Procurement Route Pros & Cons
Contents |
[edit] Traditional Procurement
Good for:
- QUALITY – full design pre tender
- DESIGN FLEXIBILITY – variations & instructions
- SPECIALIST SUB-CON’S – Named specialist update sbc11
- DESIGN CONTROL – through arch/CA
- CDPs – eg. M&E
- COMPLEX
- COST – lump sum cost benefits unless multiple changes made
Not Suited for:
- TIME – req full detailed pack pre tender
- COST – not a benefit if many changes made
- INCOMPLETE DRAWINGS – lead to delay, costs and claims of negligence
Contract: SBC11
- LUMP SUM PAYMENT
- CDM
- CDP’s
- NAMED SUB CONTRACTORS
- VARIATIONS/INSTRUCTIONS
- RETENTION
- COLLATERAL WARRANTIES
- TERMINATION PROVISIONS
- PREAGREED ALT DISPUTE RESOLUTION
[edit] D&B Procurement
Good for:
- TIME – Fast track, overlap design & construction
- COST – lump sum/ GMP
- SINGLE POINT RESPONSIBILITY – Contractor design and build responsibility
- COMPLEX
- NOVATION – can benefit quality. Prior knowledge, sub-con drawing review
- CLIENT RISK LOW
- NAMED SUB-CON – in employers requirements
Not suited for:
- QUALITY – cheapest route to meet contract spec can lead to low quality products/ build quality.
- DESIGN FLEXIBILITY – request for change – costs/time implications
Contract: DB11
- CONTRACTOR TO COMPLETE DESIGN +CARRY OUT WORKS
- LUMP SUM/GMP
- CDM
- COLLATERAL WARRANTIES
- TERMINATION PROVISIONS
- RETENTION
- PRE AGREED DISPUTE RESOLUTION
[edit] Management Contracting Procurement
Good for:
- COMPLEX/SPECIALIST – individually appointed packages to best suited sub-contractor
- POTENTIAL COST SAVING – Competitive tender
- TIME – Overlap design/construction
- QUALITY – each package subcontracted to specialist
- DESIGN FLEXIBILITY – changes can be made throughout construction. Potential costs.
Not suited for:
- INEXPERIENCED – risk high
- FIXED COST - Prime cost basis per package. Fluctuations.
- LACK OF AVAILABLE SPECIALISTS – would leave gaps in work to be undertaken.
Contract: MC11
- PRIME COST CONTRACT
- PROVISIONS FOR COLLATERAL WARRANTIES
- SUSTAINABILITY
- COLLABERATIVE WORKING
- THIRD PARTY RIGHTS – funder-contractor
[edit] Construction Management Procurement
Good for:
- COMPLEX/SPECIALIST - individually appointed packages to best suited sub-contractor
- TIME - Overlap design/construction
- DESIGN FLEXIBILITY - changes can be made throughout construction. Potential costs.
- POTENTIAL COST SAVING - Competitive tender
- QUALITY - each package subcontracted to specialist
- ALL BUILDING TYPES
- EFFICIENCY – Early appointment of CM to aid programme
Not suited for:
- UNEXPERIENCED EMPLOYER – risk high as appointing trade contractors
- FIXED COST- Prime cost basis per package.
- LACK OF AVAILABLE SPECIALISTS
Contracts:
CM/TC11
CM/A
- EMPLYER – CM
- COLLATERAL WARRANTIES
- SUSTAINABILITY
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