Different Procurement Methods: Pros And Cons

2439 words - 10 pages

In general, there are different types of procurement type for various situations due to no one method can be suitable under the all different construction project. In this case, there are four procurement paths, which are traditional, design and build, management and design and manage, will be advised to use. However, each method has different aspects of advantages and disadvantages.
First, traditional path is the tender documents have been prepared and then invite the tender and the employer appoints the contractor to construct the project.

There are several advantages of this traditional route in the construction industry. First, the designs are completed before tender and tender can provide good time and cost control. Also, the tenderer can receive complete information and design and they can be bidding on the same basis, so the competitive is fair. Moreover, this is design-led and the client can change the design ability, so the level of functionality and quality will be increased in the overall design. And then, it is relatively easy of variations to arrange and manage if the design will be changed because client’s needs and technology. Also, traditional paths are a tried and tested route, so it is well established and the market is very familiar with. Furthermore, it is good price certainty at the award of the contract because of full set information.

However, there are some disadvantages in the processes. First, it is very consume time in the pre contract process due to the strategy is sequential and construction cannot be started before the completion of design. Also, the contractor is not appointed in the design stage, so the contractor and supply chain are no input into the design or planning of the project. Moreover, there are divided responsibility of design and construction, so it is easy to cause disputes in the post-contract processes.

Second, Design and build paths are the employer appoint one organization to design and construct. So the client only deal with one firm, giving single point responsibility, and significantly reducing the need to commit resourced and time to contracting with designers and contractors separately. The total project time of a design and construction route may be reduced because of overlapping activities. Moreover, the price certainty is obtained before construction commences as client’s requirement are specified and changes are not introduced. Also, using a guaranteed maximum price with a savings option split can stimulate innovation and reduce time and cost. Moreover, the constructability may be improved due to contractor’s input into the design.

However, there are disadvantages in the processes. First, it is difficulties for client to prepare an adequate and sufficiently comprehensive brief or set of employer’s requirement to define what they require and lead the design may not fulfill all the client’s need. Moreover, the client need to commit to a concept design at an early stage...

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