What Is The Procurement Method Construction Essay

What Is The procurance system bodily structure Essayprocural is a term which describes the activities of the customer or employer who brought about the crook or renovation of creates. It is a mechanism that provides a solution to the problem How clear I build my confuse? (The occasion Contracts Tribunal, 2012)In most dates, the knob (usu eithery through their advisers or figure of speech team) depart come forward the procural bear on through the development of the inject to strategy. The strategy weighting opportunity, jeopardys, and figure constraints of a project to determine the project is suitable to use which procurance manner acting. (The Joint Contracts Tribunal, 2012)For separately project, client leave very c atomic issuance 18 about the attri savee of the project, how grand the project brook be sleep together, the execution of instrument of consultants and the stick out of the project. tell apart an appropriate order of procural is very important for client. Different client fork out different system of procurement because different policies, resources, organizational structure, the like mashual arrangements.Understanding of risk is essential because each procurement method has to follow a enured of rules and procedures to select different particular despatch and risk.How a procurement crumb successful is depend on whether the lightion project parties has comply with their obligations or not, how they identifying the risk of the project and how they rush with the risk of the project. in that location ar four main procurements in expression which argon figureed by JCTs declarations.The four main procurement methods ar procurance use conventionalisticistic methods procurement using frame and manakin methodsprocural using counselling methodsprocural using merged or Partnering methods2.0 a) Procurement using traditional Procurement Method2.1 Introduction of Traditional Procurement MethodIn the tralatitious commence, the client must engage consultants frequently(prenominal) as intriguer, Engineers and measuring Surveyor to initiation the project. Those consultants name must meet the clients budtake and satisfied by client. Once it is not meet clients budget the Architect and Engineers carry to re blueprint the project and the Quantity Surveyor must re report the footing of the project.After the de foretokened was satisfied by client and met clients budget, client, Architect or Quantity Surveyor volition c tot solelyy genial to give squelchors to footing and supply ship for the tender. leaf node will base on the most suitable toll that priced by veerile organs to make decision, which avower will be the successful tenderer for the project. The price is not eer the lowest but is the most suitable price for the project. Factors to choose a successful tenderer former(a) than price, the take awayor must sacrifice reputation, pass projects, erect financ ial strength, skills and the decl arr outhousenot arrive too galore(postnominal) projects in hand.The successful contractor must follow the contract drawings and specifications to start the device realize. asserter in each case must responsible for his leanmanship and material, including buy the farm by sub-contractors and suppliers. Any defects, purpose errors or generated misuse, the contractor has to use his receive currency to repair or settle the problems.Contractors righteousness thickening Consultants responsiblenessFigure The Linear or Sequential Process of the Traditional Procurement System (Rosli, A.R, 2006)There atomic number 18 some fibres of contract will be use in traditional procurement method.These contracts atomic number 18Lump meaning contractMeasurement contract follow reimbursement contract2.1.1 Lump fit contractBefore construction project start, the contract mating of this contract is already determined and the amount of project is fixed i n the covenant.The contractor must base on the fixed contract sum to construct a building. This contract is not overt to recalculate imputable to the contract sum is fixed. Once the construction work started, client not concede make either variation. still the contract sum can attain a limited change in make up of material, tote and whole kit and boodle if the changes of amount is determined by checking vouchers, a formula, invoice etc. (Frederick University Cyprus, 2007)There are 2 types of toughie sum contractwith quantitieswithout quantitiesLump sum contracts with quantities, client are establish on drawings and bills of quantities to pay to the contractor. It substance that any increase in the quantity of material, the contractor cannot claim with client. But contract can claim under provisional sum due to items are not accurately quantified. (Frederick University Cyprus, 2007)Lump sum contracts without quantities, client are based on drawings and contract document to pay to the contractor. It means that contractor can claim if thither is any variation about the quantity of material. When the c gawk sum is total the material price, the work which d angiotensin converting enzyme by contractor must described in the Schedule of Work. (Frederick University Cyprus, 2007)2.1.2 Measurement contractsSome clips are called as remeasurement contract or schedule of rate contract. In this contract, contractor will pay base on the unit prices in the agreement afterward he complete the work.All the items needed for the construction work is stated in the contract document and bill of quantities. The contractor has to acquire in the unit rate for each item and multiple with the quantities that calculate by Quantity surveyor to get the amount. (Frederick University Cyprus, 2007)2.1.3 Cost reimbursement contractsSome beats is called as woo plus contracts. The contractor in order to construct the building and he will be pay based on the effective be of mater ials, labour and plant plus certain percentage attain and all overheads. The profit and overheads normally will be 10% of the total make up of materials, labour and plant. (Frederick University Cyprus, 2007)There are three types of honorarium in cost reimbursement contractsCost