Methods of Procurement Flashcards
What are the 3 main types of procurement method?
Traditional, Design & Build and Management procuement
What factors can influence the choice of procurement?
Scope of work, nature of work, level of risk, price basis of contract, programme, flexibility requirements, nature of client.
What is important to establish for design responsibility?
- How design responsibilities are apportioned between architect as Lead Designer, other consultants, specialists and the contractor?
- What contractual provisions will apply to the works?
What is important to establish regarding coordination?
- What contractual arrangements will apply for the coordination of work?
- Will works be carried out under a single contract or a combination of packages? Will they be in sequence or run parallel?
How do Traditional, D&B and management contracts compare in terms of speed?
T: Not the fastest, as it is desirable to have all information at the tender stage.
D&B: Relatively fast, depending on detail in Employer’s Requirements. Construction time reduced as design and construction can run in parallel.
M: Work can start early, before tenders have been invited for some work packages.
How do Traditional, D&B and management contracts compare in terms of complexity?
T: Straightforward, however can be made more complex when specialist subcontractors are introduced.
D&B: An effective single contractual arrangement. Design and construction integrated in one accountable organisation.
M: Design & construction skills integrated at an early stage. Requires complex management skills.
How do Traditional, D&B and management contracts compare in terms of quality?
T: Client requires certain standards to be met and included. Contractor responsible for achieving the stated quality on site,
D&B: Client has no direct control over contractors performance and contractors subcontractors.
M: Client requires certain standards, with managing contractor responsible for quality on site,
How do Traditional, D&B and management contracts compare in terms of Flexibility?
T: Client controls variations and changes to large extent.
D&B: Client has virtually none. Any variations are to the advantage of the contractor.
M: Client can modify or develop design during process, with managing contractor able to adjust programme and costs.
How do Traditional, D&B and management contracts compare in terms of certainty?
T: Certainty of cost, time and over quality.
D&B: Guaranteed cost and completion date.
M. Client is committed to start building on a cost plan, drawings and specifications only.
How do Traditional, D&B and management contracts compare in terms of responsibility?
T: Clear division of design and construction, although can be less clear when specialist sub contractors are involved.
D&B: Can be a clear division, although less so when the ERs are detailed and complex, reducing the reliance on the contractors design proposals.
M: Depends on management contractors skills. The professional team must be well coordinated.
How do Traditional, D&B and management contracts compare in terms of risk?
T: Generally fair and balanced between all parties.
D&B: Can be heavily weighted towards the contractor.
M: Mainly with the client. Almost totally with construction management.
What are is a PFI / PPP?
PFI: Private Finance Initiative
PPP: Public Private Procurement
Why were PFIs introduced?
- Introduced in 1992 by the Government to enable major capital projects to be funded without initially requiring the input of Government funds.
- Purpose was to deliver all kinds of projects to public sector.
How long do PFI contracts typically last?
30 years
What projects are PFIs generally acceptable for?
Large scale projects with a capital cost of over £20m
