Integrated procurement systems integrate or combine the responsibilities of design and construction of the project
Both responsibilities are contracted out to a single contracting organization
Client only needs to deal with a single organization for both the design and construction of the proposed project
Example of the integrated procurement system is the Design and Build
Design and Build system involves a two-stage process for selecting the firm
First stage involves interested firms applying for prequalification
Prequalification document includes information on the scope of the project, project site, special features, budget, design requirements, and other relevant information
Design and Build and turnkey project procurement systems are known for "fast-tracking" project delivery
Design-free pre-tender process allows for earlier construction date
Detail design and construction can run almost concurrently, reducing the overall project development period considerably
In Design and Build, the contractor controls construction time and design time, reducing the overall contract duration
Contractor's design responsibility can lead to reduced construction time through rationalizing the design and construction process
Cost in Design and Build is fixed at the bidding and contracting stage, providing higher cost certainty compared to traditional procurement systems
Lack of detailed design before and during tender can lead to contractors increasing prices to allow for uncertainties
Reduction in the overall number of professionals required leads to significant cost savings
Quality of work under Design and Build cannot be guaranteed
Client loses control of design and supervision of work
Integration of design and construction allows the contractor to utilize knowledge and experience for higher workmanship quality
Contractors under Design and Build can be innovative to improve construction process and techniques for better work and process quality
Design and Build is suitable when construction commencement and completion times are required earlier than traditional systems
Also suitable when innovation in design is desirable and when cost certainty is required at the start of design and construction phase
Merits of Design and Build include client certainty about project cost, avoidance of conflicts over drawing accuracy, and faster project delivery
Contractors can offer suggestions for more efficient, cost-effective, and easy-to-construct designs
Client uses fewer technical staff on the project
Demerits of Design and Build include limited basis for enforcing the contract due to incomplete project details, discrimination against small contractors, and lack of control over quality of work
Approaches to Design and Build system include Novated design and build, Package deals, Turnkey method, and Develop and construct
Novated design and build involves engaging consultants to prepare design brief and tender documentation, with the contractor taking over the design team
Package deals use standard components which may not fully meet client's needs
Turnkey involves the contractor being responsible for the project from design to operational stage
Develop and Construct starts with the client providing a detailed brief to the design consultant for conceptual design and site layout
Turnkey method accelerates project delivery, provides cost certainty, reduces disputes, but may lead to client surrendering control over the project and needing to provide exact project needs upfront
Approaches of Turnkey method include Build Own Operate Transfer (BOOT), Build Own Operate (BOO), Design Build Operate (DBO), and Lease Own Operate (LOO)
Features of BOOT, BOO, DBO, and LOO methods are outlined based on responsibilities and ownership of the project