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Procurement methods in Construction

20th November, 2019

Whenever, A client wants to construct, renovate or develop a property, the owner of the project is appointing a professional representative to consult the work. This team may contain an architect, quantity surveyor & Engineer. This team is called the project management team. First of all, this team has to understand the client’s requirements fully. His full intention, requirement, expected quality and appropriate time frame to complete the project.

After that, they have to prepare initial designs and documents to start the project. Later these works, the project management team has to finalize the procurement methods to execute the project. Furthermore, this procurement method should be based on the client’s requirements. Such as project cost, construction time & Scale of the project. In order to achieve these requirements, there are few procurement methods which is used in the construction industry.

There are two types of procurement methods in the construction industry.

Traditional methods

The First approach of the traditional procurement methods is employer himself is appointing a project management team for work. So the Contractor’s only task in the traditional procurement will be the execution of the project (and handling the subcontractors & suppliers). Most of the projects which are going to follow the traditional procurement method will use the competitive tendering process for selecting a suitable contractor for carrying out the works. We can identify three types of procurement in the industry under traditional methods,

Alternative methods

Alternative methods are there to reduce the time involving to prepare complete specifications and tender documents. These methods allow commencing to work quickly. Alternative methods are allowing the contractor to involve in the design of the project, which is more beneficial to the employer. (Contractor can propose value engineering options & new construction methods). Below mentioned are the various types of alternative procurement methods that use in the construction industry.

  • Design & build
  • Management Contracting
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