Relative Merits of Procurement Forms in Construction Industry Report

This report examines the diverse procurement methods employed within the construction industry, including Traditional Procurement, Design and Build Procurement, Construction Management Contract, Management Contracting, and Public Private Partnerships (PPP). The analysis delves into the key criteria influencing procurement choices, such as cost and completion date certainty, functionality, and performance requirements. The report details the advantages of each method, such as the client's control and cost control in Traditional Procurement; reduced coordination time and single-point responsibility in Design and Build; time savings and project transparency in Construction Management; and minimized project time and efficient decision-making in Management Contracting. Furthermore, it highlights the benefits of PPPs, including higher quality, timely provision, and risk transfer. The conclusion emphasizes the subjective nature of selecting the appropriate procurement method, which depends on specific project needs and objectives.

Running head: English Essay
English Essay
Name of the Student
Name of the University
Author Note

1ENGLISH ESSAY
Essay Plan:
 Definition of the word Procurement
 The key criterion that comes first in various forms of procurement
 The Principal procurement routes used in construction
 Advantages of Traditional Procurement
 Advantages of Design and Build Procurement
 Advantages of Construction Management Contract
 Advantages of Management Contracting
 Advantages of Private Finance Initiative/ Public Private Partnership
 Conclusion

2ENGLISH ESSAY
INTRODUCTION:
Procurement refers to the process that entails finding and acquiring goods from
consultants and contractors often by a competitive process of bidding after agreeing to their
terms and conditions. The process of procurement is undertaken to ensure that a client receives
goods and services at the best possible price. The essay aims to address the relative merits of the
various forms of procurement currently used in the construction industry.
DISCUSSION:
The key criterion that comes first in various forms of procurement includes certainty of
completion date, cost certainty, functionality, and performance. The key criterion helps a client,
contractor and subcontractor in identifying the type of procurement. The principal procurement
routes used for construction include Traditional Procurement, Design and Build Procurement,
Construction Management Contract, Management Contracting and Private Finance
Initiative/Public Private Partnership.
The advantages of Traditional Procurement include the fact that it is easy to understand
and gives the client a greater control over their project, also gives the client cost control, offers
good design and flexibility to the client and it ensures that the rights, interests and
responsibilities of the parties concerned, are clear (Bakar et al.2016). It also offers competitive
fairness. The advantages of Design and Build Procurement include the fact that it reduces
coordination time, expenses and offers single point of responsibility for project owners. It is
conducive to controlling costs and conducive to controlling schedule, it offers flexibility in terms
of design and this process of procurement is quick to identify and rectify errors (Tran, Molenaar

3ENGLISH ESSAY
& Gransberg, 2016). The advantages of Construction Management Contract includes the fact that
it saves time, as there is a possibility to overlap construction and design; it also leads to huge
project transparency, is also reliable, offers scope for creativity, and is recommended for projects
that is complex in nature which have short lead-times or lack of adequate time for
implementation. It also entails hands-on involvement of the client on the project. In addition, the
client has complete control over the design of the project. The advantages of Management
Contracting include the fact that it minimizes the time taken for the project and the manager can
make key decisions during the process. The advantages of Public Private Partnerships includes
the fact that it ensures a higher quality and timely provision, the maintenance cost of repairing is
cheaper, transfer cost risk on private sector, no unforeseen expenses related to public sector,
return on investing is a lot higher. It also attracts private capital to provide financial relief that is
short term in nature. It is also more efficient as it provides better project delivery, management
and operation, it offers a long term solution for the provision of public infrastructure, create
incentives in order to reduce the life-cycle cost of assets (Naoum & Egbu 2015).
CONCLUSION:
Thus, to conclude it can be said that there are various forms of procurement that are
employed in the construction industry. Each forms of procurement have its own advantages and
disadvantages and the choice of the correct form of procurement, is highly subjective and
depends on the project that has been undertaken.

4ENGLISH ESSAY
REFERENCES:
Bakar, N.A., Peszynski, K., Azizan, N., Sundram, K. and Pandiyan, V., 2016. Abridgment of
Traditional Procurement and E-Procurement: Definitions, Tools and Benefits. Journal of
Emerging Economies & Islamic Research, 4(1).
Tran, D., Molenaar, K.R. and Gransberg, D.D., 2016. Implementingt-value procurement for
design–bid–build highway projects. Transportation Research Record: Journal of the
Transportation Research Board, (2573), pp.26-33.
Ruparathna, R. and Hewage, K., 2015. Sustainable procurement in the Canadian construction
industry: current practices, drivers and opportunities. Journal of Cleaner Production, 109,
pp.305-314.
Naoum, S. and Egbu, C., 2015. Critical review of procurement method research in construction
journals. Procedia Economics and Finance, 21, pp.6-13.

5ENGLISH ESSAY