Year 1

• Procurement is the act of obtaining goods and services

  • how do u get it?
• Traditional method of procurement where the client appoints a team 2 design bid And build

  • multiple points of responsibility, sources
• Advantages of traditional

  • commonly used
  • client doesn’t always need to be on site
• Disadvantages of traditional method

  • phases don’t ever lap
  • harder to speed up
  • limit’s collaboration
  • adversarial - argument
• Design and build contract - single company designs and builds, quickening the progress

  • single point responsibility
  • later changes increase costs
• Design and build advantages

  • time can be reduced
  • also risk value engineering
• Design and build disadvantages

  • less contractors to use
  • harder to cost estimate as designs aren’t finished
  • client may not be consulted changes
• Construction management contract - different companies hire people to have assigned roles
• Construction management advantages

  • strong collaboration
  • strong value engineering
• Construction management disadvantages

  • high client involvement, requiring client knowledge
  • client risks as they are managing, must know what to do
  • high risk
  • client pays for themselves
  • team work makes or breaks
• Tendering is a formal written offer to carry out work

  • supply goods, buy land
  • bid
• Tendering stages - single stage

  1. advertising requirements
  2. pre-qualified questionnaire
  3. evaluation of PQQ
  4. invitation to tender
  5. evaluation of submissions
  6. award contract
• 2 stage tendering is the same but has a resubmission and review of the bills then the contract is rewarded
• Types of tendering

  Open - anyone can submit PQQ and it requires stage 1 and 2

  Selective - Pre-selected companies for specialist work, faster process as no PQQ

  Negotiated - single supplier that has been previously used, removes competitiveness
• Open - smaller jobs, lower prices, longer process leading to higher costs. Selective-specialist works, saves time, trusted companies with good reputations, develops relationship. Negotiated - specialist works, one company/supplier for the job

   
• JCT, NEC, FIDIC


  All 3 types of contracts are contract suites meaning that each time you buy a contract it will be the same everything making it a standardised agreement
• JCT contracts


  • Most common type in the UK
  • Based on UK law
  • Most commonly used
  • Easier for new contractors as higher probability they have used it before compared to NEC
  • Can only be used for construction work as created by a wide range of construction professionals
  • Harder to incorporate outside of countries that use UK law as only designed for smaller projects using UK law in countries colonised by the UK
• New engineering contracts (NEC)

  • Used for both construction and engineering works
  • Incorporates both UK and international law
  • Able to reach more countries outside of the UK's colonisation