Procurement and Tendering Flashcards
(15 cards)
What is procurement?
the overall process of acquiring construction work or services
What should be considered when selecting a procurement route?
- the specifics of the project
- time
- cost
- control
- quality
- risk
What are the main procurement methods?
- traditional
- design and build
- management contracting
- construction management
What is traditional procurement?
the design is completed by the clients design team before competitive tenders are invited and a main contractor is employed to build what the designers have specified
How does traditional procurement work?
- the contractor takes responsibility and financial risk for the construction of the works to the design produced by the clients design team for the contract sum within the contract period
- the client takes the responsibility and risk for the design and design team performance
When might traditional procurement be appropriate?
- if the employer has had the design prepared
- if the design is substantially completed at time of contractor selection
- the client wishes to retain control over the design and specification
- if cost certainty at start on site is important
- the shortest overall programme is not the client’s main priority
What are the advantages of traditional procurement?
- retaining control over the design can lead to higher quality
- it offers increased levels of cost certainty before commencement
- design changes are reasonably easy to arrange and value
What are the disadvantages of traditional procurement?
- the overall project duration may be longer than others due to lack of overlap between design and construction
- there is no input into design and planning by the contractor
- a strategy based on price competition can lead to adversarial relations
- there is a dual point of responsibility with the design team controlling the design and the contractor retaining responsibility for the construction
What is design and build?
where the contractor is responsible for the design, planning, organisation, control and construction of the works to the employer’s requirements
How does design and build work?
the employer gives the tenderers the employer’s requirements and the contractors responds with the contractors proposals, which include the price for the works
When might design and build be appropriate?
- where there is a need to make an early start on site as there can be overlap between design and construction
- where the client wishes to minimise their risk as they transfer design responsibility to the main contractor
- for technically complex projects requiring the contractor’s expertise
- where the employer des not want to retain control over design development
What are the advantages of design and build?
- there is a single point of responsibility for the design and construction
- there is early commencement on site
- early price certainty is increased
- the client can benefit from the contractor’s experience harnessed during the design
What are the disadvantages of design and build?
- clients may find it hard to prepare a sufficiently comprehensive brief
- the client has to commit to a concept design early
- variations from the original brief are difficult to arrange and are often expensive
- it is harder to compare tenders and harder to determine whether value for money is being achieved
How much design input will the contractor have in design and build?
- this depends on the amount of design work the employer has already had completed at the time of tender
- this can range from full design to production information and coordination only
Who carries out the design for the contractor in design and build?
- it may be outsourced to a separate design company
- they may have in house design capabilities or the clients team may be novated
