The Factors Influencing Procurement Route Construction Essay

The Factors Influencing procural passage Construction EssayRecent developments in the cogitation of construction have led to a renewed interest in procurement which military services us to induce the technical complexities by organizing and delivering the construction devices using variant specialised methods towards the priorities of the knob. In assenting, it creates perfect relationship amongst many organizations fiting on the realise regarding their responsibilities and risks. This paper attempts to report the Principal of Heriot Watt University (HWU) about the travel procurement strategic approach for the new auditorium which is planned to build at the HWU with supremacy. However, it comprises of 200 comfortable tiered seating providing excellent visibility, high specification technology, mul sequencedia theatre with air conditioning, a full size interactive screen and computer driven presentation facilities.2.1 AssumptionsIt is required from the initial stage of the pouch which understandably paves the way for the satis pointory completion of the project. The following assumptions be considered in this report.Capital CostCash flow is energetic in the organisations which determine the size of the project which is considered primarily. Likewise, updated apostrophize information was sh ard by the quantity surveyor to the client who correlates them to the take aimor. Recent evidence suggests that during urgency the implication of represent is partially neglected whereas the initial cost and lifecycle cost is always preferred.TimeThe two chief(prenominal) factors governing the time of the project are Design of the project and Methods adapted in the construction send by the contractor. Data from several sources identified that above features are considered accordingly to the clients priority.QualityQuality depends upon the materials employ during construction permitting the aim specifications. Lifecycle costing is reflected in the tone of t he construction feat used to subjugate the maintenance and replacement cost leading to the better economics overall in the future. The principle of procurement is the endless triangle which favours the client towards high bore, lowest cost and short time period. All the three factors are mutually concerned in a project if one is given high p character then the other two will suffer.PerformanceIt mainly relies upon the juter who prepares the plan and structural designs for the project, essential for esthetical appeal and eco-friendly. The choice of materials and the constructors plays the place role in performance and also for the future maintenance and refurbishments.Risk FactorsThe commonplace risks faced during the construction projects are make conditions, artificial obstructions and defectiveness in workmanship, material tests and samples, weather. In addition, delay and disputes from both the parties, unapproved payments and the discrepancies from the Government polici es and Law arbitration.Planning Early acquisition planning is done to contain the procurement route.Environment Sustainable environment is come through through planningFlexibility Changes can be done in the on-going project or in future3.1 Procurement StrategyIn general procurement is defined as the obtaining of goods and services1 which in construction field refers to the construction materials, plant and services in order to design, schedule, manage, organize, execute and commission the project until delivering to the client. A variety of method have been developed and introduced to assess building through procurement which is obtained by radical of multiple organizations experience and expertise. The procurement strategy describes the contribution that the effective procurement will make to the fulfilment of the organizations vision and strategic objectives a.Secondly, procurement strategy identifies the main objectives, constraints, funding, and risk and asset ownership of the project which later enhances to achieve the target of the client. Besides, it promotes high standards of professionalism and high quality of management information. Furthermore, reduction in cost is attained through aggregated purchasing power and minimizes the exposure through effective risk management.3.2 Necessity for ProcurementTo achieve the value for moneyTo coordinate swimmingly with the organizations and to supply focus on chain managementTo obtain sustainability by making value for money decisions over the life of the asset and not all on capital costs b.To3.3 Procurement RoutesThe procurement routes are accomplished with great involvement and knowledge of the individuals and organizations who worked in the industries for years in distinct disciplines. Procurement route is defined as the systems and procedures for commissioning the work. This route is concerned mainly for the strategic approach of the project which simplifies the construction execution by coordinating with the medical specialist teams of the project.3.4 Factors influencing Procurement RouteCentral to the entire discipline of the procurement is the concept of assessment about the ability of the economic operators of the project to satisfy the requisite of the client. The key aspects of this route are employers requirements, tender period/contractors proposals, selecting the specialised contractor and construction. Into the bargain, the following factors are also taken care in this method such as cost certainty, cost reduction, contract period, quality and standards, constructability and litigation. As well as this route is concerned it depends upon the cost and time of the project at the expense of quality which is well suited for perfect carriage of the project. Next, the factors which encourages this route are listed below 3User familiarity with design and build procurement arrangementsPreference of a client or consultantThe desire for the single point responsibility for the c lientGreater certainty of outcomes, initially and in the longer termDespite the fact, follows the present guaranteed upper limit price (GMP) which is prepared at the time of agreement and if the contractor finishes the work below GMP then remaining amount will be shared between the client and contractor in roughly case.Situations Where Design Build Arrangement Used WidelyIn the case of simple and standard forms of construction are required.Example WarehousesWhere the building needs only minimum architectural works.Example Farm buildingsWhere proprietary system is used in buildings as it reduces the design and adulation time.Example Buildings with Automations (such as automatic doors)Where the projects requires local contractor specialists.Example Specialised in Flooring and MasonryTo execute Fast-track projectsExample HospitalsIn projects where cost certainty is about preferred.Example Housing Units3.5 Types of Procurement RouteThere is a large volume of published studies descri bing the role of procurement route obligatory for producing the required project outcomes and have a profound effect towards finishing point. In general at that place are many procurement routes available which are listed as follows traditionalistic / ConventionalDesign and Build / Package deal arrangementConstruction ManagementManagement ContractingTwo stage tenderTurnkey domain Private PartnershipFramework AgreementPFI/PPPEven though there are many routes available, traditional, design build, construction management and management contract are the major methods used generally. On the other hand, according to my opinion for this auditorium project we can adopt Design and Build route or handed-down route.3.5.1 