Procurement Strategy 540 - Traditional Procurement Competitive Tender Process

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Introduction 140 Procurement strategy 540 – traditional procurement Competitive tender process 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). There are three stages to a traditional approach, those stages being the Preparation stage (Appraisal and…show more content…
The drawings that the bill of quantities was made from will also need to be in the package. The form of tender and the tender instructions (Time and place will also need to be sent. Once the tender is completed, one contractor must be chosen. Usually it is the one with the lowest price is chosen, as it will give the client the best value of money. However recently there have been many times were the lowest one is not chosen as it is too low and it may not give the client the moneys worth in the long term. One tender is chosen and one is chosen as a reserve, both of them are informed of their job. The chosen contractor is then to submit a fully priced bill of quantities for checking as soon as possible. With using this procurement route there are many advantages, such as the client retaining responsibility for the design team, the design team will report straight to the client to make sure quality controls are maintained. There is the assurance of price, as the client will understand the cost of the project, if all the work is fully designed in advance. This also allows a basis for variations to be priced at the rates given, it is also easier to analyse the prices. With this method the works can be done at the lowest price, getting the best value of money. (Consultations.rics.org, 2016) However with those advantages come disadvantage, such as for this to be effective, the has to be ready so fully designed before the tenders are requested, this could
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