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Different procurement systems for the construction project
Traditional Procurement Systems
Different procurement systems for the construction project:The traditional procurement systems refer to a procurement system based on the design – bid – build philosophy. It means that whenever a constructor designs a building then bids to get the contract and builds it after the contract has been received is known as the traditional procurement for a construction project. In this process, the clients first appoint a consultant or architect to design the project then start preparing tenders and other documents necessary for the project bid (Love, 2002). As stated by Gould and Joyce (2009), the traditional procurement systems can be used by both the experienced and inexperienced constructors due to the philosophy employed. 37% of the total construction procurement projects are based on traditional procurement systems.
In the view of Love (2002), there are numerous strengths and weaknesses associated with the traditional procurement systems. One of the numerous advantages is that due to competitive selection, it leads to accountability. The contract bid includes a design lead and the client can have a direct influence which can ensure a high level of functionality and can improve overall design quality. Also, an advantage for both the parties is that this type of procurement leads to price certainty so both the parties are aware of the returns and costs from the project. On the contrary, one of the weaknesses includes the higher time required to complete the documentation of the full tender documentation. Another weakness is that there is no possibility of the input by the contractor at the design stage as the appointment of client is not confirmed yet (Gould and Joyce, 2009). In the case of Project under consideration, the traditional construction systems can be employed as it is applicable to both the experienced and inexperienced clients. However, while selecting this approach its weaknesses must be considered as discussed above.
Management Procurement Systems
Second type of procurement systems namely management procurement systems can be divided into two other main sub-categories. These types include management contracting and construction management. The management contracting refers to the type of procurement, where the contractor has contractual relationships with all the stakeholders and potential parties of the project and is also responsible for all the project work (Eriksson and Westerberg, 2011).The construction management refers to a procurement process where a contractor is hired to manage the design and construction processes of a particular project. It is known as packaged procurement system due to the fact that this type of contracting is employed to avail the services as a whole implying that the design and construction both will be overlooked by the contractor as a package (Gould and Joyce, 2009)…
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