Procurement Routes for Construction - Presentation

This presentation discusses the different procurement routes for construction project management, including admeasurements contract, construction management, management contract, and design and build. It explores the advantages and disadvantages of each route and recommends the best procurement route for Central Queensland University. References are provided for further reading.

Central Queensland University
PPMP20011: Contract & Procurement management

About the project
 Central Queensland
university aims at
developing a campus at
Melbourne
 That will include a lecture’s
building for accommodating
300 student,
 laboratories for engineering
and computer
 A motel with 50 rooms
 Conference hall for
accommodating 250 people.

Procurement routes for construction
 The different procurement routes that are
available for construction project
management are as follows:
 procurement routes for construction
 Admeasurements contract:
 Construction management:
 Management contract:
 Design and build:

Admeasurements contract:
 This are mainly used for conducting a civil engineering projects.
 Actual quantities are identified and rates are applied
accordingly based on the need of the project.

Advantages
The major advantages are that it manages the quality
of the project effectively. Offers better reliability and
ensures better control over the systems requirements.

Disadvantages
The disadvantages includes it becomes difficult to
manage the time and that impacts the overall
performance of the construction.

Construction management:
 This procurement route includes conducting the work
by selecting different number of trade contractors that
will help in construction. The trade contractors are
mainly contracted with clients but are managed by a
construction manager.

Advantages
 The advantages that are offered with the use of
construction management are that it offers a better
way of building the projects, mainly in large scales.
This also offers an improved way of increasing the
reliability and creativity throughout the development
project. The strategy also ensures better
communication among the stakeholders that will help
in managing the team for developing the project.

Disadvantages
 While constructing a project the main
issues that are faced with using construction
procurement route is that due to open end
nature of the method it becomes difficult to
manage the task. In addition to this it also
leads to unnecessary exposes that has the
potentials of risking the budget of the
project.

management contract method
Management contract method
 Management contract includes appointing proper workers for
the purpose of managing the contract. This tends to act like
traditional contract and works accordingly. The management
contractor is responsible for managing all the activities taking
place within the project and the worker tends to perform based
on the fixed price provided to them by the project manager.

Advantages
 The major advantages that are offered with
management contract are that it helps in saving the
time and resources that are used for the purpose of
developing the project. This also helps in distributing
the responsibility in a better way is that it can provide
better resource management towards the human.

Disadvantages
 There are several disadvantages that come along with
the implementation of management contract method.
It becomes difficult to manage the operational control
as it impacts the management for company and
functioning gets impacted.

Design and build:
 Design and build procurement route
includes appointing a main
contractor that will be responsible
for designing and constructing the
works that are essential for the
project.
 This becomes important and
attractive as the project focuses on
delivering the product with proper
responsibility.
 The design and build project follows
either two stage tender process or
single stage. This route can provide
better help towards the CQU in
designing the project effectively.

Advantages
The major advantage that is offered with
the use of design and builds procurement
method is that it offers a single source of
accountability towards the project and
helps in managing the budget throughout
the project. The build and design
management also ensures that proper
communication is carried out by the
development team.

Disadvantages
The major disadvantages that are associated
with this procurement method include less
control over the details associated with the
planning and specifying the requirement
associated with the project. Secondly the
development process needs to have a proper
requirements de3finition at early stage so that
the project can be executed effectively.

Best procurement route for Central Queensland University
 After analyzing the case study
and the requirements set by
the Central Queensland
University it can be3 stated
that management contracting
method is the best for the
university.
 The main reason behind
choosing management
contracting is that it helps in
managing the trade contracts
that are placed by the client.

Recommendation
 It is highly recommended that there is a high
need to have proper control over activity by
assigning proper supervisor who will be responsible
for monitoring the activities that takes place within
the construction site. The main reason behind
recommending this route is that it has the ability
manage the task as per the need of university and
works in a way that it meets all the three constraints
set by the client.

References
Brook, M., 2016. Estimating and tendering for construction work.
Routledge.
Hornstein, H.A., 2015. The integration of project management and
organizational change management is now a necessity. International
Journal of Project Management, 33(2), pp.291-298.
Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems
approach to planning, scheduling, and controlling. John Wiley & Sons.