Heron Tower Procurement

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I. Introduction
i. Location3
ii. Specifications4

II. The developer
i. Heron International6
ii. Planning Problems6

III. Sources of Funding and Risks
i. Internal7
ii. External8

IV. Stakeholders10

V. Procurement Routes and Associated Risks

i. Management Contracting vs Construction Management12

VI. Legal System and Dispute Resolution16

VII. Conclusion 18

VIII. References20

I. Introduction
Procurement, by definition, is a collaboration of merging activities which ultimately lead to something or a service being acquired. (City of London, What is Procurement [online], available from http://www.cityoflondon.gov.uk/Corporation/LGNL_Services/Business/Tenders_and_contracts/what_procurement.htm [Accessed 12/1/2011]. In construction terms this refers to the systematic approach, or route in which an idea or thought can break into reality and be built. It is best looked at as a complex strategy to manage clients/developers, architects, contractors, and sub-contractors, to name a few, into the most efficient way, or more specifically, risk free way to complete a build on time and on budget.

I. i. Location.
The project chosen for this brief is the Heron Tower in London. The Heron Tower which is at 110 Bishopsgate, London, is an iconic building, built on an island site in a unique location opposite Liverpool Street station. It has huge commercial benefits and as the city’s first 6-star office complex it is set to produce a new standard for offices in London, in particular with regards to accommodation in addition to the ‘wow factor’ any passer by receives. The tower represents a new generation of tall buildings. Members of the construction industry have been quick to encourage the public to fully embrace these styles of buildings when they look at the design of urban properties. “Heron Tower’s completion is a significant event not just for Heron but for the City of London as a whole.” Says Gerald Ronson, the chief executive of Heron International in a recent interview to Construction News (March 2011).

I. ii. Specifications
The concept of the Heron Tower, by Kohn Pedersen Fox, who also later produced the design for the Bishopsgate Tower has been described as ‘accomplished late 90s commercial modern’ due to its sleek, angular appearance that avoids the curves favoured by architectural designs of the 21st century. The design, refined in 2005, resembles a stepped, asymmetrical glazed structure with each face unique, and a decorative mast/spire topping the building and taking it up to 230 metres high, and a habitable space of 46 storeys (‘London Skyline Series: The Heron Tower, [online] available at http://www.origindesignstudio.co.uk/blog/london-skyline-series-heron-tower.html [Accessed 12/1/11]). Unlike many other skyscrapers, Heron Tower’s glazing is not completely reflective, offering an air of transparency in contrast to the nearby Bishopsgate Tower, St Mary Axe (Gurkin) and the Leadenhall Building. Glazed external lifts on the south elevation provide movement to the otherwise still structure.

Like many modern skyscrapers and in pattern with the national push on environmentally friendly structures the Heron Tower aims to be a sustainable development being awarded the impressive rating of ‘Excellent’ by BREEAM. This was achieved due to an element of Passivhaus design - with thought having been given to the amounts of solar gain and loss the structure produces its own renewable energy in the form of photovoltaic cells, light is converted directly into electricity. The solar panels are situated on the south façade in order to gain maximum potential from the sun. Similarly it also has 6 external glazed lifts located on the opposite faces- away from direct sunlight to keep the lifts cooler and more comfortable in the summer months. (HATCHER.D, 2010, ‘Heron Tower...
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