Analyze The Procurement Methods Samples

The success of a construction project is usually determined from the initial stages through the procurement process chosen. The procurement process will influence the whole construction process and able to determine the success of the construction projects. This paper will analyze three key procurement methods namely design and construct procurement method, management procurement method and collaborative procurement. This paper will analyse the positive and negative impacts, which are accrued when these methods are adopted in construction projects. Additionally, it will look at the benefits and risks, which the different stakeholders experience when either of the methods is chosen. One of the key procurement method, which is gaining popularity in construction projects, is the design and constructs procurement method. As the name suggests, the procurement method can allow the commencement of the construction phase while the design process is still on the process (Victorian State Government, 2006). The adoption of this method is usually done to ensure that the completion of the project is completed in time. Moreover, under this procurement method, different details of the project are given in advance and therefore enhancing the stakeholders planning. Additionally, under this method, the contractor can bear most of the risks in design and implementation of the project. The terms of the contract sum are provided through competitive pricing, which the client can control (Infrastructure Australia, 2012). Under this method, different approaches, which are able to define the relationship and responsibilities of different stakeholders, are usually stated. The following diagrams are able to highlight the different approaches, which are used when this method is applied in a construction project. Under this method, the client can control only one firm which they enter into a contract with regarding the project. The firm has the responsibility for design and construction of the project. The few stakeholders involved can increase the operational efficiency when implementing projects (Mortledge, Smith, and Kashiwagi, 2006). This is able to enhance the commitment of the resources to one area and limit the time of contacting different people separately such as designers and contractor. Overlapping of activities is possible which enhances the implementation cycle. Time is usually saved when the different activities take place at the same time, and this enhances completion of the project within the stipulated timeline. Moreover, the contractor has a contribution on the design parameters, and this enhances the constructibility of the project. Additionally, the cost of implementation is under control when this method is used. The maximum price is usually determined in the procurement stage, and this ensures that any escalation is met within the set budget. Nevertheless, this method has some key flaws, which are experienced when it’s chosen to implement construction projects. The project specifications can easily change according to the needs of the client. Since the lump sum cost is fixed, it creates a hard implementation time when the specification changes (National Research Council (U.S.), & National Academies of Sciences, Engineering, and Medicine (U.S.), 2016). This can lead to an expensive project than it was anticipated before. Also, this method requires comparison of different designs. This may take a lot of time and therefore take up implementation timeline. Moreover, the client is required to commit to a concept design before the detailed and complete designs are completed. This raises high chances for changes while the project is under implementation stage and making the project expensive (Construction Specifications Institute, 2005). Moreover, the client has to prepare all the contract documents in advance and through this method, difficulties may be experienced, where the documents are inadequate and insufficiently comprehensive due to client limitation to prepare them. Several stakeholders involved in these projects can enjoy when it is chosen to implement a construction project. First, the client has limited risks since the contractor has much of the control of the project. This means that the contractor and not the client will sort out financial escalation. Secondly, the client can receive the completed project on time. This is because overlapping of activities is possible and gives the contractors and subcontractors enough time to beat the project deadline (Construction, 2016). The method enhances proper construction method by the contractor since they were involved in the design stages. This gives them ample time for implementation and enhancing the cooperation of the different ideas. Some of the stakeholders are able to experience some problems when this method is chosen. First, the client is required to prepare the contract document, an exercise, which the client may, not be experienced in doing (Gould & Joyce, 2014). The client may experience this problem when preparing the documents. Secondly, the contractor is able to bear all the risks and therefore when the costs exceed the contractor can experience the losses. When changes occur, the cost of the project is able to change but the lump sum cost is unlikely to change and therefore the contractor bears that additional cost. The projects, which their design scopes are unlikely to change, suit this procurement method. In addition, projects whose building is functional rather than prestigious aspects are more stresses suit this method (Gould, 2012). Simple projects, where the technical knowledge is limited suit this method for implementation. Lastly, projects, which require quick implementation, need a procurement method like this to ensure quick implementation. Another upcoming procurement method in the construction projects is the management procurement. Under this procurement method, the client can appoint an independent professional team and a management contractor. This team can act as the adviser to the client in the preconstruction stages and able to carry out the construction works during the construction stage (Gould & Joyce, 2014). In addition, under this method, different approaches can as well be used. Some of these methods include management contracting, construction management and design and manage. The different stakeholders under this method relate according to the following diagram Management contracting- this method requires the appointment of an independent