Procurement Methods in Construction Industry

Procurement Report 1
Procurement Report
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Procurement Report 2
Executive Summary
The technological advancement directs impacts construction design and methods resulting into
complex procurement procedures to acquire the best contractor. The report analyses different
procurement methods used by construction companies with emphasis on the Design-bid-build,
Best Value source selection and the Integrated Project delivery, emphasizing on the advantages,
disadvantages and the best places of applications.

Procurement Report 3
Table of Contents
Introduction......................................................................................................................................4
Best value source selection..............................................................................................................4
The relationship between stakeholders involved.........................................................................5
Advantages and Disadvantages of Best Value Source Selection.................................................5
Projects Suited for Best Value Source Selection.........................................................................6
Design-Bid-Build.............................................................................................................................8
The relationship between stakeholders involved.........................................................................8
Advantages and Disadvantages of Design-Bid-Build.....................................................................9
Advantages...................................................................................................................................9
Disadvantages..............................................................................................................................9
The process requires significant owner expertise and resources and the three stages make the
process both expensive and slow...............................................................................................10
Projects suited to the design-bid-build method..........................................................................11
Integrated project delivery.............................................................................................................11
Relationship of stakeholders involved.......................................................................................12
Advantages and Disadvantages of Integrated Project Delivery.................................................13
Conclusion and opinion.................................................................................................................15
List of References..........................................................................................................................16

Procurement Report 4
Introduction
Large numbers of constructions industries are faced with different challenge respect. According
to a KPMG survey of construction managers in 2015, above 90of project sectors failed to come
to release their budget and time, an aspect that is attributed to poor project procurement method.
Procurement methods are defined as the procedures followed by project procuring entity to
acquire goods, services, and works and are always either competitive or non-competitive. The
choice of the appropriate procurement method is significant to both the project stakeholders and
clients as it determines the overall success of the project (Lopez and Love, 2012, p.588).
Different procurement methods have been applied by the construction methods, such as
traditional procurement system, whereby the design work is separate from the construction, and
upon the construction of the design process, the client chooses the contractor to carry out the
work through the bidding process (Stopka, 2016, p.197). Other methods include design-Bid-
Build, Multi-Prime, Job Order Contracting, and Contractor Pre-Qualification among many others
used by construction industries (Love 2012, p.314).This paper reports on the construction
procurement methods: the Best Value Source Selection, Design-Bid-Build, and the Integrated
Project Delivery taking into accounts of the advantages, disadvantages, stakeholders’
relationships and the best-suited applications of the approaches.