Strategic Construction Procurement: Method Evaluation and Final Choice

This essay provides a comparative analysis of traditional and management procurement methods in the construction industry, focusing on the evaluation and selection process. It highlights the characteristics of traditional procurement, where design and construction are separate, and the client has direct contractual relationships. The essay also details the five phases of procurement management: specification, selection, contracting, control, and measurement, emphasizing the importance of supplier relationships and timely delivery. The final choice selected was Management procurement while the alternative is Traditional procurement.This resource is available on Desklib, a platform offering a wide range of study tools and solved assignments for students.

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STRATEGIC CONSTRUCTION PROCUREMENT
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Evaluation and selection of alternative and final choice
The process of evaluating applies evaluation criteria to the options or alternatives that are
available. The process of evaluation includes refining the available options to develop a final
choice. The most important element in this step is to evaluate all the alternatives by use of all
previously established criteria. Effective use of criteria in the evaluation and selection of the
alternatives and arriving at the final choice. The final choice which I selected was
Management procurement while the alternative is Traditional procurement.
Traditional procurement
This procurement method has been used in for a long construction industry. Traditional
procurement is a procurement technique whereby the design work will be separately from the
construction work. In this procurement technique, the client will appoint an architect to do the
design work and produce the drawings for the specification of the project. Once the design
part of the project is completed, the will appoint the main contractor to do the construction
works. The main contractor is appointed through biding. The appointed contractor needs to
take full responsibility for all the materials and workmanship including all the work done by
the sub-contractors. The figure below illustrates the layout of the Traditional procurement.
Fig 1: an illustration of Traditional procurement

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In the Traditional procurement, the client has contractual relationships with all the parties
who are involved in the execution of the project. In that way, the client has a closer control of
the work (Joe, 2017, p. 459). Nevertheless, this might bring about management issues since
the client has to deal with a wider point of responsibilities.
First, the client has to appoint a consultant team which includes quantity surveyor, architect
and the engineers who will be responsible for coming up with specifications and drawings of
the building. The quantity surveyor will come up with the bill of quantity based on the
drawings produced by the design team. The client will employ a contractor who will be
responsible for all the construction works. Therefore the contractor is not responsible for the
design works. The contractor will then employ subcontractor who will do some specialised
works (Joe, 2017, p. 371).
Procurement Management
The project procurement management which is also referred to as project procurement
process is a technique for creating relations between the organisation’s procuring department
and the external supplies to order, receive, review and approve all the procurement which
are needed for the implementation of the project. The relationship with the suppliers is
managed on the basis of the contract (Walker, 2013, p. 115). The process of procurement
management aims at ensuring timely delivery of the purchased items which are acquired and
selected according to the requirements and specification The procurement management
involves five phases which are as follows.
Specification
This step involves communication between the project manager and the purchasing
department to create and approve a list of items that are required items for the execution of

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the project. The purchasing department must then specify the approved items to the external
suppliers.
Selection
This step involves the supplier's department finding possible suppliers who can procure
essential items agreeing to the specifications and descriptions are given in the approved list.
At this stage, the purchasing department must come up with the supplier criteria for selection
which can have such measures and precautions such as the quality of services, delivery, and
performance and cost (Howes, 2014, p. 184).
Contracting
The Purchasing department at this point must communicate with the potential suppliers on
the payment conditions and the delivery dates. This is aimed at ensuring timely supply of the
ordered things with the given budget. All the settings of the item to be pursed, dates of
delivery and the payment conditions must be clearly stated in the contract. At the same time,
a comprehensive delivery programme should be discussed with the procurers and then be
accepted by the purchasing department (Harris, 2013, p. 378).
Control
The control of delivery and payments by the purchasing department has a significant effect
on how the procurement process will succeed. There it is important for the regular meeting of
being arranged with the suppliers to come up with ways through which they can have
efficient deliveries.
Measurements
In this step, it involves using systems of performance measures and indicators to assess the
success and effectiveness of the entire procurement process (Greenhalgh, 2011, p. 253).

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References
Greenhalgh, B., 2011. Introduction to Building Procurement. 5th ed. Chicago: Routledge.
Harris, R. S., 2013. The Procurement Revolution. 3rd ed. Texas: Rowman & Littlefield.
Howes, R., 2014. Strategic Management Applied to International Construction. 2nd ed.
London: Thomas Telford.
Joe, K.-M., 2017. The Traditional Procurement Method: The Choice of Hong Kong Private
Sector Clients for Residential Projects. 4th ed. Sydney: Open Dissertation Press.
Walker, D., 2013. Procurement Strategies: A Relationship-based Approach. 4th ed. London:
John Wiley & Sons.