Essay On Procurement In Construction Industry

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Procurement
Procurement in construction industry defined as the process that are used to deliver a construction projects. There are several types of procurement options that are available for the clients to choose from. In before the client to choose which procurement that suit the best for his project, it is recommend to considering of what procurement does the client wants. Mainly, there is THREE essential factors that are to be consider whether or not they need it for their procurement. These three are:
1. The time that needed for the project: Whether or not the project has to be complete within a short period of time, or within a requested timeline that the client wants.
2. The budget for the construction project: Does the client having …show more content…

Generally there are four types of procurement that are still in practice within the construction industry, which is Traditional Method, Design and Build, Management Contract and the Construction Management.

Tendering process
Tender means “offer” according to Cambridge dictionary. In construction industry, tender process means selection of contractor through a process. The tender documents are made up of six groups of documents, which is:
- Form of agreement (articles of agreement and conditions of contract),
- Contract Bills (preliminaries, preamble, specifications, bills of quantities and general summary of tender),
- Supplementary Requirements (declaration of non-collision, form of tender, instructions to tenderer, conditions of tendering),
- Ancillary Forms (Schedule of finishes, list of prime cost and provisional sum, list of drawings, prices of basic materials, day work rates, particulars of workers, information of tenderer’s organisation, and bank guarantee form for performance bond), and …show more content…

The management contractor that the client appointed act as a professional capacity by providing the management expertise towards the project and the buildability advice for the construction, in return with a fee of that cover the profits and overheads. The management contractor does not participate in construction work and also does not employ any labours or plants and machinery or any other things that are needed for construction work, however management contractor do hire sub-contractors whether is in house sub-con or recommended sub-con by the clients. The project construction works are divided into various work packaged, in which the work are then tendered out, and the work package subcontractors that wins the tender through the competitive tendering process, will then only enter a contractual relationship with the management

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