Architecture / June 12, 2018 /
Procurement refers to the process of obtaining goods and services from another for some consideration. They describe the process as being simple in theory – balancing quality, time and cost priorities, but complicated in practice by legislation, the need to achieve value for money, demonstrate accountability and coordinate consultant and contractual roles and obligations to achieve a satisfactory outcome. The procurement strategy identifies how the project is structured and establishes where responsibility for design is to be placed, how the work is to be co-ordinated, and on what price basis the contract is to be awarded. The procurement strategy also directly affects the level of risk borne by the contractor and leads to choices regarding the conditions under which the work will be executed. These risks must be appraised and managed by the contractor and has a direct impact on the price tendered by the Contractor
This is where the contractor works alongside or within the design team providing a construction management service. The management contractor does not undertake either the design or the direct construction work. The physical construction is carried out by specialist subcontractors, package contractors. There are two main forms of this approach: Management Contracting where the contractor employs the subcontractors and Construction Management where the subcontractors are employed directly by the client and the project is managed by the construction manager - there is no actual main contractor. Management procurement routes are associated with fast moving, complex construction projects. The early appointment of manager within the design team allows the design and construction operations to be fast-tracked while also ensuring that the required quality standards are delivered. These projects, however, tend to be expensive. Figure 1 sets out a summary of the advantages and disadvantage of various procurement approaches which may be of use in meeting project objectives.