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Department and assessment information:
School Name: school of engineering and computing
Assessment title: Coursework assignment 1 ( Voice-over/ video presentation
)
Course Title: Msc project management
Module Title: Project planning, Control, and analysis
Module Code: BN4010
Year of Study: 2023 to 2024
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Introduction - Procurement
 Procurement is a process where goods, services
and works are acquired from contractors and the
third-parties and it spans the whole process from
requirement identification till the end of the
project (Council, 2023)
 The procurement cycle includes requirements
identification, procurement planning, contract and
tendering, negotiation, contract delivery,
monitoring, and reviewing
 Effective procurement selection leads to
successful project
 Procurement type should be selected in a way
that it fits into the long-term objective of the
project plan
Procurement Selection
 There are different types of
procurement methods available in
the UK including traditional
procurement method, design and
build, contractor-led, public-private
partnership (PPP), Private Finance
Initiative (PFI) and many more
 From the available procurement
methods, the best suitable method
should be chosen based on the
project type and concerning the time,
price, contract, risk, quality, asset
ownership, and financing (Buildings,
2022)
 Among these “Traditional
Procurement Method” is chosen for
this project work where design and
construction works are separated Fig 1: The Procurement Cycle
and the client directly engages the
designer
Reasons for the choice of
procurement type
 It is a widely used method and it is suitable for all
project types as design and construction are
separate
 Since the project design is completed before the
contract tender, it will give a clear view of the
design quality, budget and time (Buildings, 2023)
 As this method uses a lump sum contract, the
contractor will take the financial risk of the
construction work
 The client directly involved in the project, the
outcome of the project will be more satisfactory
to the client
Traditional Procurement Method
 In this method, the design and construction is
done separately. The designer is appointed
separately by the client and the contractor is
appointed separately for the construction work
(RIBA, 2022)
 Comes with two categories traditional
procurement with defined contractor
/subcontractor elements and with no contractor
/subcontractor elements
 At first, the design consultant is been appointed
by the client to design the project and then a
tender documentation is prepared containing
building design, schedules and bills of quantities
 Then the construction contractors are invited for
tenders on a competitive basis
 The contractor is not responsible for the design
but in some cases, the contractors are allowed to
design the specific part of the project (Buildings,
2023)
 The design consultant will be retained during the
construction phase as there can be any additional
design needed during the construction work and Fig 2: Traditional Procurement Method
to inspect the work
 Mostly carried out as a lump sum contract where
the client provides the work specification and
based on it the contractor allocates the fixed
budget for the project (Clancy, 2021)
Advantages of Traditional Procurement
over other methods
 It is a widely used method so the building consultants and
contractors are well-known about their roles and procedures
 As the client appoints the design team, the client will have full
control over the design team
 This design-led method ensures the quality of the work
 Design-led and lump-sum contract provides price certainty before
the work commences
 Provides accurate risk assessment
 Changes in the project can be made easily through renegotiation
(Sarahrudge, 2023)
 As all the uncertainties are eliminated before tender, it reduces the
tender cost and provides equal competitiveness
 Meets high quality and functionality standards as the client has
control over the design team
 Familiarity with the model enables confidence throughout the
supply chain process
Disadvantages of Traditional
Procurement over the other methods
 Buildability can be a concern as the contractor
will not be involved in the design process
 The construction work will be started only after
the design is completed which will take a longer
period compared to other procurement methods
 The price competition during the tender may lead
to adversarial relations
 Inadequate design will cause clashes in budget,
time and quality
 Sequential working can increase the overall
project cost and pre-contract design cost
Traditional Procurement is appropriate
when...
 The project has an adequate amount of time
 The client wants to separately appoint the
design consultant and the design contractor
 The overall project design is completed
before the contractor selection
 The client wants to know about the price
before the construction work begins
 The risk is to be shared among the client
and the constructor (Saikat Maiti, 2023)
Impact of procurement choice on
project delivery and its outcomes
 Choosing an effective procurement is a challenging task as the
procurement plays a significant role in "determining the quality, cost
and time of the project"
 Effective procurement choice "reduces the cost" of the
construction work by negotiating requirements and specifications
with the consultants and contractors (Jones, 2023)
 Effective procurement choice also ensures the "quality standards"
by purchasing quality products that meet project specification
 Ensure that the project is completed in a “scheduled time”
 The effective procurement choice also guides in "risk management"
and helps the client and team to mitigate the risk in an easier way
 The procurement choice also includes “contract management”
where the contractors are selected based on the agreed terms and
conditions
 “Supplier management” can be effectively done while choosing the
suitable procurement methods
Impact of Traditional procurement choice on
project delivery and its outcomes
 As this is an older and familiar method, all the
stakeholders involved in the construction project will
be aware of the procedures which results in a
successful project
 The construction industry widely depends on
traditional contracts
 Compared to other methods, the client is involved in
overall design work so that the output will satisfy the
customer's requirements (Reuben A. Okereke, 2022)
 The client can achieve cost firmness during tendering
the contractor
 the client will have sufficient time to review and
scrutinise the project design before the construction
work begins on-site
References
 Buildings, D. (2022). Procurement route.
https://www.designingbuildings.co.uk/wiki/Procurement_route .
 Buildings, D. (2023). Traditional procurement method.
https://www.designingbuildings.co.uk/wiki/Traditional_procurement_method .
 Clancy, J. (2021). Lump Sum Contracts: Advantages, Disadvantages & When to Use.
https://www.netsuite.com/portal/resource/articles/accounting/lump-sum-contracts.shtml .
 Council, S. D. (2023). Procurement strategy 2019 – 2023.
https://www.stroud.gov.uk/media/1070402/final-sdc-procurement-strategy-2019.pdf .
 Jones, R. (2023). Procurement systems advantages, disadvantages and risks for the
construction client. https://www.structuresinsider.com/post/procurement-systems-advantages-
disadvantages-and-risks-for-the-construction-client .
 Reuben A. Okereke, N. M. (2022). Impact of Traditional Procurement System on
Construction Project Delivery. Journal of Project Management and Practice , 23-38.
 RIBA. (2022). RIBA Construction Contracts and Law Report 2022. RIBA Construction
Contracts and Law Report 2022 , 1-47.
 Saikat Maiti, N. M. (2023). Discussion of procurement methods in the construction
industry. Proceedings of the 7th International Scientific and Practical Conference , 678-695.
 Sarahrudge. (2023). The 4 types of construction procurement . https://construction-
today.com/news/4-types-construction-procurement/ .