Selecting The Most Suitable Procurement Route Construction Essay

Selecting The Most Suitable procural walkwayageway bend EssayUnderstand that due to the terrible weather and utter(a) storm, a signifi stinkert damage was happened to cinnamon Grand hotels. As a result, the hotel focussing board requested for advice on selecting an appropriate procural lane after deciding to reconstruct the destroyed buildings.thither are a few procural passageways could be selected amongst traditional procurance r disclosee and non-traditional procurement routes which includes anatomy and name, foc use undertake and Construction anxiety. In general, traditionalistic order is more favored by public visualise be exercise it satisfies public accountability, Design and Build regularity is more for inexperienced leaf node who desire personify certainty and fast track projects, counselling Contracting system is usu onlyy adopted by experienced client who does not take appeal certainty as their priority, similar to Construction instruction. Select ing an appropriate procurement route go out this instant benefit the client in numerous panoramas, much(prenominal) as time saving, comprise saving, run a risk avoidance, tonus control, scathe competitor and so on.Provided information states that you do not allow an in-house executive to offer the re plait you give obtain a financial assistance of estimated cxx million you intend to re-open the business latest by 28th February 2015. Thurs, the al al closely important issues which you are highly concerned are risk allocation, price certainty and project duration. Two points each will be allocated to the close to qualified procurement route. Besides, you are also concerned about commit control, woodland control, complexity and heritage. One point will be allocated to the most suitable procurement route. Table 1 shows the matrix for making ratiocination on how to select a suitable procurement route.Table 1 Matrix of selecting the most suitable procurement route trad itionalistic ProcurementDesign and BuildManagement ContractingConstruction Management encounter Allocation 12Price Certainty 22Project while 1211 rank Control 11Quality Control 111Complexity 11Total67332. Factors Affecting the Selection of Procurement Route2.1 pretend AllocationRisks support be classified as role risks and construction risks. It is crucial for you to know much risk it can bear and how to pass the risks to the contractor in particular in this case, you do not have a team of specialists who are capable of advising on the picture nor the reconstruction. Amongst all the procurement routes, Design and Build order will allow you to pass virtually all the design and construction risks to the contractor, at a price. traditionalistic procurement method distributes risks to both insured consultant and contractor equally, while Management Contracting and Construction Management have a impairment of retaining most of the risks to employer.Therefore, Design and Build a nd Traditional methods are most suitable for cinnamon Grand to inform risks .2.2 Price CertaintyPrice certainty is ceaselessly a prior concern in private projects, because preventing overrunning budget plays a big part for private client. It has been highlighted in the key issues by Cinnamon Grand saying price certainty is most important. Traditional method supports a high level of price certainty because it relied on free-enterprise(a) tender, usually the Contactor with the lowest tender price will be accepted, although sometimes negotiation happens. Other advantages of Traditional method are competitive fairness, which inwardness all tenderers prices will be based on same design drawings issued by Consultant, and a relatively low tender preparation cost comparing to the rest methods. Design and Build method also ensures a firm cost as most contracts will be permit on a lump sum basis, it is also unlikely to have design changes, because contractors responsibilities of both d esign and construction will increase the buildability and minimise the variation. Management Contracting and Construction Management are at disadvantage as the actual project cost will notwithstanding be know when all the bring in packages have been let.In order to make out the price competitive, the best way of obtaining price certainty is through Traditional method or Design and Build method .2.3 Project DurationTime is essence for those who want quick return on the investment, especially for private client. There are two ways to avoid project delays, cardinal is to start project as early as possible, the other is to end project as early as possible. As I know that the realise of commencement is on 1st March 2014 and the realise of completion is on 28th February 2015, which means the time for construction is very crucial. Fortunately, the decision has been made in August 2012, giving us one and a half year head start on doing any(prenominal) necessary preparation whole ca boodle, for example, to carry out brief, design and competition.The late work grade handover date seems to be suitable to use Traditional method, however, downstairs certain flock of any variation order incurred, Contractor reserve the right to ask extension of time, this will affect the crucial construction period and cause project delays. Therefore, even though Traditional method allows design works can be start early, it still has a medium risk of project delays because the design responsibility does not lie with Contractor.Same applies to Management Contracting and Construction Management as well. Although Management Contracting and Construction Management allow design and construction works to be carried out concurrently, Management Contracting takes more time on selecting a management input and then subcontractors, and Construction Management makes you have to deal with many subcontractors and no individual(a) subcontractor is solely responsible for the date of completion. So since in that respect is a long preparation period from August 2012 to March 2014, I conjure that Competitive Design and Build (two-stage tendering) method will be best suitable to meet the time requirement , not only because it avoids delay to the commencement date, but also ensures the completion date with buildability and single point of contract and responsibility.2.4 Site ControlIn order to provide a good service while the construction is going on, work come out must be well managed in every perspective including safety, planning, noise and etc. The advantage of Management Contracting and Construction Management methods is having a shorter communication line between you and subcontractors, so that to ensure a faster response to decisions. On the other hand, Traditional and Design and Build method do not have control of subcontractors, because there is no contractual relationship between you and subcontractors. Thus, Management Contracting and Construction Management metho ds will be best suitable to control work site . However, it is still possible for other procurement methods to keep the work site well managed by improving the contract requirements and specifications.2.5 Quality ControlTraditional method has a low quality risk because most of the design works are done by insured Consultants who working directly for you. Management Contracting and Construction Management methods also have a low quality risk because a close link will be established between you, Consultants and Contractors, to allow buildibility. Even though when under certain circumstances, design quality may be compromised duo to pressure sensation from employer. Design and Build method has a relatively high quality risk because the whole design and build process is solely undertaken by Contractor, which may slightly affects the quality level.All above mentioned procumbent methods neglect Design and Build method are suitable to enhance quality control and heritage . Even so, the p ossible affected quality using Design and Build method also depends on how experienced the employer is and how spotless is the requirements stated in the contracts document. So I think it will not be a difficult task for such an experienced client in renovation of buildings like Cinnamon Grand.2.6 ComplexityProjects complexity can be identified by the types of physical services involved, the number of sub-contractors, resources in term of labour, plant and materials, the level of technology and the uniqueness of project activities (Songer and Molenaar, 1997). Traditional method and Design and Build method are more suitable for simple or medium-scaled buildings like this particular project, while Management Contracting and Construction Management methods cater for larger and more complex buildings.Considering all types of complexities mentioned, the core concept still revolves around time and cost as the primary purpose is to re-open the hotel business to make money. And the constru ction period for bod two is only one month time. So I suggest that in order to encourage time saving, Design and Build method should be selected rather than Traditional methods, because all construction works will be conducted by Contractor alone while Traditional method has different specialists doing high technology multimedia facilities and air conditioning system.3. RecommendationsThere is no single procumbent method suitable for all kinds of projects, advantages and disadvantages can only be determined according to clients concerns and priorities. Therefore, by referring to the result hypothecate in Table 1, I suggest that the most suitable procurement route should be Competitive Design and Build.