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Legal aspects in procurement
Procurement aspects
Procurement aspects
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In general, there are different types of procurement type for various situations due to no one method can be suitable under the all different construction project. In this case, there are four procurement paths, which are traditional, design and build, management and design and manage, will be advised to use. However, each method has different aspects of advantages and disadvantages.
First, traditional path is the tender documents have been prepared and then invite the tender and the employer appoints the contractor to construct the project.
There are several advantages of this traditional route in the construction industry. First, the designs are completed before tender and tender can provide good time and cost control. Also, the tenderer can receive complete information and design and they can be bidding on the same basis, so the competitive is fair. Moreover, this is design-led and the client can change the design ability, so the level of functionality and quality will be increased in the overall design. And then, it is relatively easy of variations to arrange and manage if the design will be changed because client’s needs and technology. Also, traditional paths are a tried and tested route, so it is well established and the market is very familiar with. Furthermore, it is good price certainty at the award of the contract because of full set information.
However, there are some disadvantages in the processes. First, it is very consume time in the pre contract process due to the strategy is sequential and construction cannot be started before the completion of design. Also, the contractor is not appointed in the design stage, so the contractor and supply chain are no input into the design or planning of the project. Mo...
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...oyer’s loss and expensive and can get the some remedy.
Works Cited
http://www.charlesrussell.co.uk/UserFiles/file/pdf/Construction%20&%20Engineering/Construction_and_Insolvency_-_Practical_Advice.pdf https://consultations.rics.org http://www.construction-innovation.info/images/pdfs/Research_library/ResearchLibraryC/2006-034-C/reports/Report_-_Building_Procurement_Methods.pdf http://www.crippslink.com/index.php?option=com_content&view=article&id=981:a-guide-to-surviving-main-contractor-insolvency-for-employers&catid=14:construction-law-publications&Itemid=537 http://www.pinsentmasons.com/PDF/LGSurvivalKit.pdf http://www.charlesrussell.co.uk/UserFiles/file/pdf/Construction%20&%20Engineering/Construction_and_Insolvency_-_Practical_Advice.pdf http://www.mondaq.com/australia/x/74680/Insolvency+Bankruptcy/Guarding+Against+Insolvency+Procurement+In+An+Economic+Downturn
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By eliminating uncertainty and ambiguity between the contractor and the contracting officers, the government could get rid of the divergent interpretations that inflate the cost. Realizing it is to the contractor’s advantage to pass on all expenses it can to the buyer in order to maximize profits every opportunity to clarify criteria for cost, reduce disagreement, and set clear limits are necessary. The difficulty in writing a contract to get rid of all unexpected cost is evident but doing it will cut down on the confusion over the life of the agreement. Defining costs allowed and which are not along with potential penalties for delayed service delivery will yield a better
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Definitions of ESI and EBI are arrived at based on extensive literature review and highlighted in block diagrams. ESI is perceived as an outcome of long- term relations and well managed permanent supply-chains which lead to knowledge integration, trust and cooperation and proactiveness. EBI on the contrary is perceived as an initiative to accumulating ‘relational capital’ which leads to ‘product perfection’. Evaluation of applicability and non-applicability of ESI to the four roles of SCM in construction by Vrijhoef and Koskela, 2000 is carried out. ESI is also pictured as ‘early supplier inputs’ as well as ‘early supplier intervention’. The script has been fairly positive on the application of ESI to the 4 roles other than to improve the supply chain. Within a buyer-supplier framework and the life span of a project, ESI has its limitations in contributing to SCM.
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This also applies to setting and stripping forms. The more you work with the same configuration, the fewer errors you make, and the faster the job goes. In formwork, though, there's an added benefit; the repetition saves you a lot of money. Because labour alone accounts for up to 30 percent of concrete structural frame costs, reductions in man-hours can significantly reduce job costs. Cutting man-hours is a team effort by the designer and the contractor. DESIGNER'S ROLE The designer can do two things to make formwork more constructible: repeat design modules, and avoid irregularities in the shape of concrete. CONTRACTOR'S ROLE Contractors also can lower formwork costs by following these recommendations: design formwork for quality and safety; lay out a detailed work plan for forming
According toMusau (2015), procurement performance entails how well organizational procurement objectives have been attained. The extent to which procurement function is able toobtain best value for spent organizational money to purchase products and services is the best indicator of procurement performance. Procurement performance entails two major aspects that is;efficiencyandeffectiveness. Effectiveness in procurementis essentially the extent to which previously stated firm purchasing goals and objectives have been met, on the other hand, procurement efficiency is the associationthat exists between planned and actual required resources needed to realize formulated goals and objectives as well as their related activities.Effectiveness in procurement
...ir non-automated competitors.”(Mahoney,J). Mahoney J speaks on how the companies with the CAD program have a certain edge over companies that still use manual drafting. Will also improve the work quality of their coworkers. Works on the communicative skills with customers and also other people when it’s time to present their house project. Constructions companies benefit from CAD. Makes house building easier. Makes building blueprints easier. All of this shows that Computer Aided Design can benefit the construction industry.
employs the paperwork system, faxing proposals, contracts, revisions, agreements and lists of preferred suppliers, and, finally, invoices. The key to successful project management relies on procurement quality, acquiring the right materials in a timely manner, delivered to the right place with teamwork between the client and project management team. Using a variety of web-based and conventional methods, the agile process may be used to employ a matrix of responsibility to assign home office and site responsibilities, as well as matrixes for consent, oversight and approvals, request for quotes, the definitive project specifications, and contract award dates based on installation sequence of events. Integrating this information into a schedule, guarantees that nothing is handled twice. The next phase of procurement is solicitation planning, where the Internet can be used to implement the project (Wayne Hall, Procurement Online, PM Network, March 2001...
This paper examines the legal aspects of procurement management and specifically how procurement management can be used as an effective tool for the overall management of a project. This paper focuses on the basics of common contract laws, the basics of agency law, the Uniform Commercial Code (UCC), and some aspects of that pertaining to the Federal Acquisition Regulations (FAR). A summation of the company’s position in relation to a given supplier (provided the company decides not to procure all of the material in a contract) will be examined along with how that position is strengthened by understanding the legal aspects of procurement management. Finally, the paper will analyze how the project manager is supported by the contract management function. Fleming (2003) posited that there is a clear and important distinction that should be made that delineates the work of the project from the inside work of the company.