CONSTRUCTION PROCUREMENT

Construction Procurement

Table of Contents

Introduction3

The UK Government Procurement System3

OGC 3 Guidelines4

OGC 6 Guidelines5

The Case: South Meads Hospital6

Procurement Strategy7

Procurement Route9

Construction Contract9

Collaboration and Project Management11

Value for Money12

Management Contracting Procurement System (MCPS)12

Funding13

Closing the Construction Contract13

Implication of OGC Guide 3 & Guide 6 in South mead Procurement14

Conclusion15

Appendices19

Construction Procurement

Introduction

There are rules and regulations of procurements such as procurement decisions are made on the basis of values especially for money and, it should not depend upon the costs of the capital. The evaluation for the values on money is not an easy task. There should be proper decisions when considering the factors on investments. Value for money is the total cost of the life of the project which should meet the user requirements. The strategies of procurement provide the feasible ways to achieve the targets of the project and value for money. These strategies also take into account all the risks and threats involve in specific projects. The major aim of the procurement strategy is to consider the control and balance of all risks associated with the projects which also include funding and other factors. There are also different contract strategies for each project. The strategy of contract also provides maintenance, integration and design of constructions. The contract strategy also provides objectives in order to evaluate risks and solutions of these risks. There is also a relationship between a procurement strategy and contract strategy. The strategy of procurement is the major strategy because it also includes the strategy of contract. The client often considers many factors for a project such as design, construction, procurement, operation and maintenance.

The UK Government Procurement System

Under the UK procurement system, a large share of attention is paid to the importance of public procurement process. It also includes the growth of spending on various programs, where the private sector or third parties provide key services to citizens in areas such as education, social security, medicine and others. The main reasons for the actions of the government are associated with the end results of policies. As known, there are the desired outcomes of public policy - security of life, educated citizens, finally, peace, conflict-free living on a territory, the government is working on all these issues by developing their own policies in a certain way. Public policy should always be aimed at meeting the needs of citizens. It is not always clear how the system contributes to the current public procurement policy and its results. It is likely that in some cases, the results of public procurement are indirectly reflected in the results of the policy. The UK public sector spends more than 150 billion pounds a year on goods and services necessary to ensure a high level of public service.

With respect to a robust construction and procurement plan, office of the Government Commerce (OGC) was developed in 1999. The purpose of OGC 3 AND 6 is to provide the guidelines to the procurement project in terms of strategy, funds and team ...