Alternative Basic Procurement Methods Essay

Critical Analysis of Alternative Basic Procurement Methods in the proposed project

ANALYSIS OF MANAGEMENT CONTRATING TO THE PROPOSED PROJECT

Shopping malls are different from all other retail store construction projects:

Proposed Project – Shopping Mall Suitability of Management Contracting

(a) Huge number size differences. Shopping malls are different from all other retail store construction projects, it is large and complex. Reflecting the current trend of becoming bigger and more complicated, many functional facilities are additionally designed The Management Contracting is suitable for large-scale and complex project

(b) They don’t use the same construction technique or configurations. The Management Contractor will take responsibility

Management Contracting Traditional Procurement Method

(a) Overlapping of design and construction to achieve early commencement of construction for multi-phase projects. Concurrent working is inherent No or little overlap between design and construction. Slow to start on site, not concurrent working

(b) Time saving potential in overall project Traditional procurement is design led, facilitating high level of quality of design. But relies upon full design information prior to tender, result in long time pre-contract preparation. Overall project duration may be longer than other procurement methods as the strategy is sequential and construction cannot be commenced prior to the completion of the design.

(c) Client’s own property, quality demand high. Sustainable construction. Usually lowest bid win the contract, quality of management is put at risk

(d) Risk is more on contractor. It breaks down traditional adversarial barriers. The risk allocation is average, so it might result in adversarial relationship which potential of disputes

Late changes easily accommodated too. Open to abuse if any attempt is made to tender before the design is complete, resulting in less certainty

Why not using Construction Management?

Construction management is not an option for our proposed project – sustainable shopping mall. Our client have no experience on sustainable construction knowledge.

In this method, the employer must be very experienced. If not, the project will not be managed very well then cost and time overruns are virtually guaranteed References

1. Fixr (2016) Cost to develop a shopping mall - estimates and prices at Fixr. Available at: http://www.fixr.com/costs/build-shopping-mall (Accessed: 20 November 2016).

2. (No Date) Available at: http://www.hkis.org.hk/hkis/general/events/cpd-2015016i.pdf (Accessed: 20 November 2016).

3. (No Date) Available at: http://www.construction-innovation.info/images/pdfs/Research_library/ResearchLibraryC/2006-034-C/reports/Report_-_Capital_Works_Procurement_-_The_Selection_of_a_Building_Procurement_Method.pdf (Accessed: 20 November