Procurement & Management of Construction for MSc CPM and QS

This document discusses procurement routes, advantages, and appropriate methods for construction management. It covers topics such as productivity, lean construction, and BIM (Building Information Modelling). The content is relevant for MSc CPM and QS students.

Procurement & Management of
Construction for MSc CPM and QS

Table of Contents
Question1. Identification of procurement routes for facilitating contractor involvement and
illustrate their advantages.......................................................................................................1
Question2. Choose appropriate procurement method............................................................2
Question3. Determine procurement methods for attaining criteria by illustrating characteristics
of routes..................................................................................................................................4
a) Productivity........................................................................................................................4
b) Lean Construction..............................................................................................................5
c) BIM (Building Information Modelling).............................................................................6
d) Innovation..........................................................................................................................7
References........................................................................................................................................9

Question1. Identification of procurement routes for facilitating contractor involvement and
illustrate their advantages
Contractors are widely accepted within the construction industry where contractors are
involved in designing as well as developing complete process at front end. This leads to creation
of affirmative influence on the outcomes that are attained via accomplishment of the project.
They are liable for rendering design team within relevant concept design for constructing it like a
process while conducting tendering process (Afolabi and et. al, 2019). ECI (Early contractor
involvement) is liable for furnishing improvisations in context of increase within value of money
through which delivery of time can be ensured. By opting for this approach, the owner can have
enhanced control on project cost as well as biding must be clearly specified within the process.
Client have to make sure that social along with environmental measures are executed in the
planning process. This will enable them to be beneficial for owners as well as all the
stakeholders associated with construction business in context of better development and
designing of entire process. For this rationale, mediated procurement route will aid within
facilitation for ECI in easy manner in which additional actors are being introduced. Rather than
this the rationale is mediated via procurement route that assists within facilitation that is liable
for development of designs along with other processes associated with tendering processes. This
is responsible to render integration for fragmented coalition within the project (Almatroushi and
et. al, 2020). Furthermore, a notable feature related with route involves segregation for
management of complete process.
The early contractor involvement via mediated procurement methodology is effectual as
well as beneficial while integrating different phases related with the project as contractors often
possess enhanced experience in comparison of designers, local practices, durability or materials
and their clients. Such kind of benefits will be measured while conducting distinct stages related
with the process, they are specified beneath:
 This is conducted via mediator route where contractors are engaged within development
process for preparation for preliminary designs that are based on principle that looks from
buildability aspects of the project. This comprises of know how concept is related with
actual process of construction along with cost of design process (Bao and et. al, 2019).
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 It comprises of procedure for designing as well as construct model but by collaborating
with principles and contractor, work can be attained throughout. Apart from this, the
advantage that can be attained by this is mediated procurement routes that will facilitate
their ability to address adversarial relationship among contractors as well as principles for
coping up with uncertainties or conflicts that takes place while conducting large projects.
These stages will further aid within minimising contract variations as well as conflict by
rendering opportunities to contractors for development and refining designs along with scope
related with project (Bohari and et. al, 2020). This is generally favoured via clients where the
primary concerns is project programme and are willing for paying more for shorter frame of
time. Mediated routes will enable owner and stakeholders for altering objectives while
conducting project with respect to alterations that are made within the market by facilitating built
facilities.
Question2. Choose appropriate procurement method
Determination of optimal procurement method is regarded like one of the challenging
task that constructs public properties such as schools. The availability of different methods will
be taken into considerations that have to be addressed that comprises of intents of client behind
development, requirement of project, quality expectations, time-frame to complete project,
budget including building & running costs, etc. By determination of aspects before formulation
of plans related with project, there will be assistance for implementation of enhanced
procurement methods associated with execution of the project (Habibi, Kermanshachi and
Rouhanizadeh, 2019). With reference to present needs that are construction of new school
building for dementia children, it is necessary to choose relevant procurement methods but there
are certain factors that must be taken into consideration. This comprises of anticipated budget,
time constraints, financing and risks. As school is designed for children who have certain
disabilities, some critical considerations must be given while designing as well as developing
facilities for such kind of child in context of mobility restrictions. In this case, it is necessary that
slope must be 1 foot over 15 feet for younger children as well as 12 foot for adults. In this
manner, 2-way traffic can be generated, curbed aisles must be segregated by railing for ensuring
safety factors for the children and in this case there can be a loss of control. The facility of
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handrail at apt height for distinct age groups as well as ramp must be made with material that
will not slip like concrete areas at top, etc. that must be rendered in the school building (Kabirifar
and Mojtahedi, 2019).
