Construction Management: Procurement Method Report

Running head: CONSTRUCTION MANAGEMENT
Construction Management: Procurement Method Report
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1Construction ManagementCONSTRUCTION MANAGEMENT
Introduction
This report depicts the crucial importance of using the concept of procurement
management for accomplishing a construction project based on “building Information Modeling
(BIM)” within estimated budget and allotted time phase. The specific system chosen for this is
the application of BIM in the construction projects. Different procurement methods are there and
based on the construction requirement the most suitable method should have to be adopted by the
project associates.
The process of procurement can be defined as a key factor that helps to run a company
successfully and also helps to meet the business goals and live up the expectation of the
stakeholders (Hornstein 2015). The benefits and problems of procurement methods are all
elaborated in this report including a contrast and comparison. Apart from this, all suitable ethical
considerations must not be compromised while implementing the procurement method in the
BIM based construction project.
1. Different procurement method for the construction projects
Procurement management is referred to as a systematic approach that is utilized for
buying products and avail services required for the projects being sustainable. Appropriate
business values will be added to the business prcatices if the project manager successfully
manages the procurements (de Carvalho, Patah and de Souza Bido 2015). It has been found that
professional business practices can save both the money and time of the projects. The aim of any
successful procurement method is to deliver continuous improvement direction to the business
by integrating some actions like planning, alignment, procurement and manage. The different
procurement methods are elaborated in the below section:

2Construction ManagementCONSTRUCTION MANAGEMENT
1.1 Small purchase
It is found that, whenever the construction related project services are all aggregated
values and less than $150,000 (for profit, public and non-profit) then only the construction
projects should adopt and use the idea of this procurement method (Papke-Shields and Boyer-
Wright 2017). The construction project manager will be able to obtain competitive quotation of
price from the sellers as soon as the purchasing agent contact three raw material and other
service suppliers who are known to them. Different from the sealed bidding in those cases where
the bid price should be considered final, price negotiation and the more of suppliers contracted
gets permission. The written contact details and all other information as well as prices should be
demonstrated in the files of the purchase agents. It is the role of the construction project head to
convey all the information to the rest of the project suppliers regarding the purchasing agents file
(Nojavan, Zare and Mohammadi-Ivatloo 2015). For bringing individual purchase that is lesser
than the ordered purchase of $150,000, different small purchase method are not measured as
accurate.
1.2 Competitive sealed bidding
Whenever the expected procurement is found to be more than $150,000 in aggregated
values the services and products related to the construction projects then only this approach
should be selected. Based on the price the procurement should be designed. In order to conduct
a sealed biding the steps to be followed include bid specification preparation, procurement
publicizing opening of the bid and contract awards (Pheng 2018). Based on the specific
requirements of the contract the IFB should have to be approved by the contractor of the
construction project. As it is difficult to send the IFB to all the associates therefore, it is
acceptable to rotate the supplier’s lists. For the successful publicizing of the procurement a

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formal advertisement should be processed by the construction project manager. As per the
competitive market analysis it can be said that, a low bidder must be awarded till the bidder is
found as a non responsive one. Moreover, it can be said that this kind of contracts are always
requires to be well documented.
1.3 Non-competitive negotiation
This particular procurement process will be referred to as a valid one whenever, any
natural disaster committee prevents or the delays the publicizing process. Not only for this case
but also for the services and products which have only one source his particular approach of non
competitive negotiation is applicable (Heldman 2018). The contracts have more than $150,000
utilizing the non competitive negotiation should approve the contract.
2. Recommended procurement method
All three of these procurement methods have some negative influence and the
competitive negotiation will be appropriate whenever the procurement is predictable to be more
than $150,000. This is the most suitable recommended procurement methods among the
different. The complex technical nature of the procurement document can be completely
resolved with the successful implementation of the competitive negotiation approach (Papke-
Shields and Boyer-Wright 2017). For the factors such as research, development etc this
procurement approach is suitable enough. The steps that are to be followed accordingly for the
successful delivery of the competitive negotiation are as follows:
 The RFP prepared by the contact agency should represent the requirements and
the objectives clearly to the rest of the project associates