Traditional Procurement

Question 1

What is traditional procurement?

Answer 1

• Traditional procurement involves separating design from construction.
• The employer first appoints consultants to design the project in detail.
• A contractor is then appointed to construct what the designers have specified.

Question 2

What are the characteristics of traditional procurement?

Answer 2

• The contractors tender is based on a complete design produced by the employers consultants.
• Assuming no significant design changes arise, construction costs can be determines with reasonable certainty before work begins.
• The employer retains the design consultants during construction. The consultants prepare any additional design information and review CDP designs prepared by the contractor.

Question 3

What are the advantages of traditional procurement?

Answer 3

• The employer retains control of the design.
• The design is largely finalised before the contractors tender for the build, this means the employer knows exactly what they are getting.
• All tenders produce a submission based on the same information (tender returns are easier to compare).
• Assuming the design is robust, reasonable price certainty is achieved at contract award.
• There is minimal built-in risk premium as employer assumes design risk.

Question 4

What are the disadvantages of traditional procurement?

Answer 4

• The overall project duration is often longer than other procurement methods as there is limited opportunity to overlap design and construction phases.
• Limited opportunity for contractor buildability input.
• Design risk is retained by the employer, any changes post contract will be a variation.
• Dual point of responsibility (employer for design and contractor for construction).

Question 5

When might traditional procurement be appropriate?

Answer 5

• When the employer has specific or detailed design requirements.
• When cost certainty is important.
• When the shortest overall programme is not the employers main priority.