Traditional procurement method - Revision history

Designing Buildings at 11:29, 20 January 2023

2023-01-20T11:29:29Z

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	= What is the traditional procurement route? =		= What is the traditional procurement route? =

−	~~Traditional~~ procurement ~~remains the most commonly-used method of procuring building works. It~~ involves separating design from construction. The client first appoints consultants to design the project in detail (and often to ensure cost control and inspect the construction works as they proceed), and a contractor is then appointed for the construction of the project on a single-stage competitive basis.The contractor’s responsibilities include workmanship, materials and work undertaken by suppliers and subcontractors. They are not responsible for the design (other than temporary works), although some traditional contracts may allow the contractor to design specific parts of the works ~~(see below)~~.	+	The traditional procurement route involves separating design from construction. The client first appoints consultants to design the project in detail (and often to ensure cost control and inspect the construction works as they proceed), and a contractor is then appointed for the construction of the project on a single-stage competitive basis.The contractor’s responsibilities include workmanship, materials and work undertaken by suppliers and subcontractors. They are not responsible for the design (other than temporary works), although some traditional contracts may allow the contractor to design specific parts of the works.

	Traditional procurement is typically undertaken under a lump sum contract. A single ‘lump sum’ price for all the works is agreed before the works begin, then stage payments are made as the works proceed. This is appropriate where the project is well defined when tenders are sought, and significant changes to requirements are unlikely. This allows the contractor to accurately price the works they are being asked to carry out.		Traditional procurement is typically undertaken under a lump sum contract. A single ‘lump sum’ price for all the works is agreed before the works begin, then stage payments are made as the works proceed. This is appropriate where the project is well defined when tenders are sought, and significant changes to requirements are unlikely. This allows the contractor to accurately price the works they are being asked to carry out.
		+
		+	= How popular is the traditional procurement route? =
		+
		+	Traditional procurement remains the most commonly-used method of procuring building works.
		+
		+	The National Construction Contracts and Law Report 2018, published by NBS, suggested the following mix of procurement routes in the construction industry:
		+
		+	* Traditional procurement 46%
		+	* Design and build 41%
		+	* Partnering / alliancing 3%
		+	* Construction management 3%
		+	* Contractor approved without any tender process 2%
		+	* Measured term 1%
		+	* PFI / PPP 1%
		+	* Cost plus 1%
		+	* Management contracting 1%
		+
		+	For more information see: What is the most common procurement route?

	= When is the traditional procurement route appropriate? =		= When is the traditional procurement route appropriate? =

Designing Buildings at 11:26, 20 January 2023

2023-01-20T11:26:00Z

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−	~~Traditional procurement remains~~ the ~~most commonly-used method of procuring building works. It comprises a tripartite arrangement involving a client, consultants and contractor.~~	+	= What is the traditional procurement route? =

−	~~The traditional~~ procurement ~~route~~ involves separating design from construction. The client first appoints consultants to design the project in detail and to ensure cost control and inspect the construction works as they proceed~~. Contractors are~~ then ~~invited to submit tenders~~ for the construction of the project on a single-stage competitive basis.	+	Traditional procurement remains the most commonly-used method of procuring building works. It involves separating design from construction. The client first appoints consultants to design the project in detail (and often to ensure cost control and inspect the construction works as they proceed), and a contractor is then appointed for the construction of the project on a single-stage competitive basis.The contractor’s responsibilities include workmanship, materials and work undertaken by suppliers and subcontractors. They are not responsible for the design (other than temporary works), although some traditional contracts may allow the contractor to design specific parts of the works (see below).
−		+
−	~~Included in the~~ contractor’s responsibilities ~~are~~ workmanship, materials and work undertaken by suppliers and subcontractors. ~~The contractor is~~ not responsible for the design (other than temporary works), although some traditional contracts may ~~provide for~~ the contractor to design specific parts of the works (see ~~key criteria~~ below).	+

	Traditional procurement is typically undertaken under a lump sum contract. A single ‘lump sum’ price for all the works is agreed before the works begin, then stage payments are made as the works proceed. This is appropriate where the project is well defined when tenders are sought, and significant changes to requirements are unlikely. This allows the contractor to accurately price the works they are being asked to carry out.		Traditional procurement is typically undertaken under a lump sum contract. A single ‘lump sum’ price for all the works is agreed before the works begin, then stage payments are made as the works proceed. This is appropriate where the project is well defined when tenders are sought, and significant changes to requirements are unlikely. This allows the contractor to accurately price the works they are being asked to carry out.

