Procurement Route Pros & Cons

Contents 1 Traditional Procurement 2 D&B Procurement 3 Management Contracting Procurement 4 Construction Management Procurement

[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

• EMPLOYER – TRADE CONTRACTOR
• LUMP SUM
• COLLATERAL WARRANTIES & THIRD PARTY RIGHTS
• RETENTION

CM/A

• EMPLYER – CM
• COLLATERAL WARRANTIES
• SUSTAINABILITY