[Comparative analysis of Design&Build (D&B) and Traditional procurement methods in UK]

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CHAPTER1: INTRODCUTION

Chosen Topic Area

The topic that is chosen for the proposed research is establishing a comparative analysis of Design&Build and Traditional procurement methods in UK.

Critical Review of the Relevant Literature

Experts say that there are large bunmer of procurement methods which includes The Lump Sum (Traditional Design-Bid-Build), and Project Management. They also advice that the utilization of D&B is on the increase with a lot of clients perceiving it as on delivering better value for money as well as giving rise to less argument than other procurement areas. Previous research suggested that the value of contracts using the D&B form has doubled since 2005 and exceeded the total value of works procured under the traditional methods. (Construction Excellence, 2004: 155-163)

Construction contracts each year, public procurement accounts for approximately 40% of construction jobs available. These commissions totaling more than $ 33 billion. To claim a share of the construction budget, companies need to ensure offerings. (Brannen, 2002: 32)  The bidding process is the method companies are required to follow to make their bids for construction contracts. Offers may vary depending on the needs of public and private sectors. Areas where construction bids are abundant include schools, hospitals, housing and roads.The housing sector alone accounts for more than $ 1.7 million in the construction of all departments. Offers are usually associated with construction machinery, construction equipment, roofing, construction special trade, repair of buildings, equipment, maintenance of buildings, and architectural contracts related services. Local authorities and construction contracts local authorities planned spending in the United Kingdom for the years 2010-2011 121 900 000 000. Fourteen percent of this budget is allocated to housing, and 38% of the budget should be spent on education. (Gidado, 2004: 321) Currently, local authorities in the UK have contracts to build several fields and several more are planned. Many of these contracts are: • Department for Children, Schools and Families Project • Department of Transportation projects • Projects and local community projects • Department of Health • Ministry of Justice projects • Department for Culture, Media and Sports Projects • Ministry of Environment, Food and Rural Affairs • Other projects budget percentages are not indicative of the rest of the construction contracts for the period 2010-2011. Much of the construction contracts will be used for construction projects related to health. The Ministry of Transportation and the Department for Children, Schools and families are also an important part of the budget. Over 17 million will be spent in the Department of Health, and more than $ 26 million in the Department of Transportation is still in the budget this year. More than 8 million dollars in contracts and the rest will be used for education-related construction. (Hartley, 2008: 144)

Bidding process of the construction process of the supply of construction is similar to the award of tenders in other industries. The majority of companies to find a supplier to tender, select tender and auction of the company. Since the government provides 25% of local employment, the construction of many offers are public ...