Procurement in Construction
P * Procurement Definition:
A basic definition for the procurement is “the way the building is realised” and “involves assembling and organising the skills and services of a team of construction professionals”. (the Construction Round Table, 1995). More precisely, the construction industry describes procurement as “a system that establishes the roles and relationships which make up a project organisation”; hence the overall organisation and communication structure for the management, administration and control of a project is established by the procurement system. (D.C.H Coles, 2010) * Procurement Systems essentiality:
Choosing the most suitable procurement method for the specified construction project is a long term hard decision; it is a crucial task “it is one of the most crucial decisions on any building project” (Gillespie, 1994).
Choosing the appropriate procurement system is the determinate for a successful project (Building Procurement, 2006) this statement is supported by the investigation done on 25 National Audit Office (NAO) reports, were it was concluded that choosing the wrong procurement method is a major risk source (covering 29% of the risk source percentage) for public sector project failure. Furthermore, an American study concluded the total project cost can decrease about 5% by choosing the correct procurement methodology.
“Failure to choose the appropriate procurement approach is recognised as the primary one source for project failure" (Building Procurement, 2006)
* Role of the Project Manager
“The presence within the client company of a Senior Executive willing and able to act as a single point of contact throughout the building process, gives the client a distinct advantage”
(Construction Round Table, 1995)
Within the last fifteen years, the role of the Project Manager has developed in the construction industry, what is mentioned above proves that having someone to manage and supervise the project is the key for a
A basic definition for the procurement is “the way the building is realised” and “involves assembling and organising the skills and services of a team of construction professionals”. (the Construction Round Table, 1995). More precisely, the construction industry describes procurement as “a system that establishes the roles and relationships which make up a project organisation”; hence the overall organisation and communication structure for the management, administration and control of a project is established by the procurement system. (D.C.H Coles, 2010) * Procurement Systems essentiality:
Choosing the most suitable procurement method for the specified construction project is a long term hard decision; it is a crucial task “it is one of the most crucial decisions on any building project” (Gillespie, 1994).
Choosing the appropriate procurement system is the determinate for a successful project (Building Procurement, 2006) this statement is supported by the investigation done on 25 National Audit Office (NAO) reports, were it was concluded that choosing the wrong procurement method is a major risk source (covering 29% of the risk source percentage) for public sector project failure. Furthermore, an American study concluded the total project cost can decrease about 5% by choosing the correct procurement methodology.
“Failure to choose the appropriate procurement approach is recognised as the primary one source for project failure" (Building Procurement, 2006)
* Role of the Project Manager
“The presence within the client company of a Senior Executive willing and able to act as a single point of contact throughout the building process, gives the client a distinct advantage”
(Construction Round Table, 1995)
Within the last fifteen years, the role of the Project Manager has developed in the construction industry, what is mentioned above proves that having someone to manage and supervise the project is the key for a
References: * D.C.J COLES. (2010). Criteria of Procurement Selection. Project Managers (Construction Management), the entire Lecture. * Business Round Table. (1995). the Construction Round Table. Thinking about Building. * Gillespie, B (1994) * Roy Morlegde, Adrian Smith, Dean T. Kashiwagi. (2006). Chapter 2; Procurement Strategy: a literature review. In: Building Procurement. Oxford: Blackwell Publishing Ltd.. p6-p22.