Executive Summary: Procurement Selection Criteria

Table of Contents

List of Tables

List of Figures

EXECUTIVE SUMMARY

1.0 Introduction .................................................................................................................... 3

1.1 Procurement Strategy ..................................................................................................... 4

1.2 Procurement Selection Criteria ...................................................................................... 4

1.3 Summary ........................................................................................................................ 9

2. PROCUREMENT METHOD CHARACTERISTICS ........................................... 10

2.1 Traditional (Separated) Procurement

2.1.1 Traditional – lump sum

 There is one single point of contact for the client, as one organization is dealing with all aspects of the project (design and Construction). This can make communication much easier (Marsh, 2003).

 This method is highly flexible and allows for delays, changes to design and programme (Hughes, Hillebrandt , Greenwood, & Kwawu, 2006 ).

 Due to earlier engagement with the contractor advice can be provided on design, programme, buildability and general expertise.

 As this method uses individual work packages, it ensures competition can be achieved on up to 90% of construction cost and provides flexibility to adjust cost or scope should the project exceed its budget (Masterman, 2002).

Disadvantages:

 Price certainty is not achieved until the final works package has been let (Faithful & Gould , n.d.)

 As this method is not as common as others an informed and proactive client is required (Davis, 2009)

 Majoriety of the project risk is allocated to the client, this can become particulary onerous if certain sub-contractors responsible for individual work packages do not perform. (Masterman,