Supplier or contractor design expertise is not utilized.

Performance Specifications

Advantage :

• Performance specifications normally are prepared more quickly and at less cost than detailed specifications.
• Performance specifications allow suppliers and contractors to utilize their design expertise.
• Performance specifications allow a buyer to focus on what it wants from a procurfement item and not how it should be produced.

Disadvantage :

• A buyer does not know the detailed scope of a contract until the supplier or the contractor has completed its detailed design.
• There is a greater risk that the detailed design prepared by the supplier or contractor is not compatible with the balance of the project design.
• It can be difficult to define sufficient performance criteria to cover all aspects of the detailed design performed by a supplier.
• The buyer has to manage an additional design interface between the supplier’s engineering group and the project engineering group.
• Inspection criteria are less clear than they are with detailed specifications.
• The time required to complete the supplier’s or contractor’s work is longer due to the time required to complete the detailed design.

ENGINEERED MATERIALS

Specifications for engineered materials frequently are detailed as opposed to providing performance criteria. The supplier in certain cases prepares fabrication details based upon the detailed design documents furnished by the owner.

To prepare detailed specifications for engineered materials that optimize the quality, cost, and schedule benefits to a project, a number of project groups provide input to the engineering group.

Engineering Group

The engineering group has the primary responsibility for preparing specifications for engineered materials.

Suppliers are reluctant to quota fixed prices for engineered material RFP’s that do not have complete design information.

The engineering group is responsible for performing sufficient review of the technical documents to minimize the occurrence of omissions and errors.

Procurement Group

The procurement group has two concerns with the specifications for engineered materials that are prepared by the engineering group.

The first concern is that the specifications are written in a manner that results in a sufficient number of qualified bidders to support competitive bidding.

The second concern of the procurement group is that the manner in which engineering defines the technical requirements in a specification allow suppliers to function in the most efficient manner while still meeting the technical requirements.

Construction or Manufacturing Group

It is concerned about the impact of the requirements in a specification for engineered materials upon its efficiency and time required to assemble the materials.

Construction or manufacturing group personnel are involved with the review of the initial drafts of specifications and drawings to evaluate the impact of the requirements upon the efficiency and time required to assemble the materials.

Construction or manufacturing personnel frequently recommend changes to specifications and drawings after they have been released for fabrication to an engineered materials supplier.

Project Management

Project management is responsible for the project schedule which establishes the required completion dates for engineered material specifications à decides on the course of action that will best satisfy project objectives.

Project management reviews the number of qualified bidders for major engineered materials contractsàevaluates whether the specifications should be revised in a manner that increases the number of qualified bidders or whether a sole source supplier is the best course of action for the project.

Project management participates in the decisions to have suppliers review engineered materials draft specifications. Project management assures that the construction or manufacturing groups are involved with reviewing the initial specifications for engineered materials to determine if there are ways to improve efficency.

ENGINEERED EQUIPMENT

Specifications for engineered equipment are normally of the performance type as opposed to providing all of the technical detail required to assemble a piece of equipment.

Although a performance specification for equipment requires less information than is required for a specification with sufficient detail to assemble the equipment, it does require a comprehensive definition of all of the necessary performance requirements.

Engineering Group

The engineering group has the primary responsibility for preparing technical specifications for engineered equipment. The performance requirements include operating and maintenance requirements as well as design performance requirements for the equipment.

Since the supplier of engineered equipment is responsible for the detailed design of the equipment, the performance specification defines the documentation that is required by the owner. This documentation may include specifications, drawings, and calculations produced by the supplier of the equipment.

Procurement Group

The procurement group has the same responsibilities for reviewing engineered equipment specifications that it has for reviewing engineered materials specifications, responsible for preparing the qualified bidder lists for equipment contracts.

Licensing Group

The licensing group is responsible for communicating the licensing requirements for this equipment to the engineering group. The technical licensing requirements for the equipment are included with the other design requirements in the specification for the engineered equipment. The specification should define the extent that the fixed price in the contract covers compliance with licensing requirements for a project.

Construction or Manufacturing Group

Construction or manufacturing provides input to the engineering group concerning installation, storage, and maintenance instructions that are required from a supplier of engineered equipment.

Testing and Operations Groups

The testing and operations groups can require that certain performance tests be run while the equipment is at the supplier’s shop. Testing and operations identify the needs for supplier test representatives necessary to support testing of equipment after it is installed in a system.

Project Mangement

Project management is responsible for assuring that the interfaces between the equipment supplier engineering group and the project engineering group are well defined since these design interfaces are important to meeting project objectives, assures that licensing requirements are well defined in the spcifications for major equipment, assures that the engineering group receives the necessary input to major equipment specifications from the procurement, construction or manufacturing, testing, and operations groups.

ENGINEERING SERVICES

Specifications for fixed price engineering contracts are very difficult to prepare. Unless the scope of the engineering work for the contract is similar to a completed project, it is difficult to define the scope of work for an engineering contract in sufficient detail to support a fixed price contract. Due to the nature of service contract work, it is normally necessary to include in the RFP a description of the specific technical services that an engineering contractor is required to perform as well as the technical requirements that must be achieved. The owner’s engineering group has the primary responsibility for identifying the services and technical requirements for an engineering contractor.

Owner’s Engineering Group

Services and technical requirements for an engineering contracts :

• The specification defines the key design performance objectives for the engineering contract.
• The interface responsibilities between the engineering contractor and other groups performing design work on the project are defined.
• The extent of the alternative design studies required for a project is defined in the specification.
• The degree of detail required in design drawings and specifications produced by the design contractor is specified.
• The specification defines the design documents that are submitted to the owner for review and or pproval.
• The extent of the design calculations that the engineering contractor submits to the owner is defined in the specification.
• Design procedures that are submitted by the engineering contractor to the owner for review and or approval are defined.
• The procedure for handling requests for design information and changes from other project groups is defined.
• If the owner requires that the engineering contractor must use specific types of computers and computer assisted drafting equipment for compability with owner equipment, these requirements are included in the description of work.
• The procedure for turning over the design documents prepared by the engineering contractor to the owner at the completion of the work is defined.

Licensing Group

The licensing group is responsible for providing the technical licensing requirements to the owner’s engineering group for incorporation into the specification and the description of work. The licensing group defines the design documents produced by the engineering contractor that must be approved by government licensing agencies.

Procurement Group

The procurement group helps define the role that the engineering contractor performs in the procurement of goods and services for the project. A contract division of responsibility defines the procurement services provided by the engineering contractor.

Construction Group

The manner in which the construction contracts are packaged affects the manner in which the design documents are prepared. The description of work for the engineering contract defines the scope for each construction contract.

Operations and Testing Groups

Testing and operating procedures are dependent upon the detailed design of a project. The testing procedures define the tests of project components and systems that are necessary to demonstrate that the project will operate in accordance with design requirements. The responsibilities of the engineering contractor for reviewing testing and operating pocedures are defined in the description of work

Project Management

Project management assures that all of the above groups provide the necessary input to the description of work and specifications for the engineering contract, for including sufficient time in the project schedule to receive all of the necessary input for the description of work and specification for the engineering contract.

CONSTRUCTION SERVICES

The specifications and drawings should be complete prior to issuing the RFP for the construction contract since changes or additions to these documents after contract award are the basis for contractor claims for additional costs. Construction contract RFP’s require a definition of the services that a contractor is required to perform as well as of the technical work requirements.

Engineering Group

The engineering group is responsible for preparing complete and accurate technical documents.

Procurement Group

The procurement group provides input to the services and technical specifications for construction contracts concerning the materials and equipment that are furnished by construction contractors, provides the requirements for contractor procurement procedures for inclusion in the RFP. The procurement group works with the construction group in developing the scope of individual construction contracts, provides information such as the availability of qualified contractors for specific scopes of construction work.

Construction Group

The owner’s construction group is responsible for determining the number and scope of individual construction contracts required for a project. The description of work defines construction support activities such as cleanup, scaffolding, and temporary facilities that are the responsibility of the contractor.

Project Management

The project management group establishes the dates for completion of descriptions of work and specifications for construction contracts, assures that the engineering group completes the technical specifications and drawings required for  construction contract by the date in the project schedule, reviews the scope of contractor furnished materials an equipment, reviews the number and scope of construction contracts defined by the construction group to assure that the approach taken is consistent with project objectives and is clearly understood by the engineering group.

DESIGN AND CONSTRUCT

Design and construct contracts typically have one contractor responsible for virtually all of the design, procurement, and construction activities for a project. The design and construct contractor is responsible for managing the interfaces among its project groups. The owner’s engineering group is responsible for preparing the technical specification for a design and construct contract. Project management is responsible for defining the services that are provided by the contractor.

VALUE ANALYSIS/ENGINEERING

Industrial companies and the federal government have value analysis programs that are used to minimize the costs of materials while still achieving quality requirements.

• Can any materials be eliminated without impairing the operation of the complete unit?
• Can the design of the materials be simplified to reduce its basic cost?
• Can the design of the materials be changed to permit the use of simplified and less costly production methods?
• Can less expensive but equally satisfactory materials be used?

Value engineering is the application of value analysis techniques to new specifications for engineered materials and equipment.