Essay on Procurement Strategy For A Construction Project

Essay on Procurement Strategy For A Construction Project

Length: 1188 words (3.4 double-spaced pages)

Rating: Good Essays

Open Document

Essay Preview

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 strategy will be made after analyzed the all factor that affect the procurement selection.

2.0 Report

Background of project
Project type : Office and Store
Client : Robert Gordon University
Source of fund : Public Funding
Time length : 12 months
Time for construction : 8 months
Time for full design,
BQ and tendering : 7 months

For this office and store project, there are numbers of procurement strategy which is commonly used and suitable for it. The types of procurement strategies are as below :

1. Traditional Lump Sum Contracts
For this type of contract, contractor and design team are two separated body which respond directly to the client. Client hires the design team and select the most suitable a main contractor to carry out the whole project. Normally, for this type of contract, all the drawing and document had completed before the selection of contractor.

Advantages :
• Price certainty
• Good quality of work
• Changes can be evaluated
Disadvantages :

... middle of paper ...

...R. RAMEEZDEEN (2006) A multiple decisive factor model for construction procurement system selection [online] London : Royal Institute of Chartered Surveyors. Available from : [ Accessed 18 April 2008]

THE SCOTTISH GOVERNMENT (2005) Construction work procurement guidance, [online] Scotland : The Scottish Government . Available from : [ Accessed 19 April 2008]

6.0 Bibliography

S.KENNEDY & A. AKINTOYE (1995) Quantity Surveyors’ role in design and build procurement method, [online] London : Royal Institute of Chartered Surveyors. Available from :
ttp:// [ Accessed 18 April 2008]

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Procurement Of The British Construction Industry Essay

- In the British construction industry, the term ‘procurement’ show a series of activities and processes undertaken by the developer or client to secure the construction or refurbishment of a building. The Government Procurement Service define procurement as the ‘whole process of acquisition from the third parties and covers goods, services and construction projects. This process spans the whole life cycle from initial concept and definition of business needs through to the end of the useful life of an asset or end of a service contract.’ ( Arun District Council, 2011) There are three main types of procurement methods that are commonly used in the British construction industry which are tra...   [tags: Construction, Project management, Architect]

Good Essays
1719 words (4.9 pages)

Different Procurement Methods: Pros and Cons Essay

- 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....   [tags: construction industry, project]

Good Essays
2190 words (6.3 pages)

Essay about Information Systems in the Construction Industry

- This report aims to shed light on the use of Information Systems in the Construction Industry in regards to what it adds to a given company’s “value chain” and its relationships to organisational strategy and competitive advantage. The construction industry is one the biggest sectors in the UK economy, and the world, contributing about 10% to the UK’s GDP and continuous to grow despite the recent economic downturn. The global construction market is facing changes as various businesses are still reacting to 2008 economic crisis....   [tags: Information Systems]

Good Essays
907 words (2.6 pages)

Essay on The Process of Surveying and Researching Project Managers

- ... Questionnaires will be designed to project managers/owners/key persons in a process that responses will be quantify based on a statistical software or Excel. This is needed to enable optional analysis of the answer from them. The unit of analysis for this research are the project managers/owners/key persons who involved in on-going electricity transmission projects. A set of approximately 25 pages questionnaire will be distributed via email. The questionnaires will be adapted (partly) from a research conducted by an Ethiopian scholar whom major case was on civil field contractors (Yimam, 2011)....   [tags: Indonesia, methodology, data]

Good Essays
982 words (2.8 pages)

Essay on Bureaucratic Barriers Of A Public Construction Project

- ... Due to construction site conditions, the contractor might be inability to use quantified on-site construction methods to achieve construction desires, producing the new requisite to transform the construction designs .so that the contractor demand the original construction method should be replaced by an innovative construction method. (Wu,2005) It makes the construction become efficient and safety if contractor requested change order generally, and also could make construction quality and surrounding friendliness....   [tags: Construction, Project management, Building]

Good Essays
974 words (2.8 pages)

Essay about Types Of Construction Projects And Mitigation Strategies

- ... Risk is the likelihood of hazards turning into mishaps. So mitigating the risk could prevent the mishap to happen. Every basic risk management process has four main steps: risk identification, risk assessment, risk response planning and risk control and monitoring. Firstly, the hazards causing risk are identified and categorized. Then the risk of each hazard is measured using qualitative and quantitative techniques like HRI and Iso-risk contour. These determine the relative level of potential mishap risk presented by an individual hazard....   [tags: Risk management, Project management, Construction]

Good Essays
888 words (2.5 pages)

Project Management Of The Construction Of A Dam Essay

- ... Based on the company revenue they divided into large medium and small scale companies As the scale of the company increases the failure percentage is also increases alarmingly with only 9 % success percentage compared to 16.2% and 28% of medium and small scale respectively which tells us the fact that more projects doesn’t exactly results in more success rate. So whatever may be the size of the company eventually success depends on the proper planning and execution. In the chaos report the projects are classified as success, challenged and impaired based on the on time and on budget completion....   [tags: Project management, Management, Failure]

Good Essays
776 words (2.2 pages)

Essay on Analysis of SNC-Lavalin

- Analysis of SNC-Lavalin Being one of the leading groups of engineering and construction companies in the world, SNC-Lavalin is one of the most exciting and stimulating companies to read about. Having offices across Canada, U.S., and in 30 other countries is just a small dose of their interesting attributes. Throughout this paper, the reader will understand the relevant steps and activities taken by SNC-Lavalin on a daily basis and on all projects. Having an innovative advanced management system and interesting projects around the world that involves revenues that total over $3 billion for 2003 are just a few traits that will capture any reader’s interests about a company....   [tags: Engineering Construction Company Canada Essays]

Good Essays
3769 words (10.8 pages)

Procurement in Project Management Essay

- Procurement in the main stream of the business world is to ensure organizations has the proper necessities for the selections process of the suppliers. Procurements within an organization helps to develop the right tools necessary when selecting and maintaining performance criteria, speciation’s and defines the terms and conditions in an organization. As set forth by the company the procurement area of the company conveys and develops the necessary values and mission with an in organization. In looking further into the importance of procurements we can determine the alternative methods to procurement, the methods necessary to keep procurement in order and the overall value of procurement wit...   [tags: selection process of suppliers]

Good Essays
761 words (2.2 pages)

Construction Industry The Organisational Structure Of The Company Essay

- ... The PS must always report back to the SRO. The PS must have a full understanding of the project and should relay this to the project manager and design team. The project manager represents the client and is the middle man between the design team and the client. The project manager makes sure the project runs smoothly on site from contract labour to materials and the contract running to the correct time scale. The project manager can also assist the client in appointing the design team. The architect is the leader of the design team....   [tags: Construction, Project management, Architect]

Good Essays
1115 words (3.2 pages)