−	~~Key criteria~~ with traditional procurement:	+	= When is the traditional procurement route appropriate? =
		+
		+	The traditional procurement route is generally suitable where the client wishes to retain control over decisions relating to the design and quality of the project. However, a full package of detailed information is required before a contractor can be appointed, and this can make it slower and more expensive than some other forms of procurement. It also means that the contractor is not involved in the design decisions, and so it can result in issues with buildability.
		+
		+	= What are the key characteristics of the traditional procurement route? =
		+
		+	Key characteristics of traditional procurement include:

−	* Consultants ~~retain~~ control over design and quality. This may result in a higher standard than some other procurement routes.	+	* Consultants retaining control over design and quality. This may result in a higher standard of project than some other procurement routes.
	* Consultants are responsible for valuations and agreeing payments.		* Consultants are responsible for valuations and agreeing payments.
−	* The contractor generally has no design duties, but if this is necessary for ~~say,~~ some aspect of a project, the contract should include clear wording to this effect.	+	* The contractor generally has no design duties, but where this is necessary for some aspect of a project, the contract should include clear wording to this effect.
	* There must be adequate time before tenders are invited to allow for the production of a complete set of drawings and other documents. This means the traditional procurement route may be slower than some other routes.		* There must be adequate time before tenders are invited to allow for the production of a complete set of drawings and other documents. This means the traditional procurement route may be slower than some other routes.
−	* Contractors may submit claims if they do not receive the ~~necessary~~ timely instructions and information, or if changes are made.	+	* Contractors may submit claims if they do not receive the timely instructions and information, or if changes are made.
	* The traditional method – or adaptations of it – can be used with approximate quantities, provisional sums or cost reimbursements where the nature or quantity of work cannot be accurately defined.		* The traditional method – or adaptations of it – can be used with approximate quantities, provisional sums or cost reimbursements where the nature or quantity of work cannot be accurately defined.

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	For other methods see: Procurement routes.		For other methods see: Procurement routes.

−	= Related articles on Designing Buildings ~~Wiki~~ =	+	= Related articles on Designing Buildings =

	* Appointing consultants.		* Appointing consultants.

175.140.0.104 at 02:56, 11 July 2021

2021-07-11T02:56:50Z

← Older revision		Revision as of 02:56, 11 July 2021
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−	Traditional procurement remains the most commonly-used method of procuring building works. It comprises a tripartite arrangement involving a client, consultants and a contractor.	+	Traditional procurement remains the most commonly-used method of procuring building works. It comprises a tripartite arrangement involving a client, consultants and contractor.

	The traditional procurement route involves separating design from construction. The client first appoints consultants to design the project in detail and to ensure cost control and inspect the construction works as they proceed. Contractors are then invited to submit tenders for the construction of the project on a single-stage competitive basis.		The traditional procurement route involves separating design from construction. The client first appoints consultants to design the project in detail and to ensure cost control and inspect the construction works as they proceed. Contractors are then invited to submit tenders for the construction of the project on a single-stage competitive basis.

Designing Buildings: Reverted edits by 130.102.13.239 (talk) to last revision by Editor

2021-06-12T08:31:32Z

Reverted edits by 130.102.13.239 (talk) to last revision by Editor

← Older revision		Revision as of 08:31, 12 June 2021
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−	Traditional procurement remains the most commonly-used method of procuring building works. It comprises a tripartite arrangement involving a client, consultants and a contractor..	+	Traditional procurement remains the most commonly-used method of procuring building works. It comprises a tripartite arrangement involving a client, consultants and a contractor.

	The traditional procurement route involves separating design from construction. The client first appoints consultants to design the project in detail and to ensure cost control and inspect the construction works as they proceed. Contractors are then invited to submit tenders for the construction of the project on a single-stage competitive basis.		The traditional procurement route involves separating design from construction. The client first appoints consultants to design the project in detail and to ensure cost control and inspect the construction works as they proceed. Contractors are then invited to submit tenders for the construction of the project on a single-stage competitive basis.
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	* Variations.		* Variations.

