Procurement Strategies

Traditional Contract

Advantages:

  • Control over design process and quality
  • Cost certainty at point of appointing the Contractor
  • Client retains direct contractual relationship with Consultants and Main Contractor
  • Capable of obtaining the best contract price for the full scope of the Works
  • Client retains control over the Design Team and quality can be assured

Disadvantages:

  • Design must be fully developed before tender process
  • Longer timescale – It is not suitable for fast track projects
  • Low risk to Contractors
  • Client must have the resources and expertise to administer the contracts of the Design Team and Main Contractor

Traditional

Design and Build Procurement

Advantages:

  • Transfer risk to Contractor for construction delivery & design development
  • Cost certainty
  • Shorter programme – Suitable for fast track projects
  • Single point of responsibility for design & cost risks
  • Early Contractor involvements – assists with build-ability

Disadvantages:

  • Client has reduced control over design, quality and cost risks
  • Changes by Client are advisable – Heavy cost penalties
  • Clients requirements must be fully detailed before signing contract

Contractor-led Design and Build Procurement:

C

Client-led Design and Build Procurement:

CC

Management Contracting

Advantages:

  • Client retains full control of design
  • Shorter programme
  • Build-ability input is obtained pre-tender
  • Changes can be accommodated in unlet packages as long as there is no impact on time or costs

Disadvantages:

  • Management Contractor takes control of packages and interaction with subcontractors
  • No transfer of risk to Contractor
  • Client retains risk
  • Client must have the resources and expertise to deal with the design team and management contractor

MC

Construction Management

Advantages:

  • Client retains full control of design
  • Shorter Programme
  • Build-ability input pre-tender
  • Changes can be accommodated in unlet packages as long as there is no impact on time or costs

Disadvantages:

  • Construction Manager takes control of packages and interaction with subcontractors; but has no contractual role
  • Client has to manage the contractual agreements with each subcontractor
  • Client retains all risk
  • No cost certainty until final package let

CM

References:

Construction Planning, Programming and Control/Brian Cooke and Peter Williams. – 3rd. ed.2008

APUC Advanced Procurement for Universities and Colleges

Hakkında Cumhur Şamiloğlu
Civil Eng., MRICS Management of International Business (MSc-2002)

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