Evaluation and Comparison of Construction Procurement Methods

This report provides a comprehensive review and comparison of procurement methods within the UK construction industry. It begins by defining procurement and exploring various methods, including the traditional Design Bid Build (DBB) and modern approaches like Design and Build, two-stage open-book, cost-led procurement, and integrated project insurance. The report examines the advantages and disadvantages of each method, referencing government strategies and case studies. It also delves into the role of the surveyor in contract administration and the impact of procurement methods on innovation and legal relationships. The analysis includes data from surveys on procurement trends and highlights critical success factors for collaborative working within the construction sector, concluding with a reflective section on the learning process and areas for improvement.

Review, Comparison and
Evaluation

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
REFLECTIVE..................................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
In the present age in which all company and industry are trying and efforts in brining best
of the human into their industry thus helping in fighting competition. Construction industry within
UK is that is making best of road and all other infrastructure development within country so for
this they are procuring workforce. In the below literature review on different type pathways or
procedure that are followed and are available in construction industry to clients in 21st Century UK
will be covered.
MAIN BODY
Procurement of workforce which defined by Rose and Stegemann, (2018) is procedure that
is followed by companies from external source that is done to overcome competition and
minimizing risk as well. This is not only the process of finding workforce but also acquisition of
goods and services, from those external source only. Hong and Zhang, (2018) defined
procurement is having many types of methods or pathways which company that too especially
construction company is using as they are in more need of raw material and equipments.
Chan, Olanipekun and Ameyaw, (2018) said that in traditional systems when procurement
methods are used were different from those which are used at this current times. The Design Bid
Build (DBB) was used in past by many construction companies under which client was appointing
particular architect who was supposed to prepare brief, outline and working drawings. Thereafter,
client used to invite tender and administration of those projects which were they in charge of. In
this process Habibi, Kermanshachi and Safapour, (2018) mentioned that architects was having
right to also other than them appoint any consultant like quality reviewer and structural engineers.
Ansah and sorooshian, (2018) in this process of traditional systems identified some
advantage which include client could be ensuring that they are getting quality of work and also
they will be getting the best price through use of competitive tendering. One of the major merit
included was that of client were having control over the project so they could also easily request
any changes in projects.
Moreover, on the other hand Davtalab, Kazemian and Khoshnevis, (2018) said about its
demerits as well as this whole process took nearly a longer time period for complete construction
work. There was also many other channels or people who were included in whole process so
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communication took place which was also very complex. Thus, making difficult for client to
coordinate with others or various consultant into process.
Rose and Stegemann, (2018) mentioned that instead of using and applying traditional
method of procurement in this 21st Century companies must be employing various modern
methods which will be benefiting both company and client. Prasanna and Kumar, (2018)
explained the whole concept of design and build method which is based on same company taking
responsibility of both designing and construction of till the project completes.
Illustration 1: Relationship between parties in Design and Build contract
[Source: Birchall and Ramus, 2007]
Isaksson and Linderoth, (2018) mentioned some advantages which this design and build
method of procurement will be having like biggest is to save time and cost of construction. Other
merit which was mentioned was ease of communication as there is only one company which is
employed to perform whole task of construction. Both client and company are having direct
contact with each other which resulted in liability on one party only.
While Liao and Teo, (2018) mentioned some demerits which this process is having which
could be like client will not be having any kind of control on the process so they are not really
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allowed to put variation in work. Clients are also bound to select best kind of contractor who is
having very good track records and reputation within industry otherwise they could ruin whole
project.
Matthews and Ramanayaka, (2018) further explained that according to government
constructing strategy 2014 there are 3 modern methods which are used in this 21st century.
Among which Two stage open-book would be including projects like that of Cookham Wood
Youth Justice Board- Ministry of Justice. This project included the saving of about 20% and other
benefits were like that of cost and programming, innovation by collaboration and reduced
operating cost as well. Jiang, Wu and Tan, (2018) clarify that Archbishop Beck School Liverpool
project was also having saving up to 20% via improved employment and skills
and early engagement of team.
