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1
Procurement Methods
In construction, procurement means the methods and processes of acquiring a
project. The term ‘procurement methods’ can also be known as procurement route,
contractual arrangement or contractual system. There are several types of
procurement methods, namely traditional, design and build as well as management
and contracting. However, there is no best single route that can suit every factor
because each of them has its own strengths and weaknesses. Whether to choose
which procurement method depends on the priorities of the client. It is equally
important that project objectives, which are cost, time and performance can be
achieved once the building project is commissioned with the adopted procurement
method.
Evaluation Factors when choosing a procurement method
A choice that every employer will have to make when considering a construction
project is what procurement route to choose. The preferred decision will differ,
depending on factors such as cost, time, project characteristics, the client’s
resources and external factors. As a QS, it is often his/her job to advise the client on
what route they should take. The evaluation factors below can help in deciding which
procurement method suits a project and can achieve the afore-mentioned project
objectives.
A) Cost issues
Before starting a construction project, the client should assess the importance of
having a clear understanding of the project's cost. It's important to consider that
there is a time gap between the initial cost estimate and when the tenders are
received. The completeness of the design will affect the cost at the tender stage. If
the client requires price certainty, it is crucial to have the design fully completed
before starting construction and to minimize any design changes.
Since our client requires price certainty, the construction project of KK14 needs to
have the design fully completed before start building the residential college to
minimize the difference in initial cost estimate and the actual cost.
B) Timing
Most projects are required to complete within a specific time frame. It is important
that an adequate design time is allowed, particularly if design is required to be
complete before construction. If early completion is a critical factor, then design and
construction activities can be overlapped so that construction can commence earlier
on site.
The University of Malaya has developed its UM Master Plan 2050 to guide the
development of the campus in alignment with its Strategic Plan 2025 and
Transformation Plan 2050. The UM Master Plan 2050 includes to propose the
futuristics new building and as well as to incorporates conserving and restoring
buildings of national importance (Heritage Buildings and Sites).
C) Project characteristics
The size, complexity, location and uniqueness of the project should be considered as
this will influence time, cost and risk.
D) Client resources
A client’s knowledge, the experience of the organization with procuring building
projects and the environment within which it operates will influence the procurement
strategy adopted. The degree of client involvement in the project is a major
consideration.
E) External factors
Consideration should be given to the potential impact of economic, commercial,
technological, political, social and legal factors which influence the client and their
business, and the project team during project’s lifecycle. For example, potential
changes in interest rates, changes in legislation and so on.
Procurement methods
1. Traditional
Definition
Traditional procurement method is called traditional due to its usage dating back
to Victorian times. It is a common method that has been used in the construction
industry, where design work is separated from construction.
Phases

Client
(Employer)

Consultant Contractor
Team Team

Consultant Consultant Domestic Nominated

architect QS Sub-contractor Sub-contractor

Consultant
engineers
 Referring to the chart above, the client would appoint a consultant team to
complete the design, costing and specifications of the building. The architect will
work on the building design while the engineers will work on producing the
specifications of the building. Then, the quantity surveyor will come out with the bills
of quantity based on the drawings that have been provided by the architect and
engineers. produce the specifications of the building.
Upon completion of the design, specifications and costing, the client will then
engage a main contractor to be in charge of only construction works through
bidding. Contractors will prepare tender documents based on the specifications,
drawings and the bills provided by the consultant team. Usually, the contract will be
awarded to the lowest tender bidder. The awarded contractor may appoint other
subcontractors to undertake specialized work. The contractor team does not need to
take the responsibility for the design works but needs to be responsible for all the
workmanship and materials including all works done by the sub-contractors
throughout the construction.
Advantages & Disadvantages
It can be seen that the client has contractual links with all parties. This can bring
both advantage and disadvantage. The advantage is that the client can have closer
control of the works, thus outputting a higher quality of work. It is said so because
the client will examine to ensure the design of the building meets client’s
requirement. Moreover, since advice is provided by construction experts from both
consultant and contractor, client can compare more to consider which design,
construction methos or materials is the most suitable for a certain project. The
disadvantage is that the client needs to deal with many points of responsibility.
Since the consultant and contractor do not have a contractual relationship with each
other, it implies that if there are any issues, they must communicate with the client
first, then the client delivers the messages to another party afterwards. Such a way
of conveying message is inconvenient and inefficient, not to mention
miscommunication may occur since the client needs to communicate with few parties
at the same time.
In the traditional procurement method, the tenders are prepared by the
contractor team after the design is finalized by the consultant team. The advantage
of it is that greater cost certainty can be achieved. This is because the construction
cost listed in the tender is in accordance with complete design and specifications. In
addition, all tenderers produce their tender based on the same information. The
client is therefore benefited because not only ambiguousness in valuation is avoided,
but also the best or lowest price can be obtained through competitive tendering. The
disadvantage of it lies in the longer period to complete the project because the
construction commencement needs to wait until the award of tender to the contractor
which only comes after the full completion of building design and specifications. Both
the processes of producing the drawing and preparation of tender documents
consume a lot of time.
Traditional procurement method has been conventional in the construction
industry for a long time. Hence, it is easier to be adopted and most of the
construction industry players have a lot of experience with this procurement method.
Both consultant and contractor teams are familiar with the possible risks of this
procurement method and can solve them more easily. Yet still, due to the split
responsibility of design and construction, consultant and contractor may shrink from
their responsibility to each other. Disputes and arguments on where the defects lie
can often arise and may need a long time to be settled.
Pros and cons in a glance:
Pros Cons
Greater control of works Client needs to engage with multiple
parties
Price certainty at the award of the contract Elongated Construction life cycle as
the design needs to be complete
before engaging a contractor
Majority construction parties are familiar Consultant and contractor may shun
with this method responsibilities if problems arise
Traditional procurement method (slideshare.net)