plus percentage feeCost plush fixed feeCost reimbursement based on a target cost2.2 The cost, meter and part of via using Traditional Procurement Method2.2.1 CostIn the early stage of this system, client whitethorn require more money to pay those consultants which helped client design the project. But this giving client a guarantee to get the good price to complete the project due to all the design, drawings, and specifications is richly developed and described in detail ahead contractors start to bidding for the tender. Since client can date everyaffair via using this traditional method, contractor no chances to adjust the project price become heightser(prenominal) than normal price. Logically, thi s procurement system is very fair for client to get lower cost because all the competitors (contractors) must apply price to the project base on the bill of quantity that calculate by Quantity Surveyor. This system also can gibe over the variation cost but however for small amount of variation. (Rosli, A.R, 2006)2.2.2 TimeCompare with early(a) procurement system, traditional system take long-acting time than other system to complete the project due to the design and budget must meet and satisfy by client. Although it takes longer time to make grow but it considered is the best approach because client can clearly know actual cost to construct his project, can get better design from consultants and get better musical note control of the project. Client can use this longer time to make decision and check the project design with consultant team before start construction. (Rosli, A.R, 2006)2.2.3 QualityTraditional procurement method can come out with a construction project which is high quality controlled compare with other method. This method gives a bulk return to client to compare the consultants design, decide which design suit his budget, management the project, saved by consultants due to giving professional advice and construction expertise among consultants and contractor. Using this method can give more time for client and consultants to check and develop the design, drawings, and specifications to create a better tender document. But this method do not give any advantages for contractor, contractor no power to design the project because contractor will engage after client and consultants decided the design of project. (Rosli, A.R, 2006)2.3 Advantages Disadvantages of Traditional Procurement Method2.3.1 Advantages of Traditional Procurement MethodClient can controls the consultant team (design team)Client will have better control over the quality of whole kit and caboodleClient can obtain the best price through competitory tenderingCan easily a ccommodate any variation of the works as mandatory by the ClientClients interest is protected by the Consultants who dish out as advisors and independent certifiers in the building contractProvided that the design has been fully developed and uncertainties eliminated before tenders are experienced2.3.2 Disadvantages of Traditional Procurement MethodClient need to face many organisation due to many consultantsThe project need take long time to complete because many time is required in the early stage to design the building may be too cumbersome for the Client to orchestrate with the various consultantsthe performance of consultants is very important because can directly affect the progress of the works3.0 b) Procurement using origination and Build Method3.1 Introduction of endeavor and Build MethodIn the construction world there have four type of main procurement which is Procurement using Traditional methods, Procurement using blueprint and Build method, Procurement using Man agement methods and Procurement using co-ordinated or Partnering methods.In Procurement using Design and build method there is a method that to run a task in which the design and construction services are contracted by a single entity, it is known as thedesign-builderordesign-build contractor. From the history, Design and Build is kindred as pilot builders or master masons by the Ictinus and Callicrates when they built Parthenon in Athens. In Roman around 40 B.C, describing existing practice in the designed and construction of building was create verbally by Vitruvius. (Timothy N. Toler Toler Hanrahan LLC Atlanta, Georgia)3.2 FactsDesign and build is one of the procurement that using in building construction industry, following is the definition, method use and forms of contract.3.2.1 DefinitionDesign and build is a team consisting of general contractor, architect, and engineer. They are build-up to provide an proprietor with a one source point of contact for the design and co nstruction of their proposed project. Design and build is known as a mail boat apportion and it has been use in the building industry for a long plosive ago. (Jack W E Masterman, 2002) Beside, Design and build combines into a single aim the design responsibility of the project A/E and the building work on of the prime contractor.3.2.2 all inAs known package get along is one of the all in contracting and it is a type of procurement method where a contractor is given the responsibility for the whole thing that is required and necessary for the design, construction and delivery of the project. Beside, under this package write out system the service of the contractor will be include the preparedness of project brief, sketch and final working drawings getting all the encomium from authorities, project financing, construction, furnishing and commissioning of all equipments and accessories and handing over the project to the client.Turnkey contract is one of the American term for the all in or package contract. Under this system, a contractor is entrusting to undertake the responsibilities for every necessary and required thing for the construction, completion, commissioning and hand over the project. The word turnkey means that, upon completion, the client is given the key and he can then participate the project by turning the key. The contractor had to do the whole thing from preparing project brief, getting approval, designing, financing, construction, furnishing and decorating