- Published: December 17, 2021
- Updated: December 17, 2021
- University / College: University of South Australia
- Level: Secondary School
- Language: English
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Discussion on whether Traditional Methods of Project Procurement have any further use within Modern Construction Procurement Discussion on whether Traditional Methods of Project Procurement have no further use within Modern Construction Procurement
Introduction
The history of the traditional methods of project procurement stretches back to more than a century ago. The emergence of these traditional methods of procurement has been linked to the development of firms that offer general contracts. It has also been linked to independent consultants who offer services to the customers. The features that characterize traditional methods of project procurement include the provision of a wholesome record of the project prior to the tendering process by the contractor is undertaken. The other characteristic is that the construction work is differentiated from the design procedure (Joint Contracts Tribunal, n. d.). Traditional methods of procurement have been the source of an enormous debate in regard to their current suitability especially in this modern era. Are they of any use or not? The paper will examine whether the statement that they have no use for the current construction procurement is right.
Review of Known Facts
It has been stated by Adenuga (2013) that the traditional technique of project procurement involves a group of specialized consultants entering into a contractual arrangement with the contractor and the client. The group of specialized consultants may constitute quantity surveyors, engineers, and other professionals. Their role is to oversee the contractor, who works on the real construction, and deliver a suitable design. Normally, the specialized consultants ply their trade in different corporations. However, they come together and offer their expertise to the client for a certain amount of money. The agreed amount is made possible by the bills of quantities. The contractor gets the work after going through a competitive bidding process. In addition, the contractor and the design can be conducted at the same time up to a certain point. However, the cost know-how is not estimated accurately. Under this method, there are cost reimbursement, lump sum, and measurement contracts. The total cost of the contract can be assessed as per the definite materials, labor, and plant cost; it can be done before the beginning of the construction through an agreement; or after the construction is complete respectively (Davis, et al., 2008).
Addressing the Question
Do the traditional methods of project procurement have no use in the current procurement method? To determine if this is so, the pros and cons of the traditional forms of project procurement are examined. Under the pros, the client regulates the specialized group of consultants working on the design. Many clients may have familiarity with the methods. The methods have been utilized in the past. In addition, the contractor is not requested to have a management risk of the design. The cons include the increased likelihood of disputes due to the separation of construction and design. The rigidity it presents for future changes due to completion of the design before the construction. The specialized design consultants are not chosen from competitive bidding; hence, designs may be restricted and of high cost. The time consumed is much because the construction cannot start unless the design is complete (MinterEllison, 2011). The traditional methods of procurement provide disadvantages that make them inapplicable in the modern procurement methods like cost led and the two-stage open book procurement.
Conclusion
From the discussion, it is evident that traditional methods of procurement have come a long way in promoting the efficiency of the construction industry. However, the means of procurement that they present, such as separate design and construction present a set of pros that have minimal impact and cons that make them incompatible with the modern methods of procurement. Hence, past constructions that have been conducted using them can be used as case studies to enhance modern methods of procurement. It is recommended that modern methods, though without a place for traditional methods of procurement make use of the findings of these case studies to ensure efficiency.
References
Adenuga, O. A., 2013. COMPARISON OF THE PERFORMANCE OF TRADITIONAL AND DIRECT LABOUR METHODS OF PROJECT PROCUREMENT: A CASE STUDY OF SOME SELECTED PROJECTS OF THE NIGERIAN ARMY. Ethipoian Journal of Environmental Studies and Management, 6(1), pp. 21-30.
Davis, p., Love, P. & Baccarini, D., 2008. Builiding Procurement Methods. [Online]
Available at: http://www. construction-innovation. info/images/pdfs/Research_library/ResearchLibraryC/2006-034-C/reports/Report_-_Building_Procurement_Methods. pdf [Accessed 10 May 2015].
Joint Contracts Tribunal, n. d.. Traditional/Conventional. [Online] Available at: http://www. jctltd. co. uk/traditional-procurement. aspx [Accessed 10 May 2015].
MinterEllison, 2011. Procurement models: improving on the traditional method. [Online]
Available at: http://www. minterellison. com/Pub/NL/201112_CLAa/ [Accessed 10 May 2015].