Procurement Methods Flashcards
Define procurement
The strategic process of how contracts for construction work are created, managed and fulfilled.
What are the 4 procurement methods?
Traditional,
Design and build,
Management,
Construction management
Describe the traditional contract
Client has one to one relationships with everyone.
Relationships are all managed by the client.
Client designs the project and prepares the BoQ, drawings, packages etc.
What are the benefits of a traditional contract?
Employer can make changes.
Scope to separate the design, construction and management (hire different people for each).
Good value.
What is a management contract?
Client works with PD and PC. The PC (management contractor) is in charge of managing the subbies.
Disadvantages of management contracts
Not much scope for change.
Very little client input.
Client can’t litigate against subbies, only the MC can (but the client must pay for it)
What is a construction management contract?
CM acts as an agent to help the client but the client keeps all the relationships.
CM has no responsibility.
CM comes in at the start and helps client prepare all the tender docs.
Employer manages litigations.
What is a design and manage contract?
Contractor comes in early on and gets someone to do the designing and building. Collateral warranties may be needed between the client and third parties.
What is a design and build contract?
Client hires someone to oversee the design and build.
The project is just an idea, maybe some very early designs have been produced.
They have the direct relationship w the client.
Pros and cons of D&B contract?
Client has little involvement.
Hard to compare bids as they are all so different.
Designers and contractors work together from the start.
What is D&B develop and construct?
Contractor is engaged at scope design.
The client’s designer gets sent to the contractor to work for them (called novation)
What is D&B Turnkey?
Client hands everything over to the contractor, they want no input until they can turn the key in the door.
Very expensive for contractors.
There is a danger of fraud as the client doesn’t see the process, only the end product.
What does DBFO stand for and what is it?
Design build finance operate
Contractors puts money into the project as well so they care more. Popular in public sector where there isn’t enough money.
What does DBO stand for?
Design build operate
Which method is best for speed?
D&B
