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

Show More
Related

  • Benefits Of Semantic Interoperability

    1414 Words  | 3 Pages

    The construction of a building or buildings is a complex process which includes numerous parties and various different activities. Large projects need the cooperation of many organizations including clients, architects, engineers, financiers, builders and subcontractors while even small projects are beyond the extent of a single organization to complete in isolation. The domain knowledge of involved parties are different and effective completion of the project requires intense cooperation during design, manufacture and maintenance/management of the system.

    Read More

  • Essay On Prefabrication

    1445 Words  | 3 Pages

    There are also several disadvantages and impacts to the use of prefabrication (prework). Transportation costs can be an issue due to offsite work (CII 1992). This is particularly true for large modularized sections that must need to be transported over long distances. Secondly, size constraints and limitations exist due method of travel, which directly leads to cost and schedule considerations. Thirdly, a need for increased engineering effort upfront (CII 1992) meaning that design work and extensive planning prior must be completed before prework can begin. (Haas, O’Connor, Tucker, Eickmann, Fagerlund, 2000).

    Read More

  • A Modest Proposal

    756 Words  | 2 Pages

    This hotel is placed in Kandy in the middle of a number of little villages as assumed. The closest infrastructure facilities like the electricity, drinking water, underground networks, drainage water and roads etc; from the location of the project are about five miles. From this aspect, to accomplish the client's demands of the project can be separated into two projects; Project 1-1 constructing the hotel, villas and the other facilities, and Project 1-2 constructing the infrastructures, to support the project during construction and later stage as well. This method will go with the same contractor but various contracts, and various procurement methods, which will reduce the complexity in the procedures of the Project

    Read More

  • Privatized Military Contractors

    503 Words  | 2 Pages

    By eliminating uncertainty and ambiguity between the contractor and the contracting officers, the government could get rid of the divergent interpretations that inflate the cost. Realizing it is to the contractor’s advantage to pass on all expenses it can to the buyer in order to maximize profits every opportunity to clarify criteria for cost, reduce disagreement, and set clear limits are necessary. The difficulty in writing a contract to get rid of all unexpected cost is evident but doing it will cut down on the confusion over the life of the agreement. Defining costs allowed and which are not along with potential penalties for delayed service delivery will yield a better

    Read More

  • Oxford County Hospital Case Summary

    541 Words  | 2 Pages

    Design – Build – Maintain: Public sector operates and finances the project and the private partner’s roll is to design, construct and maintain the facility for a specified time

    Read More

  • Build Operate and Transfer a Type of Arrangement

    1014 Words  | 3 Pages

    ... Therefore, BOT can be seen as a developing technique for infrastructure projects by using private initiative and funding. Such infrastructure projects include a wide array of public facilities with the primary function to serve public needs, to provide social services and promote economic activity in the private sector. With turnkey contracts, the owner buys a package of site, design and finished building, while the developer secures financing, manages the project flow and coordinates the architect and the contractor. BOT is closer to total product delivery where in addition to financing and development, the supplier is also responsible for the operation of the facility.

    Read More

  • The Benefits Of Sprinting

    729 Words  | 2 Pages

    Whether your project involves new construction or renovation, there are big payoffs on more than one level. There are the obvious things like increased efficiencies in terms of space usage, equipment storage, and safety, sanitation and security. Looking at it from a larger perspective, your designs and many of the products you buy or specify for the project will last well beyond the careers of the people who first use them.

    Read More

  • Comparing Early Supplier Involvement( ESI) and Early Buyer Involvement (EBI)

    3214 Words  | 7 Pages

    Definitions of ESI and EBI are arrived at based on extensive literature review and highlighted in block diagrams. ESI is perceived as an outcome of long- term relations and well managed permanent supply-chains which lead to knowledge integration, trust and cooperation and proactiveness. EBI on the contrary is perceived as an initiative to accumulating ‘relational capital’ which leads to ‘product perfection’. Evaluation of applicability and non-applicability of ESI to the four roles of SCM in construction by Vrijhoef and Koskela, 2000 is carried out. ESI is also pictured as ‘early supplier inputs’ as well as ‘early supplier intervention’. The script has been fairly positive on the application of ESI to the 4 roles other than to improve the supply chain. Within a buyer-supplier framework and the life span of a project, ESI has its limitations in contributing to SCM.

