Standard Forms of Building Contract 
1 Executive Summary
Procurement strategy and choice of contract for this project has been appraised. Furthermore, procedures for selecting main contractor and sub-contractor was reviewed and comparison was prepared to show differences between two procedures. A flow-chart diagram was attached in the Appendix to show the procedures.
2 Introduction
2.1 Background of the Projects
The project we are going to bid is a private development, which to construct a 24-storey residential apartment. The form of contract that the client decided to use in the captioned project is Hong Kong Standard Form of Building Contract 2005-With Quantities, which is published by HKIS, HKIA & HKICM. The client preferred a single stage selective tendering approach and we are now going to enter the bid.
2.2 Objectives
(i) Understand the procurement strategy adopted
(ii) Understand the form of contract adopted
(iii) Understand how the Client will appoint our company
(iv) Understand how our company will appoint a subcontractor
(v) Identify differences in tendering procedures
2 Introduction
2.4 Procurement Strategy
Figure 1 Organizational structure of a traditional strategy (RICS, 2013)
Based on the above scenario, we assumed the project adopting the traditional procurement. Traditional procurement is most commonly used approach in the construction industry. It’s standard practice in the industry since 19th century. (RICS, 2013) Therefore, roles and responsibilities of contractors and different project consultants are well understood.
In traditional procurement, design process is kept separate from the construction process. (RICS, 2013) The design have to be completed first and full documentation including drawings, specifications are needed before tendering process. In view of the client, he can remain his control over the design and ensuring quality. A contract administrator will also appointed to monitor the projects, usually the architect or the engineer. In
Procurement strategy and choice of contract for this project has been appraised. Furthermore, procedures for selecting main contractor and sub-contractor was reviewed and comparison was prepared to show differences between two procedures. A flow-chart diagram was attached in the Appendix to show the procedures.
2 Introduction
2.1 Background of the Projects
The project we are going to bid is a private development, which to construct a 24-storey residential apartment. The form of contract that the client decided to use in the captioned project is Hong Kong Standard Form of Building Contract 2005-With Quantities, which is published by HKIS, HKIA & HKICM. The client preferred a single stage selective tendering approach and we are now going to enter the bid.
2.2 Objectives
(i) Understand the procurement strategy adopted
(ii) Understand the form of contract adopted
(iii) Understand how the Client will appoint our company
(iv) Understand how our company will appoint a subcontractor
(v) Identify differences in tendering procedures
2 Introduction
2.4 Procurement Strategy
Figure 1 Organizational structure of a traditional strategy (RICS, 2013)
Based on the above scenario, we assumed the project adopting the traditional procurement. Traditional procurement is most commonly used approach in the construction industry. It’s standard practice in the industry since 19th century. (RICS, 2013) Therefore, roles and responsibilities of contractors and different project consultants are well understood.
In traditional procurement, design process is kept separate from the construction process. (RICS, 2013) The design have to be completed first and full documentation including drawings, specifications are needed before tendering process. In view of the client, he can remain his control over the design and ensuring quality. A contract administrator will also appointed to monitor the projects, usually the architect or the engineer. In