Procurement Methods for Design and Construction

procurement Methods for Design and Construction1.0 IntroductionA thickening brief has been deliverd for the spudment of a sweet induction in the University of Salford. In this report, a review lead be carried emerge base on the requirements of the customer in the brief and critic every last(predicate)y take apart the strength procural rules for both the architectural plan and locution of the get wind. Recommendations for the appropriate procural r extincte and forms of drive supporting by precise reasons result be suggested in the report.The node, The University of Salford, is shoot for to become an outstanding University renowned for the tonicity of its engagement, humanity, global reach and leadership in research, innovation and education. Strategic plan has been develop to achieve the Universitys conclusion which is to be ranked amongst the very best of UK universities and recognized internationally by 2017.To achieve this objective, the School of the Bui lt Environment is intended to develop a saucy rapidness within the university campus. The pass oning is to be a prestigious and noble up artistic facility which will replace an older mental synthesis in the university. The modern proposed come alonging will contain facilities listed as belowState of the art lecture theatresMeeting roomsExtensive classroom and studio facilitiesOffice accommodation laboratory accommodationLearning Resource UnitsExternal solely kit and caboodleIn addition, the node requires the impertinent facility to be carbon neutral to be in uniformity with the University policy.Furthermore, the node has allocates a budget of 20 million to cover the total development court of the take in. This make up will entangle look unravels, extraneous flora, statutory and professional fees. This proposed building essential be comp permited and handover by 1st of August 2012. The completion date is critical as the facility must be ready for the tonic academic year.In short, the customers pick out requirements and objectives of this new build building ar listed as followsNew university facility which will hear the Universitys remnant to become a luxuriously reputable and internationally renowned university.The facility is to be constructed in highest esthetic and qualitative standards.The budget of the depict is 20 million.The saying sequence is important as the building is wanted by 1st of August 2012 at the very latest.To show out the wind acetifys of this new facility, the Client needs to understand the various procural regularitys available for the intercommunicate. Hence, this report will analyse the primordial procurance issues for the Client to consider.2.0 Procurement sound judgment Criteria (PAC) turner (1990) says that the procurance driveway that is appropriate to the overall balance of objectives and to customer priorities for each project should arise from those objectives and priorities. There a rgon several procurance estimate criteria creation set as a guide to choose the appropriate method of procurance meterComplexity role damageRiskflexiblenessIn this case, three main criteria which argon time, cost and quality will be centered and assessed in the following components for this finical project to find the approximately suited procurement route that balance surrounded by these three criteria. experience 2.1 The balance of time, cost and quality3.0 Traditional ProcurementThe tralatitious clay, probably the al approximately usually adopted procurement strategy in UK, several(prenominal)times referred as endeavor-bid-build method. This is be bugger off the traditional route separates the responsibility for the bearing of the project from its twist with a neighborlying end (Cooke Williams, 2009). Initially, the client shoot downs consultants for instauration and for cost control and engender administration of the project. After the human body is have a go at itd, the tender stage starts by using two stage tendering or talks to excite a avower for the project. The appointed avower will then enters into a direct contract with the client and trusty to build and deliver the project. The organisational structure of traditional procurement is shown in Figure 3.1. In addition, due to the fancy must be completed forwards the tender stage, the cost of construction prat be determined with reasonable proof before the construction commences on position (Morledge, smith Kashiwagi, 2006).ClientConsultant stickorQS, morphological directArchitectSub contractile organSupplierFigure 3.1 Traditional procurement (Morledge, Smith Kashiwagi, 2006)The traditional procurement is commonly used because of its particular acquires. These gains be listed as followsThe soma is complete before tendering ensures cost certainty for the client.The function does not substantially change during construction thitherfore contract variations elicit be kept to a minimum.The client able to have direct influence and retains control over the anatomy police squad, and then quality in the fancy potentiometer be assure. detailed breeding such as drawings and Bills of Quantities provide a common basis for tendering and evaluation is relatively easy.The procedures atomic number 18 considerably known and enabling confidence to be assured in parties which involved throughout the process.Variations and contract changes are relatively easy to handle.Firm contractual date for completion.While this procurement route has its advantages, on that point are similarly criticisms. The main disadvantages areThe duration of project whitethorn be longer than other(a) procurement methods as the strategies is sequential and construction toleratenot be commenced before the completion of trope.A longer duration of project may make the cost of project higher because of the increased diaphragm of stave financial support charges an d interim payment to the asserter and consultants. These may cause the cost of project exceeds the clients budget.All the design risk is carried by the client.The contractor has no input into the design and home achievement of the project.The sequential nature of this dust can result in poor communication between the client and the project team up and can be cause of expensive disputes.3.1 CostBy adapting this method of procurement, the cost is agreed as a lump sum fixed price between the University and the contractor then provides overall cost certainty for the University before the construction commences on point. Besides, the project cost can be estimated, observeed and controlled by the Clients cost consultant during the whole project period and therefore large cost overruns will not occur which is an important advantage to the Client. In addition, traditional method could provide the Client grade of silver. As explained before, since the design stage is completed