The Procurement System Construction Essay


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In this case, as far as we are aware, the designs have already been drawn by a conceptual architect. Therefore, 'Novation' process can be used, when all design team and architect's designs transfers' obligation. Novation is simply the replacement of a contract with a new one under which a 3rd party takes on the benefit and burden of the obligations of one party to the old contract. The party replaced is released by the other party to that contract from further liability, usually either from the outset or from the date of novation.

For a management contracting approach of procurement, client appoints a designer and a contractor separately with a binding contract i.e. the JCT Management Building Contract. All fees of the contractor are paid by the client in managing the construction process. Management contractor will not carry out construction work but it is divided up into work packages which are let to work contractors, each of whom enters into contract with the management contractor.

Private Financing Initiative, is where the public sector purchase quality services, with defined outputs from the private sector on a long-term basis, and including maintaining or constructing the necessary infrastructure so as to take advantage of private sector management skills incentivized by having private finance at risk (4th edition contract for surveyors J. Ramus, S Birchall and P. Griffiths) Most common way in operating PFI is "build-own-operate-transfer". Here, the contractors are given all the details such as the function of the building, the facilities needed and any additional requirements proposed by the client.

PPP is when created for the provision of services and not for any special provision of capital assets such as buildings (Sport England, General Procurement and Contracts Guidance). This service is generally required between 10-30 years. Just like PFI, this project contains many complex collecting of agreements, which normally takes many months to negotiate, for instance between authority and contractor; meanwhile minimizing the construction period.

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