    Read More

  • Legal Aspects of Procurement Management

    1764 Words  | 4 Pages

    This paper examines the legal aspects of procurement management and specifically how procurement management can be used as an effective tool for the overall management of a project. This paper focuses on the basics of common contract laws, the basics of agency law, the Uniform Commercial Code (UCC), and some aspects of that pertain to the Federal Acquisition Regulations (FAR). A summation of the company’s position in relation to a given supplier (provided the company decides not to procure all of the material in a contract) will be examined along with how that position is strengthened by understanding the legal aspects of procurement management. Finally, the paper will analyze how the project manager is supported by the contracting management function.

    Read More

  • History Of Parametric Design

    1519 Words  | 4 Pages

    Parametric design has no precise and right definition (Ceborski , 2010). it is a complicate and sophisticated computer technique. Moreover, the computer algorithms are the best and accurate to convey the complex drawing or model design concept. parametric design can be everyday objects, for example, data mapping, visualization, elevations, structures, floor plans and urban plans, etc (Ceborski , 2010). That the parametric design ideal model is getting pervasive in contemporary construction modeling and configuration is obvious. There has been discuss forming, cycle and mass customization and so on for very much a while inside the building vanguard talk (Schumacher, P. 2010)

    Read More

  • Computer Aided Design

    1225 Words  | 3 Pages

    ...ir non-automated competitors.”(Mahoney,J). Mahoney J speaks on how the companies with the CAD program have a certain edge over companies that still use manual drafting. Will also improve the work quality of their coworkers. Works on the communicative skills with customers and also other people when it’s time to present their house project. Constructions companies benefit from CAD. Makes house building easier. Makes building blueprints easier. All of this shows that Computer Aided Design can benefit the construction industry.

    Read More

  • About Quality Management Procurement

    712 Words  | 2 Pages

    employs the paperwork system, faxing proposals, contracts, revisions, agreements and lists of preferred suppliers, and, finally, invoices. The key to successful project management relies on procurement quality, acquiring the right materials in a timely manner, delivered to the right place with teamwork between the client and project management team. Using a variety of web-based and conventional methods, the agile process may be used to employ a matrix of responsibility to assign home office and site responsibilities, as well as matrixes for consent, oversight and approvals, request for quotes, the definitive project specifications, and contract award dates based on installation sequence of events. Integrating this information into a schedule, guarantees that nothing is handled twice. The next phase of procurement is solicitation planning, where the Internet can be used to implement the project (Wayne Hall, Procurement Online, PM Network, March 2001...

    Read More

  • Physical Vs. Financial Aspects Of Development

    825 Words  | 2 Pages

    The physical- financial entity is a balance of two different components working towards the same common goal. Each one has their areas of focus and attributes to contribute to the project. If one has more influence than the other, an imbalance could occur and result in problems with the development and its success. The physical side must work with the architects, engineers, and construction team to create the schematic design and budget possibilities for the project in the predevelopment stage. This will include alternatives and rough preliminary designs. When the development moves over to the document development stage, they become responsible for the construction documents, budgeting, and schedules for the actual construction of the project. The financial side of the development involves the business side of the project. This is where the market and marketability studies will be conducted and various feasibility and investment analysis reports will be submitted. The financial entity of the development will continue to work through the predevelopment and document development stages to put forth the best suited analysis for the market, feasibility, and marketability studies.

    Read More

  • Construction Manager: An Essay On Construction Management

    1468 Words  | 3 Pages

    This paper explores what it takes to be a construction manager and the responsibilities of being a construction manager and the skills that a construction manager should have. It also explores what good construction managers do to have success on their construction projects and the steps that a construction manager must follow to end a project and meet their deadlines at the same

    Read More

  • Advantages Of Formwork

    9611 Words  | 20 Pages

    This also applies to setting and stripping forms. The more you work with the same configuration, the fewer errors you make, and the faster the job goes. In formwork, though, there's an added benefit; the repetition saves you a lot of money. Because labour alone accounts for up to 30 percent of concrete structural frame costs, reductions in man-hours can significantly reduce job costs. Cutting man-hours is a team effort by the designer and the contractor. DESIGNER'S ROLE The designer can do two things to make formwork more constructible: repeat design modules, and avoid irregularities in the shape of concrete. CONTRACTOR'S ROLE Contractors also can lower formwork costs by following these recommendations: design formwork for quality and safety; lay out a detailed work plan for forming

    Read More

More about Different Procurement Methods: Pros and Cons

Open Document