As different procurement methods are present, they are categorised into traditional as
well as alternative. In case of traditional methods they comprises of re-measurable, lump-sum,
cost reimbursement along with alternative methodology that comprises of management contract
along with designing & building techniques. By taking into consideration of demands of
construction, special facilities must be delivered within designing of new schools for child who
has certain disabilities and for this design & procurement will be utilised. Thus, client has to
attain clear idea related with costs along with complete design process that have certain
flexibility. In this case contractor is liable to design complete process to build as well as conduct
the same in efficient manner.
Key Features related with design & built contract procurement route:
 Design: This involves justified usage of design as well as built method for particular
project as per needs of the client.
 Plan: Contractors possess entire liabilities for accomplishment expectations of their
clients in context of cost and time flexibility.
 Organise: Resources must be organised for completion of project as per the constraints
that are being given (Lam, 2019).
 Control: Anticipated quality of building project has to be controlled by taking into
account disabled students by making use of design & build.
 Execute: The project that is being given can be implemented as well as handed to clients
according to certain time frame along with budget.
The budget, that is needed by construction firm for building new school by making use of
design as well as procurement methods. This is illustrated beneath:
Particulars Amount
Resources £15000
Salary of labour £16000
Wages of managers £20000
Compensation for £24000
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engineers
Equipments £40000
Relevant facilities £8000
R&D £4000
Other overheads £16000
Total £143000
Question3. Determine procurement methods for attaining criteria by illustrating characteristics of
routes
a) Productivity
Recruiting effective management is regarded to be the most essential aspect for
facilitating increment in the productivity on the construction site whereby professionals have a
great role to play. However, in the case of complex as well as large projects, this tends to give
rise to several difficulties in the form of risks and thereby transfer the roles as well as
responsibilities of the management to the contractors and linked personnel of the respective field.
This may place influence on the productivity as well as progression of the construction project.
Thus, the application of management contracting procurement method will be advantageous in
terms of facilitating risk reduction in case only few contractors are hired in the beginning stage
of the construction project. This is mainly facilitated with the intent to get them involved in the
initial stage of designing. With the help of this procurement method, the client can make
interaction with the contractor to obtain data regarding the entire plan, thereby effectively
managing the progress of the project. Besides this, for development as well as increment of the
project productivity, the contractors can repay cost in accordance with the agreement (Lingard,
Oswald and Le, 2019). Appointment of sub-contractors in the pre-contract phase will provide
due assistance to the contractor in obtaining their involvement for getting better ideas to ensure
extensive development. This will help in review of the project strategies’ feasibility and getting
aid for additional approvals. Likewise, at the post-contract stage, appointment of the sub-
contractors will provide due assistance in the arrangement of accommodation along with the
welfare facilities on site. Thus, the involvement of sub contractors in pre contract as well as post
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contract phases will assist in minimisation of the risk of failure with maintenance of the progress
that leads to the increment of project productivity.
b) Lean Construction
Lean Construction is inclusive of a combo of operational research along with practical
execution of design and construction with the implementation of lean principles. Such kind of
construction is primary related to the alignment of constant improvements in the overall
procedure such as design, activation and so on. This is done with the main of carrying out the
construction in the least possible amount, thereby resulting into the maximisation of value for
fulfilment of the needs of the clients. Thus, management contracting procurement method is
acknowledged to be the most suitable method in this condition (Omotayo, Bankole and
Olubunmi Olanipekun, 2020). Within this method, the contractors can repay the cost in
accordance with the agreement inclusive of pre contract as well as post contract related cost post
the application of lean manufacturing principles. The characteristics pertaining to management
contracting which will underpin the facilitation of lean construction is known to be the
development of sound relations with the sub-contractors, vendors and other stakeholder groups
for maintenance of the project progress in order to ensure attainment of improved outcomes.
