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Procurement Project Client
Construction Contracts Coursework Part 1
Summary of possible procurement routes available:
Choice of procurement method is usually dictated by 1 of 3 things:
- Time
- Cost
- Quality
Conlon’s Chemicals have identified that they would like tight financial control over the projects. This, in turn allows us the select the most suitable procurement method available.
Procurement is briefly defined as ‘to obtain by care or effort, acquire……..’. This is better described as the collation of all activities required to complete a building project. There are several procurement methods available to the client. These are:
- Traditional Procurement Method
- Design and build Procurement Method
- Management Procurement Method
- Alternative/Contemporary Procurement Method
- Traditional Procurement Method
The most flexible of these methods is the Traditional Procurement Method and this is the most well used. This allows for clients to have a more assertive role in the contract and can give tighter control. This procurement method doesn’t allow direct contractual links between the Client and the Contractor. It does however allow the client to specify a Project Manager (usually the Architect), who administers the contract from the very inception through to completion. Their roles include preparing specifications, procuring subcontractors etc. This also means that there would only be a contract between the client and the main contractor meaning that the main contractor is wholly responsible for the project. The types of contract available for this procurement method are:
- Lump sum
- Fixed price
- Measurement
- Cost reimbursement
Traditional procurement has different forms of contract available depending on the clients needs.
- Design and build Procurement Method
This method is probably the second most commonly used procurement method and is becoming used more and more often as clients try a shift more risk onto the contractors. This procurement method is usually used where an all inclusive project is to be delivered (i.e. includes all design works, construction and even fixtures and fittings) and is usually handed over as a fully functional building. This type of procurement method can sometimes even ask that the contractor find a site for the project but as Conlon’s Chemicals have already identified the site for the proposed projects I see no
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