con 2

• • Cost increases due to variations are minimized
  • Operating the traditional procurement system can be expensive due to the number of professionals involved
  • Quality:
  • Provides a high degree of quality certainty and functional standards
  • Sufficient time available for client and consultants to review and fully develop design and specifications
  • However, does not provide opportunities for contractors to contribute construction technology and management expertise, which may affect workmanship quality
• Effects of the traditional procurement system on project performance:

  • Time:
  • Due to its chronological approach, the traditional procurement system is recognized as the slowest project delivery approach
  • More time available for the client and project team to scrutinize and review the design before construction
  • Cost:
  • Provides more price certainty to the client before construction begins because designs are fully completed
  • Gives the client a more competitive price by eliminating design and construction ambiguity that causes contractors to inflate prices
• When to use traditional/separated procurement system:

  • Best used when time for commencement and completion is not as critical as overall cost, quality, and function of the project
  • Client exercises control over quality, aesthetics, and utility of the project through client's design consultants
  • Variations or changes in scope and quality of the project are often allowed but at the client's risk
• Approaches to traditional procurement system:

  • Bill of firm quantities:
  • Client selects architect/engineer to design based on client's brief and quantity surveyor prepares a bill of quantities
  • Contractors invited to submit tenders in competition, and the contract is awarded to the most responsive tender
  • Features of bill of firm quantities:
  • Quantities and unit rates form part of the contract
  • Design is virtually completed before signing the contract
  • Merits of bill of firm quantities:
  • Project fully designed before tenders are solicited, removing contingencies during construction
• • Quality in the construction project can be controlled using working drawings and specifications
  • Demerits of bill of firm quantities:
  • Process is slow due to sequential nature
  • Client cannot be certain about the actual cost until tenders are received
  • When to use bill of firm quantities:
  • Where time is not a constraint and quality, aesthetics, and utility are priorities
• • When time is not available after design completion to measure detailed quantities
• Approximate bill of quantities:

  • Quantities used are approximate and subject to re-measurement during construction
  • Only unit rates are binding on the contractor, and quantities are provisional
  • Merits of approximate bill of quantities:
  • Construction can begin earlier
  • Extra expense of preparing firm quantities can be saved
  • Demerits of approximate bill of quantities:
  • Cannot give the client a realistic total cost of the project
  • Work may prove more costly than if detailed quantities were measured initially
  • When to use approximate bill of quantities:
• Drawings and specifications methods:

  • Mostly used in the United States of America
  • Contractors prepare their own quantities from drawings before estimating project cost
  • Merits of drawings and specification methods:
  • Cost of engaging quantity surveyor for bills of quantities is eliminated
  • Risk of inaccurate measurement shifted to the contractor
  • Demerits of drawings and specification methods:
  • Evaluation of variations may present problems without bills of quantities
  • Period of tendering is longer as contractors must do their own measurement
  • Features of schedule of rates methods:
• • Similar to using bills of approximate quantities
  • Contracts resulting are referred to as Measurement Contracts or Measured Contracts