The University of Salford has developed a strategic plan and proposed a development plan for high aesthetic and state of the art development. To achieve the objective and goals of the University, procurement system is very important. Important criteria in this project will be list out and analysis of this project will be made. Besides that, appropriate procurement will be analysed and the best procurement system will be justify with the criteria. Form of contract for the selected procurement system will be selected and analyse to let the client understand the expansions plan. Recommendations will be stated to allow the client to have a better understanding of the project.
The University of Salford had a few successfully developments in the past few years such as Mary Seacole and Lady Hale Building (University of Salford 2010). Therefore, this is one of the reasons that can shows that the University of Salford can be an experienced client in this project. According to Ashworth (2007), experienced client may have a working knowledge of the construction industry, may retain the services of in-house construction advisors and will be able to contribute to the process through out.
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By using traditional method, the client appoints an architect to produce designs and construction information, invite tenders and administer the project during the construction period and lastly, settle the final account. Generally, the architect will be the first point of client contact; he will advise the client to appoint consultants such as quantity surveyors, structural engineers and building services engineers. Other consultants, normally the quantity surveyor might also be the client's first port of call. The contractor has no design responsibility. He will normally be selected by competitive tender unless there are good reasons for negotiation. The design team are independent advisers to the client and the contractor is only responsible for executing the works in accordance with the contract documents (Ashworth 2007).
It is not suitable for project that requires critical completion date because it requires the production of a full set of documents before tenders are invited. Besides that, because the process is sequential and linear; there are no overlaps in between the stages. This is one of the reasons that lead the procurement to not complete the project earlier. Hence, more time is required to finalize the detail designs and any changes in pre-construction stage (Gould & Joyce 2000).
Commonly, the client will initially appoint design consultants to develop a brief, examine feasibility and prepare tender documents that will include a set of employer's requirements. Contractors are invited to tender on the basis that they will be responsible for designing and constructing the project. Next, they will submit a bid, which will incorporate design and price information. The contractor's proposals will be examined by the client and the project subsequently let. An issue to be considered in the early stages of the project is the nature of the employer's requirements, which may vary significantly in terms of detail. Clients may need to balance their conflicting desires to both direct the design and transfer full design risk to the contractor. (Ashworth 2007)
Develop and construct is an approach whereby the client's consultants prepare a concept design and ask contractors to develop that design and construct the works. Frequently, the client attempts to transfer the risks associated with the early design by novation. With this approach, the client's architect and pre-contract design are 'transferred' to the contractor who accepts the related liability as part of the contractual arrangement. This procedure is unpopular with contractors who are inclined to believe that in such situations the allegiance of the architect remains with the client. (Ashworth 2007)
By using construction management procurement, the duration of the project can be reduced by having maximum overlap between design and construction. As each package design is completed work may commence on the project (Cooke & Williams 2004). Besides that, due to early involvement of the contractor, it also allows for fast tracking since the design and construction team work together in early stage (Gould & Joyce 2000).
The client has no commitment from the contractor on price certainty. Strict control of the work package budget is essential (Cooke & Williams 2004). By using this procurement, client have to control the costs and programme to ensure there are no time overruns and prevent accelerated working or extended working hours which will increase the cost.
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Choosing an appropriate procurement method is very important in construction industry. Due to the different types of project, procurement method can be chosen by listing down the important criteria that the client is looking for (Hibberd & Djebarni 2010). Nevertheless irrespective of however complex modern construction projects may be, they are all based on the comparatively simple principles- cost, quality and time. These criteria, and the compromise, can be visualised as a triangle (Hackett et al 2007).
According to the objectives listed by the client, quality and time will be more critical than cost. The client wants the university to be outstanding, requires state of the art development, and requires the building to be carbon neutral and improvement in facilities. This shows that client is concern about the quality of the development. On the other hand, time will be one of the critical criteria because the completion date is critical which the building requires handover by 1st August 2012 at the very latest, to accommodate the new academic year. Cost is one of the criteria that the client is looking into it. The client is not looking for low cost development but requires a project which is value for money.
Design and build is not chosen to be the procurement of this project because the client reduces the ability to control the design. One of the main objectives in this project is have high aesthetic and state of the art development. By using this procurement method, client might not get the project that fulfils his requirements. In addition, the quality of the project is fully depending on the contractor's performance by using design and build. There is a risk of having low quality for this project. So, quality element is the main reasons that decline the use of design and build procurement in this project.
Construction management will be the most suitable procurement method to use in this proposed project. This is because construction management benefits the quality and time for the whole project. Construction management could allow the project to be fast track since the design and construction people work together early to develop the necessary coordination schedules.
Construction Management required high involvement of client during the whole project. Since the client is an experience client, he shall involve a lot in this project to ensure that the project is fulfilling his requirement and achieve the highest quality. Besides that, quality of the project can be high due to good communication is create by using this method. The problems are worked on collaboratively because the incentive is to produce the best product for the client.
However, the disadvantages of construction management shall be overlooked. The client needs to carry high risk by using this method. Risk management shall be prepared well to overcome this disadvantage. In addition, the client is experienced. So, he can prepare risk register to overcome the risk.
On the other hand, using this procurement method would lead to cost uncertainty. This will not be beneficial to client when obtaining the banks funding. The bank will be looking for financial security and with no cost certainty on the development; they will see this as a potential risk and may not approve the loan facility. Client will need to find more funding method to overcome this disadvantage.
Since construction management procurement is chosen to be the procurement method that will use in this project. The form of contract that can be used in the proposed project is the construction management contract (JCT CM 02 Construction Management Agreement).
Under this standard form, the contract is between the client and the construction manager who is effectively on the client's team. The client appoints a consultant team and consultant team leader, and the construction manager has a limited role as client's agent with limited powers to spend money. The construction manager has a contractual obligation to consult with the consultant team on relevant matters (Cooke & Williams 2004).