Procurement in the construction industry

Procurement in

costly process, which is why various contract systems, known as procurement methods, are used in the industry. Procurement methods in construction can be divided into traditional methods and alternative methods.

Traditional procurement methods include lump-sum contracts, re-measurable contracts, and cost reimbursement/cost plus contracts. Alternative procurement methods include design and build and management contracting. The choice of procurement method or contract type depends on various factors, such as speed or time, budget, expected quality, specific project constraints, risk, asset ownership, and financing.

The project management team, made up of professionals such as architects, quantity surveyors, and engineers, plays a crucial role in choosing the appropriate procurement method by thoroughly understanding the client's requirements and intentions.

Procurement methods in construction refer to the various types of contracts that are used to execute construction projects. These methods are chosen based on the requirements and goals of the client, as well as factors such as time constraints, budget, expected quality, specific project constraints, risk, asset ownership, and financing.

There are two main categories of procurement methods in construction: traditional methods and alternative methods. Traditional methods include lump-sum contracts, re-measurable contracts, and cost reimbursement/cost plus contracts. Alternative methods include design and build and management contracting.

When deciding on a procurement method or contract type, it is important for the project management team to thoroughly understand the client's requirements and goals. Factors such as time constraints, budget, and expected quality should be considered in order to choose a method that will help the project meet the client's expectations.

Additionally, specific project constraints, risk, asset ownership, and financing should also be taken into account in order to choose a procurement method that is suitable for the specific project.