2Executive summary The procurement processes are major parts of the construction industry and projects to beparticular. The success of a construction project is usually determined from the initial stages through the procurement process chosen. Many elements and parts, which take part in the construction project, rely on the procurement process to state the manner on which these processes will be carried out. Therefore, the procurement process will influence the whole construction process and able to determine the success of the construction projects. There are different procurement processes, which can be adopted on a construction project. Some of the key element includes the risks involved and whom to bear them; cost element of the project, completion timeline available for the project among other factors (Baldwin & Bordoli, 2014). Whichever procurement method chosen, different construction stakeholders are able to enjoy some extend of benefits as well as some key problems associated with the method.
3ContentsExecutive summary..........................................................................................................................................21. Introduction...............................................................................................................................................42. Procurement methods..................................................................................................................................42.1. Design and construct procurement......................................................................................................4Advantages...................................................................................................................................................5Disadvantages...............................................................................................................................................6Benefits to stakeholders...............................................................................................................................6Problems to stakeholders.............................................................................................................................7Preferred projects........................................................................................................................................72.2. Management procurement....................................................................................................................7Advantages...................................................................................................................................................8Disadvantages...............................................................................................................................................9Benefits to stakeholder.................................................................................................................................9Problems to stakeholder..............................................................................................................................9Preferred projects......................................................................................................................................102.3. Collaborative procurement.................................................................................................................10Advantages.................................................................................................................................................11Disadvantages.............................................................................................................................................11Benefits to stakeholders.............................................................................................................................11Problems to stakeholders...........................................................................................................................11Preferred project........................................................................................................................................123. Conclusion..................................................................................................................................................124. References...................................................................................................................................................13
41. Introduction The success of a construction project is usually determined from the initial stages through the procurement process chosen. The procurement process will influence the whole construction process and able to determine the success of the construction projects. This paper will analyze three key procurement methods namely design and construct procurement method, management procurement method and collaborative procurement. This paper will analyse the positive and negative impacts, which are accrued when these methods are adopted in construction projects. Additionally, it will look at the benefits and risks, which the different stakeholders experience when either of the methods is chosen.2. Procurement methods 2.1. Design and construct procurementOne of the key procurement method, which is gaining popularity in construction projects, is the design and constructs procurement method. As the name suggests, the procurement method can allow the commencement of the construction phase while the design process is still on the process (Victorian State Government, 2006). The adoption of this method is usually done to ensure that the completion of the project is completed in time. Moreover, under this procurementmethod, different details of the project are given in advance and therefore enhancing the stakeholders planning. Additionally, under this method, the contractor can bear most of the risks in design and implementation of the project. The terms of the contract sum are provided through competitive pricing, which the client can control (Infrastructure Australia, 2012). Under this method, different approaches, which are able to define the relationship and responsibilities of different stakeholders, are usually stated. The following diagrams are able to highlight the different approaches, which are used when this method is applied in a construction project.
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