Advanced Construction Procurement and Processes

Advanced Construction
Procurement and Processes
Scenario-1

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1.....................................................................................................................................1
Define its Characteristics of selected project type........................................................1
Attitude towards risk decision making..........................................................................2
Task 3.....................................................................................................................................3
Compare and evaluate different procurement methods................................................3
Justification of the selected procurement route.............................................................4
Evaluation of competitive and negotiated approaches in the selection........................4
Role and comparison between different types of subcontractors.................................5
CONCLUSION................................................................................................................................7
References:.......................................................................................................................................8

INTRODUCTION
Construction procurement and process is defined as the procedure of acquiring any
product or a service, in other words, it is a mode of allocating the obligation of designing and
constructing. It depends on the type of construction is to be done and accordingly which route
and what contractors are to be taken. Here the scenario is of constructing a building which will
contain various floors in which one floor will be allotted to the head office of the bank in London
of a client and other floors will be given on a lease for extra income generation to the other
institutional investors with advanced technologies (Ajayi and Oyedele, 2017). The following
discussions are made on the overview of the whole scenario, it's project type and characteristics
including economic environment, type of client and what is the risk attitude of the client, what
can be the briefing process with features and selection criteria of the contract, comparison of
forms of contract, pre and post contract documentations, different procurement methods,
justification of selecting the route of procurement, approaches in selecting the contractor,
comparison of types of subcontractors and finally the conclusion.
Task 1
Define its Characteristics of selected project type
Scenario explanation
Client is one of the top banking organisations which is planning to build a new Head
office in the City of London. The existing office is inadequate to accommodate the new
emerging technologies in the sector. The client therefore wishes to build this new building so that
it is not only a signature building with an artistic statement which gives the building prestige and
international acclaim but also reflects the commitment of the organisation to “sustainability” in
line with its CSR (corporate social responsibility) and satisfies the shareholders expectations in
term of “value for money”. The new building will serve the needs of the client and also offer
further income streams through leasing some of the floors to other institutional investors. The
client does not have in-house expertise to manage such a challenging project and is seeking
advice on the most appropriate method of procurement and contracts to achieve its ambition and
targets.
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Project type
The scenario is of the project type of commercialization where building is to be made for
the commercial purposes. It includes the services like banking and finance, selling and
purchasing of goods and services, warehousing and many more commercial activities in the
building which satisfy the requirements of the process needed to build up the floors and rooms.
Constructing such type of a building can take a good decision making among the contractors to
design the flow of the construction and infrastructure as per the the requirements of the offices
which is to be set up in the building on different floors for better operations in various
organizations. Structure of the building justifies or depicts the efficiency in management of the
people who will operate in the buildings for their own personal purposes (Ajayi, Oyedele and
Owolabi, 2017).
Project characteristics
Features of the project according to the given scenario will cover the new emerging
technologies which will contain the advanced technical devices for better operations in an
organizations. It is not only a signature building with an artistic statement which gives
the building prestige and international acclaim but also reflects the commitment of the
organisation to “sustainability” in line with its CSR that is corporate social responsibility and
satisfies the shareholders expectations in term of value for money. The new building
will serve the needs of the client and also offer further income streams through leasing
some of the floors to other institutional investors. Therefore, client will seek the advice for the
most appropriate method of procurement and contracts to
achieve its ambition and targets.
Factor: Economic environment
Constructing a building is not an easy task because a deep analysis needs to be done in
terms of cost, price, operations, services, facilities, securities and many more. Economic
environment is the biggest factor that can affects the building construction in terms of it's cost in
repairing, alterations and upgraded works (Alwan, Jones and Holgate, 2017). This cost does not
includes the constructing and living cost, but other extra cost of maintenance which is needed to
be bear by the owner of the building and moreover, this cost is accordingly to the sustainable
environment of the building so that they can take preventive measures in sustainability of the
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