Lean construction implies the way for designing production system within construction
environment in which aim is to decline time, efforts along with wastage of materials. It is liable
for making sure that project is carried out in an appropriate manner as well as cost that have
occurred is minimum but quality of project is not compromised. The aim of this is to maximise
the value along with minimisation of cost that is associated with project maintenance, designing,
formulation of plans as well as activation through which overall productivity of the organisation
can be amplified adequately. The guiding principle that leads within decline in the construction
time, efficiency and management of productivity are contained within lean construction. There
are different principles that are associated with this concept, they are:
Identification of value from point of view of customers: The traditional approach
emphasise on requirements of customers like what they need to have, plans along with
specification. In this case, values are recognised by acknowledging requirements at distinct
levels of planning phase.
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Value stream: Once the value is acknowledged from view point of customers then this
will lead to lay out all processes that is crucial for delivering value. This is referred to as value
stream. It is important that the resources that do not lead to creation of values must be eradicated.
Elimination of wastage: The primal goal is to minimise as well as eliminate waste at
each opportunity. Here, initial aspect is to identify defects so that rework is not required. This
also comprises of overproduction, waiting, not utilisation of talent, transport, inventory, motion
and over processing.
Flow of working processes: This implies ideal state that is continuous along with have
uninterrupted flow of the work which is predictable as well as reliable. In this case, sequence acts
as a key within the construction. There has to be clear interaction among all the people within
attainment of the flow.
Pull planning as well as scheduling: This involves creation of reliable workflow that is
dependent on releasing work depending upon downstream requirements. Appropriate
communication and collaboration prevails by formulating schedule for tasks.
Continuous improvisation: It is probable as well as important to improvise processes as
well as eradicate unnecessary resources as this leads to decline within the cost. Furthermore,
there is a need for improvisation with reference to future project.
The critical assets that can be acquired by opting for lean construction comprises of
concurrent designing, engineering, objectives that will explicitly set of certain delivery processes
and employment within project control that is executed around project life cycle from designing
to delivery of end project. The perspectives of customers must be taken; ideas will lead to yield
performance for improvisation of construction and proactive execution of control management.
The metric will be utilised for defining planning that will be utilised within the lean construction.
c) BIM (Building Information Modelling)
BIM is defined like a 3D model that provides engineers, contractors, architects along
with other professionals for gaining insight into construction project o that all the aspects can be
covered in appropriate manner. By making use of BIM, all the related stakeholders can work in
collaborative way and have all the critical details associated with the project. This will further
lead them to have optimised designs in context of designing as well as improvisation of entire
lifecycle process that is associated with construction project. For facilitating BIM within the
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project, design and build procurement method will be utilised in which contractor to be has
appointed to set up complete plan (Li and et. al, 2019). This includes infrastructure designs, by
taking into consideration project constructability and many other aspects. It will further aid
within management of cost of project in efficient manner by implementation of BIM model
basically in refurbishment along with renovation of the project. Design and build contract are
relevant for clients in such kind of projects. Since in these processes, work must be carried out in
an immediate manner through which design can be finalised and procurement methods can be
formulated that will assist contractor within rendering maximised expertise at designed stage by
facilitating usage of BIM model that will aid within implementation of complete process.
Building information modelling implies intelligent 3D model based process that is liable for
giving AEC (architecture, engineering and construction) professionals that render insight along
with tools for effectively planning, designing, constructing as well as management of building
along with infrastructure. The digital description of each aspect is like a built asset that will lead
to withdraw information that is collaboratively assembled like a key stage for the project. The
BIM object is combination of distinct things that comprises of information content, properties of
the product such as hydro and thermal performance. Furthermore, geometrical illustration will
provide an insight into physical characteristics of the product and through visualisation of
information proper appearance can be given to the construction project. An insight can be taken
like through the usage of BIM simulation of construction site can be formulated that will enable
to have a precise design, alterations can be made so that better results can be attained (Salem,
Salman and Ghorai, 2018). In addition to this, functional data like detecting zones will allow
objects to be positioned as well as behaved within identical manner as product itself. The assets
that can be acquired by making use of BIM within construction comprises of enhanced
collaboration along with communication, cost estimation on the basis of model, visualisation of
project, improvised coordination through which clashes can be detected, declined cost,
mitigation of risk, improvised scheduling and amplified productivity. In addition to this, stronger
facility management can be attained depending upon building handover.
d) Innovation
Innovation is considered as one of the most important facet for every industry. In the
same manner, construction sector is also driven by the incorporation of innovation to ensure the
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streamlining of business operations. This helps in improving the project outcomes. Now, to
facilitate the introduction of innovation within construction and facilitation of improved facilities
to comply with the social as well as environmental concerns, the cost reimbursement route is
opted (Owusu and et. al, 2020). Dissimilar to the other kinds of contracts such as lump-sum,
management contracting and so on, it provides assistance in project valuation in the form of
designs and specifications. Cost reimbursement contracts also help in demonstrating evidences
related to the cost incurred in facilitation of innovation within the domain of construction. This
will lead to the reduction of conflicts which may emerge concerning the intentional cost
increment incurred to maximise the profits.
