Procurement Methods for Construction

Running head: PROCUREMENT METHODS FOR CONSTRUCTION
PROCUREMENT METHODS FOR CONSTRUCTION
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PROCUREMENT METHODS FOR CONSTRUCTION
Executive summary
The purpose of this report is to describe and analyze the advantages and disadvantages of three
different procurement methods including, traditional procurement methods, Integrated Project
delivery and Alliance contracting for construction projects. The report will be describing the
benefits and problems for the stakeholders of the project develop. The report introduces with the
important of construction industry and the different types of procurement methods and describes
each method. Further, it compares and contrasts the procurements methods in a table. Lastly, it
recommends ways and suggests the type of projects suitable for different procurement methods
and concludes the report.

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PROCUREMENT METHODS FOR CONSTRUCTION
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Different types of procurement methods.....................................................................................3
1. Traditional procurement methods........................................................................................4
2. Integrated Project delivery...................................................................................................5
3. Alliance contracting procurement method...........................................................................7
Comparison chart of three procurement methods (Love, Skitmore and Earl 2018)....................8
Recommendations............................................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

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PROCUREMENT METHODS FOR CONSTRUCTION
Introduction
The projects for constructions are highly complex in nature and are dynamic. It involves
a group of stakeholders along with various discrete individual members such as investors,
professionals, contractors, manufacturers and others. It also involves large range of
infrastructural facilities such as was disposal, manufacturing, housing, power supply,
transportation, water, power and others which are needed for the construction purpose. The
construction industry has immense power to an exceptional ability to provide the daily needs for
the human beings, it creates employments and investment is generated. Further the construction
industry hugely contributes to the economic growth of the country (Bolpagni 2013). In additional
to that, the government utilizes the construction industry to assist in the economic recoveries
from recessions. Therefore, it is highly essential for the construction industry, to effectively
complete the projects on time, on the agreed quality and on the correct budget. The purpose of
this report is to describe the characteristics of different methods of procurement, its advantages
and benefits and its impact on the key stakeholders such as clients and developer. Further, it
compares and contrasts the different procurement methods for construction and provides
recommendations on the projects that the most suitable for different procurement methods.
Discussion
Different types of procurement methods
Procurement methods are known as the methods which are used by the construction
process for securing a project. It is considered to be a project through which component of