Discuss the various procurement systems available to a proposed building project and illustrate with organization chart on the relationship between the parties involved.
There are several types of procurement system, which included traditional system, design and build system, and construction management system.
Traditional Procurement System
• The traditional procurement system remains by far the most popular method, followed by design and build.
• Client appoints the project consultant team comprising Architect, Engineers, and QS.
• Architect and Engineers carry out design and CQS prepare cost estimates, cost advice and tender document.
• Tender evaluation report by CQS follow by tender interviews and with letter oa award issue by the client; contract documentation by CQS.
• Contractors, subcontractor, suppliers and specialist subcontractor carry out work on site.
• Architect and Engineers are carry out routine supervision, CQS prepares valuation certificates for works done and Architect issue Architect’s progress payment certificates and client make payment to contractor, NSCs and NSs and specialist subcontractor.
• On completion of project the CQS prepares final account.
The Traditional Procurement Method showing the contractual arrangements is shown below:[pic]
Design and Build Procurement System
• A design and build contract is a contractual arrangement whereby the contractor offers to design and build a construction project for a contract sum which is inclusive of both the design and construction costs.
• Is more suitable for unique and specialized.
• Contractor is fully responsible for the design and construction of the project; so the contractor needs to have a full team of design consultant with expert knowledge is that area.
• The contractors participated in a D&B tender need to submit their respective feasibility study to the client.
• A purpose preliminary outline design will be attach together with their feasibility study.
• Outline specification and design criteria/function usage will be issued to the contractors by the client consultant.
• A detailed submission will be requested by the client from the short lists contractors who have met the specified requirement stated in the prequalification exercise including overall project cost.
• Recommendation by client’s consultant team on the selection of the best contractor to undertake the project.
The benefits of design and build contracts for clients include:-
1. single-point responsibility for both design and construction; 2. prices which reflect more closely the final cost to the client; 3. inherently more buildable designs and proposals submitted; 4. overlap of design and construction phases leading to early completion on-site and thereby savings in cost.
➢ A major disadvantage of design and build contracts is the discouragement of possible variations by the client. Where clients consider these to be necessary they often have to pay an excessive sum of money for their incorporation within the finished building. ➢ Each contractor invited to tender for design and build work is carefully selected not only for its financial standing and construction record but also for its design capability and management structure for the work.
➢ A client may not realize the importance of independent professional advice from an architect or quantity surveyor in design and build contracts.
➢ The selection of a design and build contractor should be based on a brief of the employer's requirements.
➢ This brief should ideally be prepared by independent professional advisers and costed by them, so that the contractors are tendering on a brief that is within the employer's budget.
➢ It is costly for design and build contractors to tender in competition, as each contractor will have to...