MIKE-EJEZIE UGOCHUKWU

16CB021322
BLD 514

TRADITIONAL METHOD

In the traditional procurement approach, the design work is discrete from the construction work.
The developer or clients chooses an architect to finish the design and produce the structure
specifications. A consultant team is named to assume responsibility for design and cost. upon
completion of the design, the client will tender to select a contractor for hire to complete the
works. The contractor readies their tender based on the determinations and drawings in the
tender documents, or the Bill Of Materials (BOM)

Advantages of traditional method

• It normally brings about top notch work since the client has nearer authority over the
undertaking
• All tenderers produce a tender dependent on a similar data
• When contrasted with other procurement methods, the traditional method will be simpler to
receive

Disadvantages of traditional method

• The client may think that its difficult to deal with the project since they need to speak with
various parties simultaneously
• It requires a more extended period to finish the project. This is on the grounds that with the
conventional procurement method, the tender for the design is given independently and the
delicate for construction follows design culmination; as such, you can put out a construction
delicate when the design of the project has not yet been finished
DESIGN AND BUILD PROCUREMENT METHOD
Design and build is a term that clarifies a procurement course in which an organization is
recruited to design and build a clients project. The customary procurement course would see a
client recruit consultants to design the development of the project and afterward enlist a
contractor for hire to construct the task dependent on the clients wants and needs. The design and
build strategy makes the design and build sides of the project cooperate in a solitary legally
binding substance

Advantages of design and build

• Client who are uncertain or unfit to discover advisors or their own in-house specialized
divisions may the design and build procurement contracts alluring.
• Due to the fact that design and construction are combined and the personnel from both sides of
the project are working with each other for the same goal. They find it easier to improve the
Design and Build capability of the client’s project.
• If the client can have the agreed design stay the same throughout the project without deciding
to change it at any point, the designer can be quite positive that the total cost of construction
will stay the same

Disadvantages of design and build

1. Design finalisation will be a challenging process unless the contractor understands clients
expectation clearly.
2. Any change to original agreed design can be challenging and expensive; the contractor
may ask for cost increment.
3. Since all contractors are submitting different designs, the client may face difficulties to
assess design proposals.
4. The contractor will propose design proposals which are easy to build (rather than
focusing on the aesthetic appearance of the design and cost of building)

MANAGEMENT CONTRACTING METHOD

Management Contracting is a form of construction procurement where the Client for a project
employs different Subcontractors directly. The Client has a Main Contractor in place that is
responsible for managing the Subcontractors, but is not in contract with them in the same way as
with traditional procurement.

Advantages of management contacting method

• The project should be large and highly complex
• The Client wants maximum price competition
• The Client wants the Design completed by an Architect
• The Client wants early completion

Disadvantages of management contacting method

• Contractors can intentionally escalate project cost by giving costly inputs such as high-end
material and specs.
• Since client appointing several contractors as management contractors, price competition will
be low.
• Clients have to depend on management contractors success and will not have control of the
project progress.

joint venture or partnering method

A joint venture (JV) is a commercial alliance between two or more separate entities that enables
them to share risk and reward. A new business is created to which each party contributes
resources such as land, capital, intellectual property, skills, credentials or equipment.

Advantages of a Joint Venture

1 New insights and expertise

Starting a joint venture provides the opportunity to gain new insights and expertise. Think about
it; the market is now way easier for you to understand given the short-term partnership that you
have forged.
2 Better resources
Forming a joint venture will give you access to better resources, such as specialized staff and
technology. All the equipment and capital that you needed for your project can now be used.
3 – It is only temporary
A joint venture is only a temporary arrangement between your company and another. By
definition, you won’t be committing to it long term.

Disadvantages of a Joint Venture

1 – Vague objectives
The objectives of a joint venture are not 100 percent clear and rarely communicated clearly to all
people involved.
2 – Flexibility can be restricted
There are times when flexibility is restricted in a joint venture. When that happens, participants
have to focus on the joint venture, and their individual businesses suffer in the process.
3 – There is no such thing as an equal involvement.
An equal pay may be possible, but it is extremely unlikely for all the companies working
together to share the same involvement and responsibilities.