Traditional Procurement RouteThis is the standard method which is in practice for the past 150 years in the construction industry. In this route the client appoints the contractor, architect and consultants to guide the project from the initial stage to pursue perfection i n planning and design. Furthermore, the client owns the whole responsibility of the design and project team. here(predicate) the contractor involved in the tendering documentation and negotiation processes of the proposed project. The valuation and payment in the administrative department is authorised by clients consultants. To put in a nut shell this method benefits the client in cost and quality with whatsoever expense of time. Nevertheless, can be used in a go of situations on the basis of pricing results in a lump sum contract, a measurement contract or a cost plus contract and whether the project is a single one project or a part of a program under single specific termc.Secondly, for instance with reference to the proposed auditorium project the three organisers consultants, architect and contractor are employed initially and the project thoroughly managed by the client from the preliminary works.3.5.2 Construction Management Route3.5.3 Design and Build Procurement RouteThe Design Build method is one of the more practical ways of client friendly approach used worldwide to take particularly when the buildings to be produced are either rattling specialised, and the contractor is an expert in that speciality or when they are genericd. Initially, the concept aimed to reduce the conflicts that exist between the architect and the contractor which resulting in poor reputation for the construction project and gave great assurance the timely completion of work at lower cost. However, the client needs to consider the trio of design, cost and quality of the project in advance before employing the contractor. Besides, the desires of the employer (client) is clearly proposed to the contractor to make him/her full involved in the project including both design and accomplishment which encourages least involvement of the client. The nature of this procurement route is minimizing the design deviations from the original design which help in cost and time saving for the employer.Moreover, one major issue in early procurement research is concerned is the quality which is rapidly development because this method is popularly expanding towards profitability. To gain more projects and profits the design build contractual firms are focusing deeply on the quality in addition to time and cost which is a positive result in favour of this method. The client gets the total pecuniary commitment in advance before the work is initiated and then the contractor shields the complexity of the client in the construction. At first this method is characterised by the tender documents which is developed according to the clients requirements which is published to welcome the contrasting proposals from the potential contractors with numerous quotes of project rates. The potential contractor who wins the tender, meeting the clients priorities will be employed by the client to develop design and complete the design proposals. Here, the contractor performs solely unde r the client towards the start of the project by having his own design team and construction team. On the contrary, the contractor is wholly amenable for the design, construction planning, organization and control of the project and also he has the upper hand to engage subcontractors and the specialist sub-contractors for the project. In some case, the client whitethorn/may not seek consultant to guide and supervise the contractors work in the project. .Implementation of the Design Build Procurement routeAs far as the auditorium in the HWU is alarmed the major thing to be considered was the time and cost of the project. If the proposal is given by the contractor it should be performed within the certain time limit such as the project must be finished in between the summer holidays because the students shouldnt grieve from the construction activities. Moreover, the proposed project should not take place the financial budget of the university. Therefore, design build procurement m ethod is highly recommended for this project which augments the successful completion of the project. However, if the university requires a consultant they can seek help from the Built Environment faculties to oversee the project which saves the consultant cost for the university.Benefits of this routeThere are several benefits why this route is adopted for this project which are responsible for successful completion of the project on time and for perfect delivery.It follows the two phase selection process that narrows the field of the final proposers to those that are most highly qualified based on experience, capability and capacitye.The intricacy in the technical aspects is fully eliminated because the contractor (single authority) is answerable for all the issues faced in the design and building of the project.The work moves forward speedily as there is no need for tendering again for the buildings.Because this method the contractor can reassure the client regarding the financia l help needed for the project, how to receive the funding from the lenders as he is aware and well experienced in the fieldThere is no need that a client should be an experienced individual in the construction field as contractor hold the whole obligation.As the contractor is involved from the very beginning he can produce specialised construction knowledge and methods.There is a direct link between the client and the contract as there is an agreement signed before the start of the project.The time consumption is less in this route, as the traditional methods are eliminated in this process.As cost certainty is major concern for this route which benefits the client both economically and technically.There is a possibility of dropping pre tendering and initial tendering costs.The functional building at the reasonable cost can be achieved.As the contractor is in charge for all sub-contractor appointments the client can escape and escape from those burden.Also there are no claims for the contractor if he/she fails to meet the clients needs and has a delayed in time for completion.Following this method maximum risk is transferred, although mercenary response in design in order to address contract conditions can resultd.Many argue that this route agonises from lack of architectural merits, but the fact is it clearly benefits the client by disregarding the risks which arises from those designs.Criticism Faced in this RouteAlthough this method has a huge number of benefits it also suffers from some common drawback such as,Since this route is using simplified construction formats and activities there might be reduction in design quality.Neglecting the innovative design is highly followed in this method which results in the discouragement of architects innovations.The contractors view is always on the capabilities of the firm instead of the requirements of the client.The aesthetic appearance of the project is surrendered towards the cost effective solutions and easy wor k executions.The long term life and maintenance of the building is not considered by the contractor because low cost budget.The influence of contractor over the quantity surveyor leads to some controversial happenings/activities at the time of payment approval.BibliographyDunican Cartlidge (2009). Quantity Surveyors Pocket Book. Great Britain Elsevier Ltd. 197.Allan Ashworth (2006). CONTRACTURAL PROCEDURES IN THE CONSTRUCTION INDUSTRY. 5th ed. Edinburgh Pearson Education Limited. 77.