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Procurement Strategy for a Construction Project

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Procurement Strategy for a Construction Project
1.0 Introduction To select a suitable procurement strategy for a construction project, there are some issues which need to consider. From all of those issues, there are 3 big issues that mainly affect the selection decision which are time, cost and quality. There is several type of procurement strategy available in market that commonly used for construction project and each of the common method will be analyze and compare to find the most appropriate method for this project. The choice of procurement strategy is very important to the success of a construction project. Therefore, the characteristic of each strategy have to analyze and also its relative advantages and disadvantages. A recommendation of most appropriate procurement strategy will be made after analyzed the all factor that affect the procurement selection.

2.0 Report

Background of project
Project type : Office and Store
Client : Robert Gordon University
Source of fund : Public Funding
Time length : 12 months
Time for construction : 8 months
Time for full design,
BQ and tendering : 7 months

For this office and store project, there are numbers of procurement strategy which is commonly used and suitable for it. The types of procurement strategies are as below :

1. Traditional Lump Sum Contracts
For this type of contract, contractor and design team are two separated body which respond directly to the client. Client hires the design team and select the most suitable a main contractor to carry out the whole project. Normally, for this type of contract, all the drawing and document had completed before the selection of contractor.

Advantages :
• Price certainty
• Good quality of work
• Changes can be evaluated
Disadvantages :
• Take longer time because have to wait the design team to complete full design before go to tender stage
• Claim of delay may happen due to design not fully detailed.
• Poor


References: S. RATNASABAPATHY & R. RAMEEZDEEN (2006) A multiple decisive factor model for construction procurement system selection [online] London : Royal Institute of Chartered Surveyors. Available from : http://www.rics.org/NR/rdonlyres/69EBAB3D-7830-4FC8-B1E7-75AE6CC7BAC6/0/COB06Ratnasabapathy_Rameezdeen.pdf [ Accessed 18 April 2008] THE SCOTTISH GOVERNMENT (2005) Construction work procurement guidance, [online] Scotland : The Scottish Government . Available from : http://www.scotland.gov.uk/Publications/2005/11/28100404/04095#1a [ Accessed 19 April 2008] 6.0 Bibliography S.KENNEDY & A. AKINTOYE (1995) Quantity Surveyors’ role in design and build procurement method, [online] London : Royal Institute of Chartered Surveyors. Available from : ttp://www.rics.org/NR/rdonlyres/F9C84EA0-C08A-40BE-8273-A433160D62FB/0/quantity_surveyors_role_in_design_19950901.pdf [ Accessed 18 April 2008]
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