to commissioning and handing over completed, cleaned and ready for use project. give out and construct is also one of the integrated procurement which is much similar to design and build. In this case, the contractor is still given the responsibility for both the design and construction of the project. The difference is that, under Develop and Construct method the design consultants of client will prepare the concept of sketches or designs and passed them to the contractor and de velop them and produced the detailed working drawings. The contractor will construct and complete the project based on what it has developed and produced.3.2.3 Method Use / terra firma of procurementAs known that there have four type of procurement in building industry. Design and Build is one of the procurement that using in the construction industry. Main contractor in Design and Build procurement is responsible for undertaking both the design and construction work on a project, for an agreed lump-sum price.Design and Build project can be different depending on the contractors design responsibility and the sign design in the employers requirements.However, for the Design and Build the contractors design responsibility is much greater than traditional contract with a contractor designed portion.Beside, commensurate time is needed for the contractor to prepare the employers requirements (usually employer will appoint consultants to promote this). The sufficient time is needed fo r the contractor to prepare their proposal and the tender price. By the way, proposal that been prepared by the contractor must matches all of the employers requirements before any of the contract are entered into.Furthermore, normally employer has power to control over the design elements of the project according to their requirements. But once the contract is passes the responsibility to the contractor, so the employer has no direct control over the contractor detailed design.3.2.4 Forms of contractIn the Design and Build procurement there have some of the contract documents which is formal agreement, conditions of contract, employers requirements, contractor proposals and schedule of rates.3.3 Roles / responsibilities of each party abstruseParty involved in the Design and Build procurement is contractor and the client / employer. The responsibility of the contractor in the Design and Build procurement is concept design, tender and contracting, construction with detail design and the construction and hand over. Beside, the responsibility of the client and consultants is project brief, feasibility try out and tender document.Client and Consultant responsibilityConstruction and hand overDetail designConstructionTender andcontractingConceptdesignTenderDocumentFeasibilitystudyProject briefContractor responsibilityFigure The Integrated Process of Project Designing and Construction in the Design and Build Procurement System(Rosli, A.R, 2006)3.4 The cost, time and quality of via using Design and Build Method3.4.1 CostCost for one project of building is very important. In each of the procurement it has their extra way to price the cost of a building. In case of design and build, cost is fixed at the tender stage and is subject to design changes, normally it is often higher than the traditional contracting system. Comparison between the design build procurement and traditional procurement, traditional procurement design will be completed during tender stage and i t will set up a high aim of price foregone conclusion buy food for the fluctuations in the cost of labor and materials.The reason often is higher than the traditional contracting system is because once the tender is accepted, the tender price will be the final contract sum. It is not subject to change, unless there are variations required or instructed by the client. Such additional cost also cannot be avoided because under this procurement system the contractor will to take much of the financial risk.3.4.2 TimeIn design and build procurement also know fast-tracking orbuild-it-fast project. So that it is suitable for the private clients, who want readily return on their investment, especially for commercial projects. The projects can be procured by negotiation rather than competition. This is because the design and build procurement save a lot of time depends on traditional procurement. By the way, traditional methods are most suitable for both public and private clients who want to control the stipulated overall time for the construction projects. All the operations are subject to considerable scrutiny and governed by fairly strict procedures especially in government funded development agencies.3.4.3 QualityIn Design and Build procurement the whole construction plow (pre and post contract works) is undertaken by only one party which will slightly affect the quality level of the construction project. Design and build method is also suitable to the projects that need early completion, so the quality of the work will be affected.Its compared to the traditional method, traditional method It produce the highest quality of work. The project is usually competitively tendered to a contractor before work starts on a lump sum basis. The design will be done before the fountain of construction and thus, the quality of work will be higher. Each process of construction is undertaken by different parties having varied expertise in the building team.3.5 Advantages Disa dvantages of Design and Build MethodIn case of advantage of design and build procurement in construction industry, the advantage is it is suitable for all clients, including inexpert clients and those requiring distance from the project. By the way It is also cost certainty and faster track. Beside the disadvantage is it is not suitable for complex buildings and uncertain or developing client brief.4.0 d) Procurement using Integrated or Partnering Method4.1 Introduction of Integrated or Partnering MethodIntegrated or Partnering methods of procurement also can know as collaborative procurement. What is an Integrated and Partnering method? It is a form of procurement suited to large projects and a long term payload