On the other hand Cost led procurement method which is another method is involving
about highest of 20% and lowest of 6% saving within it. In North West New Build Housing
project there was 20% of saving and other benefits included employment of 6 unemployed local
residents with NVQ quantification which could support them in the future. Durdyev, Banaitis and
Ihtiyar, (2018) also mentioned that Upper Mole Environment agency's project was having target of
15% total saving with benefits like that of driving innovation via supply chain integrated and
collaboration working of labour and economy. Measured benefits-
 It could be better collaboration, innovation and early involvement as well.
 Cost could be saved to about 10-20%.
Another type of procurement pathway according to Oke, Aigbavboa and Tong, (2018) will
be integrated project insurance which had taken up new models in 2016 in various sectors. The
sectors and there classification would be like health will be having expenses of about £650-750
million. In Education priority will be of building schools using National, regional and modular
frameworks using CLP which will be having savings of about 35%. While in environment agency
will be currently using CLP on flood alleviation scheme and nominating 3rd trial as said by
Akmam Syed Zakaria and Brewer, (2018).
The role of surveyor in contract or building part will be in area of contract administrating
in JCT contract and now the role are been changing providing balanced view of work. The work
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of this surveyor will be related to cost of construction work which will be of new building and
civil engineering projects. This is also said that surveyor role in the whole project will be
governed by standard forms and they must also be having knowledge about how will they
applying provisions. One of the most important duty which is defined by Clamp, Cox, Lupton and
Royal Institute of British Architects (2012) would be ensuring that financial administration
according to both parties are fair.
Teymourzadeh, Foroushani and Sari, (2016) clarifies Selecting of the procurement
strategies which have been there like from traditional or modern one will be depending upon what
is appropriate for the business. Procurement system will be very much important in setting up
roles, responsibility and risk which is to be shared between both client and contractor of the
project (A Comparative Study of Construction Cost and Commercial Management Services in the
UK and China, 2018). The methods of procurement will be varying from selection of tender
which one to be opted, then calling architects for drawing purpose, inviting for documentation of
construction firm then from appointing a single firm so that it could be responsible for whole
process. Many of the methods are concerned with those of partnership between private and large
scale pub lice sector firm. This will be including the frameworks of Private Finance Initiative
(PFI), Public Private Participation (PPP), Joint Venture And Build Operate Transfer (BOT)
In this aspect the role of surveyor will be very important traditional role will be including:
 Alternative cost advice on design solutions and cost planning.
 Assisting design team on cost implication of project.
 Based on the past record then they will be planning for cost by dividing it into element and
sub elements.
 Single rate approximate estimate and procurement advice.
 They will also be required to prepare bills and cost control during construction.
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Illustration 2: Comparative between procurement methods.
[Source: CONTRACTS IN USE
In the Construction 2025 they identified procurement as one of the five barriers in
innovation as this will be making hindrance between client and supply chain. Whatever it is
mentioned within the procurement method will be defining the legal relationship between client,
contractors and construction company (CONTRACTS IN USE A Survey of Building Contracts in
Use during, 2010). As said that this relationship is very much complex and method which is been
chosen can influence frameworks of project. As in the survey which was done on both private and
public sector activities said that they are still using the traditional methods which was about 47%.
While 39% of them said they would like to use Design and Build method this shows that modern
method is their second choice. In the year 2012 there was a downfall in the use of traditional
methods which was in 2011 about 72% and in 2012 it came down to 61% and at current situation
it is on 52%.
From the below table it was clear that in Design and build method there was decline in its
trend as in 2007 it was 21% and in 2010 it declined to 17% (New Models of Construction
Procurement, 2014). While in management contract it totally declined and came to 0% in 2010
which in 2007 was 0.7%. The partnership agreement in 2010 was only 1% and in 2007 it was
2.3%.
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Illustration 3: Trends in Methods of Procurement - by numbers of contracts
[Source: New Models of
Construction Procurement 2014]
There are majorly 6 critical success factors or collaborative working including early
involvement, selection value, common process and tools, measurement of performance, long term
relationship and aligned commercial arrangements (National Construction Contracts And Law
Survey, 2015).
The Chartered Institution of Building (CIOB) is the professional institution which is set up
for benefits of public and diversification of construction industry (The Chartered Institute of
Building, 2018). They are having mission to create progressive and modern construction industry
and also to be able in meeting environmental and economical challenges which are faced in
current century. About 46000 professional are the members of this firm all around the world
which are international voice of professional who are involved.
