Architecture / June 18, 2018 / .
When considering building a new home, completely redesigning or doing a major addition on an existing home, the reality is there is a certain amount of money budgeted for the project. With a finite amount of money, if you were to only focus on the size of the house, the quality would suffer. The same is true of the inverse–using all of the best finishes and choosing high-end materials to enhance the quality of the home will necessitate a smaller-sized home. You must have a balance between size and quality. This relationship is not always obvious at first, but I have found that by talking with my clients about making smart choices and decisions, they can achieve a balance between size and quality and achieve their dream home.
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
Clients who prioritise cost over speed or who require fixed price lump sums will generally experience longer development programmes, as designs must be substantially completed before tenders can be obtained. This process may take a considerable amount of time as careful thought is required to develop and refine the scheme design. The design, in turn, influences the contractors construction methods which determine length of time taken to complete the contract on site.
Local contractors are usually at an advantage when competing for work. Contractors who have the capacity to construct work from within their own organisation should, in theory at least, be more competitive than those who sub-contract large proportions of the work. Current site management practice however tends to favour the widespread use of subcontractors. Nevertheless, the ability to attract labour and to source materials in the locality is an important factor in ensuring that unnecessary travelling and transport costs are not incurred in carrying out the work. Seeley notes that contractors will have to consider whether management, labour and plant resource requirements can be met from within the contractors own organisation or whether it will be necessary to recruit specifically for the project. The contractor will also have to consider what demands the proposed project would put on own plant, scaffolding and equipment.