Procurement options
A number of procurement strategies have been developed in the UK market, with the appropriate choice for each project depending on variables such as the desired level of risk transfer, the expertise and resources of the client, the extent of initial design development, and the available sources of funding. Some of the main procurement options are outlined below.
Traditional procurement The traditional procurement route involves the client separately appointing a design team (eg architect, mechanical and electrical engineer, structural engineer) under direct contractual appointments, and maintaining this direct contractual relationship throughout the project. The client appoints the contractor separately under a building contract. Design responsibility rests with the design team, and the contractor has a responsibility to build to their design. Although the contractor has no overall design responsibility, he may design discrete specialist items. Design and build With design and build, the responsibility for carrying out most, if not all, of the design, and the risk in the design, is passed to the contractor. The contractor may carry out design in house, or may appoint his own design team. Alternatively, the design team appointments originally entered into by the client may be novated to the contractor, allowing for continuity of design.
Hybrid and variant versions of of such single point responsibility include: – BOT (build, operate, transfer) – DBO (design, build, operate) –– EPC (engineer, procure, construct) In major civil engineering projects, contractors may form unincorporated JVs to undertake large works packages (assuming joint and several liabilities to their client, and allocating responsibilities between themselves through a JV agreement). Management Management procurement involves a fast track approach which allows work to progress very quickly, but provides little cost certainty. The main types are: – Management contracting This approach overlaps the design and construction stages, allowing early parts of construction to be started before the design has been completed. The management contractor is appointed by the client early in the programme, and his role is to manage the overall contract in return for a fee. The contracts for
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