PROJECT MANAGEMENT

Project management: Committee Room

Project management: Committee Room

PART A

(i) Procurement Route

In order to conduct analysis of the use of procurement routes, it was necessary to set certain constraints for comparison. Section 5 uses data produced by the Royal Institution of Chartered Surveyors to assess procurement trends across the UK. Whilst this data provides some interesting results, it relies on participation of clients and contractors. The surveys received generally cover between 10% and 20% of the total value of new orders in the UK, which should be borne in mind when using this information to identify trends.

From the analysis of commercial construction projects in London, two procurement routes dominate, Construction Management and Lump Sum Design and Build. Traditional or conventional contracting within the commercial sector has declined over many years, although is occasionally still used.

The last decade encompasses a period of high demand during the construction boom of the early 2000's, followed by a sharp downturn and recession within the UK in the latter part of the decade. The opportunity to assess procurement routes during two very different types of market conditions offers an insight into the decision making process involved in procuring a new building. What is clear is that there is no one route which is considered best practice for all clients. If the experienced developer client is taken as an example, the strategy adopted appears to be focused on knowledge of the route, and the particular client drivers which can be achieved within that route (e.g. cost certainty, or control of quality). These drivers vary depending on the client.

There are increasingly opportunities for the client to choose a route which offers both cost certainty, and a good degree of control of design quality. For example the use of pre-construction agreements with a contractor for a defined period prior to moving to Design and Build, and a decision to take design of architecturally important elements to a later design stage, before moving to Design and Build.

Project Strategy

There is often a misconception that a procurement route is chosen at the outset of the project; however Masterman (Masterman, 2002) argues that the project strategy needs to be defined before the procurement route is chosen. Only with the project strategy in place can the appropriate procurement route then be chosen. Latham (Latham, 1994) described a project strategy which requires the following steps:

The client perceives a need for new construction or refurbishment.

An internal assessment is made which considers benefits, risks and financial constraints. It lists options for carrying out the project.

Options are put in order of benefits and feasibility.

Client makes a decision in principle as to whether the project is necessary or feasible.

Client decides the project should proceed and roughly how much risk and direct involvement to accept.

The project and design briefs are prepared.

Latham is also quite clear that if a client does not hold the necessary skills, then a project manager or clients' representative should be appointed to liaise with the designers or ...