Study on Construction Procurement Methods
Number of words: 3556
|Advantages and Disadvantages||5|
|Benefits of Traditional procurement method||6|
|Build- Up Method||7|
|Advantages and disadvantages||8|
|Benefits of Build-up procurement Method||9|
|Construction Management Method||9|
|Advantages and disadvantages||10|
This report helps to determine and select the best construction procurement methods in the market to attain the standards and demands of the prospector to produce a clearly stated information concerning the procurement methods which are laid out in the industry. This report entails different procurement methods like traditional, design & build and construction management, differentiating the procurement methods and factors, major actions, advantages and disadvantages are discussing in details. Adequate studies have been conducted in this project work; on the methods of construction Procurements. Selection procedures and strategies.
This is a process in which a firm gives responsibilities and authorities to the clients that explains the key details in the design work. It is also a structure that is adopted by the clients in which they create a system to attain a success based on their achievements of the construction projects specifically the objectives and at times the operation of a project.
The process by which things are constructed is known as construction, which is also the process of converting owners’ ideas into physical facilities which can be used as projects that can be sold to the clients. Also managing of the available resources such as labor, raw materials, the machines used, methods and finances available so that the design work can be finalized within the stipulated period of time, the estimated bill can be as per the required standard (Babatunda et al., 2010). Construction project is to be organized and directed to attain the high quality of the product.
It is a system in which the prospector is looking, discovering and getting contractors, also a person who has the skills in carry out this work. Selecting a better type of design work is a major key in achieving a victory on the work. Today, we see many categories of design work for the interested clients in selecting the according to the demands. The construction procurement method categories into four types, these are Traditional Method also known as the General contacting method, Build-up method which is also known as design-build method, construction management method and management contracting. But today we are going to discuss only three types of procurement methods for construction projects.
Traditional method also known as general contracting method has a major characteristic whereby the design and construction works are divided and is done by an independent organization. In this method, the builder has all the authority for the project’s design work, and the design is made ready before the tender process for the contractor begins. On top of that, the builder will also act as a guide of the prospector to direct the work, also in safeguarding the prospector (Masterman, 1992). Using this method, project work stage should finish before the project’s construction stage begins. Since this practice’s pre-contract stage takes more time, the prospector and other stakeholders obtain an additional period for analyzing these assigned works prior to the start of construction.
In comparison, it helps in the process’s tender stage because it contains fewer things to cut the cost. This method has three other types on it and that; Lump sum contracts – this is when the deal is when the building starts and the total price is agreed at that. The second type is the Measurement contracts, this is when the deal price is obtained upon the completion of the building project, and after that, there can be changes to the agreed deal. The third type in this method is Cost reimbursement; this is when the agreement between the client and the contractors are set upon the resources available like the human labor, the finance available, the raw materials available, the design of the work where the client pays extra amount.
Advantages and Disadvantages
The advantages of this type of procurement is that these project’s clients can have all the control towards the project’s overall work. This work can escalate the quality of the project. On top of that, the high standard assignment can be assured immediately this construction contract is pinned to the bill of the design work. The system can be the simplest in creating the lay out, organize as well as analyze result of another decision, also a lower contract conflict. Other than that, it has a stable issuing of threats in the middle of the work. The cost is sound from the start, which makes the client-specific and also directs the design throughout.
For the moment, some of the drawbacks in selecting this system is that it steers the competition of the limitations are in workforce and money; this is because of the separation between design and construction work. On top of that, the project’s general period may be more extended than that of other projects procured under others because the procedure is sequential. Apart from that, the prospector cannot give any particular builder till the work gets completed, also that take some period and project distant period of time (Peter D.et al., (2008) and Steven Y. (2011)). The costs can elevate when standards dominate the work, and builders have minimum authority to control the cost.
