Procurement Process in Construction Projects in a Company (Coursework Sample)

Procurement in Construction
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Contents TOC \o "1-3" \h \z \u Forms of procurement methods PAGEREF _Toc456910847 \h 3Procurement using Traditional Procurement Method PAGEREF _Toc456910848 \h 3Design and Build Method of procurement PAGEREF _Toc456910849 \h 4Procurement using Integrated or Partnering Method PAGEREF _Toc456910850 \h 5Construction management procurement PAGEREF _Toc456910851 \h 8Managing Contractor procurement PAGEREF _Toc456910852 \h 9Best method for the project PAGEREF _Toc456910853 \h 11Assumptions made PAGEREF _Toc456910854 \h 12THE PROCESS OF SELECTING A SUBCONTRACTOR PAGEREF _Toc456910855 \h 13Framework phase PAGEREF _Toc456910856 \h 13Selecting the country of outsourcing phase PAGEREF _Toc456910857 \h 13Final phase of the subcontractor selection process PAGEREF _Toc456910858 \h 14References PAGEREF _Toc456910859 \h 16
Forms of procurement methods
Procurement strategy chosen is important in any construction project of large and small scale Construction Company. The risks and objectives of the projects should be rightly balanced by the chosen procurement strategy. Due to building requirement and infrastructure repairing needed, other procurement methods were introduced and also due to economic recession adverting. Forms of procurement methods like the managing of contractors, design and contract and many others have been on an increase. The most likely used in the client’s construction project are as discussed below (El Wardani, Messner, and Horman, 2006).
Procurement using Traditional Procurement Method
In this method of procurement, there is engagement of client to the consultants like the construction Engineers and Quantity Surveyor for project designing. The designs be the consultants must be in line with the client’s budget and satisfied by the client. After the client is satisfied by the design according to the client’s budget, the Architect calls tender so as to give the contractors to price and even bid for the tender. So the client will evaluate for a good and most suitable price which is priced by the contractors to make the decision hence the successful contractor will be given the tender for the project. The price is not only what is looked while giving tender but also the financial stability of the company, the skills, and even the reputations of the company. Hence, the contractor should not have many projects in hand or project being done by the contractor. On this method of procumbent, the contractor must follow the drawing of the contract and specification in order to start the construction work. The contractor refers to the materials and also works with the sub-contractors and suppliers. In case of any error in design, or defect the contractor uses his own money in correcting and settling the problem.
Advantages and disadvantages of traditional Procurement method
Advantages
* The consultant team or the design team can be controlled by the client
* The quality of work will have a better control from the client
* Through competitive tendering the client can have a better price
* Variation of work as required by the client is easily accommodate
* The consultants are available to protect the client since they serve as advisors and also independent certifiers in the construction contracts.
Disadvantages
* Due to many consultants the client faces many organisations
* The project can take so long to be completed due early stages of designing
* Client coordination with consultants can be so cumbersome
* Consultants mistake can lead to effect in progression on the work
Design and Build Method of procurement
In Design and Build procurement method, there exists a process of carrying a task whereby a single entity contracts the construction and design service. The method consists architect, the general contractors and also the engineers. They are build up where an owner is provided with one source point of contact for design and construction of their proposed projects. It’s a method that has been used in building industry for a long period of time (Kakwezi, and Nyeko, 2010).
Advantages and disadvantages
The technique has both points of interest and impediments. Beginning with advantages circumstances, the strategy is reasonable for all customers which additionally incorporate inexpert customers and the ones requiring separation from the task. Likewise the technique is cost sureness furthermore quicker track. On hindrances, the strategy is not reasonable for the unpredictable building furthermore dubious for customer brief.
Procurement using Integrated or Partnering Method
The method is a procurement method suitable for large projects which also involves more than two organisations having a long time commitment for the main purpose of achieving specific business objective by basically maximizing effectiveness of each participant’s resources. Also in this method there exists team working regardless of the organisation or even the organisation to achieve and to meet client’s needs. This acquisition techniques will empowers group building and estimation and change of group execution on a task to venture premise. Other than that, it likewise knows as a parallel or single obligation acquisition framework where the customer will just need to manage a solitary association for both the outlining and building the proposed venture. What's more, the strategy is additionally to guarantee that the temporary workers and advisors completely include into the Integrated and Partnering process. Besides, the general approach that utilizing acquisition utilizing Integrated or Partnering techniques is for the customer association, experts, temporary workers and chose sub-temporary workers to consent to a collaborating arrangement and can be a lawful authoritative understanding or standard contracts can be set up with the joining forces destinations set down in a different sanction (Alhazmi, and McCaffer, 2000).
In this circumstance, the part of temporary worker will need to connect with and be in charge of outline and development groups for the customer's undertaking. Under this strategy, the customer's advisors will set up a delicate or offering report that incorporate the undertaking brief and customer's necessities by data giving by customer. After that, the expert will begin welcome various contractual worker to offer for the venture. For submitting tenders, the welcomed contractual worker will create their own configuration, development and cost proposition. Typically the temporary worker that fruitful in offering will into an agreement taking into account singular amount cost and a timeframe that officially settled (Alhazmi, and McCaffer, 2000).
Advantages and disadvantages
Advantages
* There is reduction of conflict between members of the project since the dispute and claims are easily resolved
* There is improved communication between all members where client needs and objectives are clearly understood by the involved parties.
* The accomplishment of more effective working and more noteworthy profitability that has been recorded as a consequence of the guideline of ceaseless change will advantage all members in their general exercises and additionally the particular activities with which they are included.
* At the point when required in Integrated or Partnering strategies, the members ought to profit by the expanded measure of inventive thinking and innovative work that can be completed as a consequence of sharing thoughts and pooling assets.
* Temporary workers, when required in Integrated or Partnering strategies, can depend on extent of their yearly workload being guaranteed for at any rate the span of the cooperating customized, and the expenses regularly connected with tendering for the measure of work in the modified won't be brought about.
Disadvantages
* There is dependably the likelihood that the customer won't be capable, or may not wish, to respect the game plan to give as much work as was initially visualized, leaving alternate accomplices with voids in their request books which they may discover hard to fill.
* The connections developed amid the cooperated activities can prompt comfortable affiliations which don't support new thoughts or a dynamic way to deal with the administration of the task. Colleagues, when coming back to their guardian associations, may find that there has been a rest in their vocation movement and that they experience issues in acclimatizing to the diverse society.
* Classification can be traded off as a consequence of the opening up of data that is typically confined to the associations from which it started.
* Keeping up the dedication of staff, and especially senior administration, particularly amid the early phases of a venture or program when the advantages of cooperating have not yet get to be apparent, can be risky and may even turn out to be to be outlandish.
* Troubles can emerge as a consequence of contentions that may happen between the banding together sanction or structure, which as a rule are not planned to have any lawful standing, and the terms and states of the formal contracts between the different gatherings required in the tasks.
Construction management procurement
In this kind of procurement the customer employs a development director for the task as the leader of the development group. The customer specifically procures the outline group furthermore the exchange temporary workers. The configuration group readies the outline, then the customer selects authority exchange contractual workers for the diverse exchanges and innovates them to the development supervisor (El Wardani, Messner, and Horman, 2006). The development administrator is then in charge of the finishing of the task on time furthermore as per the conf...