Procurement and management of construction - Essay Example

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PROCUREMENT AND MANAGEMENT OF CONSTRUCTION Name: Institution: Introduction Background literature review The relationship between consultants, clients and construction companies are commonly described using the procurement methods that ensure realization of building projects…
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Download file to see previous pages It is major contributing factor to client satisfaction in the entire processes as well as the accomplishment of the plan with reference to the above descriptions and definition of the project participants and authorities (Cox 2005, p 75). There are numerous procurement methods and their selection can result to a successful or unsuccessful project. It is advised that procurement method selection is of greater importance especially after the recent financial slow-down and the latest bubble bursts among properties. Its importance is based on the ability of controlling the risk, time, responsibilities and entire building costs. The selection of a procurement method is mostly based on the scope and nature of the work under preposition. Other factors may include apportionment of the risks, where and how the design responsibility has to be placed, coordination of the entire process and the contract price on which the entire process is to be awarded. In choosing and settling on the forms of contract, it is essential to make a choice on the type of contact and procurement method. Procurement using the traditional approach has the clients accepting consultant’s appointment for designing, controlling cost, administration of the contract and that is the outworker is accountable for the works being carried out. These discussed responsibilities are extended to all employees or workforces that include suppliers and sub-contractors. The disadvantages of the traditional method of contracting include the engagement of contractors in the nominated, named and pre-selected methods. This is because the contractors may take full charge of the performance or even have limited responsibilities. In the case of the latter, it is essential to have a warranty between the sub-contractor and the clients. Another disadvantage is that the choice of contractors is usually based on competitive tenders that include presentation of documents to provide complete information. Other factors that can be used in the choice of contractors include earlier appointments through nomination information, partial nomination or through negotiation. In most cases, people use the accelerated traditional method of contracting that involves two stages of negotiating or tendering. An advantage to this method is the ability for the construction to run or continue parallel to an extent that is limited. An additional advantage is that it creates an opportunity for early starting on the site as well as entailing costs that are less certainty. Other traditional methods include sequential traditional lump sum system of building contracting. The client and the construction company In the projects discussed below, there are numerous contractors and subcontractors involved with the client being Wembley National Stadium Limited. The construction industry in the United Kingdom is consisted of about three hundred firms that offer employment to almost two million individuals. These people are held up in different roles and embraces suppliers and producers, products and construction materials, manufacturers and building services, installers and providers, contractors and sub contractors, advisers, professional and construction clients. Others who are included into this industry are organizations relevant to design, operation, building and refurbishment of buildings. In the UK, construction is essential since it provides a gross value added of about 8.7% that can be ...Download file to see next pagesRead More
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