* Procurement Definition: A basic definition for the procurement is “the way the building is realised” and “involves assembling and organising the skills and services of a team of construction professionals”. (the Construction Round Table, 1995). More precisely, the construction industry describes procurement as “a system that establishes the roles and relationships which make up a project organisation”; hence the overall organisation and communication structure for the management, administration and control of a project is established by the procurement system. (D.C.H Coles, 2010) * Procurement Systems essentiality: Choosing the most suitable procurement method for the specified construction project is a long term hard decision; it is a …show more content…
The client can appoint a project manager from his company “in-house” or an external consultant appointment. Overview for the Project Manager’s duties: A project manager can be appointed by the client (especially if it was an inexperienced client in the construction industry where the majority of clients in the UK fall into this category), in order to help him build up his business needs case for the project development, find alternatives and options that are more suitable in order to achieve his business needs, work out the investment appraisals and risk assessments, choose the most suitable procurement method for the project, select the project team, establish and supervise the performance. An important task the project manager must perform before adopting the procurement method is to approach the client, and understand specifically what does he requires and what the outcomes from the new construction building are, more specifically the objectives and the products of the building. After
The job of project manager, as performed by Ron Barnes of CanDo Construction Ltd., is fundamental in making things happen, as he is responsible for winning and completing projects. To do this successfully, he must gather an accurate assessment of the competition through direct contact, past experience, or second-hand reports. He must also organize available material and human resources, and determine the timeframe necessary to complete all processes of a project.
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At this point the scope of the project has been defined in detail and the project team are ready to be appointed. Although a Project Manager can be appointed at any stage of the project, s/he will need to be appointed prior to the establishment of the project team. The Project Manager is responsible for all aspects of project performance including: planning, budget execution, project execution, and close-out Funding.
Choosing construction management as a procurement strategy means the client is responsible for leading the
The principle of identifying the best procurement strategy is to manage the Client objectives and guarantee that the project sits within the correct price and within the appropriate time. It is apparent that whatever strategy adopted by the Client and its appointed professionals this might have an impact on the chosen procurement
It is proposed that a design and build form of procurement be used to carry out the works. Contrast this form of procurement with alternative methods of procurement with which you are familiar. Highlight the merits and demerits in each case. (25 Marks)
The traditional procurement route has become one of the standard approaches in the construction industry since the 19th century. The key characteristics of a traditional procurement route with a competitive tender process are competition or tendering cannot start until the design process is complete, the designing process is separate from the construction process and the lack of contractor involvement in the design process, with the design and technical development being carried out by the clients consultant. (Cartlidge, 2013).
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
Over the past few years, the construction industry has been changing dramatically. One of the most important stages in the construction management and business management is the planning phase. They share similar two main levels of planning which are the strategic and operational planning. However, business management planning to decide in advance what should be done, and how to do it, when you do and you are done. On the other hand, Construction management strategic planning is to deal with selection on a high level of overall objective of the project, including the scope, procurement methods, schedules and financing options but the planning of operations, including the
Procurement intends to explore supply market opportunities and to implement resourcing strategies that deliver the best possible supply outcome to the organization, its stakeholders and clients (Kidd, 2005). Therefore, construction procurement exists to purchase a construction project as requirement of firms or organizational entities to achieve its goals. However, the choice to use external resources is the part of firms’ decision-making
If the client opts for design and build as the preferred method of procurement the contractor is appointed earlier in the procurement process. The Contractor’s price can be based on differing levels of information provided by the client and this can range from a simple outline scope and a couple of sketched drawings to a full tender package.
Recent economic liberalisation of the construction market has placed private contractors in a stronger position to compete for work. At the same time, to be successful requires more sophisticated project management to enhance competitiveness (Fang, et al, 2004; Lim, et al., 2010). It is useful to identify the
The contractual agreement under a management contract may it is also referred to as a "construction management contract" or "project management contract". In this structure project manager is responsible for coordinating the designers and the willingness of the contractors to do the work. The prime contractor does not necessarily accept contractual liability for the result of the work, but simply acts in a leadership role on behalf of the employer.
An effective procurement plan and policy should set clear state roles and responsibilities, avoiding ambiguity and presenting a consistent framework for the council and its partners to work in (Chartered Institute of Procurement and Supply (CIPS) 2014). A procurement strategy should also take account of CBC’s need for projects delivered on time and within budget. The strategy aims to highlight the need for quality and sustainable development. The method of procurement depends on CBC’s need to be involved in the design process in new projects and the degree of certainty required with respect to cost of these works. For example there is a greater certainty of time and cost associated with the design and build form of procurement than with construction management or the traditional form of procurement. However CBC would have greater input in the design with the later forms of procurement than with the design and build option (Constructing Excellence 2004).
I am an elder son of a real estate banker; my father is always busy with the analysis of construction project budgets. He had his own library, with books ranging from construction estimation to procurement systems. These books are the seeds of curiousness inside me about the buildings and the science behind them. My mother being a mathematics teacher, made sure I had a strong grip over that subject all through my schooling. By the time I had to select my path into graduation, I was already inclined towards construction industry and opted for Architecture. It was a challenge to get selected among one million applicants. I graduated from “School of Planning and Architecture, India”, An Institute of National Importance, among the top three architecture schools in India. It was my mother’s mathematical nourishment which appreciated my chances of standing in top 0.001% (All India Rank – 870) in All India Engineering Entrance Exam. I was eager to contribute to the body of knowledge in construction industry and searched for the direction which can add value to the system. India being a developing country with world’s second largest population, construction resources are very important. I have observed a lot of scope for growth in the commercial sector and felt that thrifty approaches towards generic construction problems in commercial sector are to be modulated.