−	~~[[Category:Articles_needing_more_work]]~~ [[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Client_procedures]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Client_procedures]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

130.102.13.239 at 04:51, 12 June 2021

2021-06-12T04:51:16Z

← Older revision		Revision as of 04:51, 12 June 2021
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−	Traditional procurement remains the most commonly-used method of procuring building works. It comprises a tripartite arrangement involving a client, consultants and a contractor.	+	Traditional procurement remains the most commonly-used method of procuring building works. It comprises a tripartite arrangement involving a client, consultants and a contractor..

	The traditional procurement route involves separating design from construction. The client first appoints consultants to design the project in detail and to ensure cost control and inspect the construction works as they proceed. Contractors are then invited to submit tenders for the construction of the project on a single-stage competitive basis.		The traditional procurement route involves separating design from construction. The client first appoints consultants to design the project in detail and to ensure cost control and inspect the construction works as they proceed. Contractors are then invited to submit tenders for the construction of the project on a single-stage competitive basis.
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	* Variations.		* Variations.

−	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Client_procedures]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]	+	[[Category:Articles_needing_more_work]] [[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Client_procedures]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Editor at 09:04, 16 September 2020

2020-09-16T09:04:50Z

← Older revision		Revision as of 09:04, 16 September 2020
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	* Variations.		* Variations.

−	[[Category:Client_procedures]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Client_procedures]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Editor: Reverted edits by 168.167.80.243 (talk) to last revision by Designing Buildings

2020-09-16T09:03:41Z

Reverted edits by 168.167.80.243 (talk) to last revision by Designing Buildings

← Older revision		Revision as of 09:03, 16 September 2020
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−	- Traditional procurement remains the most commonly-used method of procuring building works. It comprises a tripartite arrangement involving a client, consultants and a contractor.	+	Traditional procurement remains the most commonly-used method of procuring building works. It comprises a tripartite arrangement involving a client, consultants and a contractor.

	The traditional procurement route involves separating design from construction. The client first appoints consultants to design the project in detail and to ensure cost control and inspect the construction works as they proceed. Contractors are then invited to submit tenders for the construction of the project on a single-stage competitive basis.		The traditional procurement route involves separating design from construction. The client first appoints consultants to design the project in detail and to ensure cost control and inspect the construction works as they proceed. Contractors are then invited to submit tenders for the construction of the project on a single-stage competitive basis.

168.167.80.243 at 09:01, 16 September 2020

2020-09-16T09:01:33Z

← Older revision		Revision as of 09:01, 16 September 2020
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−	Traditional procurement remains the most commonly-used method of procuring building works. It comprises a tripartite arrangement involving a client, consultants and a contractor.	+	- Traditional procurement remains the most commonly-used method of procuring building works. It comprises a tripartite arrangement involving a client, consultants and a contractor.

	The traditional procurement route involves separating design from construction. The client first appoints consultants to design the project in detail and to ensure cost control and inspect the construction works as they proceed. Contractors are then invited to submit tenders for the construction of the project on a single-stage competitive basis.		The traditional procurement route involves separating design from construction. The client first appoints consultants to design the project in detail and to ensure cost control and inspect the construction works as they proceed. Contractors are then invited to submit tenders for the construction of the project on a single-stage competitive basis.

Designing Buildings at 14:26, 28 January 2020

2020-01-28T14:26:07Z

← Older revision		Revision as of 14:26, 28 January 2020
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−	Traditional procurement ~~(sometimes referred to as design, bid, build, two-stage tendering, negotiated tendering or the accelerated traditional method)~~ remains the most commonly-used method of procuring building works. It comprises a tripartite arrangement involving a client, consultants and ~~the~~ contractor ~~(who is typically appointed by competitive tendering or sometimes appointed at an early stage by negotiation)~~.	+	Traditional procurement remains the most commonly-used method of procuring building works. It comprises a tripartite arrangement involving a client, consultants and a contractor.

