The Complications Of Construction Procurement In The Construction Process

CHAPTER 3

INTRODUCTION

3.1 INTRODUCTION

According to Oxford Dictionary, the word ‘procure’ means to obtain, to secure, and to acquire or to being about. Meanwhile, the construction procurement means act of forming, building or fitting parts together.

Turner (1990) in his book described procure as to obtain or to acquire. The word ‘procurement’ is well-defined as the act of obtaining, acquiring or securing. Meanwhile, construction is described as the business or work of building houses, offices, factories and including civil works such as bridges, dams, highways and others.

Abdul Rashid (2002) in his book clearly defined the procurement in the construction context. The procurement in the context of construction refers to the processes

For design and built method provides a single point contact and responsibility by the contractor. Therefore, the contractor is solely responsible for failure in design or the construction. In short, the client has only one person to deal with if the project is faced with any problems. (Turner, 1990).

h) Risk Avoidance

Construction projects are complex, having a long production cycle and involving many participants and they are therefore, associated with risks and uncertainties. It is important for a client to know how, and to what degree, risk has consciously been passed to another organizations, or how it has been shared in some proportion between him and another organization. For design and built method, all the risks can lie almost wholly with the contractor (Turner,

In design and build project, the contractor is responsible to do the design and develop it (Dorsey, 1999). The contractor may have their own in-house consultant or they can temporarily employ outside consultant for the purpose of executing the project.

In design and build, client obtains single point responsibility from a party – the contractor (Turner, 1990). The less involvement of client in projects helps much to make development period become shorter. The contractor has responsibility for both design and construction, hence, it is claimed that this produces economies for both contractor and client. Besides, the contractor’s knowledge of buildability can bring beneficial in price and period of project, as it helps to reduce design period. However, this procurement route tends to restrict changes during construction. Any variation occurs during the period may cause disruptive and relatively high price to the client. From these points, we can know that the client has losses some control power in the project. The excessive involvement (more than he is entitled to) of the client in project may cause failure as it is being disruption to the contractor. Excessive changes made by client may also make the design and build is not an economical approach anymore as said by