Different Procurement Methods Edina Nagy Lajos Kiss Szabolcs Hornyák

Overview The Procurement Traditional Procurement Design and Build Procurement Management Procurement systems Comparing Traditional and Design and Build Procurement References and further reading

The Procurement Procurement describes the merging of activities undertaken by the client to obtain a building. Common types of procurement are: Traditional Procurement Design and Build Procurement Management Procurement Systems

Traditional Design Bid Build

Traditional

Design and Build Procurement Extreme A – Client-led design and build Extreme Z – Contractor-led design and build

Extreme A Client-led Design and Build

Extreme Z Contractor-led Design and Build

Management Procurement Systems Management procurement systems are often used to speed up the procurement processes. Common types: Management Contracting Construction Management

Management Contracting As an alternative to the traditional approach, the client may decide to appoint a management contractor to engage and manage a number of work package subcontractors. Management contracting enables the client to create a competitive situation between management contractors at the appointment stage of the project.

Management Contracting

Construction Management In this situation the construction management consultant or construction manager joins the design team early in the project. The construction manager’s services are based on a negotiated fee with the client simply to supervise and plan the work to be undertaken by the work package contractors.

Construction Management

Advantages and Disadvantages of these methods These are suitable for: fast track projects complex buildings a developing brief Disadvantages: total cost of the project is not usually known until the project damages for delay are difficult to pin on one subcontractor the client takes all the risk, particularly in the construction management

Comparing Traditional and Design & Build Procurement Similarities between the two methods: Suitable for all clients, including inexperienced clients Price certainty is secured early in the project  Firm contractual date for completion

Differencies between the two methods Traditional Procurement Design and build Procurement All design risk is ultimately carried by the client The major risks lie with the contractor Capable of obtaining the best contract price for the full scope of the works The contractor assumes greater financial risk and this is often reflected in the price It is not suitable for fast track projects Suitable for fast track projects Client retains control over the design team and quality can be assured It is more problematic to control design and quality

References and further reading 1. What does it mean procurement? – pp. 26 2. What are the advantages and disadvantages of the traditional procurement? – pp. 29-30 3. What it means to design and build procurement? – pp. 31 4. What are the disadvantages of the management procurement systems? – pp. 38 5. What are the similarities and differences between the traditional and the design and build? – pp. 29-30/35 6. What is similar to the traditional procurement and construction management? – pp. 35-36 1Construction Planning, Programming and Control/Brian Cooke and Peter Williams. – 3rd. ed.2008

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