befor e the construction, the design and cost consultant team of the Client will corporate to ensure the design is take account for m angiotensin converting enzymey.3.2 TimeWith this procurement route, as the design is carried out before the tender process, the length of time spent to develop the design and prepare the tender documents by the consultant team can be very long. This process tends to prevent the construction lands to be started on site. In fact, traditional procurement is place as the slowest method of procurement equalise to others. Hence, this is a disadvantage for this new university facility project as the date of completion is critical.3.3 eccentricThe traditional procurement provides the high degree of certainty that the quality and aesthetic standards will be met (Masterman, 2002). This is because the University can select the most(prenominal) appropriate design team for this project to complete the design before the tender stage. During the design stage, the Un iversity has direct control and influence over the design therefore can ensure the high aesthetic and quality standards for the new facility are fulfilled.4.0 Design and build ProcurementAshworth (2006) defined design and build as a procurement placement where one single entity or consortium is contr very responsible to the client for both the design and construction of the project. In other words, under a design and build strategy, a single contractor takes the risk and responsibility for designing and building the project. The client will employ a design team to canalize out some preliminary design or scheme design. The client will then appoint a contractor to assume the responsibility for the design as well as the construction process. The contractor needs to develop the scheme design to a detailed design. Figure 4.1 illustrates the relationships between the parties that involved in the project. In this method of procurement, the construction can start before the detailed desig n is completed, merely at the contractors risk (Morledge, Smith Kashiwagi, 2006). In usage, design and build procurement consist of a range of variable. The two common variants of this type of procurement are client-led design and build and contractor-led design and build.ClientArchitect or QS advisers contractorSubcontractorSuppliersArchitect and other designersFigure 4.1 Design and build (Morledge, Smith Kashiwagi, 2006)In client-led design and build, also known as develop and construct, a minuscular egress of contractors will be invited to tender for the project when the design is virtually completed possibly with full bills of quantities or notional bills. In this procurement route, rent of Cooke Williams (2009) indicates that the client is fully involved in the design development and therefore the design risk is taken fully by the client as the contractor has precise involvement to the fundamental design. Additionally, the client will be responsible for all design fees from start to ends of the project. There is an alternative to this method which is a fashionable practice in the construction industry. Once the contract has been awarded, the design team including the clients architect and other members of the design team will be novated to the contractor. In other words, the contractual obligation to complete the detail aspect of design is legally passed over to the contractor. In this way, the client will maintain an interest in the design but the contractor will be responsible to the continuing design fees and the entire design (Cooke Williams, 2009).On the other hand, in contractor-led design and build, the client may provide minimal data in the outline brief to the contractor. Thus, the contractor is fully responsible for the conceptual and detailed design. As a result, the contractor has to provoke a building which meets the clients requirement. In this situation, the contractor takes all of the responsibilities, risks and rewards of des ign. The contractor may provide an in-house design facility or engage independent design teams (Cooke Williams, 2009). It is pet to appoint a design team coordinator to ensure the flow of information between the design team and the project team.The main advantages of design and build procurement are listed as followsThe client has only to deal with one firm since the contractor provides single-point responsibility for design and construction.Price certainty is noticeed before the commencement of construction full treatment provided the clients requirements are adequately specified and changes are not introduced.The total cost of project is usually lesser than other types of procurement scheme of ruless.The overall project period is reduced because of overlapping activities as construction can be started before the design is completed.Despite its advantages, design and build has many arguments among the practitioners and client of the industry. The drawbacks of this procuremen t method areTender bids are laborious to compare since each design will be various result in different project time and prices.The tender period and negotiation tends to be much longerChanges of client to project scope can be expensive.No guarantee in damage of design and quality because has less control over this aspect.The client may find difficult in preparing an adequate and sufficiently comprehensive brief.4.1 CostThe design and build approach enables the contractor to be more positive about the final cost to the Client at an forward stage (Masterman, 2002). The price would be agreed between the Client and the contractor before construction commences on site. Besides, the initial cost and final cost of using this procurement system are usually lower than other procurement approaches. This is mainly because of the reduction in design costs and the integration of design and construction process. However, value for money is difficult to assess in this type of procurement. This is because there is usually limited information available at the tender stage, not to mention there are different methods, designs and services can be offered by the contractor. As a result, the Client may not be able to judge the efficiency of the design.4.2 TimeThe enduringness of this procurement route is that the contractor is responsible for both design and construction. Therefore, it allows the overlap of design and construction phases thus reduce the overall project period. This would be an advantage for the University because it ensures the construction working of the new facility can be commenced early. According to Masterman (2002), design and build projects have a better record in ground of completion on time. Hence, the University would be able to have the new building ready for new academic year by using this method of procurement.4.3 QualityThis method of procurement would not be a desirable