professional team which will advise the client and later carry out the construction works (Austroads, 2007). Early start of the project can be achieved through this approach. Construction management – this approach requires a management contractor who is able to determine the different project aspects (Arain, 2016). Work contractor is also chosen and enhance the implementation of the project works. The management contractor can manage the other contractors. Design and manage –A contractor is chosen to head the design and implementation stage of the construction project. The works contractor and consultant take different responsibilities under this approach. There are different pros, which are achieved using this method. First, the client is able to choose a single firm, which he or she deals with. This enhances the management and coordination from the client perspective (Mortledge, Smith, and Kashiwagi, 2006). Additionally, overlapping of activities is possible through this method and therefore enhancing early completion of the project. Constructability is usually enhanced since the contractor is involved in the design stage when this method is chosen. Competitiveness in tendering process ensures value for money to the client. Additionally, all roles and responsibilities to the different stakeholders are usually stipulated and therefore minimising conflict of interest. Lastly, the flexibility of design is usually possible to suit the client preferences. First, this method is not certain about the cost of the project, and it is only known at the end of the project completion. This means that cost escalation can be able to increase and making the implementation stage hard. Additionally, the client is much involved in the process and therefore requires client who has knowledge of the construction process (Gould, 2012). Additionally, the client is able to lose the control of the design, a responsibility which constructors can take. This means clients needs may not be addressed fully (Harris, Mccaffer & Edum-Fotwe, 2013). Lastly, clear definition of the implementation timeline and all information of the project is required before the implementation stage commences, which may be hard to provide. The client has an easy time in control of the single firm chosen to manage the project. This enhances the collaboration and coordination between the client and implementation team (Fewings, 2013). The methods provide enough time for the contractor to complete the project on time through the overlapping of activities. Additionally, the client can achieve the value of money for the project through the competitive tendering and selection of the implementation team. Each role and responsibility of the stakeholders is to know and therefore enhancing their operation. The client is able to lose the control of the design aspects of the project. This means that their needs may not well articulated as they need. Since the client is not in the design and management part, the end product may not suit their needs (Fewings, 2013). The cost risk is available to the works contractor and the client. Since the cost is uncertain, changes on the cost are likely to occur and therefore likely to suppress the set budget. Informed client about the construction process is a key element to this method. A problem may arise on the management team when the client does not understand these processes. Simple projects, which the clients can understand, are most preferred to be carried out through this method. Projects, which can easily change also, require this method for their implementation. Under this method, different stakeholders in the construction project come together. The risks involved in the project are share according to the different responsibilities, which the shareholders have in the project (Gould, 2012). This procurement method requires stakeholders who can share the same ideas and aspects concerning the project. Under this method, the flow of different elements can be represented as in the following diagram. Transparency level is usually high under this method, and this is a key pro, which this method can bring in procurement sector (Centre for Excellence and Innovation in Infrastructure Delivery, 2010). The different parties are able to collaborate and able to bring the value of money to the project. High resource utilisation is also achieved in this method. Effective implementation of the project is usually achieved through the high consultation in the project. Different ideas are presented enhancing the innovations and implementation of the project. Lastly, due to the high involvement of stakeholders, the projected uncertainty is usually low. This method requires a lot of time during the implementation stage. This may lead to the project timeline to be exceeded (Arain, 2016). The high involvement and coordination require the high trust to the members. This level may not be possible. Opportunistic behaviour may arise and therefore increasing the risk of implementation. The client can forecast on their needs of the project through the early involvement in design stages (Gould, & Joyce, 2013). This enhances the client to prepare and manage their resources for the project implementation. The contractors have an easy time in implementation due to different ideas from stakeholders. The high quality project is achieved for the client through the collaborative ideas. The client may not receive the project on time due to the increased collaboration process. Trust issues among the stakeholders are a problem, which may affect the contractors working (Harris, Mccaffer & Edum-Fotwe, 2013). Increased implementation timeline is a risk to the contractor since additional costs may accrue. Complex project requires this method to enhance their implementation. Additionally, high project requires this method to take the advantage of different input from different people. Procurement methods are key in the implementation of the construction project. The choice of the procurement method depends on the details of the project. Each method has its pros and cons and the areas, which they will perfectly suit to bring the best out of the projects. The different stakeholders can derive different benefits on each method, which is chosen. Additionally, the risk is a key part of the construction process and therefore whichever method is chosen, some problems may be experienced. (2016). Construction. https://trrjournalonline.trb.org/toc/trr/2573. ARAIN, F. M. 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