Chapter 3.1, 3.3-3.5, 3.7, 3.12 Procurement methods Flashcards
When a Client is going to choose a procurement method (procurement route) he/she should consider and assess some important procurement factors.
a. Of these factors three are considered to be main. Which?
b. There are more factors that should be considered. Name at least three!
a)
• Time- the overall timing of the project from inception to completion
• Quality- The client’s required standrads of design and workmansship as expressed in the specification
• Cost- cerntaintly of the market price at the bid submission and final account stages
b)
• Complexity- complexity of buildning design, layout and services provision
• Controllable variation- How sure is the client of his requirments? The cost variations to the contract may prove difficult to agree assess.
• Degree of competition . does the client wish to create competition at the design and construction stages of the project
• Clientr resposibility- does the client wish to be directly involved in decision-making during the projet.
• Risk in project- commercial risk, pccupation design and construction risk.
- Name some important decisions, related to procurement, the Client has to make when he/she is going to implement a project!
- Choosing an appropriate procurement straegy for managaing the project
- Selecting the clients principal addvisor or lead consultant, that is architect, engineer, projectmanager
- The appointment of other consultants
- Establishing the clients brief and assessing the projects feasibility
- Obtaining the required project finance
- Choosing how to procure and manage the designand construction
- Establishing a realistic time period for the overall project
3.How do you “define” procurement?
A process for establishing contractual relationships to accomplish project objectives. The assembly, tendering and award of contractors or commitment documents
4.How do you “define” procurement method?
The organisational and contractual relationship chosen by a client, to one more desigeners and one more contractors in oder to implement a specific construction project
- Present for the procurement method “Traditional procurement”
a) A chart showing the contractual relations between Client, Design office, Contractor and Sub-contractors
.
General features “Traditional procurement”
• Design is seperated from construction with a tendering period
• Alternatives as regards basis for payment
-lump sum contract based on drawings and specifications presented by the client from beginning
• Re measurements contract based on approximate quantities: the contract price is determined at the end of the contract by measuring actual work
Advantages “Traditional procurement”
- Client has control over design team and qualitu can be assured
- Price sompetition gives a favourable price for the client
- Client knows the lump sum before being committed
- Firm contractual date of completion
Disadvantages “Traditional procurement”
- All design risk is ultimately carried by the client
- High pre-comtract design fees are rather common
- Responsibility for specialists lies with the client
- Commitinment to a lump sum price is often underminded by a lack of information or client changes
- Many contractors bid ”in vain”
Present for the procurement method “Design and build”
A chart showing the contractual relations between Client, Design office, Contractor
and Sub-contractors
.
General features “Design and build”
- Many varieties as regards design and build
- Main ideas single point of responsibility for both design and construction
- The client can benefit from the contractros expertise early in the project
- (Tradionational design and build: contractros has full resposibility for conceptunal and design.
Advantages “Design and build”
- price certainty is secured early in the project
- contractual completion dates are fixed early in the design process
- less risk of price changes during the design development
- main contractor provides single point resposibility for design and construction
- major risks lie with the contractor
- the construction works can start before all designs are completed and a shorther project time can be achieved.
Disadvantages “Design and build”
- the contractor assumes a greater financial risk which often is reflected in the price
- difficulties for client to evaulate and compare tendering stages
- The tender period and negotiations tends ro take long time
- Difficulties to monitor, asses, and control design and quality
- A risk that the contractor will drive the project with regard to price instead of quality
Present for the procurement method “Construction Management”
a.A chart showing the contractual relations between Client, Design office, Contractor
and Sub-contractors
.
General features “Construction Management”
- The client has direct contracts with a number of ”work package constructors”
- Each work package contractor has a separate contract and is paid by the client
- The client is assisted by a project manager (entire project) and a construction manager at site.
- The most important task assigned to the construction manager is to plan and supervise the work to be undertaken by the ”work package contractors”
Advantages “Construction Management”
- Maximum overlap between design and construction as each package design is completed work may commence on the project
- Quality can be assured- high level of supervision and quality control can be achived at site level.
- Variations can be kept under control as price of changes can be agreed before commencing a variation
- Suits complex projects where the design can be developed in stages
