Contract and Procurement in Construction Industry

This presentation provides an overview of contract and procurement in the construction industry. It discusses the various routes to procurement, analyzes the best methodology for management contracting, and explores the advantages and disadvantages of different procurement methods. The presentation also emphasizes the importance of cost, time, and quality in construction contracts.

Contract and procurement

Introduction
Procurement involves bidding and
tendering.
The case study is about the project
pertaining to the extension of Central
Queensland University.
There are various routes to procurement.
The standards, are time cost and quality

Analysis
The main reason for the
project in terms of
expansion is to
accommodate more
students.
Appointment of a firm
to provide consultancy
services.
Infrastructural and
technological
advancement.

Procurement routes
There are various
methods of
procurement.
Traditional method.
Design and built
method.
Public-Private
Partnership method.
Management
Contracting method.

Best route (Methodology)
Management contracting
method.
Cost-
effectiven
ess.
Total Quality
Management
Avoidance of delays
•Total Quality Management.

Advantages
Better in comparison to other forms of
procurement
Little or no involvement of bureaucracy
Contractor not being solely responsible.
No requirement of collaboration between
public and private sector.

Disadvantages
Firm charging a huge amount possibly.
Disagreements amongst the contractors
involved.

Cost, time and quality
Costs have to result in the generation of
profits and revenues.
Solutions to be provided in a timely
manner.
Qualitative results due to consultation for
the project.

Best kind of contract
Lump sum amount of money to the
contractor.
Contractor can pay the wages of the
workers in a timely manner.
No issues relating to the costs involved in
the project.

Own Contribution
Undertook research on construction
contracts.
Took account of the factors pertaining to
cost, quality and time in accordance with
construction contracts.

Research Methodology
Secondary data.
Accessed online sources such as electronic
books and journals.

Research Methodology
The sources imply the procedures involved
in construction contracts.
They also signify the aspects pertaining to
the methods of procurement

Research Methodology
The data has been collected and analysed
accordingly.
The methodology has also helped in the
identification of the best route to
procurement accordingly

Experience
I had an opportunity to present my own
ideas in a group of ten
The group members were very helpful and
co-operative.

Challenges
Adherence to schedule on part of group
members.
Allocation of resources for the project.

Conclusion
Management Procurement method the best route
regarding procurement.
Payment of limp sum amount of money to the
contractor the best kind of contract.
Cost, time and quality have important role to play in
construction contracts.

Reference List
Ashworth, A. and Perera, S., 2018. Contractual procedures in the
construction industry. 3rd ed. Abingdon: Routledge.
Halpin, D.W., Lucko, G. and Senior, B.A., 2017. Construction
management. 6th ed. New Jersey: John Wiley & Sons.
Naoum, S. and Egbu, C., 2015. Critical review of procurement
method research in construction journals. Procedia Economics and
Finance, 21, pp.6-13.
Salah, A. and Moselhi, O., 2016. Risk identification and assessment
for engineering procurement construction management projects
using fuzzy set theory. Canadian Journal of Civil Engineering, 43(5),
pp.429-442.
Sears, S.K., Sears, G.A., Clough, R.H., Rounds, J.L. and Segner, R.O.,
2015. Construction project management. 6th ed. New Jersey: John
Wiley & Sons.
Turner, J.R., 2017. Contracting for project management. 3rd ed.
Abingdon: Routledge.