Different Procurement

Methods

Edina Nagy
Lajos Kiss
Szabolcs Hornyk

Overview
1. The Procurement
2. Traditional Procurement
3. Design and Build Procurement
4. Management Procurement systems
5. Comparing Traditional and Design and Build
Procurement
6. References and further reading

The Procurement
Procurement describes the merging of
activities undertaken by the client to obtain
a building.
Common types of procurement are:
Traditional Procurement
Design and Build Procurement
Management Procurement Systems

Traditional

Traditional

Design and Build Procurement

Extreme A Client-led design and build

Extreme Z Contractor-led design and build

Extreme A
Client-led Design and Build

Extreme Z
Contractor-led Design and Build

Management Procurement Systems

Management procurement systems are often
used to speed up the procurement
processes.
Common types:
Management Contracting
Construction Management

Management Contracting
As an alternative to the traditional approach,
the client may decide to appoint a management
contractor to engage and manage a number of
work package subcontractors.
Management contracting enables the client to
create
a
competitive
situation
between
management contractors at the appointment
stage of the project.

Management Contracting

Construction Management
In
this
situation
the
construction
management consultant or construction
manager joins the design team early in the
project.
The construction managers services are
based on a negotiated fee with the client
simply to supervise and plan the work to be
undertaken
by
the
work
package
contractors.

Construction Management

Advantages and Disadvantages of

these methods
These are suitable for:
fast track projects
complex buildings
a developing brief
Disadvantages:
total cost of the project is not usually known
until the project
damages for delay are difficult to pin on one
subcontractor
the client takes all the risk, particularly in the
construction management

Comparing Traditional and

Design & Build Procurement
Similarities between the two methods:
Suitable for all clients, including
inexperienced clients
Price certainty is secured early in the
project
Firm contractual date for completion

Differencies between the two

methods
Traditional Procurement
All design risk is ultimately
carried by the client

Design and build

Procurement
The major risks lie with the
contractor

Capable of obtaining the best

The contractor assumes
contract price for the full scope greater financial risk and this
of the works
is often reflected in the price
It is not suitable for fast track
projects

Suitable for fast track projects

Client retains control over the

It is more problematic to
design team and quality can be
control design and quality
assured

References and further reading

1. What does it mean procurement? pp. 26
2. What are the advantages and disadvantages of the traditional
procurement? pp. 29-30
3. What it means to design and build procurement? pp. 31
4. What are the disadvantages of the management procurement

systems?

pp. 38
5. What are the similarities and differences between the traditional and the
design and build? pp. 29-30/35
6. What is similar to the traditional procurement and construction
management? pp. 35-36

Construction Planning, Programming and Control/Brian Cooke and Peter Williams. 3rd. ed.2008

Thank you for your

attention!