This is the process of delivering a services or goods from design all the way through to completion and operation. There are several different procurement methods / routes to choose from in order to design and construct a building. This will mainly depend on the following factors:
- Time
- Cost
- Quality
- Risk
WHAT PROCUREMENT OPTIONS ARE AVAILABLE?
Traditional Procurement
- Design and construction are separate.
- The client appoints the consultants to design the project inline with the clients brief.
- The consultants are responsible for the design, specification and cost control.
- Consultants put this into a Tender package and issue to contractors to submit their tenders for the construction project.
Design and Building Procurement
- The employer will issue the Client requirements to several contractors. the contractors will provide a design and a priced schedule of works.
- The chosen contractor will then develop the design with the client following this.
- The main contractor is appointed to design and construct the works from very start of the process.
- The contractor is therefore responsible for the design and construction of the project to the employer’s requirements.
Management Contracting Procurement
- The Client appoints a Management Contractor (they are usually included within the design process to assist).
- The Management Contractor will contract various different works contractors to complete the project.
- This process is normally used on complex projects which consists of various different packages within one project. It provides potential for a high-quality delivery.
Construction Management Procurement
- The works set out are constructed by several different sub-contractors.
- These sub-contractors are contracted to the client but managed by a construction manager.
- Construction Manager is acting as an agent for the client and co-ordinates all the various sub-contractors.
- The Construction Manager has no contractual links with the sub-contractors.
- The Client has all the risk in relation to the sub-contractors.
- This option is only suitable for experiences clients.
HOW DO YOU SELECT THE RIGHT PROCUREMENT METHOD FOR YOUR PROJECT?
Choosing the right procurement method will solely depend on the project and the clients requirements. The procurement method therefore will and can differ for each project.
• Traditional Procurement – most common process. Used for straight forward projects.
• Design and Building Procurement – useful for employers as it provides a certain degree of control over costs. The contractor takes on the responsibility for the design and construction of a project for an agreed price.
• Management Contracting Procurement – This is used as an alternative to D&B as it involves the contractor within the design process. This helps steer the design with the knowledge and experience of the contractor. Used for complex projects.
• Construction Management Procurement – This is usually used for complex projects, if done correctly it is used for speed and flexibility. This would not be suitable for simple straight forward projects.
WHAT ARE THE ADVANTAGES AND DISADVANTAGES FOR EACH METHOD?
| Procurement method | Advantages | Disadvantages |
| Traditional | Cost certainty Client has control over the design Quality standard is set by the Client | Time consuming process |
| Design and Build | Allows a fully integrated team to work together on the project from the beginning. Single point of responsibility for delivering the entire project. Cost certainty (subsequent to variations) | The client has to decide on a design / brief very early on. Variations are common within Design and Build projects. Leads to increased costs. Difficult to compare submitted tenders and designs and specification will all be different. |
| Management Contracting | Potential for higher quality of delivery. Client maintains control of the design. Risk is predominately with the contractor and not the client. | The client would have to administer several contracts. |
| Construction Management | Speed. Flexibility within design on site. The client has to administer only one contract. | Expensive |