Different Procurement Methods: Pros and Cons

2190 Words5 Pages

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.
First, traditional path is the tender documents have been prepared and then invite the tender and the employer appoints the contractor to construct the project.

There are several advantages of this traditional route in the construction industry. First, the designs are completed before tender and tender can provide good time and cost control. Also, the tenderer can receive complete information and design and they can be bidding on the same basis, so the competitive is fair. Moreover, this is design-led and the client can change the design ability, so the level of functionality and quality will be increased in the overall design. And then, it is relatively easy of variations to arrange and manage if the design will be changed because client’s needs and technology. Also, traditional paths are a tried and tested route, so it is well established and the market is very familiar with. Furthermore, it is good price certainty at the award of the contract because of full set information.

However, there are some disadvantages in the processes. First, it is very consume time in the pre contract process due to the strategy is sequential and construction cannot be started before the completion of design. Also, the contractor is not appointed in the design stage, so the contractor and supply chain are no input into the design or planning of the project. Mo...

... middle of paper ...

...oyer’s loss and expensive and can get the some remedy.

Works Cited

http://www.charlesrussell.co.uk/UserFiles/file/pdf/Construction%20&%20Engineering/Construction_and_Insolvency_-_Practical_Advice.pdf https://consultations.rics.org http://www.construction-innovation.info/images/pdfs/Research_library/ResearchLibraryC/2006-034-C/reports/Report_-_Building_Procurement_Methods.pdf http://www.crippslink.com/index.php?option=com_content&view=article&id=981:a-guide-to-surviving-main-contractor-insolvency-for-employers&catid=14:construction-law-publications&Itemid=537 http://www.pinsentmasons.com/PDF/LGSurvivalKit.pdf http://www.charlesrussell.co.uk/UserFiles/file/pdf/Construction%20&%20Engineering/Construction_and_Insolvency_-_Practical_Advice.pdf http://www.mondaq.com/australia/x/74680/Insolvency+Bankruptcy/Guarding+Against+Insolvency+Procurement+In+An+Economic+Downturn

Open Document