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
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.
Embodied Carbon in the Built Environment
Overview, regulations, detail calculations and much more.
Why the construction sector must embrace workplace mental health support
Let’s talk; more importantly now, than ever.
Refurbishment for net zero; the BSRIA white paper
The everyday practice of tackling energy efficiency, fabric first, ventilation, air quality, and occupant wellbeing.
Sustainable construction design teams survey
Shaping the Future of Sustainable Design: Your Voice Matters.
Ensuring the trustworthiness of AI systems
A key growth area, including impacts for construction.
Foundations for the Future: A new model for social housing
To create a social housing pipeline, that reduces the need for continuous government funding.
Mutual Investment Models or MIMs
PPP or PFI, enhanced for public interest by the Welsh Government.
Stress Awareness Week ends but employer legal duties continue.
A call to follow the five Rs for the business and for the staff.
Key points and relevance to construction of meeting, due to reconvene.
Cladding remediation programmes, transparency and target date.
National Audit Office issue report on cladding remediation.
HBPT and BEAMS Jubilees. Book review.
Does the first Labour budget deliver for the built environment?
What does the UK Budget mean for electrical contractors?
Mixed response as business pays, are there silver linings?
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.