Procurement Strategy For A Construction Project Essay

1195 Words 5 Pages
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 …show more content…
• Poor communication between the design team and contractor.

2. Management Contracting
This type of procurement strategy is a ‘fast track’ strategy. Client pays a sum of money to hire a management contractor to manage the whole construction project. Therefore, some early work can be carried out before the design is complete. The contract for the construction projects are between the management contractor and sub contractor. The final cost for the project can not be identified until the final work has been awarded.

Advantages :
• Shorter construction time
• Management contractor can advise client during the design stage
• Some risk can be transfer to management contractor
Disadvantages :
• Pre construction price uncertainty
• Delay of works may occur due to ineffective management.
3. Contract Management
Another ‘fast track’ strategy where work can be carry out before the design is complete. Construction manager is appointed in early state may benefit to the client. For this strategy, client have direct contract with the trade contractor. Same as management contracting, the final cost for the project can not be identified until the final work has been awarded.

Advantages :
• Suitable for project with high level of complexity
• Client control the design
• Change of design has little impact on the project time table
• Direct contract with sub contractor can get a lower price
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