Benefits of Traditional Procurement Method
The stakeholders also have some benefits and problems in this method where the clients have full control of the design work and the also direct the project throughout; the builder has all the authority, and the plan is made ready prior to the start of the building period, the builder will be a guide to the prospector to direct the work and safeguard prospector’s demand; these end-users also have benefits because they enjoy high-quality products. They also get some problems such as the clients has to pay extra due to the elevation of the quantities as they dominate in the design and also the client cannot tender a particular tender till the project work is done, the contractors also have little authority to manage the price
The build-Up method is also known as the design-build method, where the contractor has the authority to accomplish the process (Ogunsanmi O. E. et al., 2011). Numerous project’s clients are now selecting a method and building for their procurement process because it is swift to complete the project and also the cost is lower, and the roles are not for a group but individuals. On top of that, builders are interested in design and build procurement due to the relationship with project clients to achieve more construction prices. Moreover, the work can change on terms concerning the finance. One organization has the authority to design and construction work, the builders, can guide the whole work. The amount in the system responsible plainly explained. Procurement can be referred as a fast-tracking method (Thomas J. et al., 2005). The process is very quick since the project delivery method is merged between design work and construction work. Joining both activities and overlap of both activities ensure the quicker of project implementation. This method has some of the best services on the total price in the deal between the client and the contractors. In merging the design and the building process, the contractor can use the power to select and purchase and experience productive to the client at a better price. In this type of method, it is easier to begin the construction, and then the work and experience of the contractor can make the work seem better and suit the client’s demand. The period given is essential to the client’s adviser to develop a better set of things. The period also helps to evaluate the organization’s progress to the competitive organization and even the competitive tender; once a contract is signed, the client’s changes can prove costly.
The prospector’s demands are to be stated a little bit and in an easy way, maybe a bit higher than the construction plan and schedule of the work. Also, there can be a book that has some specified information about the job. The builder’s work is be limited in having planned design work given by the prospectors and getting pieces of information and planned work. It is somehow useful to be specific in the standard of the work required to give out detailed information. This is because it ignores the authority for the client and decision constantly to the builders. These systems give better services to the total profits and interests. The systems with right to choose builders in exercising the authority to buy also their experience is productive and provides the prospector with a competitive cost. With a plan also the construction system, can be easier in have quick construction starts, and they will lead to higher productive work. The period is essential to the prospector’s counselor to plan the best standards, and the period is also necessary to contrast the plans from other tenders. Immediately deal has been set; no other options are allowed.
Advantages and Disadvantages
The advantages in using this type of method are mainly in terms of cost because the cost of work is constant in the early phase, also there is no change made, but only when the client demands it to be changed. The project’s price can be constant if the builders are experts and are well conversant with design and construction work. When we consider the project’s quality, it depends whether the builder uses their knowledge to create a more suitable project management method. This allows the builder in being creative to ensure the construction work with the skill has developed in their quality. Occasionally, the quality of project procedure in the design and build project is not the best due to lack of better management; this is because the prospector can let go of the construction work. At the end, these threats become low to the client who is capable of laying out a set of things needed and then grasp the builder’s authority for these things. The prospectors only submit to one organization, and these limits the client to purchase the resources. The cost stability usually is achieved even before the building begins. The prospector’s needs are summarized, and no change is allowed afterward. The use of the top price options to save divided can stir up the ability to become creative and reduce the time used to build and the time. The design and construction work activities reduce the project’s estimated period. It improves the chance to have a quality product after making because the builders input to the design.
Nevertheless, the cheapest and most fastest systems may not be right. The builder develops another interest in slicing prices themselves and the terms concerning the quality and quantity of resources. The builders need to make some profit, and the top price is already set, and these were, by all means, obtained from the fees stipulated by the competitors. This acts as a disadvantage in using this type of method. Clients usually get a hard time to prepare good and quality work to the construction team. The client can pay more costs when he or she changes the scope. It isn’t easy to differentiate the deal because the designs are different. The project work always differentiates towards the tenders and the costs because they will differ in each system. The client needs to submit to a selected design and construction work at a tender stage and usually when the work information is finalized, and the design and construction work limits the conditions of the deal available
Benefits of Build-up procurement Method
The benefits that the stakeholders obtain from this method is that the client can demand a change in the price of tender period for the work, the builders are given the opportunity in being creative in the building work and the skills which is exercised to ensure that quantity is developed.
Construction Management Method
In this method, the client assigns the workers in finalizing the plan, and assigns a building supervisor for leading the building phase, by setting them right through these developed companies or seeking professionalism cost managers. Usually, the project’s client occupies one place with the builders to organize and lead the tender stage of the project, this is because the builders already know the process. The contracting management system is productive for the clients to manage a stable influence toward design work when looking at the construction supervisors’ knowledge. Today, this system is highly recognized in most places and is recognized in big projects. Or else, supervising the project would have full authority to define the work and explain the complete procedure to do the assigned work. Typically, management builders are not the ones to take on the building work; their work is to supervise and lead the entire work. Hence, the whole building work will help the subcontractors and also help the management builders. The project’s client’s responsibilities on the method to take full responsibility for the quality, and any changes can be expressed anytime towards the work compared to the two methods. Finance is carried out by the client. The system can be selected regarding the authority of the client in work.
