1. Different Procurement Methods
Edina Nagy Lajos Kiss Szabolcs Hornyák

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

3. 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

4. Traditional
Design
Bid
Build

5. Traditional

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

7. Extreme A Client-led Design and Build

8. Extreme Z Contractor-led Design and Build

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

10. 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.

11. Management Contracting

12. 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.

13. Construction Management

14. 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

15. 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

16. 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

17. References and further reading
1. What does it mean procurement? – pp. 26
2. What are the advantages and disadvantages of the traditional procurement? – pp
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 /35
6. What is similar to the traditional procurement and construction management? – pp
1Construction Planning, Programming and Control/Brian Cooke and Peter Williams. – 3rd. ed.2008

18. Thank you for your attention!