Procurement is defined as the formal procedure Questions 2022

Answer 1-
Procurement is defi ned as the formalprocedure
performed to obtain good and services. In
contextofconstruction sector, multipleavenues
are there to procure the design and construction
of any construction. It is also known as the
method which manages potential risk constraints
andvarious preferences in construction
activities.Procurementroutesusuallyconsistsoff ollo
wingelements-
 Requirements of the keystakeholdersin well
documented form.
 Presence of competitve tendering.
 Abundance ofpay masters.
 Risk tranfer from the employer- developer to
those who are able to minimise the risk
events.
 Control and monitoringof the construction by
stakeholders.
 Commissioning of the facilities of build, own,
transfer(Port Moresby Electrical, 2019).
Procurementstrategy- The three major areas
covered under procurementstrategies are project
delivery, payment type and phases of the
procurement process(Fox, 2019).
In context of the project delivery methods, there
are three type ofprocurement strategy among
which one is traditional and othertwo are
collaborative procurement strategies.
Traditional method- It is the conventional
method of constructing a building in which, a
contractor will get designated a site withthe
entirerelevant plan from his employer to
construct a building. It is also known as lump -

sum method of
procurement(Designingbuildings.co.uk, 2019).
Advantages –
 It is most suitable for client as it has
fl exibility of design.
 It ensures the quality of built.
 Risk allocation is clear.
 Certainty in context of cost of construction.
Disadvantages-
 Time consuming approach as lot of time
devoted to design.
 Too many contracts involve. Distinct Design
team and construction team.
 Flexibility causes disputes as frequent plan
changes leads to cost variations.
 Not favourable to contractors as it involve
risk distribution and design control.
Design and build-This is the type of
collaborative approach in which the contractor
had the duty of designing the whole plan and
then constructing the building as per the briefs
and specifi cations given by his employer or
individual client. This process has the room for
contractor to use hisexpertise and knowledge in
designing the plan also. He can also help the
employer in reducing the cost of construction,
using the space effi ciently along with meeting all
the relevant
requirements(Designandbuild.com.au, 2019).
Advantages-
 Rapid construction and provision of fi xed cost
or at-least guaranteed maximum cost.

 Lowest risk to client as requirements already
defi ned and contractors will be accountable
for relevant changes.
 Single point of contact causes smooth
communication.
 Expertise of contractor available. Also
advantage for contractor in terms of design
control.
Disadvantages-
 Cost cutting from contractor side to maximise
profi t.
 Risk on the client side due to absence of
checks and balances.
 Non-Adherence to specifi cations, technical
requirements, project objective cause
speculations.
 Quality issue due to cheapest approach to
procurement.
Public private partnership(PPP)-It is one of
the most effi cient procurement startegy for long
term project that involves collaborative
coordination between variouspublic and private
sectors authorities. It is an integrative deliver
strategy that include local, state and national
level projects.Public private partnership model,
as its name suggestsis characterised by the role
of entities determined to perform certain specifi c
job.
Advantage-
 It mange public resources effi ciently and
ensure public investment.
 It ensure higher qualityandtimelyprovisions of
public services.

 It is most suitable for complex projects with
uncertain future specifi cations.
 It is advantageous for clients as it emphasise
on risksharingbetween public and private
entity.
Disadvantage-
 Lacks of checks and balances.
 Uncertainty about the authenticity of relevant
specifi cations.
 Its has drawbacks of expensive
servicedelivery.
 It is more longer procurement startegy with
complex project provisions.
 Most of the projects are infl exible due to
collaboration between variouscontractors,
companies and teams.
Comparison of these strategies for procurement
depends upon the experience of client to a great
extent. As in case of fl exibility and uncertainty
about the design of construction, traditional
method will be more benefi cial than others.
Although client will face time constraints but the
construction will be in full satisfaction of the
client. Design and build method will be benefi cial
over traditional method if client has cost
constraint and want rapid construction. This
method also has client space for the suggestions
on the ongoing construction from the side of
contractor. This method has concerns regarding
the quality of the procurement as contractors will
be more skewed towards profi t maximisation and
can practice cheap procurement. However, in
case of constructions with innovative,
sophisticated and complex nature, public
partnership is best suited as it has the expertise
for every section of construction and is highly