Procurement

Question 1

Definition of procurement

Answer 1

the act of getting possession of something

Question 2

Two reports that prompted change in procurement

Answer 2

Lathan 1994 and Egan 1998

Question 3

What did Lathan and Egan prompt?

Answer 3

Change in roles and responsibilities
focus on client, team building and relationships

Question 4

What did Lathan and Egan prompt?

Answer 4

Change in roles and responsibilities
focus on client, team building and relationships

Question 5

7 client considerations for procurement

Answer 5

Financing
Speed
Cost/value
Asset ownership
Specific project constraints
Quality
Risk

Question 6

5 types of procurement

Answer 6

Traditional
Design and Build
Management Contracting
PPP/PFI
Prime Contract

Question 7

Most common form of procurement

Answer 7

Traditional
(Design and Build)

Question 8

What is the designer/consultant responsible for in traditional procurement

Answer 8

Design and quality
valuation and payment

Question 9

why is traditional procurement produce a high standard?

Answer 9

Designer retains control of design and quality

Question 10

Why is traditional procurement slow?

Answer 10

Need adequate time before tenders are invited

Question 11

Advantages of traditional procurement

Answer 11

High standard, designer retains control of the design

Question 12

Disadvantage of traditional procurement

Answer 12

Slow, need adequate time before tenders are invited

Question 13

Can traditional procurement be used with approximate quantities?

Answer 13

Yes

Question 14

What does the promotor do in design and build procurement

Answer 14

Financing
maintenance over specific period
client not necessarily the owner of the property

Question 15

Why might d&b procurement be used (3)

Answer 15

Need an early start on site - design and construction phases overlap
Minimise risk as client is not responsible for design
benefit from contractors expertise

Question 16

What is the role of the project manager in management contracting?

Answer 16

Pre planning
procurement
coordination of design and contracting

Question 17

What is management contracting?

Answer 17

Individual organisation responsible to management on behalf of a client - project manager

Question 18

Why use management contracting?

Answer 18

No in house capability
Client no experience with capital development

Question 19

Example of a bad PPP

Answer 19

Oxgangs Primary School Edinburgh
Collapse of external facade

Question 20

Advantages of PPP

Answer 20

Takes risk away from client as privatises services from government
Long term commitment from contractor
Reduced rents as a result of penalties

Question 21

What is PPP/PFI

Answer 21

Projects commissioned by a public client

Question 22

Disadvantages of PPP

Answer 22

lack of accountability as the public client has very little involvement in the construction and design phase.

Question 23

Who uses prime contract?

Answer 23

large client and supply chains

Question 24

Advantages of prime contract

Answer 24

clear lines of accountability
improved supply chain management
economics of scale
saves time
long term improvement and partneships

Question 25

Disadvantages of prime contract

Answer 25

excludes small companies
layering of overheads and profit
difficult to detect fraud

Question 26

best procurement method for projects up to £5m

Answer 26

Traditional
D&B

Question 27

Best procurement method for between £5 - £50m

Answer 27

D&B
Traditional

Question 28

Best procurement method for over £50m

Answer 28

D&B

Question 29

Most significant problems arising during the procurement process

Answer 29

Alterations of client requirements
Lack of communication
Issues over responsibility