−	The traditional procurement route involves separating design from construction. The client appoints ~~the~~ consultants ~~who~~ design the project in detail and ~~who are also responsible for~~ cost control. Contractors are then invited to submit tenders for the construction of the project~~, usually~~ on a single-stage, competitive basis.	+	The traditional procurement route involves separating design from construction. The client first appoints consultants to design the project in detail and to ensure cost control and inspect the construction works as they proceed. Contractors are then invited to submit tenders for the construction of the project on a single-stage competitive basis.

−	Included in the contractor’s responsibilities are workmanship, materials and ~~all~~ work undertaken by suppliers and subcontractors. ~~Although the~~ contractor is not responsible for the design (other than temporary works) some traditional contracts may provide for the contractor to design specific parts of the works (see key criteria below).	+	Included in the contractor’s responsibilities are workmanship, materials and work undertaken by suppliers and subcontractors. The contractor is not responsible for the design (other than temporary works), although some traditional contracts may provide for the contractor to design specific parts of the works (see key criteria below).

−	Traditional procurement ~~can (to~~ a ~~limited extent) include design~~ and ~~construction running in parallel~~. This ~~has~~ the ~~benefit of enabling an early start~~ to ~~be made on site although there will be less certainty for~~ the ~~client regarding the costs~~.	+	Traditional procurement is typically undertaken under a lump sum contract. A single ‘lump sum’ price for all the works is agreed before the works begin, then stage payments are made as the works proceed. This is appropriate where the project is well defined when tenders are sought, and significant changes to requirements are unlikely. This allows the contractor to accurately price the works they are being asked to carry out.

−	~~=== Traditional~~ procurement ~~involves three types of contract~~: ~~===~~	+	Key criteria with traditional procurement:

−	* ~~Lump sum (or ‘stipulated sum’) contracts:~~ a ~~single ‘lump sum’ price~~ for ~~all the works is agreed before the works begin~~. The contractor ~~undertakes to be responsible~~ for ~~executing the work under~~ the contract ~~for an agreed sum of money~~. ~~This is generally appropriate where the project is well defined, when~~ tenders are ~~sought,~~ and ~~significant changes to requirements are unlikely~~. ~~It allows~~ the ~~contractor to accurately price the works they are being asked to carry out~~.	+	* Consultants retain control over design and quality. This may result in a higher standard than some other procurement routes.
−	* ~~Measurement contracts (~~or ~~‘re-measurement’ or ‘measure and value contracts’)~~ are ~~used where the works can be described in reasonable detail, but the amount cannot. Examples include excavation works and refurbishment projects~~.	+	* Consultants are responsible for valuations and agreeing payments.
−	* ~~Cost reimbursement (~~or ~~‘cost plus’) contracts~~ can be used where the nature of ~~the works~~ cannot be ~~properly~~ defined at the outset, or a high degree of risk is involved in the work, eg emergency work or after a building failure. They are often used where an immediate start on site is required). The contractor is reimbursed the actual costs they incur in carrying out the works, plus an additional fee that covers management, overheads and profit.	+	* The contractor generally has no design duties, but if this is necessary for say, some aspect of a project, the contract should include clear wording to this effect.
		+	* There must be adequate time before tenders are invited to allow for the production of a complete set of drawings and other documents. This means the traditional procurement route may be slower than some other routes.
		+	* Contractors may submit claims if they do not receive the necessary timely instructions and information, or if changes are made.
		+	* The traditional method – or adaptations of it – can be used with approximate quantities, provisional sums or cost reimbursements where the nature or quantity of work cannot be accurately defined.

−	~~= Key criteria with traditional procurement =~~	+	For further information see [[Traditional_contract_for_construction\|Traditional contract for construction]].

