What is procurement in construction?
The process of selecting the best strategy to deliver a construction project, including how teams are appointed and contracts are structured.
What does a procurement strategy aim to balance?
Risk, control, and funding.
How does procurement relate to contracts?
It influences contract type, roles, risk allocation, dispute resolution, and timing of appointments.
Name 5 procurement strategies.
Traditional (Separated), Design and Build, Management Contracting, Construction Management, PPP/PFI.
What are commercial arrangements in procurement?
Alliances, joint ventures, framework agreements.
What defines the traditional method?
Design is completed before contractor is appointed; design and construction are separate.
Who does the contractor report to in traditional procurement?
The client.
What are the advantages of traditional procurement?
Independent design, price certainty, competitive tendering, fair risk distribution.
What are the disadvantages of traditional procurement?
Longer timelines, buildability issues, design risk with client, potential conflicts.
What contract was used for Everyman Theatre, Liverpool?
JCT Standard Building Contract.
What contract was used for The Shard, London?
JCT Standard Building Contract (after switching from Construction Management).
What defines Design and Build procurement?
Contractor is responsible for both design and construction.
What are the advantages of D&B?
Single point responsibility, faster delivery, better buildability, fewer disputes.
What are the disadvantages of D&B?
Risk for contractor, potential compromise on design quality, expensive scope changes.
What is Management Contracting?
A management contractor is appointed early to manage design and construction via subcontractors.
What are the advantages of Management Contracting?
Fast-track delivery, contractor expertise, flexible changes, reduced client risk.
What are the disadvantages of Management Contracting?
Less cost certainty, complex coordination, possible late payments, high design risk.
What is Construction Management?
A construction manager oversees design and construction, but works contractors contract directly with the client.
What are the advantages of Construction Management?
Fast-track delivery, contractor expertise, timely payments, flexibility.
What are the disadvantages of Construction Management?
High client involvement and risk, less cost certainty, not suitable for small projects.
What is partnering in procurement?
A collaborative approach where parties share objectives and commit to project success.
What are the benefits of partnering?
Better teamwork, reduced disputes, improved performance and value.
What are the drawbacks of partnering?
Initial costs, confidentiality issues, reduced competition.
What is PPP?
Public-Private Partnership - private sector helps deliver public services.
