In respects to this Im sword lily to inform you that I will be traveling though with study of procurement schemes. I will besides analyze each scheme and demo a list of advantages and disadvantages of each type with recommendations and in drumhead semen with the most suited method to fulfill demands vis-AA -vis the cardinal client demands. I will seek to do the study recommendations as clear to understand as possible and grounds for ignoring alternate methods once more sing the clients brief. Thank you really much for reaching me one presently have no issues for farther elucidation
The traditional method has been used in the building industry for many old ages. It one of the most used methods of procurance and has two chief characteristics. First each phase is separate with no convergence between the design and building stages. Second all of the drawings, agendas and measures must be given by the client before contractor can get down tendering procedure for transporting out any work ( jctltd.co.uk/traditional-procurement ) .
Professionals
One advantage of the traditional procurance method is that the cost of the undertaking is normally known before the building is started hence cut downing any finance issues.
A contractual committedness on monetary value gives the client more pieces of head and greater security when using for finance.
Pricing is competitory for contractors.
As the design is finished before the physique this by and large means the design is good documented and hence has better lucidity for the building phase.
Low hazard in undertaking allotment. ( Procurement_SingleStageTendering_Nov08 )
Cons
With the traditional procurance method design and building are separate procedures this means that the clip on the peculiar undertaking will be immensely greater than that of other occupations.
Another disadvantage with utilizing the traditional procurance method is that as the design and building are done at separate phases which means that any issues that arise in the building phase can be really hard and dearly-won to repair.
If fiscal issues do originate the contract does hold can set the costs.
Traditional Method with Two Phase Tendering
The traditional procurance method with two phase tendering, is a somewhat different procedure to individual phase tendering. A Contractor is appointed on the footing of a first phase stamp which determines the degree of overhead and net income for each Contractor ( designguidance.skillsfundingagency.bis.gov.uk ) . The Contractor works with the Project Team in the 2nd phase and so develops the designs to find costs for the work. This gets a fixed monetary value for the designs.
Professionals
Early assignment of the chief contractor and a quicker start on site.
Procuring the engagement of a contractor on a competitory footing
More client engagement in the assignment of subcontractors.
Motivating the design and building squads to cut down cost and increase value ( all 4 above from www.building.co.uk ) .
Cons
This method requires a 2nd phase period in which to plan and tender the different work which lengthens clip before building can get down on site.
Increases the hazards of an addition in monetary value and a less elucidation on completion day of the month ( Procuement.PDF ) .
Design and Construct
The design and build procedure is once more a really normally used method of procurance. The Client appoints a edifice contractor. As with traditional methods, cost for the undertaking is agreed and set with contracts. The Contractor is responsible for design and building. The Contractor can be chosen through a stamp procedure. The client can name a adviser to supervise the plants. ( designguidance.skillsfundingagency.bis.gov.uk )
Professionals
Design and physique is a much quicker procedure than the traditional method.
Main contractor is responsible for the design and the building of the undertaking which means better flow between both procedures.
Costss are certain as with traditional which means easier assemblage of financess from the bank.
About 70 % of traditional contracts end up over budget, compared to D & A ; B which is merely about 25-30 % over budget ( wiki.answers.com )
Cons
Could be more as bidders and can increase the monetary value as they are tied into both the design and build phases.
The contractor has no inducement to salvage money as they will ever stop up with a per centum.
Some bidders will go forth things out looking for expensive alterations.
Construction Management
Construction Management is a fast path scheme this means a decrease in undertaking clip by overlapping the undertaking design and building stages. The supplier will name a Construction Manager to pull off the overall for a fee. Besides the undertaking has early engagement from the contractor. In this procedure the contracts for the sub-contractors are placed straight between the client and the sub-contractor. Construction direction besides has a high degree of client engagement in both stages of work. Concluding costs unlike traditional and design and physique are non known until after the undertaking work has finished ( designguidance.skillsfundingagency.bis.gov.uk ) .
Professionals
Quick method to utilize as design and build phases overlap
Early engagement from contractor which benefits the client, acquiring early cost estimations ( www.davislangdon.com ) .
Design can be changed during the build procedure far easier than with traditional methods.
Cons
Concluding costs are unknown until work has finished.
Construction director has no direct contract with the trade contractors ( www.worldservicesgroup.com ) .