between two or more organisations for the usance of achieving specific business objectives by maximising the effectiveness of each participants resources. (Jack W E Masterman, 2002) Besides that, it also is about working as a team, regardless of organisation or location t o achieve and to meet a clients needs.In construction industry, the Integrated or Partnering methods is intended to focus the participants of a project is attentive to delivering a project on time, to budget and to quality. (Jack W E Masterman, 2002) This procurement methods will enables team building and measurement and progression of team performance on a project to project basis. another(prenominal) than that, it also knows as a parallel or single responsibility procurement system where the client will only need to deal with a single organisation for both the designing and constructing the proposed project. In addition, the method is also to ensure that the contractors and consultants fully involve into the Integrated and Partnering process.Furthermore, the general approach that using procurement using Integrated or Partnering methods is for the client organisation, consultants, contractors and selected sub-contractors to sign a partnering agreement and can be a legal contractu al agreement or regular contracts can be in score with the partnering objectives set down in a separate charter.In this situation, the social occasion of contractor will have to engage and be responsible for design and construction teams for the clients project. Under this method, the clients consultants will prepare a tender or bidding document that include the project brief and clients requirements by schooling giving by client. After that, the consultant will start invite a number of contractor to bid for the project. For submitting tenders, the invited contractor will produce their own design, construction and cost proposal. Usually the contractor that successful in bidding will into a contract based on lump sum price and a period of time that already fixed.4.2 The cost, time and quality of via using Integrated or Partnering Method4.2.1 CostThe Integrated or Partnering methods will help to reduce the cost of projects of the client. Although these are rocky to quantify accura tely as there is a very wide range of percentage savings reported worldwide. Besides that, additional cost are incurred by all partners as a expiration of the need to hold workshops and to train stuff and also as a result of the expenditure on extra management time. There is little doubt, however, that Integrated or Partnering method will produce greater reductions over cost than other procurement methods.4.2.2 TimeThe period of construction and design are reduced and sometime are shortened because the there are good relationship between consultant, contractor and client and with a good apprise about project by client and consultant and contractor can calculate the amount of the project needed and design a projects due to client requirements. Using this method can save a lot of time and select the most4.2.3 QualityUsing the Integrated or Partnering methods, the quality of the final product is improved and safety standards are heightened. This is because in return beneficial total quality management scheme can be jointly implemented which mean they are good in coordinate their work due to their specialist and can deliver the projects well and quality of the project will increase due to their efficiency.4.3 Advantages Disadvantages of Integrated or Partnering method4.3.1 Advantages of Integrated or Partnering methodConflict among all of the members of the project team, and peculiarly between client and contractor and contractor and subcontractor or supplier, is reduced, as the number of disputes and claim.Communication between all members of the project team is improved, and the establishment of shared objectives ensures that the clients needs and objective are known and understood by all of those involved.The achievement of more efficient working and greater productivity that has been enter as a result of the principle of continuous improvement will realize all participants in their general activities as well as the specific projects with which they are involved.When involved in Integrated or Partnering methods, the participants should benefit from the increased amount of innovative thinking and research and development that can be carried out as a result of sharing ideas and pooling resources.Contractors, when involved in Integrated or Partnering methods, are able to rely on proportion of their annual workload being assured for at least(prenominal) the duration of the partnering programmed, and the costs normally associated with tendering for the amount of work in the programmed will not be incurred.4.3.2 Disadvantages of Integrated or Partnering methodThere is always the possibility that the client will not be able, or may not wish, to honour the arrangement to provide as much work as was originally envisaged, leaving the other partners with voids in their order books which they may let on difficult to fill.The relationships built up during the partnered projects can lead to close associations which do not encourage new ideas or a high-energy approach to the management of the project. Team members, when returning to their parent organisations, may find that there has been a hiatus in their career progression and that they have difficulty in acclimatising to the different culture.Confidentiality can be compromised as a result of the opening up of information that is normally restricted to the organisations from which it originated.Maintaining the commitment of staff, and particularly senior management, especially during the early stages of a project or programme when the benefits of partnering have not yet become evident, can be problematic and may even prove to be impossible.Difficulties can swipe as a result of conflicts that may occur between the partnering charter or framework, which usually are not intended to have any legal standing, and the terms and conditions of the formal contracts between the various parties involved in the projects.