Procurement in Construction
Contents |
[edit] Introduction
Construction projects are highly complex, with buyers and sellers often filling multiple roles as project stakeholders. Construction projects have a complex web of different stakeholders: buyers and sellers, owners, clients, contractors or developers - plus an array of specialised vendors like architects engineers and suppliers. Relationships between owners, general contractors, subcontractors and suppliers all exist on varying levels of contractual agreement in order to bring the entire endeavour to a successful completion.
Procurement in construction is conducted to better delegate the performance risk amongst these players who specialise in various fields. The procurement process might be repeated hundreds of times on big scale builds for one organisation alone! Procurement in construction carries with it a substantial financial burden - any missteps can have disastrous implications not just for the project owner, but throughout related hierarchies. To avoid this pitfall, even experienced professionals should ensure their contract management and scope knowledge is up-to-date and compliant with relevant legal standards.
[edit] Contractor’s Perspective
For contractors hoping to land the perfect job, bidding can be an extensive and costly exercise. When a successful bid is placed, contract clauses dictate that both buyers and sellers enter into agreement with one another.
Making sure scope, risk factors cost and time are managed properly during this competitive procurement process requires careful consideration of what products or services should be obtained internally versus externally by subcontractors or tradesmen.
As construction practices evolve there are more opportunities than ever before for contractors to show their mettle; by directing subcontractor activities effectively you can prove yourself capable of tackling even the most ambitious projects!
[edit] Owner’s Perspective
With every new construction project comes a number of factors that can heavily influence the cost, timeline and process. From specialised or hybrid contracting methods to fast-tracking projects for quicker outcomes - there are plenty of opportunities present to make decisions that will ultimately determine success.
Fast tracking is one technique to compress schedules which involves concurrently running design and construction stages- sometimes with design decisions made onsite.
See also: Procurement route.
[edit] Reference
Author(s) : Project Management Institute, Inc. (2016)
Name of publication : Construction Extension to the PMBOK® Guide
Place of publication : Newtown Square, Pennsylvania 19073-3299 USA
Name of publisher : Project Management Institute, Inc.
[edit] Related articles on Designing Buildings
Featured articles and news
About the 5 Percent Club and its members
The 5% Club; a dynamic movement of employers committed to building and developing the workforce.
New Homes in New Ways at the Building Centre
Accelerating the supply of new homes with MMC.
Quality Planning for Micro and Small to Medium Sized Enterprises
A CIOB Academy Technical Information sheet.
A briefing on fall protection systems for designers
A legal requirement and an ethical must.
CIOB Ireland launches manifesto for 2024 General Election
A vision for a sustainable, high-quality built environment that benefits all members of society.
Local leaders gain new powers to support local high streets
High Street Rental Auctions to be introduced from December.
Infrastructure sector posts second gain for October
With a boost for housebuilder and commercial developer contract awards.
Sustainable construction design teams survey
Shaping the Future of Sustainable Design: Your Voice Matters.
COP29; impacts of construction and updates
Amid criticism, open letters and calls for reform.
The properties of conservation rooflights
Things to consider when choosing the right product.
Adapting to meet changing needs.
London Build: A festival of construction
Co-located with the London Build Fire & Security Expo.
Tasked with locating groups of 10,000 homes with opportunity.
Delivering radical reform in the UK energy market
What are the benefits, barriers and underlying principles.
Information Management Initiative IMI
Building sector-transforming capabilities in emerging technologies.
Recent study of UK households reveals chilling home truths
Poor insulation, EPC knowledge and lack of understanding as to what retrofit might offer.
Comments
[edit] To make a comment about this article, or to suggest changes, click 'Add a comment' above. Separate your comments from any existing comments by inserting a horizontal line.