Improvisation is enhanced concept that comprises of improvisations within processes, services or
products. Off site fabrication is an innovation within the construction so that overall efficiency of
the processes can be enhanced. For an instance massive heat exchange fabrication will not only
lead to plugged in the site but better management can also e carried out in context of materials
and parts through which overall productivity as well as efficiency can be improvised. The other
aspect is modular construction, in which modules are constructed with same material but leads to
minimised environmental disruption. Mobile devices have created a significant impact like when
different parties involved within the project have to work together then same consolidated
information sources can be utilised which further leads to ensure that any loop do not exist
(Love, Teo and Morrison, 2018). This enables to have real-time analytics within the construction
project and also maintain track of conditions, costs and performance through the usage of
reporting tools. RTS (robotic total stations) furnishes traditional way for laying out building
services by making use of building drawings, theodolite (precision instrument to measure angles
and identification of attached points) and tape measures. But this cannot be utilised in case of
sophisticated buildings and the error margin is also high that might lead to serious clashes with
prefabricated systems along with other building services. Management of resources as well as
workforce is expensive process for construction organisations. When these will be effectual then
firms will be able to execute their operations in smooth manner, resources can be allocated in
optimised manner as well as unanticipated expenses can be further avoided. For this, firm can
opt for making use of different software platforms through which actionable analytics can be
carried out irrespective of their location.
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References
Books and Journals
Afolabi, A. and et. al, 2019. Critical success factors (CSFs) for e-Procurement adoption in the
Nigerian construction industry. Buildings, 9(2), p.47.
Almatroushi, H. And et. al, 2020. The multi resource leveling and materials procurement
problem: an integrated approach. Engineering, Construction and Architectural
Management.
Bao, Z. and et. al, 2019. Procurement innovation for a circular economy of construction and
demolition waste: Lessons learnt from Suzhou, China. Waste Management, 99, pp.12-21.
Bohari, A.A.M. and et. al, 2020. Key stakeholder values in encouraging green orientation of
construction procurement. Journal of Cleaner Production, p.122246.
Habibi, M., Kermanshachi, S. and Rouhanizadeh, B., 2019. Identifying and Measuring
Engineering, Procurement, and Construction (EPC) Key Performance Indicators and
Management Strategies. Infrastructures, 4(2), p.14.
Kabirifar, K. and Mojtahedi, M., 2019. The impact of Engineering, Procurement and
Construction (EPC) phases on project performance: A case of large-scale residential
construction project. Buildings, 9(1), p.15.
Lam, T.Y., 2019. A sustainable procurement approach for selection of construction consultants
in property and facilities management. Facilities.
Li, X. And et. al, 2019. What are the occupational hazards of construction project managers: A
data mining analysis in China. Safety Science, 134, p.105088.
Lingard, H., Oswald, D. and Le, T., 2019. Embedding occupational health and safety in the
procurement and management of infrastructure projects: institutional logics at play in the
context of new public management. Construction Management and Economics, 37(10),
pp.567-583.
Love, P. E., Teo, P. and Morrison, J., 2018. Revisiting quality failure costs in
construction. Journal of construction engineering and management, 144(2), p.05017020.
Omotayo, T., Bankole, A. and Olubunmi Olanipekun, A., 2020. An artificial neural network
approach to predicting most applicable post-contract cost controlling techniques in
construction projects. Applied Sciences, 10(15), p.5171.
Owusu, E.K. and et. al, 2020. Towards corruption-free cities: Measuring the effectiveness of
anti-corruption measures in infrastructure project procurement and management in Hong
Kong. Cities, 96, p.102435.
Salem, O., Salman, B. and Ghorai, S., 2018. Accelerating construction of roadway bridges using
alternative techniques and procurement methods. Transport, 33(2), pp.567-579.
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