Procurement Flashcards
What is procurement?
The act of obtaining equipment, materials or supplies. The framework within which construction is brought about, acquired or obtained.
What are Forms of Contract?
Standard forms / the methods of contractual arrangements between parties.
What is tendering?
Evaluation and selection of contractors for delivering the project.
What are procurement strategies?
Procurement options, procurement systems & procurement paths. The choice of delivery arrangements and relationship amongst the various parties; the procurement strategy is delivered via a chosen procurement route.
Examples of commonly used procurement routes?
1) Traditional procurement
2) Design and Build
3) Management Contracting
4) Construction Management
What is Traditional procurement?
A designer to design the project and a contractor to construct it.
Design is provided to an appointed contractor and ensuring that the design is provided to an appointed contractor.
The design is conducted before the appointment of a contractor.
Contract is awarded based on competitive bidding:
Open tendering
Closed tendering
What is Design and Build procurement?
A single contractor for both design and construction.
Employers agent.
Can be used for a wide variety of project types and values.
What is Management Contracting procurement?
Management contractor and works contractor.
Employer employs consultants and management contractor.
Management contractor employs all work contractors.
Work packages.
Fast track projects; Large and complex projects.
Good for inexperienced clients.
What is Construction Management procurement?
The client contracts directly with both management contractor (Construction Manager) and work contractor(s).
Work contractors for the planning and execution of the project.
Design and construction can overlap.
Communication through the client.
Experienced client.
What is the procurement selection method?
Based on the strengths and weaknesses of the procurement routes in terms of how they perform against project related criteria / benefits that are important to a given client and their project.
What does procurement selection depend on?
External factors, client characteristics, project characteristics, ability to make changes, cost, time, quality, risk and responsibility.
What are the components of the procurement selection matrix?
Time: Speed and Certainty.
Cost: Price, Certainty & Whole life
Performance: Function, Design & Quality
Explain partnering?
Begins before construction works start. A partnership agreement made. The first session / workshop covers working collaboratively, setting common goals, problem solving mechanisms, communication strategies. There’s regular meetings throughout the life of contract / agreement.
What is project specific partnering?
Two or more firms use partnering for a single project.
Explain alliancing?
Collaborative delivery model where parties (client and delivery partners) enter into an alliance agreement that they will act in a certain way to achieve a common goal.
There’s a joint view on risk and reward.
Acceptable and pre-agreed method for dispute resolution.
NEC4 Alliance Contract - forms of contract providing provision for alliancing.