Advantages and Disadvantages
The advantage is that the clients can work with an individual organization, which helps to increase the management and working together between the builders and the designers. The period saves the whole planning, building work are flapped, in design to lead through, these builders ignores the threat and authority for the merging of design with building. The work also is competitive at costs that are recent, increased building through the builders input into designing.
The major disadvantages of choosing this type of method of procurement is, the cost given cannot be attained, unless the product has been attained and also the constructors does not have full control unless the client is informed and proactive client is required. The low cost is not easily achieved in designing this work. The final period used to complete the work and the whole information about the work must be presented. The client should produce high quality of information to the construction team because the design cannot be complete unless the materials are all available and submitted to the planning and building supervisors and construction managers; with the prospectors does not have full authority of planning the work quality which is controlled with constructor’s builders.
The standard form of selecting the procurement system hangs on knowledge, the builders and the type of projects that the client is demanding. Most clients and consultants of the building projects should at least have knowledge themselves with the different procurement types because it will help them to make the best decision in procurement method. They should check the quality of the methods which the organizations use in getting employees or the quality procurement staff so as to get the final decision which relates to their decision in the method.
It is important to obtain the detailed work to help the procurement supervisors in selecting the best procurement method in building project. Procurement supervisors always use this detailed work to analyze the quality of the palm in building project relating to the procurement system decision. Also training courses, seminars and workshops are highly recommended. These activities pull up the work in decision making and also stirs the abilities of procurement staff in using the models for making their decisions concerning the procurement methods. The client’s demands. Needs, achievements targeted and project goals must be of real interest and clear to the workers to create a peaceful procurement method. The supervisors should continue to read the other choices of procurement methods before making a selection.
It is highly recommended that, decisions of the best procurement system are the major key to attain a success of all the building and construction project. This method helps and should be encouraged to all the clients. Is believed that the above analysis clearly explains the procurement methods of construction industry. Mainly there are three factors that influence the choice of the clients towards the procurement methods which is cost, time and quality. More effectual to manage and practice in the work which is connected to the construction industry, it may be from the public or private sector. Prospectors demands, requirements, objectives must be clearly stated but most importantly the goal that is to be achieved in the construction project. A common method is to be decided at the tender stage of the project, how it is going to be done, the period needed for it to be complete. The utilization of resources must be improved and this is going to be a major development industry to have the ability to meet the required standard.
I personally have no clash on the standards in everything that has been discussed in the above study.
Abu Bakar, A., Osman, O., Bulba, A., (2009). Procurement selection practices in post disaster project management: A case study in banda aceh, Indonesia. Fifth International Conference on Construction in the 21st Century (CITC-V) “Collaboration and Integration in Engineering, Management and Technology”, Istanbul, Turkey.
Abu Samra, S., (2006). Assessment of procurement system of municipalities in Gaza Strip, MSc. Thesis, Engineering Construction Management Program. Islamic University of Gaza. Adesanya, O., (2008). Project procurement paths. The Journal of the Federation of Construction Industry, pp. 6-21.
Alhazmi, T., and McCaffer, R., (2000). Project procurement system selection model. Journal of Construction Engineering and Management, pp 176-184. Babatunde, S.O., et al., (2010). Appraisal of project procurement methods in the Nigerian. Journal of Civil Engineering Dimension (CED), pp. 1–7.
Bianchi, T., And Guidi, V., (2010). Report. the comparative survey on the national public procurement systems across the PPN. Department for the co-ordination of European Union Policies. Roma.
Boer, L., Labro, E., Morlacchi, P., (2001). A review of methods supporting supplier selection. European Journal of Purchasing & Supply Management, pp. 75-89. Construction Industry Development Board (CIDB), (2007). Applying the procurement prescripts of the CIDB in Public Sector, Construction Procurement Practice Guidelines #A2: 5 th edition, CIDB, Pretoria, South Africa. Das, C., Tyagi, R., (1994).
Wholesaler: a decision support system for wholesale procurement and distribution. International Journal of Physical Distribution and Logistics Management, pp. 10-24. 111
Davis, P., Love, P., Baccarimi, D., (2008). Building Procurement Methods. Report, Project Affiliates Curtin, University of Technology, Western Australia Department of Housing & Work, Royal Melbourne Institute of Technology.
Donagh, J., (2010). Critical success factors in land development in New Zealand. 16th Pacific Rim Real Estate Society Conference. Dubem, I., (2012). Key performance indicators of design and build projects in Nigeria. Journal of Human Ecology, 37(1): pp. 37-46