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37 Cards in this Set
- Front
- Back
What is procurement? |
The overall process of acquiring construction work or services |
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What are the main procurement methods? |
Traditional / general contracting
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What is traditional procurement? |
The design is completed by the client’s design team before competitive tenders are invited and a main contractor is employed to build what the designers have specified
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How does traditional procurement work? |
The client takes the responsibility and risk for the design and design team performance |
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When might traditional procurement be appropriate? |
If the employer has had the design prepared |
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What contracts might be used? |
JCT – minor, intermediate, standard with quantities |
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What are the advantages of traditional procurement? |
Competitive fairness and transparent process – increase value for money |
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What are the disadvantages? |
Overall project may have a longer duration than others – sequential process |
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What is design and build? |
Where the contractor is responsible for the design, planning, organisation, control and construction of the works to the employer’s requirements |
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How does D&B work? |
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
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When might D&B be appropriate? |
Where there is a need to make an early start on site – can overlap design and construction |
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What contracts might be used? |
JCT DB 11 |
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What are the advantages of design and build? |
Single point of responsibility for design and construction |
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What are the disadvantages of D&B? |
Client may find it hard to prepare a sufficiently comprehensive brief |
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How much design input will the contractor have under D&B? |
This depends on the amount of design work the employer has already had completed at time of tender
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Under D&B - who carries out the design for the contractor? |
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What is novation? |
A new contract that transfers the rights and obligations of one contractual party to a new third party i.e. design rights and obligations of architect transferred to contractor
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If the design team is novated, what should the client put in place? |
A collateral warranty to the design team to give them remedies for breach of contract |
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What is management contracting? |
A management contractor is employed to contribute their expertise to the design and to manage construction and is paid a fee for doing so |
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How does management contracting work? |
The Management Contractor has direct contractual links with all of the works contractors |
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When might management contracting be appropriate? |
Where the client does not want cost certainty before commencement
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What contract might be used? |
JCT – Management Contract 05 |
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What are the advantages of Management Contracting? |
Overall project duration is shorter due to overlapping design and construction |
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What are the disadvantages of Management Contracting? |
The price for the works is not received until the last package has been let |
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What is construction management? |
The employer places a direct contract with each of the trade contractors and utilises the expertise of a construction managers who acts as a consultant to coordinate the contracts |
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How does it construction management work? |
The trade contactors carry out the work |
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When might construction management be appropriate? |
On large, complex projects were the advantages of CM can be put to use e.g. upfront buildability knowledge, programme advise, specialist input from trade contractors |
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What contracts might be used for construction management ? |
JCT - Construction Management Agreement CM/A AND Construction Management Trade Contract (CM/TC) |
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What are the advantages of construction management? |
Overall project duration reduced by overlapping design and construction |
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What are the disadvantages of construction management? |
Price certainty not achieved until last trade package is let |
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What is the difference between management contracting and construction management? |
Under construction management the client is in direct contractual relationships with each of the trade contractors and the construction manager isn’t
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How do you identify the client requirements before recommending a procurement route? |
Through detailed discussions with the client and design team to identify their priorities in terms of cost, time, quality, risk, control requirements and experience |
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If the client wishes to start on site asap what procurement route would you recommend? |
Depends on their other requirements – such as cost and quality
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What if they wanted an early start but also cost certainty, what procurement route would you recommend? |
Then design and build might be the most appropriate |
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What is GMP? What does it mean to you? |
Guaranteed maximum price
A lump sum contract under which there is no adjustment of tender price unless the SCOPE required by the client changes
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What are the advantages of GMP? |
Greater price certainty – contractor takes risk of design development and unforeseen occurrences
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What are the disadvantages of GMP? |
The client may pay too much – contractor’s risk allowance may be higher than in reality
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