Procurement Method In Construction Industry

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Procurement method in construction industry. Jack w e masterman 2002 this procurement methods will enables team building and measurement and improvement of team performance on a project to project basis. Therefore analyzing requirement and characteristics of procurement system is very vital. Meaning of procurement in everyday language is the action of acquiring or obtaining process of any kind of service or commodity. In construction industry the integrated or partnering methods is intended to focus the participants of a project is attentive to delivering a project on time to budget and to quality.

Design and build is a way to fast track construction and the contractor often should dictate a fixed cost or a guaranteed maximum price that offers certainty to the client. Know about the types of procurement in the construction industry. The choice of the procurement process is vitally important to the success of any construction project. So basically all these types of contracts.

When its come to the construction industry acquiring or obtaining strategy is a time consuming and costly process. Core objective of a procurement system is identifying responsibilities and task for of each and every participant in a signed project. Choosing the right procurement method is absolutely crucial for the delivery of a project on time on budget and to a high quality said 87 of construction professionals taking part in the chartered institute of building s ciob latest piece of research. The advantages of design and build tend to counter the disadvantages of traditional contracting procurement methods.

Also get more insights on how to decide on the right procurement method. As competition intensifies in the construction market procurement department plays a critical role in the construction industry as it has to manage the project execution and closure in time. This can be explained in terms of material order planning with budget allocation budget planning and cost savings and to ensure delivery of material to site. Also the type of procurement that companies in the construction industry choose is a major deciding factor of their overall profitability and is vitally important to the success of any construction project.

The main advantages of this method of procurement are single point responsibility by the contractor for both design and construction and the ability to fast track the project.