Concert Hall Construction Procurement

[Name of Instituion]

Introduction3

Issues in Building Procurement3

Cost Certainty3

Time Certainty4

Quality4

Flexibility in Design6

Project's Complexity6

Responsibility6

Construction Methods9

Comparison Matrix11

Effectiveness of Procurement Management13

Factors Affecting the Status of Procurement Services14

Model Procurement Process “Pulled”14

Construction Procurement Management15

Conclusion16

References17

Concert Hall Construction Procurement

Introduction

Construction projects requires careful planning which ensures that they are completed on time, achieve their desired objectives and remain within their estimated costs. Since construction projects requires big investments, generate a significant economic activity and involve numerous companies, they end upon in court room if the risks associated with the project are not addressed. The project of building a concert hall requires careful planning and effective strategies to ensure that the project is completed with success. It is required to select appropriate strategy for the development and the managing of this project and effective procurement is pivotal for their success. The procurement strategies for construction projects are broadly divided into four types, and selecting an appropriate strategy will ensure the timely achievement of management's objectives. This paper will evaluate suitable methods of procurement in construction industry and will recommend the appropriate methods for use in the construction of concert hall.

Issues in Building Procurement

The current project of building concert hall has numerous issues which require careful consideration. These are issues are central to the selection of procurement method as they can significantly affect the project's success.

Cost Certainty

The cost of the project is budgeted and if any uncalculated variation occurs during the project execution, the success of the project will be jeopardized. The amount provided by client is £70 million. The project can delay beyond control if any major design changes during the project which may require additional capital. The amount consolidated by the client is gathered through its own resources as well as through numerous investors which means that the amount had interest due on it. This makes the timeline critical to achieve as soon as the project completes the management will start to earn revenue from the building to pay off the interest.

Time Certainty

The client has explicitly requested that the project must be completed within time frame. This can be understood form the nature of investment as the capital has interest due on it and sooner the project starts generating cash, sooner the interest will be paid off.

Quality

The client requires that the project to be of exceptional quality. This is evident from their requirement of the making a “spectacular new concert hall”. In order to develop a quality building, the design and architecture has to be developed which stands out from other places.

The building industry has experienced over the past years a growing interest in quality, because on the one hand, to customers and users are becoming more discerning and demanding higher quality in a product (work). Otherwise hand, the construction companies have become aware that the "cost of non- quality "(failures, delays, breakdowns, repetitions, etc..) comes to cost between 5 and 10% of production and / or implementation of projects.

Uniqueness

The construction sector has a number of characteristics that make him ...