procurement for this high aesthetic and quality standards project. Design and build is belief that most worthy for simple uncomplicated project which the aesthetic and quality of the project is low. The reason for this is that the contractor is responsible to develop the detailed design of the project. In some circumstances, necessarily the contractor will economise the cost of design to boost the profit margins which will caused a negative effect on the project quality. Additionally, in a design and build project, if the Client unable to provide a satisfactory brief, it is possible result in the Clients functional and quality requirements being unsatisfied.5.0 heed Procurement5.1 concern spottingIn this procurement strategy, a attention contractor is engaged by the client to carry on a number of work big bucks subcontractors in return for a fee. Morledge, Smith Kashiwagi (2006) stated that the instruction contractor has direct contractual links with all of the subcontractors and carries the responsibility for the construction full treatment w ithout actually carrying out that work. In this method of procurement, the whole kit are let in forms of work piece of ground and subcontractors will bids competitively for each work package to obtain the work. The relationship between the parties in forethought promise is shown in Figure 5.1.1.ClientConsultantsContractorQS, geomorphological engineerArchitectWork contractorFigure 5.1.1 focusing spying (Morledge, Smith Kashiwagi, 2006) watchfulness contracting is a turbulent track strategy says Morledge, Smith Kashiwagi (2006). The work package approach allows the supreme overlap design and construction activities. In more general terms, provided that the work package is completed, the subcontractor may starts works on site before all of the design works are completed. Therefore, the overall project period can be reduced.Due to the nature of this type of procurement, cost certainty cannot be achieved until all packages of work is tendered and let. Hence, exacting control of the work package budget is essential for the success of the project (Cooke Williams, 2009). In this strategy, the client reimburses the cost of the work packages to the appointed prudence contractor who will then pay the subcontractors. So, it is important to appoint the management contractor carefully and ensure that the management fee is appropriate.As the common characteristics of management contracting are previously described, the advantages of this procurement route can now identifiedOverlapping of the design and construction processes tends to save time for the overall project thus enables earlier completion to be achieved.The nature of the procurement enables the contractor contribution to design and project planning.Changes can be accommodated provided that packages affected have not been let and there is little or no impact on those already let.Quality of the project can be assured as the design can be developed in stages and site supervisor can be appointed to ensur e the quality standard is achieved.On the other hand, there are also weaknesses in this procurement method. The disadvantages are listed as followsPoor price certainty at the early stage and the potential cost commitment depends on the design team estimates.The total cost of project is usually unknown until the project is well into the construction programme.The client must provide a unspoiled quality brief to the design team as the design will not be completed until the client has committed significant resources to the project.The client is responsible for the absolute majority of the project risks.Damages of delay are difficult to pin on one subcontractor.5.2 Construction ManagementUnder a construction management strategy, Morledge, Smith Kashiwagi (2006) points out that the client does not allocate risk and responsibility to a single main contractor. The client employs the design team and appoints a construction coach-and-four based on a negotiated fee simply to manage, progr amme and co-ordinate the design and construction activities carried out by the work package contractors. contrasted the management contracting, the each work package contractors have direct contractual link with the client and is paid directly by the client (see Figure 5.2.1).ClientQS, structural engineerArchitectConstruction theater directorTrade contractorTrade contractorFigure 5.2.1 Construction management (Morledge, Smith Kashiwagi, 2006)The construction manager will provides professional construction expertness without assuming financial risk because there is no contractual link with design team or work package contractors. Hence, by using this procurement route, Morledge, Smith Kashiwagi (2006) stated that the client has to be involved closely in the design and construction phases and take demand actions based on the recommendations from the construction manager. Therefore, this method of procurement is not suitable for inexperienced client. It is recommended to use this procurement for large and complex project or a high degree of design innovation where the client wants deep involvement.Basically, the construction contracting has the similar advantages and disadvantages with the management contracting. Therefore, they will not discuss more in this section and please refer to the previous section if necessary.5.3 CostThe uncertainty of price will be seen as a disadvantage for the management procurement system. However, the benefit of this fast track strategy may result in cost savings and offsetting extra construction costs. Therefore, it could reduce the overall expense of the project. Besides, in this procurement, the cost of the project can be minimised by improving buildability and by work package contractors undertake the works at competitive prices.5.4 TimeFor projects which need fast design and construction period, this would be the appropriate type of procurement to be used. The overlapping of design and construction phases will allows an e arly start of construction works on site and therefore saving in time can be achieved. Since the time of completion is an important issue in this project, the Client would be suggested to consider to adopting this procurement methods.5.5 QualityUnder this procurement route, the quality of the completed project can be achieved which fully meet the Clients needs provided that the design team is working closely with the management contractor on all aspect of the project to ensure he is fully sure of the design constraints as well as the Clients requirements. Besides, due to the management contractor is appointed at the early stage, he will be able to contribute his construction expertise to achieving an effective quality standard for this project.6.0 Justification of procurement strategy6.1 Procurement MatrixAfter considering and evaluating the