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Different Procurement Methods

Different Procurement Methods. Edina Nagy Lajos Kiss Szabolcs Hornyák. Overview. The Procurement Traditional Procurement Design and Build Procurement Management Procurement systems Comparing Traditional and Design and Build Procurement References and further reading . The Procurement.

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Different Procurement Methods

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  1. Different Procurement Methods Edina NagyLajos KissSzabolcs Hornyák

  2. Overview • The Procurement • Traditional Procurement • Design and Build Procurement • Management Procurement systems • Comparing Traditional and Design and Build Procurement • References and further reading

  3. The Procurement Procurement describes the merging of activities undertaken by the client to obtain a building. Common types of procurement are: • Traditional Procurement • Design and Build Procurement • Management Procurement Systems

  4. Traditional

  5. Traditional

  6. Design and BuildProcurement Extreme A – Client-led design and build Extreme Z – Contractor-led design and build

  7. Extreme AClient-led Design and Build

  8. Extreme ZContractor-led Design and Build

  9. Management Procurement Systems Management procurement systems are often used to speed up the procurement processes. Common types: • Management Contracting • Construction Management

  10. Management Contracting As an alternativetothetraditionalapproach, theclientmaydecidetoappoint a management contractortoengage and manage a number of workpackagesubcontractors. Management contractingenablestheclienttocreate a competitivesituationbetween management contractorsattheappointmentstage of the project.

  11. Management Contracting

  12. Construction Management Inthissituationtheconstruction management consultantorconstructionmanagerjoinsthe design team earlyinthe project. The constructionmanager’sservicesarebasedon a negotiatedfeewiththeclientsimplytosupervise and plantheworkto be undertakenbytheworkpackagecontractors.

  13. Construction Management

  14. Advantages and Disadvantages of these methods Thesearesuitablefor: • fasttrackprojects • complexbuildings • a developingbrief Disadvantages: • totalcost of the project is notusuallyknownuntilthe project • damagesfordelayaredifficultto pin ononesubcontractor • theclienttakesalltherisk, particularlyintheconstruction management

  15. Comparing Traditional andDesign & BuildProcurement Similaritiesbetweenthetwomethods: • Suitableforallclients, includinginexperiencedclients • Price certainty is securedearlyinthe project  • Firmcontractualdateforcompletion

  16. Differenciesbetweenthetwomethods

  17. References and furtherreading 1. What does it mean procurement? – pp. 26 2. What are the advantages and disadvantages of the traditional procurement? – pp. 29-30 3. What it means to design and build procurement? – pp. 31 4. What are the disadvantages of the management procurement systems? – pp. 38 5. What are the similarities and differences between the traditional and the design and build? – pp. 29-30/35 6. What is similar to the traditional procurement and construction management? – pp. 35-36 1Construction Planning, Programming and Control/Brian Cooke and Peter Williams. – 3rd. ed.2008

  18. Thankyouforyourattention!

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