Mastering Construction Procurement: Your Ultimate Guide by Contract Rite
Welcome to Contract Rite’s comprehensive guide to construction procurement. This is your roadmap to navigating the intricate landscape of acquiring goods and services in the construction industry.
As specialists in construction law, Contract Rite is dedicated to providing the knowledge and expertise for effective procurement processes. Whether you’re a seasoned professional or a newcomer, this guide will help you make informed decisions in your procurement activities.
Understanding Construction Procurement
The term ‘construction procurement’ covers the methods and processes by which construction projects acquire goods, services, and works. It involves various stakeholders, including owners, contractors, subcontractors, suppliers, and consultants, collaborating to fulfil project requirements efficiently.
At Contract Rite, we recognise that the procurement process can be complex. However, with the right support and guidance, good procurement procedures often produce significant cost savings, improved project outcomes, and reduced legal risks.
The most common methods of Construction Procurement
Traditional Procurement: This method involves sequential steps of design, bidding, and construction. Owners select a design team to develop plans, followed by a competitive bidding process to select a contractor. The most common process used to manage a construction project is the RIBA Plan of Work.
RIBA Plan of Work
The RIBA Plan of Work breaks the work requirements into seven stages. Under a traditional procurement method, the client’s design team carry out the design of the works typically to stage 4 ‘technical design’. The build contractor then delivers the works under stages 5, 6 and 7 ‘Construction, handover and use’.
RIBA Plan of Work Benefits
The benefits of this process is that any errors in the design, are picked up, and owned, by the design team. This allows the designers to be able to rectify their errors quickly with no investigation required to determine who was at fault. As suggested within the title of this method, traditional procurement is a long-established process, with RIBA sanctioning the first produced standard form of contract in 1903.
Design and Build
In this approach, a single entity, typically a design and build contractor, is responsible for both the design and construction phases. This streamlined process can expedite project delivery and foster better collaboration among project stakeholders. Over recent decades the industry has moved from a traditional approach to a design and build preference. 49% of contractors confirm this was their most frequently used procurement method. Only 34% said they used traditional procurement as their most commonly used procurement form (nbs-national-bim-report-2015).
Design and Build Benefits
If used correctly, the client’s design team will prepare the project design criteria. This is generally either up to RIBA stage 2 ‘concept design’, or stage 3 ‘developed design / spatial coordination’. The contractor will then complete the design under stage 5 ‘technical design’. This method offers real opportunity to the project as the contractor is able to influence the design using its build knowledge. It also offers value for money alternative proposals as the contractor will understand true market costs for each build option.
However, the intended benefits of collaboration under this Design and Build method are often manipulated into what has been nicknamed ‘design and dump’. Under this method, the project design is produced by the clients design team, but then the risk of the design is offset to the contractor, with the clients design team relieving themselves of the risk of errors. This effectively dumps the design onto the contractor, leaving the contractor with little opportunity to influence the design.
Construction Management
Under this method, the construction manager acts as a consultant to the owner, providing input during the design phase and overseeing the construction process. This allows for greater flexibility and coordination throughout the project lifecycle. Unlike other procurement methods, this option is best suited to a client that intends to be involved in the delivery of the project and maintain control of all final decisions.
Construction Management Benefits
Whilst this option requires a greater level of input from the client, construction management can be a cost-effective method for delivering the works, as usually the construction manager will act as the principal contractor, potentially removing the markup on subcontractor packages.
The Importance of Expert Legal Guidance
Navigating the complexities of construction procurement requires expert legal guidance. Contract Rite offers a wide range of legal services tailored to the construction industry, including contract drafting and negotiation, dispute resolution, and risk management. Our team of experienced legal experts at Contract Rite understand the unique challenges facing construction professionals. We are dedicated to providing practical, strategic solutions that protect your interests at all times.
Take the Next Step with Contract Rite
Ready to take your construction procurement strategies to the next level? Contact Contract Rite today to schedule a free 1-hour consultation. Whether you need assistance with contract review, dispute resolution, or risk management, we’re here to help.
Contact Us for a free consultation and let Contract Rite be your trusted partner in construction procurement success.
Why choose Contract Rite
Construction procurement is a multifaceted process that requires careful planning, strategic decision-making, and expert legal guidance. With Contract Rite by your side, you know you have a dedicated legal team that also have a deep understanding of the construction industry.
From legal compliance and risk management to cost control and technology integration, Contract Rite has the knowledge and expertise to help you achieve your procurement goals. Take the first step towards success and contact Contract Rite today!
Get in touch
For more information and specialised support and advice, get in touch with our expert team at Contract Rite today. Tel: 01780 243 127 or email: consultants@contractrite.com