options of procurement available for the project, the most appropriate procurement system that suitable for the project can be selected. This can be achieved by assessing and setting the priorities of the project objectives in terms of time, quality and cost and the client posture to risk.A universal procurement selection technique which is a procurement matrix is employed to help to select an appropriate procurement strategy for this particular project. The Universitys key objectives and requirements of this project are taken into account during the assessment. After completing this procurement matrix, the result shows that Management Contracting would be best suited procurement system for this new university facility project. Please see the attachment for the completed procurement matrix for this project.6.2 Procurement strategyAfter a critical compendium of the procurement options as discussed above and completing the procurement matrix, the Management Contracting route is highly recommended to be adopted for this new build facility project. The reasons of this suggestion is being made are discussed as below.6.2.1 Co st strategyIn terms of cost issue, the Management Contracting probably is not the most recommended procurement systems compare to Traditional and Design and Build. This is because it is not the greatest at providing price certainty to ensure the budget of 20 million can be met at the set-back of the project. However, Morledge, Smith Kashiwagi (2006) points out that this does not mean that the Client has less control over the project cost as strict supervision can be exerted over this aspect of the project. Due to that each package of work are being let by competition between contractors, the Client can monitor the cost closely and if necessary, adjust later work packages in order to cover any cost overruns in the previous work package.Furthermore, the University has to appoint the Management Contractor so that he can advise and contribute at the design process based on his professional expertise and carry out value engineering works to ensure the project is being built within the budget.6.2.2 Time strategyThe completion on time is a key requirement of this project. The Client has specifically required that the new facility must be completed on 1st August 2012. Under this circumstance, Management Contracting would be appropriate to meet the deadline. Due to the rapid progress of this procurement which provides overlapping of design and construction phases allows early commencement of works on site and therefore results in time saving.Moreover, the key strategy to ensure the project is completed on time is to make sure that all of the information from the design team is continuously issued on time to the Management Contractor and to ensure that the Management Contractor is always being updated. Hence, these could avoid any misunderstandings and delays during the construction works.Besides, the force and experience of the Management Contractor will also ensure this fast track procurement can be carried out efficiently. A high direct of experience Management Contractor who familiar with this type of procurement route must be appointed so that the works on site are well manage and control throughout the whole process.6.2.3 Quality strategyThe Management Contracting would ensure the required high quality and aesthetic standards of this new build project can be successfully met. This is because this type of procurement method allows the Client to appoint and oversee the design team to develop detailed design which fulfills the specific requirements. Furthermore, to ensure the quality and aesthetic standards of this university facility are met, the Client has to make sure that the design team are aware and focus from the beginning of the project to develop the design based on these commitments. Additionally, all of the detailed drawings and specification produced by the design team must go into the contract between the Client and the Management Contractor so that the requirements of the Client are well informed thus can be managed efficient ly the works on site to ensure the requirements are met.7.0 Form of ContractA contract is defined by Cooke Williams (2009) as a means of formalising the relationship between the contracting parties in which the rights and obligations of the parties are agreed and the balance of risk between the parties established. The contracts also establish how administrative procedures and the serving of formal notices are to be conducted and mechanisms for transaction with contract payments, delays, compensation and disputes says Cooke.There are several of contracts produced by different bodies used in the construction industry but by far the JCT (Joint Contracts Tribunal) is the most universal forms of contract in use. Hence, the JCT 2005 Management Building Contract is recommended to be used in this project. The JCT 2005 Management Building Contract comprises (Hackett, Robinson Statham, 2007)Management Building ContractManagement Works Contract Tender AgreementManagement Works Contract Co nditionsManagement Work Contract / Employer AgreementUnder this forms of contract, the management contractor tenders on the basis of a management fee and the works contract are being let by separate packages when the design of those packages are developed (Cooke Williams, 2009). The management contractor is legally bound with these work package contractors under the Management Works Contract. In other words, the management contractor is responsible to manage the work package contractors.Moreover, during the design stages, the contract also requires the management contractor to cooperate with the consultant team such as architect, engineering and quantity surveyor. In addition, all necessary programmes for execution of the project which includes detailed construction programme are required to prepare by the management contractor (Cooke Williams, 2009). Under the contract, the management contractors duties include maintaining and regularly updating the detailed construction programm e.8.0 ConclusionIn conclusion, the Management Contracting is the most suitable procurement route for this project. This procurement system allows the Client to design the new university facility according to his requirements and appoints the Management Contractor to manage the construction works on site.Using the Management Contracting, the price certainty can be achieved with close monitor of the cost of each work packages so that the building can be built within the budget of 20 million. Furthermore, the advantage of this fast track procurement method tends to meet the time of completion for this project. Last but not least, since this is a prestigious project, this type of procurement route ensure the high quality and aesthetic standards are met in