types of procurements Flashcards
What are the four main types of procurement?
Traditional, design and build, management contracting, construction management
What is a traditional contract?
Client gives out work through tendering procedure, contracted chosen and begins work onsite with design brief from the design team
What is design bid build?
A procurement method where the client hires a designer and then a contractor to build based on the design
Who shares commercial risk in traditional contracts?
Designers and contractors share commercial risk, with contractors typically taking more risk
What is the main advantage of design and build procurement?
Gives single point of responsibility for the works
In a single stage design and build, what happens?
Contractors are appointed under a single agreement to design then build
What is a two-stage design and build contract?
Contractors selected on a basis of agreement, then work with the design team, reducing commercial risk
What is a key advantage of the two-stage design and build approach?
Work can start before design is finished
What is a disadvantage of the design and build method?
Contractors can compromise to keep costs down, lack of design control
What does construction management involve?
Works are constructed by a number of trade contractors, with the contractor not having full control of trades
What are the advantages of construction management for the client?
Client involved more, direct contact with smaller contractors
What is a major disadvantage of construction management?
High client risk as the client must involve themselves
What distinguishes management contracting from construction management?
Client maintains ultimate control and management contractor assumes full control of trade contractors
Fill in the blank: The procurement route where the main contractor is appointed and the design team is eliminated is called _______.
[design and build]
True or False: Traditional contracts are commonly used in lump sum agreements.
True
What types of contracts are included under other types of procurement?
- Custom build
- Emerging cost contracts
- Fast track construction
- Guaranteed maximum price
- Lump sum contract