REFLECTIVE
While preforming this whole review and comparison of methods of procurement which
client will be using in this 21st century and what they were using in past certain things I have learnt
about topic. I have used many types of data collection source like that of various books written by
authors their articles and websites which are based on procurement methods. For this reflective
part I would be using Gibbs reflective model so I could understand what I have learnt and what
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need to be improved. In this part of report writing which is about procurement methods that are
used in recent times in the construction industry there are various sources of information which is
been used whose list is been provided in the referencing page. Rest what went well and what I
need to improve will be included in below mentioned part of reflective model of Gibbs. Secondary
method of data collection was used to analysis and collect the whole data which is been
mentioned within report.
Gibbs model:
Illustration 4: Gibbs model
[Source: Gibbs model, 2018]
Description- as I have done research on topic of procurement method which are been used in 21st
century and how are they different from traditional one. I have also included the role of surveyor
in the process of building up contract between client and constructing company. I have collected
the information and data from various books and also some form websites. I have learnt about
what is procurement pathways which could be used and how could they be identified by client
who is ready to build.
Feelings- my feelings during the process were mix and match as I was nervous that whether I
could be able to complete the project or not within the given time span and word count.
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Evaluation- as I was able to learn about the process which is to be followed in procurement or
tendering which was the point which went right. But my concepts about role of surveyor is still
not clear.
Conclusions- I need to improve my learning and reading process which I have followed in
conducing the research with which I'm not satisfied. I also need to get in touch with articles from
where I could gain more and more knowledge.
Actions- for this improvement I should be learning and reading more articles and books which are
written by authors and getting me more and more knowledge.
CONCLUSION
From the whole process which is been mentioned in above review and comparison
between traditional and modern pathways which are to be used by client while procurement. It is
observed that in present times also traditional methods are been used by some company while
other are engaged in more use of design and build method. Surveyor will behaving role under
which they are supposed to perform duty of cost controlling in project.
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REFERENCES
Books and Journals:
Akmam Syed Zakaria, S., and Brewer, G., 2018. Key factors influencing the decision to adopt
industrialised building systems technology in the Malaysian construction industry: an inter-
project perspective. Architectural Engineering and Design Management. 14(1-2). pp.27-45.
Ansah, R.H. and sorooshian, S., 2018. 4P delays in project management. Engineering,
Construction and Architectural Management, (just-accepted), pp.00-00.
Birchall, S. and Ramus, J.W., 2007. Contract practice for surveyors. Routledge.
Chan, A.P.C., Olanipekun, A.O. and Ameyaw, E.E., 2018. Critical barriers to green building
technologies adoption in developing countries: the case of Ghana. Journal of Cleaner
Production. 172. pp.1067-1079.
Clamp, H., Cox, S., Lupton, S. and Royal Institute of British Architects (2012) Which contract?:
choosing the appropriate building contract. 5th ed. London: RIBA.
Davtalab, O., Kazemian, A. and Khoshnevis, B., 2018. Perspectives on a BIM-integrated software
platform for robotic construction through Contour Crafting. Automation in Construction. 89.
pp.13-23.
Durdyev, S., Banaitis, A. and Ihtiyar, A., 2018. Sustainable Construction Industry in Cambodia:
Awareness, Drivers and Barriers. Sustainability. 10(2). p.392
Habibi, M., Kermanshachi, S. and Safapour, E., 2018, April. Engineering, Procurement and
Construction Cost and Schedule Performance Leading Indicators: State-of-the-Art Review.
In Proceedings of Construction Research Congress, ASCE, New Orleans, Louisiana.
Hong, J., and Zhang, W., 2018. Barriers to promoting prefabricated construction in China: A cost–
benefit analysis. Journal of Cleaner Production. 172. pp.649-660.
Isaksson, A. and Linderoth, H., 2018. Environmental considerations in the Swedish building and
construction industry: the role of costs, institutional setting, and information. Journal of
Housing and the Built Environment. pp.1-18.
Jiang, R., Wu, C. and Tan, J., 2018. A SWOT analysis for promoting off-site construction under
the backdrop of China’s new urbanisation. Journal of Cleaner Production. 173. pp.225-234.
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