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 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
What is an RFQ?
An RFQ is basically a Request for Quotation sent to a Supplier or a Contractor. It can be a letter or an email.
When is it sent?
- Preparing an Estimate – when we need rates of specific jobs or materials to prepare an Estimate
- Contract finalisation – when we need to finalise a Subcontractor or a Supplier.
What does it contain?
In a Real Estate construction project, an RFQ generally contains the following items: