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This literature review has been carried out in order to investigate various opinions of qualified professionals of the construction industry in relation to methods of procurement. The review will relate to the hypothesis:
"To show the advantages of design and build procurement methods have over traditional methods."
The following are the main topics investigated in this literature review:
* Why was it introduced?
* Asses the history of procurement and which methods worked best over the years.
Background to study
Since the early 1960s, various alternative ways of promoting and carrying out construction projects have been devised with varying degrees of success. (Ramus, birchall & Griffiths 2006)
Traditional methods were no longer satisfactory because of rapidly escalating cost of construction was being spent financing these projects, as most of this was borrowed money it meant that time occupied by traditional procedures was only adding to cost of construction. After time clients were becoming more aware of construction matters and wanted a better return for their money and earlier returns on investments.
In the design and construct method the owner has a single point of contact for both the design and the construction part of a project this is also known as design and build or turnkey construction (Heinze 1993).
This is the major factor which makes design and build a superior method of procurement over traditional methods. Single point of contact makes the contractor liable for any defects in the design or the construction of the project, because this method incorporates design and construction teams in the one firm it is possible to begin construction before the design is completed. It is for this reason that design and build can be a quicker way of getting a return on their investement.
Many employers see the design and build contract as an opportunity to transfer the majority of the risk onto the contractor (Sawczuk 1996).
Under the design and build contract the employer must prepare the employers requirements or else appoint consultants to prepare a list. At this stage the contractor and their own design team prepare and submit drawings to meet the requirements of the employer, after this the contractor will propose to build the project for a specified lump sum within a specified time.
Under D&B arrangement, the contractor takes the responsibility for the design of the building and the execution of the works, rather than relying on designs produced by independent designers all engaged under separate contracts (keane 1996).
When the design of the building and the execution of works is all completed by different contractors it is harder for the employer to pinpoint blame on to an individual contractor, everyone will try to blame someone else when a problem arises. E.g. if the building collapses the building contractor will say the fault was in its design, not in its execution. Then the design team will blame it on the execution of the building 30%/40% of the UK construction market is now done on D&B contracts (keane1996).
- Kelly, J. Male, S & Graham, D. (2004). Value Management of Construction Projects. Oxford, UK.: Blackwell Science Ltd. p34-37.
- Ashworth, A (2006). Contractual Procedures in the Construction Industry. 5th ed. Essex CM20 2JE: Pearson Education Limited. P34-37.
- Ramus, J. Birchall, S. & Griffiths, P (2006). Contract Practice for Surveyors. 4th ed. Oxford: Butterworth-Heinemann Publications. P34.
- Franks, J (1998). Building Procurement Systems, A Clients |Guide. 3rd ed. Berkshire: Englemere Limited. P34-37.
- Fisk, E & Reynolds, w (2006). Construction Projects Administration. 8th ed. Essex: Pearson Education Ltd. p34-37.
- Chappell, D & Powell-Smith, V (1993). The JCT Design and Build Contract. Edinburgh: Blackwell Scientific Publications. P34-37.
- Sawczuk, B (1996). Risk Avoidance for the Building Team. oxon: Taylor and Francis. p13.
- Keane, Paul. (1998) Fixed Price Contracts and the allure of design and build, Reedy, Charlton and McKnight. www.rcmck.com/downloads/rcmck7.doc