accordance with the Clients requirements. With these, it is recommended for the University to adopt the Management Contracting as the method of procurement to tap the success of the project.Procurement Methods for Design and Construc tionProcurement Methods for Design and Construction1.0 IntroductionA client brief has been provided for the development of a new facility in the University of Salford. In this report, a review will be carried out based on the requirements of the client in the brief and critically analyse the potential procurement methods for both the design and construction of the project. Recommendations for the appropriate procurement route and forms of contract supporting by detailed reasons will be suggested in the report.The Client, The University of Salford, is aspiring to become an outstanding University renowned for the quality of its engagement, humanity, global reach and leadership in research, innovation and education. Strategic plan has been developed to achieve the Universitys goal which is to be ranked amongst the very best of UK universities and recognized internationally by 2017.To achieve this objective, the School of the Built Environment is intended to develop a new facility withi n the university campus. The building is to be a prestigious and high aesthetic facility which will replace an older building in the university. The new proposed building will contain facilities listed as belowState of the art lecture theatresMeeting roomsExtensive classroom and studio facilitiesOffice accommodationLaboratory accommodationLearning Resource UnitsExternal worksIn addition, the Client requires the new facility to be carbon neutral to be in accordance with the University policy.Furthermore, the Client has allocates a budget of 20 million to cover the total development cost of the project. This cost will include construction works, external works, statutory and professional fees. This proposed building must be completed and handover by 1st of August 2012. The completion date is critical as the facility must be ready for the new academic year.In short, the Clients key requirements and objectives of this new build building are listed as followsNew university facility whic h will realise the Universitys goal to become a high reputable and internationally renowned university.The facility is to be constructed in highest aesthetic and qualitative standards.The budget of the project is 20 million.The construction time is important as the building is needed by 1st of August 2012 at the very latest.To carry out the construction works of this new facility, the Client needs to understand the various procurement methods available for the project. Hence, this report will analyse the key procurement issues for the Client to consider.2.0 Procurement Assessment Criteria (PAC)Turner (1990) says that the procurement route that is appropriate to the overall balance of objectives and to client priorities for each project should arise from those objectives and priorities. There are several procurement assessment criteria being set as a guide to choose the appropriate method of procurementTimeComplexityQualityCostRiskFlexibilityIn this case, three main criteria which a re time, cost and quality will be focused and assessed in the following sections for this particular project to find the most suitable procurement route that balance between these three criteria.Figure 2.1 The balance of time, cost and quality3.0 Traditional ProcurementThe traditional system, probably the most commonly adopted procurement strategy in UK, sometimes referred as design-bid-build method. This is because the traditional route separates the responsibility for the design of the project from its construction with a tendering period (Cooke Williams, 2009). Initially, the client appoints consultants for design and for cost control and contract administration of the project. After the design is completed, the tender stage starts by using two stage tendering or negotiation to appoint a contractor for the project. The appointed contractor will then enters into a direct contract with the client and responsible to build and deliver the project. The organizational structure of tra ditional procurement is shown in Figure 3.1. In addition, due to the design must be completed before the tender stage, the cost of construction can be determined with reasonable certainty before the construction commences on site (Morledge, Smith Kashiwagi, 2006).ClientConsultantContractorQS, structural engineerArchitectSubcontractorSupplierFigure 3.1 Traditional procurement (Morledge, Smith Kashiwagi, 2006)The traditional procurement is commonly used because of its particular advantages. These advantages are listed as followsThe design is complete before tendering ensures price certainty for the client.The design does not substantially change during construction therefore contract variations can be kept to a minimum.The client able to have direct influence and retains control over the design team, thus quality in the design can be assured.Detailed information such as drawings and Bills of Quantities provide a common basis for tendering and evaluation is relatively easy.The proced ures are well known and enabling confidence to be assured in parties which involved throughout the process.Variations and contract changes are relatively easy to handle.Firm contractual date for completion.While this procurement route has its advantages, there are also criticisms. The main disadvantages areThe duration of project may be longer than other procurement methods as the strategies is sequential and construction cannot be commenced before the completion of design.A longer duration of project may make the cost of project higher because of the increased period of interim financing charges and interim payment to the contractor and consultants. These may cause the cost of project exceeds the clients budget.All the design risk is carried by the client.The contractor has no input into the design and planning of the project.The sequential nature of this system can result in poor communication between the client and the project team and can be cause of expensive disputes.3.1 CostB y adapting this method of procurement, the cost is agreed as a lump sum fixed price between the University and the contractor thus provides overall cost certainty for the University before the construction commences on site. Besides, the project cost can be estimated, monitored and controlled by the Clients cost consultant during the whole project period and therefore large cost overruns will not occur which is an important advantage to the Client. In addition, traditional method could provide the Client value of money. As explained before, since the design stage is completed before the construction, the design and cost consultant team of the Client will