In the construction industry, selecting the right contractor procurement route is essential for the successful delivery of a project. Tailoring the procurement options to suit the specific needs of your construction project can lead to so many benefits, which we’ll get into later.
Our blog will essentially look at why it’s important to tailor procurement routes and highlight the benefits of doing so.
Understanding Procurement Routes
Before diving into the benefits, it’s important to understand the different types of procurement routes available in the construction industry. The main procurement routes include:
- Traditional (Design-Bid-Build): The design and construction stages are separate. The client first hires a designer to create detailed plans and specifications. Contractors then bid for the construction work.
- Design and Build: One contractor is responsible for both the design and construction. This can lead to a more integrated and streamlined process.
- Management Contracting: The client hires a management contractor to oversee the construction work carried out by various trade contractors.
- Construction Management: Similar to management contracting, but the client holds direct contracts with the trade contractors, with a construction manager acting as an advisor.
- Partnering/Collaborative Procurement: Emphasises cooperation between all parties involved, focusing on long-term relationships and shared objectives.
Benefits of Tailoring Procurement Routes
Here are some of the amazing benefits of tailoring your procurement routes:
1. The Cost Efficiency and Sustainability
Tailoring the procurement route to your project’s needs can lead to significant cost savings. For instance, if your project requires a fast turnaround, a design and build route can be more cost-effective than traditional procurement because it allows for overlapping of design and construction phases, reducing overall project duration and associated costs.
Example:
- Using both design and construction will make sure that any design changes can be quickly sorted out without the need for re-tendering, saving time and money.
2. Improved Quality
Different procurement routes offer varying levels of control over quality. For projects where quality is paramount, traditional procurement might be the best choice as it allows the client to have more direct control over the design process, ensuring that specific standards are met before construction begins.
Example:
- It gives you detailed plans and specifications that are completed before construction, allowing you to give it a thorough review and quality assurance.
3. It Gives You Risk Management
Tailoring the procurement route helps manage and distribute risks more effectively. For example, in a design and build route, the contractor assumes the risk for both design and construction, reducing the client’s exposure to potential issues.
Example:
- The contractor is liable for design errors and construction defects, which can protect the client from additional costs and delays.
4. Flexibility
Projects that are likely to grow or require changes can benefit from more flexible procurement routes like management contracting or construction management. These routes allow for modifications during the construction phase without significant disruptions.
Example:
- The management contractor can quickly adapt to design changes and coordinate with various trade contractors to implement modifications efficiently.
5. You Will Save Time
Time-sensitive projects can benefit from procurement routes that allow for simultaneous design and construction activities. This can lead to faster project completion compared to traditional sequential processes.
Example:
- It allows construction to start on certain sections of the project while the design for other sections is still being finalised, speeding up the overall timeline.
6. Teamwork Makes the Dream Work
Partnering or collaborative procurement routes create a collective environment where all parties work towards shared goals. This can lead to better communication, fewer disputes, and just an overall better project team.
Example:
- If you focus on long-term relationships and mutual objectives, potential conflicts can be addressed proactively, making for a much smoother project delivery.
7. Tailored Solutions
Every construction project is unique, with its own set of requirements and constraints. Tailoring the procurement route allows for a customised approach that aligns with the project’s specific needs, whether it’s the scale of the project, the complexity of the design, or the urgency of completion.
Example:
- For a large-scale project with various components, a mixed approach can be adopted where different procurement routes are used for different sections, optimising efficiency and outcomes.
Final Thoughts on Contractor Procurement Routes For Construction
Tailoring the contractor procurement route to your construction project’s specific needs offers numerous benefits, from cost savings and improved quality to better risk management and time efficiency.
By carefully considering the nature of your project and selecting the most appropriate procurement route, you can make sure it’s an easy, more successful project delivery.
Take the time to evaluate your options and choose the route that best aligns with your goals and requirements for a truly optimised construction process.