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Engineering - Construction Procurement - Essay Example

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Engineering - Construction Procurement

Provide a reasoned recommendation based on your discussion. Introduction Understanding of procurement paths has led to analysis of traditional procurement route and development of other routes. With a variety of procurement routes available, clients have to critically analyse the best available option. There are different approaches to procuring projects. These approaches are complicated since they lack clarity and particular description of particular procurement routes. The common types of procurement routes available are; 1. Traditional arrangement, 2. Design and build, 3. Measurement, 4. Prime cost and 5. Separate Management functions. The basis for selection of the best option towards the project is: I. Accountability II. Design input III. Experience form the past procurement route used IV. A background knowledge of the route chosen V. Costs to be incurred VI. Punctuality VII. Efficiency in relation to the time when the project kicks off VIII. Life span of the project IX. Risks involved and X. Relationship between the client and contractor during execution of work ((CRC Construction Innovation). Procurement Routes 1. Traditional or Design-Bid-Build For this type of procurement route, the client develops the idea of the project and comes up with a budget. A consultant prepares the design and tender documents for the scope of work to be executed. It is the work of the client to appoint a suitable contractor to execute the work according to the design. The contractor has to complete the work within the specified time frame after an agreement on the contract amount. The contractor remains in a position to sublet the work although he remains liable to the client. During the execution of works, the consultant remains as the administrator, advising the contractor in matters pertaining to design, progress of work and payment certificates ought to be paid by the client. The contractor is therefore obliged to execute work according to the design, failure of which may lead to his disqualification. This route is preferred and used by most clients on the basis of these facts; a. It is beneficial to all clients especially to the inexperienced clients b. Suitable for complicated projects and those which rely on functions as their prime objective c. Suitable for projects whose time frame can be predicted d. Suitable for projects whose costs are certain. The clients are provided with low-risk options in terms of costs, delays or failure in the design of the project. The clients are exposed to risk when; a. The design phase of the project is rushed b. The project time frames set are abnormal and c. Incomplete tender documents are submitted (Greenhalgh and Squires 2011, p.95). Refinements To minimize these risks, some refinements are made to this method. This refinement is called Two stage tender. The contractor’s tender rely on consultant’s design partially. This is the stage 1 tender. Thereafter, the contractor will assist in the development of the design and complete tender documents. These documents are then used to develop tenders for the work to be executed (stage 2 tender).the party involved in stage 1 tender has the opportunity to participate in the construction stage. This refinement adds risks to the final tender sum, uncertainty in date of completion of the project. ...Show more


CONSTRUCTION PROCUREMENT By (Your Name) Presented to (Instructor/Tutor) (Course/Subject) (Institution/University) (City, State) (Date) Scenario Following a long period of fund raising, together with a number of grants from local and central government and others, Littletree Parish Council are now able to proceed with the construction of a new community centre/village hall…
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Engineering - Construction Procurement essay example
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