Procurement midterm

1. Elaborate the THREE (3) benefits and disadvantages of separating the

design and construction process under the “Traditional” procurement
method.
i. Advantages
 Design led - the client can have a direct influence which can ensure the quality in the
overall design.
 Price certainty at the award of the contract (before construction).
 Changes (variation) to the contract are relatively easy to arrange and manage.
ii. Disadvantages
 overall project duration may be longer as no concurrent sequence of works can be done.
 No input into the design or planning by the contractor as they are not appointed during
the design stage, potential issue on buildability may arise.
 The costs may rise if a large number of changes are made to the original design.

2. Compare the difference between:

a) ‘Traditional’ and ‘Design & Build’
b) ‘Design & Build’ and ‘Turnkey’
I. Design and Build
 In this approach, a single entity, often a contractor or a construction firm, is responsible
for both the design and construction phases of the project. The client typically contracts
with this entity, which then manages the entire process from initial concept to completion.
 This method can often lead to cost and time savings since the design and construction
phases are integrated, allowing for better coordination and potentially faster project
delivery.
II. Turnkey
 A turnkey contract is a business arrangement whereby a project is delivered in a
completed state. The contractor will have to do everything from preparing project brief,
getting approval, designing, financing, construction, furnishing and decorating to
commissioning and handing over completed, cleaned and ready for use project .
 The project is handed over once it is fully operational. The contractor finishes the project
and 'turns the key' over to the client.
 A turnkey contract provides more time for a client to seek financing and investors before
he/she is required to pay for a completed project.

c) ‘Management Contracting’ and ‘Construction Management’

I. Management Contracting
 - Acts as consultant/manager, does not do construction work
 - Subcontracts all work to trade contractors
 - Provides single point of coordination and responsibility
 - Manages entire process - design, procurement, construction
 - Holds risk and guarantees price, quality, timeframes
II. Construction Management’
 Acts as advisor but does not hold contracts or risk
 - Client contracts all trade contractors directly
 - Coordinates process but limited legal responsibility
 - More suited when scope uncertain upfront
 - Client retains more budget, schedule risk

3. Explain the meaning of “Buildability” in construction. Support your answer

with examples.
 Pre-construction exercise that assesses design from the perspective of those that will
manufacture, install components and carry out the construction works
 Access elements of the design in relation to:
 Achieving the desired final quality
 Meeting the programme requirements
 De-risking perceived problems and achieving optimum value of money
 Involves careful study and consideration of:
 Health and safety
 Use of plant and equipment
 Storage and waste management

4. Early contractor involvement during the design stage is common to be seen in the
non‐traditional procurement routes. What are the benefit and disadvantages of
“early contractor involvement”?
i. Benefit
 Contribute to the design process.
 Advise on buildability, sequencing, and construction risk.
 Help develop the cost plan and construction programme.
 Contract work diversity.
ii. Disadvantages
 Price certainty is not achieved.
 More fee as client has a lot of consultants to deal with.
 Changes to later packages may adversely affect packages already let –
EXPENSIVE.