Tender Procedure 2

 

Procurement is the process of purchasing Works, Goods, Consultancy Services or Other Services.

 

There are many different routes by which the design and construction of a building can be procured. The selected route should follow a strategy which fits the long-term objectives of the client's business plan. Considerations are likely to include:


 

Speed Cost Specific project 

constraints Risk Financing 

Quality

Asset ownership

·        time of tender, cost and time certainty are reduced.

 

Design and build

 

Design and build is a term describing a procurement route in which the main contractor is appointed to design and construct the works, as opposed to a traditional contract, where the client appoints consultants to design the development and then a contractor is appointed to construct the works. The employer gives the tenderers the ‘Employer’s Requirements’ and the contractors respond with the ‘Contractor’s Proposals’, which include the price for the works. The contractor is responsible for the design, planning, organisation, control and construction of the works to the employer’s requirements.

 

Design and build can be attractive to clients as it gives a single point of responsibility for delivering the project.

 

Design and build projects can follow either a single-stage or two-stage tender processes. Design and build can be seen as giving a single point of responsibility for delivering the entire project. Design and build contracts can be awarded on a fixed price, lump sum basis, but price certainty is then dependent on not making any subsequent changes as these could prove to be expensive (as prices charged by the contractor for those changes will not be subject to competition). It is very important therefore that the client gives a great deal of consideration to the preparation of employer's requirements. Appropriate:

 

·        Where there is a need to make an early start on site – can overlap design and construction

·        Where the client wishes to minimize their risk – no responsibility for design

·        For technically complex projects which can benefit from the contractor’s expertise

·        Where the employer does not want to retain full control over the design development

 



What are the advantages of design and build?

 

·        Single point of responsibility for design and construction

·        Earlier commencement on site

·        Early price certainty

·         Benefit of contractor’s experience harnessed duringdesign                 What are the disadvantages?

·        Client may find it hard to prepare a sufficiently comprehensive brief

·        Client has to commit to a concept design early

·        Variations from the original brief can be difficult to arrange and expensive

·        Harder to compare tenders and determine if they offer value for money

·        Ease of fabrication may be prioritised above aesthetic quality