Procurement In Construction Industry Essay

In the British construction industry, the term ‘procurement’ show a series of activities and processes undertaken by the developer or client to secure the construction or refurbishment of a building. The Government Procurement Service define procurement as the ‘whole process of acquisition from the third parties and covers goods, services and construction projects. This process spans the whole life cycle from initial concept and definition of business needs through to the end of the useful life of an asset or end of a service contract.’ ( Arun District Council, 2011) There are three main types of procurement methods that are commonly used in the British construction industry which are traditional approach (lump sum contract), design and

They will hire professional consultant to design the project in detail, prepare tender documentation, to include drawings, work schedules and bills of quantities. The architect in the design team usually acts as the contract administrator and issues the interim certificate. (Field, Seymour, Parkes, Solicitor, 2012) Contract administrator is responsible for disputing resolution procedure, unless stated in the contract, and certifying payment. There will be a separation between the design and construction work. The client will appoint a main contractor who will be responsible for the whole construction operation.The main contractor will hire several sub contractor to undertake individual work packages. The design and build procurement method appeals to the clients because it gives a single point of responsibility for building the entire project. However, this method is only appropriate for simple project where design quality is not the main priority. (Designing Buildings Wiki, 2014) The diagram below shows the Design and Bid route.

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The client will be responsible for hiring design team. The client will appoint a management contractor who acts as an adviser to the team during pre-construction and during construction, the management contractor will be responsible for the construction works. The management contractor will employ subcontractors or work contractors to carry out individual work packages in return for a contract fee. The management contractor will engage in the work on the basis of a contract cost plan prepared by a quantity surveyor,project drawings, and a project specification. ( Building Procurement Method,