Construction Business and Law: Group Report

Construction business and law 1
CONSTRUCTION MANAGEMENT: GROUP REPORT
By (student name)
Professor (tutor)
School (university)
Location
Date

Construction business and law 2
Contents
Introduction......................................................................................................................................3
1. Choice of most appropriate procurement route...........................................................................3
2. Standard form of contract..........................................................................................................10
3. Obligations, power and liabilities of related parties..................................................................11
4. Contract documents to be prepared for tender...........................................................................12
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

Construction business and law 3
Introduction
This study avails an insight to the different legal, management and procurement aspects that need
consideration for development of a construction product in the United Kingdom. Based on the
given case different aspect of contract, tendering and procurement has been evaluated.
1. Choice of most appropriate procurement route
Traditional method
The traditional method or the general contracting method is sequential in nature as the initiator,
the employer or in this case the developer, works on the scheme or the plan to an advance level
before approaching a contractor.
Figure 1: Links in rational procurement rout
(Source: Brook, 2016)
Employer
Contract administrator /
Quantity surveyor
Contractor
Supplier Sub-contractor

Construction business and law 4
As has been observed in the given case, the developers have little experience in management and
procurement, yet have a detailed understanding of the development and design therefore this
procurement route might be suitable for the development. However evaluation of the route based
on its advantages and disadvantages is essential. The following table avails an insight to the pros
and cons of the traditional method:
Pros Cons
 Certainty in terms of quality
 Highly competitive (Bako, 2016)
 Provides the client or contractor a clear
understanding what the builder plans to
offer
 Popular method
 Accountability is certain
 Attractive to clients due to certainty
 High sale (Brook, 2016)
 Time consuming
 Provides less scope for improvisation
 Changes or variations in the plan causes
huge impact on the cost
 Has an adversarial tone (Bako, 2016)
 Fails in addressing the issues like
controlling the disputes or issues
 Lack of awareness of the work of
design and construction departments
(Brook, 2016).
Table 1: pros and cons
(Source: created by student)
From the table above it is evident that lack of interaction between departments might be a
hindrance in successful completion of the project. However, appointment of an in-house project
manager might be helpful in mitigating this issue as here the project manager might be utilized as
a management tool instead of a procurement instrument like a consultant.