When to use traditional procurement method?

Traditional procurement method will benefit in Cost and Quality but at the expense of
Time.
Generally, it suits large scale and complicated construction projects, given
that the time allowed for the project is sufficient. This is because this method satisfies
huge projects requirements, including distinct planning
(design→tendering→construction), extensive design development (split of
responsibilities), contractual certainty (well-defined contract documents based on
same source), cost minimization (competitive tendering process) and meticulous
coordination (architects, engineer, QS, contractor play their roles well).
Secondly, if the client has a strong sense of how the project should end up
and wants to be in control of what is being designed, then traditional procurement
method could be the answer.
2. Design and Build
Introduction
Design and Build (D&B) procurement method is known as turnkey or package
deal. The design-build construction delivery method replaces the traditional method
of awarding separate contracts for design and construction. The contractor,
consultants, subcontractors, and client work together as one team to build a project
that meets client’s expectations.
Phases

Our Method (maverconstruction.com)

1. Team selection

(PDF) A Review of Traditional Project Procurement Towards Integrated Practice

(researchgate.net)
 Ordinarily, a consultant is appointed to work on the preliminary drawings
creation and review. Next, tenderers need to submit their bid with Tender Sum
Analysis and each with their own designs. The successful design-build
contractor will then be appointed to both finish and construct the conceptual
design in accordance with client’s requirement. The design-build contractor
may use his own consultants, appoint consultants or use the client’s
consultant.
2. Pre-construction
A short phase when the design-build entity including architects, engineers,
contractors and consultants will learn about the client’s business, including its
goals, challenges, budget and overall vision for the project. Besides, thorough
assessments such as M&E systems, topography, codes, compliance and
several other factors will be considered before the design process.
3. Architectural design
During this phase of the project, detailed design (materials specifications,
workmanship, equipment requirement and installation) and technical design
(how the structure’s components will fit together) are developed. Throughout
the entirety of the design process (including the detailed and technical
phases), the contractor must coordinate regular design reviews with
consultants.
4. Construction
The contractor can begin construction upon the approval of design. It is
common where the design and construction phases overlap, as job site
preparation can begin while the design team is conducting necessary reviews.
5. Post-construction
Upon project completion, the design-build entity provides an overview of the
project deliverables and post-construction handoff occurs.
Advantages & Disadvantages
In Design and Build procurement method, a single contractor oversees the
design and construction of the building. This can bring both advantage and
disadvantage. The advantage is that since both designing and construction
responsibilities fall under a single design-build contractor, thus the client only has to
deal with one party. This omits the need to commit time and resources to contracting
consultants and contractors separately, resulting in greater project efficiency.
However, this condition also reduces client’s control and influence towards project
design as that role falls to the contractor. The client may only convey his desired
design through client requirements and conceptual drawings. The client can,
however, change the requirements even after the contractor’s proposal has been
accepted but there would be expensive cost consequences
Secondly, the advantage is reduced project time. By using the design-build
procurement method, the overlap of design and construction phases allow the work
on site to begin earlier even before the design is done. Also, there is no need for
separate bidding periods or redesigning the project. Additionally, important
purchases that take a long time to acquire can be made early in the design phase
(Tyler,2010). The disadvantage is that it is possible that in order to achieve shorter
completion time, the contractors may compromise on complex and prestigious
designs in order to finish building the project faster or bring the cost of a project
down, as the contractor would benefit more from the latter.
Thirdly, it is the design-build contractor's sole responsibility to finish the
construction project on time. If there are any defects in the construction, whether
related to materials or design, or if there are delays in submitting drawings, the
contractor is held accountable. This is because the contractor is involved in the
design process or has their own consultants. So, the advantage of this method is
helping to prevent the blame game among team members that can occur in other
procurement methods. In contrast to traditional methods, selecting a contractor for a
design-build project can be more challenging. The evaluation process becomes
more complex because not only the proposed price and timeline need to be
considered, but also the design itself since each contractor may have different
design approaches. It is crucial to assess the contractor's expertise, experience,
resources, and management skills to ensure they are well-suited for the demands of
a design-build project.
Lastly, the advantage is cost-savings. In Design and Build, it is the same
entity that handles both the design and construction of the project with the client to
comprehend their needs and evaluate the estimated cost and feasibility. Throughout
the stage of development of design, continuous estimation is performed to ensure
accuracy. The contractor's involvement in the design process, drawing on their
expertise and experience, enables the project team to choose cost-effective products
and services that provide the best value. However, it is crucial for the client to avoid
frequent changes to their requirements, as it can disrupt the process and potentially
raise costs. Not only that, the high risk and sole responsibility that the design-build
contractor, as well as additional consultation fees if the client wishes to ask advice on
matters regarding design or cost after the building contract has been awarded,
contributes to higher project price.
Pros & cons in a glance:
Pros Cons
Single point responsibility Lack of design control for the client
Reduced project time Contractors may compromise on project
quality.
Less likelihood of disputes and finger Difficult to choose tenderers
pointing among project team
Greater cost certainty at an early stage High price
https://youtu.be/qFaetmy5aUo
https://youtu.be/Z0dcItxt8ao
https://youtu.be/XCemWAoH4gE
When to use traditional procurement method?
Design and Build procurement method will benefit in Cost and Time but at the
expense of Quality.
 Generally, it suits simpler construction projects that prioritize functionality
rather than innovative and prestige. If the project is rather complex, it might be
burdensome for a single organisation to take up the risk and responsibility for design
and construction.
Secondly, if the project demands a tight timeline, then the characteristics of
design and build procurement method might be the suitable choice as work progress
can be accelerated by overlapping.