corporate to ensure the design is value for money.3.2 TimeWith this procurement route, as the design is carried out before the tender process, the length of time spent to develop the design and prepare the tender documents by the consultant team can be very long. This process tends to prevent the construction works to be started on site. In fact, traditional procurement is identified as the slowest method of procurement compare to others. Hence, this is a disadvantage for this new university facility project as the date of completion is critical.3.3 QualityThe traditional procurement provides the high degree of certainty that the quality and aesthetic standards will be met (Masterman, 2002). This is because the University can select the most appropriate design team for this project to complete the design before the tender stage. During the design stage, the University has direct control and influence over the design therefore can ensure the high aesthetic and quality standards for the new facility are fulfilled.4.0 Design and build ProcurementAshworth (2006) defined design and build as a procurement arrangement where one single entity or consortium is contractually responsible to the client for both the design and construction of the project. In other words, under a design and build strategy, a single contract or takes the risk and responsibility for designing and building the project. The client will employ a design team to carry out some preliminary design or scheme design. The client will then appoint a contractor to assume the responsibility for the design as well as the construction process. The contractor needs to develop the scheme design to a detailed design. Figure 4.1 illustrates the relationships between the parties that involved in the project. In this method of procurement, the construction can start before the detailed design is completed, but at the contractors risk (Morledge, Smith Kashiwagi, 2006). In practice, design and build procurement consist of a range of variable. The two common variants of this type of procurement are client-led design and build and contractor-led design and build.ClientArchitect or QS advisersContractorSubcontractorSuppliersArchitect and other designersFigure 4.1 Design and build (Morledge, Smith Kashiwagi, 2006)In client-led design and build, also known as develop and construct, a small number of contractors will be invited to tender for the project when the design is virtually completed possibly with full bills of quantities or notional bills. In this procurement route, study of Cooke Williams (2009) indicates that the client is fully involved in the design development and therefore the design risk is taken fully by the client as the contractor has little involvement to the fundamental design. Additionally, the client will be responsible for all design fees from start to ends of the project. There is an alternative to this method which is a popular practice in the construction industry. Once the contract has been awarded, the design team including the clients architect and other members of the design team will be novated to the contractor. In other words, the contractual obligation to complete the detail aspect of design is legally passed over to the contractor. In this way, the client will maintain an interest in the design but the contractor will be responsible to the continuing design fees and the entire design (Cooke Williams, 2009).On the other hand, in contractor-led design and build, the client may provide minimal information in the outline brief to the contractor. Thus, the contractor is fully responsible for the conceptual and detailed design. As a result, the contractor has to produce a building which meets the clients requirement. In this situation, the contractor takes all of the responsibilities, risks and rewards of design. The contractor may provide an in-house design facility or engage independent design teams (Cooke Williams, 2009). It is preferable to appoint a design team coordinator to ensure the flow of information between the design team and the project team.The main advantages of design and build procurement are listed as followsThe client has only to deal with one firm since the contractor provides single-point responsibility for design and construction.Price certainty i s obtained before the commencement of construction works provided the clients requirements are adequately specified and changes are not introduced.The total cost of project is usually lesser than other types of procurement systems.The overall project period is reduced because of overlapping activities as construction can be started before the design is completed.Despite its advantages, design and build has many arguments among the practitioners and client of the industry. The drawbacks of this procurement method areTender bids are difficult to compare since each design will be different result in different project time and prices.The tender period and negotiation tends to be much longerChanges of client to project scope can be expensive.No guarantee in terms of design and quality because has less control over this aspect.The client may find difficult in preparing an adequate and sufficiently comprehensive brief.4.1 CostThe design and build approach enables the contractor to be more positive about the final cost to the Client at an earlier stage (Masterman, 2002). The price would be agreed between the Client and the contractor before construction commences on site. Besides, the initial cost and final cost of using this procurement system are usually lower than other procurement approaches. This is mainly because of the reduction in design costs and the integration of design and construction process. However, value for money is difficult to assess in this type of procurement. This is because there is usually limited information available at the tender stage, not to mention there are different methods, designs and services can be offered by the contractor. As a result, the Client may not be able to judge the efficiency of the design.4.2 TimeThe specialty of this procurement route is that the contractor is responsible for both design and construction. Therefore, it allows the overlap of design and construction phases thus reduce the overall project period. This wo uld be an advantage for the University because it ensures the construction works of the new facility can be commenced early. According to Masterman (2002), design and build projects have a better record in terms of completion on time. Hence, the University would be able to have the new building ready for new academic year by using this method of procurement.4.3 QualityThis method of procurement would not be a suitable procurement for this high aesthetic and quality standards project. Design and build is belief that most suitable for simple uncomplicated project