1.0 Introduction
To select a suitable procurement strategy for a construction project, there are some issues which need to consider. From all of those issues, there are 3 big issues that mainly affect the selection decision which are time, cost and quality. There is several type of procurement strategy available in market that commonly used for construction project and each of the common method will be analyze and compare to find the most appropriate method for this project. The choice of procurement strategy is very important to the success of a construction project. Therefore, the characteristic of each strategy have to analyze and also its relative advantages and disadvantages. A recommendation of most appropriate procurement strategy will be made after analyzed the all factor that affect the procurement selection.
2.0 Report
Background of project
Project type : Office and Store
Client : Robert Gordon University
Source of fund : Public Funding
Time length : 12 months
Time for construction : 8 months
Time for full design,
BQ and tendering : 7 months
For this office and store project, there are numbers of procurement strategy which is commonly used and suitable for it. The types of procurement strategies are as below :
1. Traditional Lump Sum Contracts
For this type of contract, contractor and design team are two separated body which respond directly to the client. Client hires the design team and select the most suitable a main contractor to carry out the whole project. Normally, for this type of contract, all the drawing and document had completed before the selection of contractor.
Advantages :
• Price certainty
• Good quality of work
• Changes can be evaluated
Disadvantages :
•...
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...R. RAMEEZDEEN (2006) A multiple decisive factor model for construction procurement system selection [online] London : Royal Institute of Chartered Surveyors. Available from :
http://www.rics.org/NR/rdonlyres/69EBAB3D-7830-4FC8-B1E7-75AE6CC7BAC6/0/COB06Ratnasabapathy_Rameezdeen.pdf [ Accessed 18 April 2008]
THE SCOTTISH GOVERNMENT (2005) Construction work procurement guidance, [online] Scotland : The Scottish Government . Available from :
http://www.scotland.gov.uk/Publications/2005/11/28100404/04095#1a [ Accessed 19 April 2008]
6.0 Bibliography
S.KENNEDY & A. AKINTOYE (1995) Quantity Surveyors’ role in design and build procurement method, [online] London : Royal Institute of Chartered Surveyors. Available from :
ttp://www.rics.org/NR/rdonlyres/F9C84EA0-C08A-40BE-8273-A433160D62FB/0/quantity_surveyors_role_in_design_19950901.pdf [ Accessed 18 April 2008]
Whereas, there have not been many studies exploring mathematical modeling that integrates the subjects of CSCM and construction project management. In this study, we proposes a coordinated supplier selection and resource-dependent project network with final project review sequencing which builds an interface between CSCM and construction project
It includes market sizing of upcoming project pipeline at most granular level and provides forward-looking analysis on top clients, contractors, consultants/ PMcs, other civil contractors / suppliers with their respective working or partnership model. Furthermore, it shows the new and recent trends in the industry and how it may impact the business decisions of the involved
According to Boards of Quantity Surveyors Malaysia (BQSM), currently, there are 345 registered quantity surveyor (QS) consultancy firms in Malaysia (BQSM, 2014). In order to remain competitive in the challenging construction industry, QS firms have to adopt the best strategy that suite them. Without proper planning, insufficient projects and remuneration will bring about bad cash flow and become eliminated eventually. Firm size is definitely affecting the choice of strategy used (Abidin, Nor’aini Yusof, & Adros, 2010). These firms may have different strategic orientation and affects the strategic planning process. Planning process will then bring impacts towards the firm’s decision in policy formulation and management style. Four types of categories are used to differentiate between these firms, which are the “Prospector”, “Defender”, “Analyser” and “Reactor” type. “Prospector” firms tend to be entrepreneurial, innovative and new opportunity oriented while “Defender” firms tend to defend the existing market. “Analyser” firms are the hybrid of “Prospector” and “Defender” types and may have relatively more stable and dynamic environment. The last type is the “Reactor” firm that have short term planning and changes continuously according to the latest needs (Hassan, 2010).
Vrijhoef, R. and Koskela, L. (2004) ‘The four roles of supply chain management in construction’, European Journal of Purchasing & Supply Management, 6(3-4), pp. 169-178 ScienceDirect [Online]. Available at: http://www.sciencedirect.com/ (Accessed: 6 February 2010).
Turnkey contract is normally for build from large scale developments to middle and single structures. Term and qualification for tenderers win the bidding will be evaluates based on their experience on the related project and expertise in designing building. In some cases, it may be appropriate to the tender be present to gi...
Different project selection methods are used by different organisations as per the management decision an suitability to their particular line of business. All these methods have different features and different characteristics. Therefore every selection method is good for different organisations.
The contractor can defined as a body or party that responsible to make reality painting that that provided by architect to form and actual size that was prescribed according to contract..
The procurement process usually requires crucial planning based on the complexity and size of the specific procurement. The process involves generating and reviewing requirements and specifications for procurement. Generating and reviewing these requirements and specifications is geared towards ensuring effective planning. The most appropriate process for generating and reviewing procurement specifications would include defining the outcome, defining specifications, identifying risks, researching the procurement market, and preparing a business case (“Guidance on the Mandatory Procurement Procedures”, 2005).
The main objective of any construction project is to assure that the project completes on committed time and within the budget allocated. Two major challenges faced are Time and cost which increase the urgency to adapt new and innovative techniques for the project to be successful.
This chapter provides a review on the existing literature regarding uncertainty in cost estimating in construction. There is an examination of the definitions of terms, and a review surrounding the practice and forms of cost estimating. The review will also analyse the factors effecting cost uncertainty and its relative importance to construction projects before focusing on design information as a major proponent of the inherent uncertainty in estimating.
M. K. Trivedi and Sapan Namdev [4] Over a year many research had solved construction optimization problems. The techniques used by them varied in nature between mathematical techniques or conventional techniques to heuristic techniques. Over a past 20 years researchers had emphasized on Evolutionary Algorithms (EA) to solve construction optimization problems. Different Evolutionary Algorithms techniques such as Genetic Algorithm (GA), Ant colony method etc, had been used by many researchers to optimize the time-cost of a construction project. In this paper a detailed literature review of different approaches used by researchers to optimize the time-cost of a construction project is going to be
Estimates form the basis of tender comparison, so it should be as accurate as possible, if deficient the award settlement becomes arduous (Odusami & Onukwube, 2008). Accurate cost estimate for projects are tremendously essential to both the clients and the contractor. It provides the basis for the contractor to submit the tender and allows the parties to highlight the final cost of the project at an early stage. Essentially it is used for planning the entire project and helps during the execution phase (Akintoye and Fitzgerald, 2000). It has been pointed out that the building cost of the project usually differs from the estimated final cost and this is due to the variations (Oberlender and Trost,
In general, there are different types of procurement type for various situations due to no one method can be suitable under the all different construction project. In this case, there are four procurement paths, which are traditional, design and build, management and design and manage, will be advised to use. However, each method has different aspects of advantages and disadvantages.
Despite the fact that fundamentally the public procurement process is straight forward, it actually can be seen as multidimensional phenomenon. It can be observed as:
Project Procurement Management is defined by the Project Management Institute (PMI) (2013) as a set of defined processes that support the acquisition of products, services, or results. The success or failure of a project is accredited to the project team’s ability to balance scope, schedule, and cost constraints. The need for procurement management increases the project’s level of complexity and likelihood of risks. Moreover, the procurement management processes are a project within a project. This singular knowledge area produces a procurement scope document, contractual agreements, and management plan, which align with the project management plan and objectives. Procurement processes play an essential role in the success of the project. Receipt of procurement deliverables drives the potential for the timely achievement of project objectives and managing costs. Procurement