Types Of Procurement Within The Construction Industry

1929 Words8 Pages
Types of Procurement The most commonly used system within the construction industry, is for the client to appoint a company to carry out the work on their behalf. A contractor is selected to carry out this work either directly or through an Architect. The procurement process can adhere to a number of different systems that will determine, evaluate and appoint a contractor for a process, and the choice will be made, considering these factors along with the constraints that are pertinent to the contract itself. Traditional This method typically uses the standard form of contract by the Joint Contracts Tribunal (JCT). The contract requires the contractor to carry out the building according to the drawings and specification drawn up by the…show more content…
Project management can be used on projects of any size, though it is normally used on larger developments. The Project Manager will direct the client in the selection of a suitable procurement system, appoint all members of the construction team and controls and organises the project. Appointed on a fee basis, which is independent of the cost of the contract. This generally ensures that the project manager works only for the client 's interest, as he earns no commission. The method of procurement should be selected on the basis of the priorities for the contract, cost lead time duration of the works form of contract quality anticipated are a few of the considerations but each contract will have its priorities defined during the feasibility and design process. Types of Tendering The majority of builders still obtain much of their work by the system of tendering, especially for new work or work of some importance as opposed to smaller or repair work. Tendering for work takes various forms; all cost money to prepare yet many tenders are unsuccessful. Success rates vary according to the companies tendering strategy. Open Tendering Local or national newspapers will put advertisements in their publications on behalf of clients stating that tenders are required to carry out a construction contract. It is not commonly used but it gives up and coming contractors the opportunity to tender or establish themselves. Selective Tendering Architectural practices and local
Open Document