Click to Login as an existing user or Register so you can print this article. Which procurement method should you choose? This industry also has an exceptional ability to develop individuals by providing for human daily needs, creating employment, and generating investment and therefore, the socio-economic impact of this industry on the economic growth of any nation can never be underscored Ibrahim et al.
The advantages of design and build tend to counter the disadvantages of traditional contracting procurement methods. By competitively tendering each element of construction works, you know that you are getting best price across the board.
Ultimately, this offers the lowest risk for the client, who is able to lay out a set of requirements and then hold the contractor responsible for these requirements. Contracts that set out clear expectations and clear paths to accomplishing those expectations are far more likely to result in the project flowing smoothly, whereas poorly drafted contracts lead to confusion and collapse.
This method will be chosen if there are possibilities to identify projects in packages. This remains the most popular type of procurement in construction, mostly because the developer retains the control of the design, and its a method which is largely understood by the industry.
The construction manager will work with the design team to help plan the project. This procurement method is increasingly common and shares the advantage that most employers and contractors would have experience of it.
The developer will appoint a design team to complete design, however, the developer will then appoint a construction manager to manage the construction phase, either directly within the development company or outsource to a specialist construction manager. It demands quality information provided in a timely manner.
May 23, September 14, 3 months before completion Construction projects can suffer from preventable financial problems. Some legal requirements come from malum in se considerations, or the desire to prevent indisputably bad phenomena, e. The main contractor can be appointed through one of these three tendering methods — open, selective and negotiated tendering Thwala and Mathonsi, Mortgage bankersaccountantsand cost engineers are likely participants in creating an overall plan for the financial management of the building construction project.
The characteristics of these systems along with the procurement methods. Mar 14, · The main advantages of this method of procurement are single point responsibility by the contractor for both design and construction and the ability to fast track the project.
D&B lends itself more readily to allowing contractors to start on site before the design is completely finished.
The sequential design and tendering of work packages, staged permitting and commencement of construction activities all move forward while design is being completed.
These methods of the Design-Build or Construction Management processes can reduce the. The below chart compares and contrasts five main procurement methods in construction industry. that traditional method provides more quality assurance in a complex project though it consumes more time than other methods.
Design and build method suits for relatively small project in complexity whereas management contracting can be possible. However, the overall process of design and construction tends to be shorter than in either the traditional or design and build methods.
Another variant of management contracting is construction management. These alternative procurement methods include the Design/Build (DB), the Construction Management (CM), and the Management Contracting Procurement (MCP) method (Shrestha et al.