Strategic Construction Procurement: Methods

STRATEGIC CONSTRUCTION PROCUREMENT
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Executive summary
The procurement process choice is crucially important as far as the progress as well as success of
any construction project is concerned. Again, the procurement type which is chosen by the
construction companies becomes a major factor as far as decision making process is concerned.
In the long run, they determine the general profitability of the company in any undertaking or
project in general. In this particular paper, there is highlight of various types of the procurement
methods which considering their application areas with merits and demerits.

Contents
Executive summary.................................................................................................... 2
Introduction................................................................................................................ 3
Traditional Procurement Methods........................................................................... 3
Advantages and Disadvantages..............................................................................5
Advantages.......................................................................................................... 5
Disadvantages of Traditional Procurement methods............................................5
Contracting Procurement........................................................................................... 6
Sampled characteristics of this method of contracting...........................................7
Advantages............................................................................................................. 7
Disadvantages......................................................................................................... 8
Design and Build Procurement Method......................................................................9
Features of D&B procurement methods................................................................10
Merits of D and B................................................................................................... 10
Demerits of D and B........................................................................................... 10
Joint Venture Procurement Methods.........................................................................11
Benefits of Joint Ventures...................................................................................... 12
Disadvantages................................................................................................... 13
Conclusion................................................................................................................ 13
REFERENCES............................................................................................................ 14
Introduction

A system of construction procurement is a structure of the organization which is adopted by the
client for the operations as well as implementations in various activities of the project in the field
of the construction. Various scholars have described the process of procurement as a mechanism
or a process required in the mobilization of the resources particular capital and human resources.
The procurement process needs to be done selectively to accommodate all the diverse parameters
(Arney et al.2014). In this particular research work, the discussion was focused on the benefits
and demerits of the various types of the procurements in the field of the construction (Yisa,
Ndekugri and Ambrose 2016).
Traditional Procurement Methods
This is a common method that construction industry has been using. Traditional methods of
procurements have been working uniquely in the sense that the work of design is separate from
the construction. Both the client and developers must appoint the architect to finish the design
and also to ensure that the specifications of the building are produced. The design as well as the
cost is being controlled by the appointed consultant team (Macneil 2017). The client also
appoints one major contractor through biding to carry out the work upon the design completion
(Bergman and Lundberg 2013). The tender documents are prepared by the contractor in
consideration of both specification and drawings or even the bill. The tenderer having the lowest
quotation is being awarded the contract. Therefore, the contractor is required to take
responsibility to all workmanship as well as on materials that also include all the sub-contractor.