Procurement Routes Flashcards
Whats the difference between Construction Management and Management Contracting?
Construction Management is where the client contracts the trade contractors themselves with the Construction Managers only manage the trade contractors. Whereas management contractors contract works contractors directly.
What is traditional procurement
This route separates design from construction, the employer appoints a design team to develop the design to completion, contractors are the invited to submit tenders based on a full designed project
What are the key advantages of traditional procurement
Employer retains control of design (big for quality priority)
Design is largely complete when the contractor is appointed, meaning they know exactly what they are getting
Assuming the design is robust, reasonable price certainty can be achieved at contract award
What are the key disadvantages of traditional procurement
Project programme may be longer than D&B as theres no opportunity for overlap between design and construction
Zero or limited contractor build-ability input
Design risk is retained by employer (dual responsibility so employer for design and contractor for construction)
Why might traditional procurement be appropriate?
Employer may have specific or detailed design requirements
Time is not a big priority for the employer
Cost certainty is important
What is design and build procurement
D&B is where the contractor is responsible for completing the design and executing the construction phase of the project, typically the contractor adopts the design from riba stage 3
What are key advantages of D&B procurement
Single point of responsibility for both design and construction (to contractor), which means least amount of risk employer carries
Can allow for earlier start on site (if design and construction can be overlapped)
Allows for contractor build-ability advise during design stage
What could be some disadvantages of D&B procurement
Design is only as good as the employers requirements
Employers change can be expensive
Employer may have ess control over quality of product
Contractor will add design risk premiums into their tender return
Where might D&B procurement be appropriate
For technically complex projects, the contractor can have input on buildability
Where an early start on site is required
What is construction management
Where the employer directly employs the trade contractors instead of employing one contractor who then appoints all the trade contractors. Employer also appoints a CM to manage and programme the works
What are the advantages of construction management
Speed (early start on site)
Prices may be lower due to direct contacts with trade contractors
overall project duration can be reduced if design is overlapped with construction
What are the disadvantages of construction management
Price certainty not achieved until last trade package is procured
This route requires experienced, informed client for it to work best
Employer needs a big team to manage all the consultants and contractors
What is management contracting
Employer appoints a management contractor who will in turn appoint trade contractors to carry out the construction works
What is a framework?
Its an unbrella agremeent that a party enters with one or more suppliers to establish governing terms.
How long could a framework be?
Typically 2-10 years