which the aesthetic and quality of the project is low. The reason for this is that the contractor is responsible to develop the detailed design of the project. In some circumstances, inevitably the contractor will economise the cost of design to boost the profit margins which will caused a negative effect on the project quality. Additionally, in a design and build project, if the Client unable to provide a satisfactory brief, it is possible result in the Clients functional and quality requirements being unsatisfied.5.0 Management Procurement5.1 Management ContractingIn this procurement strategy, a management contractor is engaged by the client to manage a number of work package subcontractors in return for a fee. Morledge, Smith Kashiwagi (2006) stated that the management contractor has direct contractual links with all of the subcontractors and carries the responsibility for the construction works without actually carrying out that work. In this method of procurement, the works are let in forms of work package and subcontractors will bids competitively for each work package to obtain the work. The relationship between the parties in management contracting is shown in Figure 5.1.1.ClientConsultantsContractorQS, structural engineerArchitectWork contractorFigure 5.1.1 Management contracting (Morledge, Smith Kashiwagi, 2006)Management contracting is a fast track strategy says Morledge, Smith Kashiwagi ( 2006). The work package approach allows the maximum overlap design and construction activities. In more general terms, provided that the work package is completed, the subcontractor may starts works on site before all of the design works are completed. Therefore, the overall project period can be reduced.Due to the nature of this type of procurement, cost certainty cannot be achieved until all packages of work is tendered and let. Hence, strict control of the work package budget is essential for the success of the project (Cooke Williams, 2009). In this strategy, the client reimburses the cost of the work packages to the appointed management contractor who will then pay the subcontractors. So, it is important to appoint the management contractor carefully and ensure that the management fee is appropriate.As the common characteristics of management contracting are previously described, the advantages of this procurement route can now identifiedOverlapping of the design and construct ion processes tends to save time for the overall project thus enables earlier completion to be achieved.The nature of the procurement enables the contractor contribution to design and project planning.Changes can be accommodated provided that packages affected have not been let and there is little or no impact on those already let.Quality of the project can be assured as the design can be developed in stages and site supervisor can be appointed to ensure the quality standard is achieved.On the other hand, there are also weaknesses in this procurement method. The disadvantages are listed as followsPoor price certainty at the early stage and the potential cost commitment depends on the design team estimates.The total cost of project is usually unknown until the project is well into the construction programme.The client must provide a good quality brief to the design team as the design will not be completed until the client has committed significant resources to the project.The client is responsible for the majority of the project risks.Damages of delay are difficult to pin on one subcontractor.5.2 Construction ManagementUnder a construction management strategy, Morledge, Smith Kashiwagi (2006) points out that the client does not allocate risk and responsibility to a single main contractor. The client employs the design team and appoints a construction manager based on a negotiated fee simply to manage, programme and co-ordinate the design and construction activities carried out by the work package contractors. Unlike the management contracting, the each work package contractors have direct contractual link with the client and is paid directly by the client (see Figure 5.2.1).ClientQS, structural engineerArchitectConstruction managerTrade contractorTrade contractorFigure 5.2.1 Construction management (Morledge, Smith Kashiwagi, 2006)The construction manager will provides professional construction expertise without assuming financial risk because there is no con tractual link with design team or work package contractors. Hence, by using this procurement route, Morledge, Smith Kashiwagi (2006) stated that the client has to be involved closely in the design and construction phases and take necessary actions based on the recommendations from the construction manager. Therefore, this method of procurement is not suitable for inexperienced client. It is recommended to use this procurement for large and complex project or a high degree of design innovation where the client wants deep involvement.Basically, the construction contracting has the similar advantages and disadvantages with the management contracting. Therefore, they will not discuss more in this section and please refer to the previous section if necessary.5.3 CostThe uncertainty of price will be seen as a disadvantage for the management procurement system. However, the benefit of this fast track strategy may result in cost savings and offsetting extra construction costs. Therefore, i t could reduce the overall expense of the project. Besides, in this procurement, the cost of the project can be minimised by improving buildability and by work package contractors undertake the works at competitive prices.5.4 TimeFor projects which need fast design and construction period, this would be the appropriate type of procurement to be used. The overlapping of design and construction phases will allows an early start of construction works on site and therefore saving in time can be achieved. Since the time of completion is an important issue in this project, the Client would be suggested to consider to adopting this procurement methods.5.5 QualityUnder this procurement route, the quality of the completed project can be achieved which fully meet the Clients needs provided that the design team is working closely with the management contractor on all aspect of the project to ensure he is fully aware of the design constraints as well as the Clients requirements. Besides, due to the management contractor is appointed at the early stage, he will be able to contribute his construction expertise to achieving an efficient quality standard for this project.6.0 Justification of procurement strategy6.1 Procurement MatrixAfter considering and evaluating the options of procurement available for the project, the most appropriate procurement system that suitable for the project can be selected. This can be achieved by assessing and setting the