Procurement route – frequently asked questions

[edit] What does procurement route mean?

A procurement route is a procedure that is followed in order to purchase goods or services.

[edit] How is a procurement route selected?

The procurement route that is selected will depend on the purchasers priorities in terms of:

• Speed.
• Cost.
• Quality.
• Risk.
• Ownership.
• Financing.
• Other project-specific constraints.

[edit] What are the main procurement routes?

The main procurement routes are:

• Traditional contract.
• Single-stage design and build.
• Two-stage design and build.
• Management contract.

[edit] What is the most commonly used procurement route?

The traditional route remains the most popular procurement route. In this route, sometimes referred to as 'design bid build', 'bid build' or 'employer designed', the client first appoints consultants to design the project in detail and then prepare tender documentation, including drawings, specifications and bills of quantities. Contractors are then invited to submit tenders for the construction of the project, usually on a single-stage, competitive basis.

For more information see: Traditional contract.

[edit] How many procurement routes are there?

There are a very wide range of different procurement routes. 26 different routes that are commonly used are identified and explained here.

[edit] What stages are followed in a procurement process?

A traditional procurement process might progress through the following stages:

• Appointment of designers.
• Design.
• Preparation of tender documentation for contractors.
• Invitation to tender by contractors.
• Submission of bids by contractors.
• Assessment of bids by the purchaser.
• Negotiation.
• Settlement.
• Contract engrossment and execution.
• Mobilisation.
• Construction.

[edit] What documents are needed for procurement?

Tender documents are needed for the procurement process. These will typically include:

• A letter of invitation to tender.
• The form of tender.
• Preliminaries: including pre-construction information and site waste management plan (if required).
• The form of contract, contract conditions and amendments.
• A tender pricing document (or contract sum analysis on design and build projects).
• Employer's information requirements for Building Information Modelling (BIM).
• Design drawings and specifications or a building information model if there is one.
• Tender return slip.

[edit] How are suppliers assessed during the procurement process?

Typically, assessments of suppliers during the procurement process might consider some of the following criteria:

• Price.
• Relevant experience.
• Understanding of the requirements.
• Past performance.
• Technical skills.
• Resource availability.
• Management skills and systems.
• Proposed methodology.
• Compliance with the requirements set out in the invitation to tender.

[edit] Related articles on Designing Buildings

• Appointing consultants.
• Construction management.
• Design and build.
• Invitation to tender.
• Management contract.
• Procurement route.
• Tender documentation.
• Tender evaluation.
• Tender processes.
• Traditional contract.