Procurement in Construction Industry

4.0 EVALUATION OF PROCUREMENT METHODS

4.1 Procurement definition: is generally referred to a term use describe the process of obtaining or acquiring goods, services or works from external or outside source.

In the construction industry, procurement is a term that is use to describe the network of activities formed by clients, consultants and executors (contractors), seeking to realize or bring to reality the execution of a construction project from inception to completion. In every project, the client’s concern is majorly focused on cost, time and quality.

There are basically four different methods of procurement, the choice of any appropriate methods will depend on the merits, budget constraints of the project and the risks involved.

4.2 Methods of procurement

There are four major procurement methods, according to the joint contracts tribunal (JCT) they include; traditional method, design and built method and turnkey method.

Fig. 4.0 Procurement methods

A. Traditional (conventional) method of procurement

In this method, the client appoints an architect or an engineer to design for him and also separately appoint a contractor to execute the construction project. This method has been in existence for over 150 years ago.

For instance; when the Malaysian government appoints XYZ Architectural consultants firm to design a community hospital in Mantin and then separately appoints SPR Contractors Company to build the hospital, this system becomes Traditional method of procurement.

Some features of traditional method of procurement include;

(1) The client must make sure the complete documents for construction (BOQ, program of works and drawings) are ready before inviting the contractor to tender for the project.

(2) The client appointing a contractor different from the design team makes construction process to be separate from the design.

(3) There is high certainty on the cost of project since costing is done before contracting.

(4) It...