Essay Management Procurement

Submitted By Daps101
Words: 569
Pages: 3

D. Brooks – Management – Lesson 3 Management Procurement A method where overall design is the responsibility of the client’s consultants, and the contractor is responsible both for defining packages of work and then for managing the carrying out of this work through separate trades or works contracts. ● Appointment of the contractor is usually by negotiation or tender, and interview. He is paid a management fee. The work packages are let by competitive tender. ● The client will start by appointing consultants to prepare project drawings, a project specification and a cost plan. Involvement of the contractor at an early stage can be beneficial through his expertise in such matters as buildability and programming of work packages. ● The client retains overall design control through the professional team. ● Detail design can proceed in parallel with construction work and much of this might be of a specialist nature relating to work packages. As a consequence an early start on site is often possible, and time for the project may be reduced overall. ● There is no certainty over costs at the outset and work proceeds on the basis of the contract cost plan. Final costs will not be known until the last work package is let. However, the costs can be monitored by the client’s quantity surveyor and action taken as necessary. ● The client will need to appoint a contract administrator as part of the professional team. ● Design changes are possible as construction proceeds, always provided that the changes do not affect work packages already let so as to result in abortive work. ● With management contracts, administrative matters relating to valuations and payments are in the hands of the client’s consultants. ● Completion within the contract period is an obligation of the management contractor, who may not award extensions of time in relation to work packages without the prior approval of the contract administrator.



D. Brooks – Management – Lesson 3 ● Speculative risks are largely with the client, and this procurement method calls for a measure of trust, goodwill and in-house expertise. In terms of design and quality it is a relatively low risk option for the client, but there is generally a higher risk in respect of costs and time. Management