- L – Post practical completion
The first action as a QS (Quantity Surveyor) when preparing a procurement strategy is to gather the client’s objective and requirement.
These requirements should check off the client’s expectation on budget/financing, quality they are seeking to achieve, the duration of the project (or any time constraints) and any other risks they’d like to transfer.
As per the RIBA plan of work, the brief is developed at Stages 1 and 2.
According to a study by the Construction Management Association of America (CMAA), a thorough understanding of the client’s requirements is crucial in shaping the procurement strategy.
The factors to consider from the client’s requirement include cost and financing, time, performance, and risk.
Cost/Financing
You will need to identify how the project is going to be funded and how much fund is available from the client at the moment.
Certain clients require borrowing funds or obtaining board approval before taking on these projects.
Time
You will need to identify the required completion date or important milestone/key dates that a portion of the works needs to be completed by.
Performance
You will also need to identify the required functional performance of the development and an indication of the quality.
For example, if the client is not bothered with the aesthetics, you may be able to look at just providing the works to a normal standard.
Capital vs. Operational Costs
You will need to identify the requirements over the running cost of a new development with the client.
Risk
You will need to identify from the project brief the level of risk or planning required for the project.
For example, if you’re building in a city centre, you may need to consider additional requirements for traffic management and design restrictions.
In the context of the Latham report, risk transfer on contract type is a crucial aspect of procurement strategy.
The report illustrates that even when it comes to contract options, the more the contractor is involved and the less the client provides, the more risk they undertake.
This is evident in the risk transfer on contract type, demonstrating the importance of understanding contract options and risk implications for effective procurement.
The visualization provided by the report allows for a clearer understanding of the risk transfer and its impact on the procurement process.
Moreover, the Latham report’s content highlights the significance of contract options in mitigating risk.
The report’s focus on risk transfer on contract type underscores the importance of considering the types of contracts and their respective risks.
By analyzing the contract options and their associated risks, clients can make informed decisions about their procurement strategy.
The visualization of risk transfer on contract type in the report provides a valuable reference point for future reference.
In addition to the risk table, the report also provides a valuable table highlighting the advantages and disadvantages of various procurement routes.
This table enables clients to compare different options and make informed decisions about their procurement strategy.
By analyzing the pros and cons of different procurement routes, clients can identify the most suitable option for their needs.
The table’s visualization provides a clear and concise representation of the advantages and disadvantages of each procurement route.
Furthemore, the report emphasizes the importance of considering the benefits and drawbacks of different procurement routes.
The visualization provided by the report underscores the need for a thorough analysis of each option, considering factors such as time, cost, and performance.
By taking the time to understand the advantages and disadvantages of each procurement route, clients can ensure that they make the most informed decision for their project.
This report provides a comprehensive introduction to the NEC and its concept, including project bank accounts.
The report explores the application of project bank accounts in the context of the NSW government’s Inquiry into Construction Industry Insolvency.
For those interested in exploring this topic further, the NSW government’s website provides additional information on the Inquiry into Construction Industry Insolvency.
However, it appears that the report is no longer available on this website.
Fortunately, a valuable archived copy of the report has been made available.
To summarize, the three main factors that affect the procurement strategy are time, cost, and performance.
Understanding these factors is crucial for making informed decisions about the procurement options.
The report emphasizes the need for a thorough analysis of each procurement route, considering the factors of time, cost, and performance.
By making an informed decision, clients can ensure that their project meets its objectives.
Cautionary Note: The report discussed above does not cover all aspects of CDM regulation procedures and requirements.
Clients should be aware of these requirements throughout the planned works, as they may be crucial for the project’s success.
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