Recommendation on selected procurement method

The proposed KK14 should adopt design and build procurement method.
The significance of building a new residential college is more on functionality
than architecture of the building. As long as the residential college serve the primary
function to accommodate students, its architecture of the building can be
subordinate. The design of the residential college is not complex too because the
levels of dormitory buildings are repetitive and the centralised facility building is only
at 2 storey height partitioned by different spaces. These are achievable by design
and build procurement method.

What Is Design-Build Construction? (acebuildingservice.com)

In regard to cost, the initial price might be high from the higher risk taken up
by the contractor and post-contract variations. However, the contractor can use his
experience and knowledge to get the best buying margins for materials, goods and
services. Also, the low possibility of claims being made as well as fewer design
changes and mistakes due to miscommunication also cut the project cost.
Since the problem of insufficient residential college placement among
students needs to be assessed as soon as possible, time become a vital factor.
Design and build method is definitely quicker than traditional method because
construction on site can start quicker and the design and construction phases
overlap. On the other hand, phases of traditional method are sequential, extending
the project timeline.
Professional Practice 1 Group Assignment (slideshare.net)

Reference
(PDF) A Review of Traditional Project Procurement Towards Integrated Practice (researchgate.net)

vol.2019_011.pdf (intimal.edu.my)
Information Phase

Client’s requirements

Accommadation

1. Fast Internet
2. F & B eatery
3. 24/7 power & water supply
4. Toilet & shower area
5. Common area/partition: iron, laundry (washing n drying machine) *Laundry room no nid
6. Water purifier
7. Pantry: fridge, kettle, small pot
8. Balcony

Amenities

9. Study area
10. Multipurpose hall
11. Fitness facilities
12. Communal social spaces: lounge, courtyard
13. Entertainment
14. Convenience store with basic medicines
15. Barber shop
16. Management & security

Transportation

17. Bicycle storage

18. Parking
19. Covered walkway
20. Transport link: bus stop

Functional phase

Space function

Spaces Functions (Verb + Noun)

Internal
Dorm rooms Reside students
Toilet Practise hygiene
Janitors’ room Store cleaning essentials
Pantry Store food
Communal kitchen Cook food (but not so ideal, will raise issues)
Cafeteria Provide meals
Administration office Organize operations
Mini mart Sell necessities
Surau Conduct prayers
Printing shop Print documents
Laundry Clean clothes (to cut cost, no nid a room, just
provide 2 washers & 2 dryers at every level of
every wing)
 Study cube Review lessons
Multipurpose hall Accommodate activities
Barber shop Get haircut
Parcel room (equipped with CCTV) Receive parcels
Indoor badminton & table tennis court Do sports
Discussion room (for JTK only) Have meetings
Musical room Practise music
Entertainment room (board game, foosball Relieve stress
table, pool table, jenga, dart, chess)
Staircase Connect floors
Walkway/hallway Connect spaces
External
Guard House Ensure safety
Gym Train fitness
Outdoor basketball, volleyball, tennis court Do sports
Courtyard (with chess table) Stroll
Waiting lounge/lobby  Wait people
 Receive food deliveries
ATM (beside security guard house) Withdraw money

STORE FOR SPORTS APPLIANCE

Utility room
Lounge
Storeroom
Lobby
Stall

(PDF) Basic Amenities in Higher Institutions; Implication On Students Attitudes, Performances and
Educational Development (researchgate.net)