Level 1 - Procurement Routes

Question 1

What is the difference between Procurement and Tender?

Answer 1

Procurement – Overall approach to obtaining goods and services from a contractor based on the clients requirements (time, quality, cost and risk)

Tendering - A phase within the procurement strategy, specifically the bidding process to obtain a price and appointing a Contractor

Question 2

What is Traditional Procurement?

Answer 2

• Client is responsible for design

* Contractor is responsible for Construction

Question 3

What are the advantages of Traditional Procurement?

Answer 3

Quality – Client has full control over the design

Time – Client gets time certainty although overall programme longer as design and construction cant be overlapped

Cost –Fully developed design so contractors do not price for design risks

Question 4

What are the disadvantages of Traditional Procurement?

Answer 4

Time – Longer design period and so overall longer programme

Cost – Any items that have not been design will result in post contract changes

Risk – Client is responsible for any design risks

Question 5

What is the difference between MC and CM?

Answer 5

Construction management differs from management contracting, in that management contractors place contracts with works contractors (equivalent to trade contractors in construction management) direct, whereas construction managers only manage the trade contracts, the contracts are placed by the client.

MC - one contract for client
CM - client has contract with all trades and CM acts as a consultant to manage them