Procurement routes/systems

In the traditional Procurement method, the work activities are sequential. The main
activities are Project Brief, Design, Tendering & Construction in order.

In the Design & Build Procurement at the beginning the client will develop preliminary
drawings that represents the basic outline of the output project. Then the contractors
will be requested to bid on the project based on the preliminary drawings. the Client &
his team will evaluate the bids & select the best bidder based on quality & cost and
award the contract to the selected bidder. The appointed contractor will design & build
the project.

Procurement Job
option Design Constructio Project Management (on
n behalf of the client)
Traditional Employer/ Contractor Employer appointed
Employer appointed Engineer(Consultant)
Architect
Design and Build Preliminary design – Contractor Contractor/Contractor
Employer appointed consultant
Detail Design-
Contractor
Management Employer/ Work Managing Contractor
Contracting Employer appointed Package
Architect Contractors

Procurement Contractor’s involvement in the design stage

option
Traditional Contractor is not involved in the design stage.
Employer appointed architect is responsible for the
design.
Design and Build Contractor designs the project based on preliminary
design provided by the Employer
Management Contractor does not have direct role in the design.
Contracting/ Employer appointed architect is responsible for the
Management fee design. But the Contractor advises the design team on
contract matters such as buildability of the design, QC
procedures, etc.

Construction Contractor does not have any involvement in the

Management design. Employer appointed architect is responsible for
 the design.

Design and Contractor does not have any involvement in the

Manage design. Employer appointed Design & management
organization is responsible for the design.

Procurement How costly could it be for the client to introduce changes to the
option design, once construction has started?
Traditional Design changes can be done through variations, not costly as
Design and Build procurement
Design and Build The cost for design changes is comparatively higher than other
methods
Management Design changes can be done through variations, not costly as
Contracting Design and Build procurement

Procurement Payment mechanisms Impact on the relationship between

option the client and the contractor
Traditional Lump Sum, Re-
measurement, Cost
Reimbursement
Management Agreed Fee Basis Client’s interests will be put first and
Contracting he will receive the full benefit of the
contractor’s management expertise

Procurement Cost certainty at the project outset

option
Traditional Higher cost certainty the design & build method as the design is
finalized, unless these are not variations
Design and Less cost certainty.
Build
Management Higher cost certainty the design & build method as the design is
Contracting finalized, unless these are not variations
Partnering is not considered as a procurement route. It is a management approach used by
two or more organisations to achieve specific business objectives by maximising the
effectiveness of each participant’s resources. Explain how the parties (Client and Contractor)
can benefit from partnering.
The Client will be able to get better value of money for the same level of quality. The
delivery of the project will be speedy as there will be less confrontation. As there will be
lower risk, there will be higher satisfaction. Fewer claims. Less Bureaucracy, Better
communication also can be gained through partnering.
Benefits to the contractor through partnering are increased potential profit, less
confrontation, greater workload certainty, better communication, better understanding
from client, Less Bureaucracy,, more involvement in key decision making, non-
competitive tender process, & reliable flow of design information.