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Last edited 16 Mar 2022

Procurement route options pros and cons

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See also: procurement route.

Contents

1 Traditional contract
2 Design and build
3 Management contracting
4 Construction management Public voting closes on 5 January 2024.

Have a bit of spare time in the holidays?

Traditional contract

Good for:

Quality – full design pre tender

Design flexibility – variations & instructions
Specialist subcontractors – Named specialist update to standard building contract sbc11
Design control – through the architect / contract administrator
Contractor's Designed Portion – such as mechanical and electrical engineering
Cost – there may be lump sum cost benefits unless are multiple changes made

Not suited for: Write that article you have always meant to. It's
easier than you think.
Time – require full detailed pack pre tender
Cost – not a benefit if many changes made post tender
Incomplete drawings – lead to delay, costs and claims of negligence
UK towns receive £5m for historic building

Contracts: JCT Standard Building Contract 2016, JCT Intermediate Building Contract 2016, JCT Minor Works Building restoration

Contract 2016, NEC3 ECC Option A

JCT Standard Building Contract 2016:

Lump sum payment

CDM
Contractor's Designed Portion
Named subcontractors
Variations / instructions
Retention
Collateral warranties
Termination provisions
Pre-agreed alternative dispute resolution procedures.

12 locations benefit from a new empowering

Design and build
communities fund.

Good for:
Thinking about building your own house?
Time – Fast track, overlap of design and construction
Cost – lump sum / Guaranteed maximum price
Single point of responsibility – Contractor design and build responsibility
Has good price certainty
Novation – can benefit quality.
Low risk for the client
Variations can be accurately valued
Not suited for:

Quality – cheapest route to meet contract specification can lead to low quality products/ build quality.
Design flexibility – request for changes will have cost/time implications
Contractor carries risk for construction
Client exposed to claims for buildability
Design could affect the buildability of the project

Contract: JCT Design and Build 2016, JCT Major Project Construction Contract 2016, NEC ECC Options A-E

JCT Design and Build 2016:

Contractor to complete design and carry out the works.

Lump sum / Guaranteed maximum price Why not follow our detailed step-by-step guide.
CDM
Collateral warranties
Termination provisions Artificial intelligence and real stupidity
Retention
Pre-agreed dispute resolution procedures

Management contracting

Good for:

Complex / specialist projects – individually appointed packages to best suited sub-contractor

Potential cost saving – competitive tender
Time - it is possible to overlap design and construction
Quality – each package subcontracted to specialist
Design flexibility – changes can be made throughout construction, although there are potential cost implications. An artist of the abstract school, a fantasy horse
and a chatbot go into a pub…
Not suited for:

Inexperienced clients – risk high Ian Wray

Fixed cost - Prime cost basis per package.
Lack of available specialists – would leave gaps in work to be undertaken.

Contract: JCT Management Building Contract 2016

Prime cost contract

Collateral warranties
Sustainability
Collaborative working
Third party rights – such as the funder / contractor

Construction management
Q&A with a planner, writer and musician.
Good for:

Complex / specialist projects – individually appointed packages to best suited sub-contractor Happy holidays
Time - It is possible to overlap design and construction

Design flexibility – changes can be made throughout construction, although there are potential cost implications.

Potential cost saving – competitive tender

Quality – each package subcontracted to specialist
All building types
Efficiency – Early appointment of the construction manager to aid programme

Inexperienced client – risk high as appointing trade contractors

Fixed cost - Prime cost basis per package.
Lack of available specialists

Contracts:

JCT Construction Management Appointment 2016, NEC ECC Option F, Construction Management Trade Contract 1999

JCT Construction Management Appointment 2016: Cleaner chimneys and flues, for ourselves, and
for Santa.
Employer - trade contractor
Lump sum
Collateral warranties and third party rights
Retention CIC free to download Risk Management
Briefings
CM/A

Employer - construction manager

Collateral warranties
Sustainability

Comments

This article seems to need some revision: The Management Contracting and Construction Management procurement
methods appear to be the wrong way round.