What Are the Common Different Types of Procurement Method in UK Construction?

JCT

What is Meant by Procurement Method?

 Procurement encompasses all activities a client undertakes to initiate the construction or refurbishment of a building.

 The way this is done is referred to as the procurement method, procurement path, or procurement system.

 The phrase ‘procurement method’ is commonly used in the construction industry as a short-hand to indicate the different roles played by the main parties (i.e. the client, the contractor, and others).

 Which procurement method is chosen will depend on an assessment of the specific project's benefits, risks, and financial constraints, which will in turn influence the choice of contractual arrangements. Clients typically focus on time, cost, and quality performance for both design and construction aspects.

 There are three common types of procurement method, which are summarised below.  If you need help deciding which contracts are required to implement the chosen procurement method for your project, contact Hamshaw today.

Three Common Types of Procurement Method

 Traditional Procurement:

  • Design and construction are separate processes.

  • Full documentation is needed before tendering.

  • Provides client control over design and quality.

  • Suitable for projects with a clear definition of scope and quality.

Design and Build:

  • Contractor is responsible for both design and construction.

  • Allows for potentially shorter project duration as design and construction can overlap.

  • Provides cost certainty if no changes are made during construction.

Management Procurement:

  • Contractor manages separate trade contracts.

  • Allows for early involvement and potential cost savings through contractor expertise.

  • Suited for projects needing early start and flexible design changes.

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