What is a Management Contracting Procurement Route?
In this route, the client hires a Management Contractor to manage the entire building process who in turn hires works contractors to carry out the construction works. The Management Contractor is paid a fee over and above the construction costs. As compared to the Construction Management procurement route, where the Construction Manager does not have any direct contractual links with the trade contractors, in this route the Management Contractor has a direct contractual link with the works contractors and is responsible for the overall construction works. The design is done by a design team hired by the client and so the client bears the risk for the design. Continue reading
What is a Construction Management Procurement Route?
In this route, the client hires a Construction Manager to manage and collaborate the overall design and construction activities. The design is carried out by a designer hired by the client and construction is done by trade contractors who are also hired by the client. The construction manager provides only their professional construction expertise and do not assume any financial risk. Client bears most of the construction risk. They should also have competent project management staff who are closely involved in each stages of design and construction. So this route is not suitable for an inexperienced client. Continue reading
What is a Design & Build procurement route?
Unlike the Traditional procurement route, where the design and construction responsibilities are separated, in the Design & Build procurement route, both these responsibilities are assigned to one single contractor. The reason for choosing this procurement route is when the client wishes to have one contractor as the single point of responsibility for design as well as construction. So the contractor bears the risk of designing and constructing the project, usually for a fixed lump sum price.
As a result, the design and construction phases are overlapped enabling the construction to begin before detailed design is complete, thus, leading to reduction in the overall duration of the project. Continue reading
What is a Traditional procurement route (‘remeasurement’ or ‘measure and value’)?
Same as in a Traditional procurement route (Lumpsum), the Client appoints the design team prior to the appointment of the contractor. The remeasurement option is used when the design is substantially completed but final detail is pending. So there is an overlap in the design and construction process. Contract sum is established only after completion of construction after remeasuring the works on an agreed basis. Continue reading
What is a Traditional procurement route (Lumpsum)?
In a Traditional procurement route, the Client appoints the design team prior to the appointment of the contractor. In the Lumpsum option, the design is finished before the tendering process begins. Basically it follows a sequential nature of strategy i.e. design is completed first followed by tendering and then the construction. Based on the completed design, the contractor agrees to complete the project at an agreed sum. Continue reading
What is a Procurement Strategy or a Procurement Route?
Procurement is the process of purchasing goods and services. In this topic, it refers to the process of getting a construction project completed.
Procurement Strategy refers to the way in which the clients objectives are met with respect to the project. Procurement Route is the means or the actions required to carry out the Procurement Strategy.
Selecting an appropriate Procurement Strategy is one of the foremost and important tasks to be undertaken before commencing on a project.
Why is selecting an appropriate Procurement Strategy important? Continue reading
What is a Comparison Statement?
It is a statement used to compare the quotations submitted by different subcontractors or suppliers.
What is compared?
- The prices of different items in the BOQ
- Payment terms
- Delivery conditions
- Any other conditions put forth by them
Points to be considered while preparing a CS