Difficult to command cost additions ( www.worldservicesgroup.com ) .
Public Private Partnerships ( PPP ) , Private Finance Initiative ( PFI )
Public Private Partnerships ( PPP ) , peculiarly Private Finance Initiatives ( PFI ) undertakings are were a undertaking is designed reinforced and paid for by a concern who appoints a contractor ; it is so leased back to the client normally over a 30 twelvemonth period. This tendering procedure in this procurement path is expensive and requires dialogue instead than competitory tendering. ( designguidance.skillsfundingagency.bis.gov.uk )
Professionals
The Risks of the undertaking lye with private sector instead than the client.
Method involves specialist private sector building cognition ( www.worldservicesgroup.com ) .
Cons
In comparing with other procurance methods it takes a batch longer for work to get down on site.
Loss of control in the building trade by the populace sector.
Can be difficult to demo value for money ( www.worldservicesgroup.com ) .
Confusion over what happens at the terminal of the edifices rental besides brings up issues.
Management Catching
Management catching is besides a fast path scheme which overlaps the design and building phases and allows the undertaking building to get down before the design is to the full completed. The Management Contractor is appointed early in the design ( designguidance.skillsfundingagency.bis.gov.uk ) . However like PFI and PPP concluding costs can non be determined until the physique is finished as versions to the design can increase cost.
Professionals
Management Contractor has early engagement and manages plants contractors ( www.worldservicesgroup.com )
One direction construction which means the undertaking can run more swimmingly
Cons
No duty for design and building.
Management Contractor merely responsible for craft to the extent that works contractor is responsible /able to pay ( www.worldservicesgroup.com ) .
Decision Matrix
Standards
S= Mark
WS= Weighted Score
Burdening
Traditional Method.
Traditional
Method
With 2 Phase.
Design and Build.
Construction Management.
PFI, PPP.
Management Contracting.
Second
Tungsten
Second
Tungsten
Second
Tungsten
Second
Tungsten
Second
Tungsten
Second
Tungsten
A ) . Early contractor input into the design procedure.
6
2
12
2
12
5
30
6
36
6
36
6
36
B ) . Early start and coating or shortest entire procurance clip.
5
3
15
1
5
6
30
5
25
1
5
4
20
C ) . The edifice is extremely specialised and technologically advanced.
4
6
24
6
24
4
16
4
16
5
20
4
16
D ) . A high quality of coating is of import.
3
5
15
5
15
3
9
1
3
2
6
4
12
Tocopherol ) . Undertaking patron to retain design squad control.
2
4
8
4
8
6
12
5
10
4
8
3
6
F ) . Flexibility to do alterations once the work has begun.
1
1
1
1
1
3
3
5
5
4
4
5
5
Entire Weighted Mark
75
65
100
95
79
95
Recommendation of the Most Suitable Client-Financed Procurement Option
The recommended procurance type for the John Hopkins Private Hospital in the Northeast is design and physique. This is for many grounds. First on the determination matrix the order of precedence which has been specified by the client, design and construct arrives at the highest mark of 100. Design and physique besides rates extremely on the top 3 most of import factors in the determination matrix.
A cardinal facet in the design brief is the fact the infirmary must be high spec incorporating high tech equipment to do the John Hopkins Private Hospital a European Centre of excellence. Design and construct performs good to make a high spec edifice as there is no inducement by the contractor to salvage money which may be considered a disadvantage in some instances but non in this case. Besides in the budget sense unlike building direction, PFI and direction catching, the precise costs are known from the beginning of the undertaking once the design has been finished and before the building begins and unlike the traditional methods, the bulk of design and build undertakings finish on budget.
Another of import factor specified was early input from the contractor. Design and construct performs good here excessively, as the contractor is appointed early and besides as an added fillip runs both the design and build phases of the undertaking which means smoother running and less likeliness of errors in both the design and building phases of the undertaking.
However unlike building direction, PFI and direction catching, design and physique does non execute every bit good as it is more hard to change the design one time building has started, yet this is non peculiarly high on the docket for the undertaking.
Finally design and build undertakings on whole bash hold an early start and finish clip which is high up on the standard. This is because as the contractor is selected early and runs both the design and building stages the undertaking runs smoother and hence faster yet maintains quality.
