Procurement Routes Flashcards
How can clients be classified?
Clients can be classified by origin (individual, corporate, public), impact of construction on their work (primary, secondary), and frequency as a construction client (experienced, inexperienced).
What are the characteristics of private and public clients?
Private clients are privately financed, aim to maximize profits, and are willing to take more commercial risks. Public clients are publicly financed, not-for-profit, risk averse, and subject to regulations and auditing.
What distinguishes experienced clients from inexperienced ones?
Experienced clients have detailed knowledge of the industry, ability to produce comprehensive briefs, and expertise in project management. Inexperienced clients lack industry knowledge, have difficulty producing briefs, and are over-reliant on external consultants.
How does client behaviour impact project outcomes?
Client behaviour impacts project outcomes. Clarity on objectives, involvement, and speaking with one voice contribute to success.
What are the key procurement objectives?
Key objectives are quality, price, and time. Quality includes capital costs, life-cycle costs, technical, functional and aesthetic standards.
How can experienced repeat clients influence project quality?
Experienced repeat clients can positively influence quality through value-focused procurement practices.
What are the main procurement methods/contract types?
Design-Bid-Build (DBB), Design-Build (DB), Engineering, Procurement, Construction (EPC)/Turnkey, and Build-Operate-Transfer (BOT)/Public-Private Partnership (PPP).
How does the traditional procurement (DBB) method work?
In DBB, the client appoints designers, then tenders are invited based on complete design. The contractor is selected by competitive tender.
What are the advantages and disadvantages of the traditional procurement method?
Advantages include being widely used, cost certainty, reasonable risk allocation, and client control over design. Disadvantages are a slow sequential process, limited use of contractor’s expertise, and potential for adversarial attitudes.
How does the Design & Build procurement method work?
In Design & Build, design & construction responsibility lies with a single company, usually the contractor.
What are the advantages and disadvantages of the Design & Build method?
Advantages include overlapping phases decreasing project time, contractor’s expertise enhancing buildability and cost-effectiveness, and single point responsibility. Disadvantages are reduced client control over design, need to minimise changes, and potential for adversarial behaviour.
What are the main management-oriented procurement methods?
Construction Management (client employs trade contractors directly) and Management Contracting (contractor appointed early on a fee basis, subcontracts works packages).
What are the advantages and disadvantages of management-oriented methods?
Advantages are client influence on design and easier, less costly changes. Disadvantages include increased client risk, high involvement, and time pressure on design.
What characterises partnering arrangements?
Partnering involves two or more organisations working together with mutual objectives, dispute resolution methods, and commitment to continuous improvement.
What are the advantages and risks of partnering?
Advantages include reduced tendering costs, aligned goals, increased trust, and more effective issue resolution. Risks are lack of competition, difficulty achieving value, unequal relationships, and complex gain-share arrangements.