−	* Appointed by clients (or ‘employers’) to provide design and cost advice, consultants retain total control over the design and quality which they deem fit for the project.	+	For other methods see: Procurement routes.
−	* Consultants are responsible for all matters relating to valuations and payment.	+
−	* In traditional procurement contracts, the contractor generally has no design duties, but if this is necessary for say, some aspect of a project, the contract should include clear wording to this effect.	+
−	* In traditional lump sum contracts, there must be adequate time before tenders are invited to allow for the production of a complete set of drawings and other documents.	+
−	* Contractors may submit claims if they do not receive the necessary timely instructions and information from architects on whom they are heavily dependent.	+
−	* The traditional method – or adaptations of it – can still be used with approximate quantities, provisional sums or cost reimbursements where the nature or quantity of work cannot be accurately defined.	+
−		+
−	For ~~further information~~ see ~~[[Traditional_contract_for_construction\|Traditional contract for construction]]~~.	+

	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =

−	* Atkins v Secretary of State for Transport.
	* Appointing consultants.		* Appointing consultants.
	* Bill of quantities.		* Bill of quantities.
−	* Client.
	* Construction contract.		* Construction contract.
	* Contract conditions.		* Contract conditions.
	* Contractor.		* Contractor.
−	* Design quality.
	* Notifications during construction works		* Notifications during construction works
	* Procurement route.		* Procurement route.

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Traditional procurement (sometimes referred to as design, bid, build, two-stage tendering, negotiated tendering or the accelerated traditional method) remains the most commonly-used method of procuring building works. It comprises a tripartite arrangement involving a client, consultants and the contractor (who is typically appointed by competitive tendering or sometimes appointed at an early stage by negotiation).

The traditional procurement route involves separating design from construction. The client appoints the consultants who design the project in detail and who are also responsible for cost control. Contractors are then invited to submit tenders for the construction of the project, usually on a single-stage, competitive basis.

Included in the contractor’s responsibilities are workmanship, materials and all work undertaken by suppliers and subcontractors. Although the contractor is not responsible for the design (other than temporary works) some traditional contracts may provide for the contractor to design specific parts of the works (see key criteria below).

Traditional procurement can (to a limited extent) include design and construction running in parallel. This has the benefit of enabling an early start to be made on site although there will be less certainty for the client regarding the costs.

=== Traditional procurement involves three types of contract: ===

* Lump sum (or ‘stipulated sum’) contracts: a single ‘lump sum’ price for all the works is agreed before the works begin. The contractor undertakes to be responsible for executing the work under the contract for an agreed sum of money. This is generally appropriate where the project is well defined, when tenders are sought, and significant changes to requirements are unlikely. It allows the contractor to accurately price the works they are being asked to carry out.
* Measurement contracts (or ‘re-measurement’ or ‘measure and value contracts’) are used where the works can be described in reasonable detail, but the amount cannot. Examples include excavation works and refurbishment projects.
* Cost reimbursement (or ‘cost plus’) contracts can be used where the nature of the works cannot be properly defined at the outset, or a high degree of risk is involved in the work, eg emergency work or after a building failure. They are often used where an immediate start on site is required). The contractor is reimbursed the actual costs they incur in carrying out the works, plus an additional fee that covers management, overheads and profit.

= Key criteria with traditional procurement =

* Appointed by clients (or ‘employers’) to provide design and cost advice, consultants retain total control over the design and quality which they deem fit for the project.
* Consultants are responsible for all matters relating to valuations and payment.
* In traditional procurement contracts, the contractor generally has no design duties, but if this is necessary for say, some aspect of a project, the contract should include clear wording to this effect.
* In traditional lump sum contracts, there must be adequate time before tenders are invited to allow for the production of a complete set of drawings and other documents.
* Contractors may submit claims if they do not receive the necessary timely instructions and information from architects on whom they are heavily dependent.
* The traditional method – or adaptations of it – can still be used with approximate quantities, provisional sums or cost reimbursements where the nature or quantity of work cannot be accurately defined.

For further information see [[Traditional_contract_for_construction|Traditional contract for construction]].

= Related articles on Designing Buildings Wiki =

* Atkins v Secretary of State for Transport.
* Appointing consultants.
* Bill of quantities.
* Client.
* Construction contract.
* Contract conditions.
* Contractor.
* Design quality.
* Notifications during construction works
* Procurement route.
* Temporary works.
* Tender.
* Tender documentation.
* Traditional contract for construction
* Traditional contract: outline work plan.
* Traditional contract - pros and cons.
* Two-stage tender.
* Variations.

[[Category:Client_procedures]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Procurement]]