priorities of the project objectives in terms of time, quality and cost and the client attitude to risk.A universal procurement selection technique which is a procurement matrix is employed to help to select an appropriate procurement strategy for this particular project. The Universitys key objectives and requirements of this project are taken into account during the assessment. After completing this procurement matrix, the result shows that Management Contracting would be best suited procurement system for this new university facility project. Please see the attachment for the completed procurement matrix for this project.6.2 Procurement strategyAfter a critical analysis of the procurement options as discussed above and completing the procurement matrix, the Management Contracting route is highly recommended to be adopted for this new build facility project. The reasons of this suggestion is being made are discussed as below.6.2.1 Cost strategyIn terms of cost issue, the Management Contracting probably is not the most recommended procurement systems compare to Traditional and Design and Build. This is because it is not the greatest at providing price certainty to ensure the budget of 20 million can be met at the beginning of the project. However, Morledge, Smith Kashiwagi (2006) points out that this does not mean that the Client has less control over the project cost as strict supervision can be exerted over this aspect of the project. Due to that each package of work are being let by competition betw een contractors, the Client can monitor the cost closely and if necessary, adjust later work packages in order to cover any cost overruns in the previous work package.Furthermore, the University has to appoint the Management Contractor so that he can advise and contribute at the design process based on his professional expertise and carry out value engineering works to ensure the project is being built within the budget.6.2.2 Time strategyThe completion on time is a key requirement of this project. The Client has specifically required that the new facility must be completed on 1st August 2012. Under this circumstance, Management Contracting would be appropriate to meet the deadline. Due to the rapid progress of this procurement which provides overlapping of design and construction phases allows early commencement of works on site and therefore results in time saving.Moreover, the key strategy to ensure the project is completed on time is to make sure that all of the information from the design team is continuously issued on time to the Management Contractor and to ensure that the Management Contractor is always being updated. Hence, these could avoid any misunderstandings and delays during the construction works.Besides, the competency and experience of the Management Contractor will also ensure this fast track procurement can be carried out efficiently. A high level of experience Management Contractor who familiar with this type of procurement route must be appointed so that the works on site are well manage and control throughout the whole process.6.2.3 Quality strategyThe Management Contracting would ensure the required high quality and aesthetic standards of this new build project can be successfully met. This is because this type of procurement method allows the Client to appoint and oversee the design team to develop detailed design which fulfills the specific requirements. Furthermore, to ensure the quality and aesthetic standards of this university fac ility are met, the Client has to make sure that the design team are aware and focus from the beginning of the project to develop the design based on these commitments. Additionally, all of the detailed drawings and specification produced by the design team must go into the contract between the Client and the Management Contractor so that the requirements of the Client are well informed thus can be managed efficiently the works on site to ensure the requirements are met.7.0 Form of ContractA contract is defined by Cooke Williams (2009) as a means of formalising the relationship between the contracting parties in which the rights and obligations of the parties are agreed and the balance of risk between the parties established. The contracts also establish how administrative procedures and the serving of formal notices are to be conducted and mechanisms for dealing with contract payments, delays, compensation and disputes says Cooke.There are several of contracts produced by different bodies used in the construction industry but by far the JCT (Joint Contracts Tribunal) is the most popular forms of contract in use. Hence, the JCT 2005 Management Building Contract is recommended to be used in this project. The JCT 2005 Management Building Contract comprises (Hackett, Robinson Statham, 2007)Management Building ContractManagement Works Contract Tender AgreementManagement Works Contract ConditionsManagement Work Contract / Employer AgreementUnder this forms of contract, the management contractor tenders on the basis of a management fee and the works contract are being let by separate packages when the design of those packages are developed (Cooke Williams, 2009). The management contractor is legally bound with these work package contractors under the Management Works Contract. In other words, the management contractor is responsible to manage the work package contractors.Moreover, during the design stages, the contract also requires the management contractor to c ooperate with the consultant team such as architect, engineering and quantity surveyor. In addition, all necessary programmes for execution of the project which includes detailed construction programme are required to prepare by the management contractor (Cooke Williams, 2009). Under the contract, the management contractors duties include maintaining and regularly updating the detailed construction programme.8.0 ConclusionIn conclusion, the Management Contracting is the most suitable procurement route for this project. This procurement system allows the Client to design the new university facility according to his requirements and appoints the Management Contractor to manage the construction works on site.Using the Management Contracting, the price certainty can be achieved with close monitor of the cost of each work packages so that the building can be built within the budget of 20 million. Furthermore, the advantage of this fast track procurement method tends to meet the time of completion for this project. Last but not least, since this is a prestigious project, this type of procurement route ensure the high quality and aesthetic standards are met in accordance with the Clients requirements. With these, it is recommended for the University to adopt the Management Contracting as the method of procurement to maximise the success of the project.