Traditional vs. Modern Procurement Methods in Construction
Explore the differences between traditional and modern procurement methods in construction, focusing on their impact on project success.
The methods of procurement define how construction projects are managed and delivered in the industry. Traditional procurement refers to methods that have been used for many years; they are often known as the traditional design-bid-build method. As construction evolves, a new method of procurement in construction is emerging and gaining popularity on the basis of its efficiency and collaborative nature-Design to procurement.
Understanding Traditional Procurement Methods
What is Traditional Procurement?
The most traditional method in the construction industry is traditional procurement. It is undertaken in an order, hence giving it the three stages: design, bidding, and construction. In this method, step by step:
1. Client hires the architect or engineer to develop the design of the project.
2. Once the design is complete, the contractors are invited to bid based on the specifications provided.
3. Client selects a contractor who is going to do the construction work.
This makes it possible to clearly distinguish what each stakeholder, including the clients, designers, and contractors, should do.
Overview of Modern Procurement Methods
What are Modern Procurement Methods?
Modern procurement methods are in fact, replacement for traditional methods. Among these include design to procurement; integrated project delivery (IPD), the construction management at risk (CMAR), among others.
Key Characteristics
Single Point of Responsibility: In modern methods such as design to procurement, the same party is held accountable for design and construction.
Collaborative Approach: These methods encourage parties to work together at every step of the way from the start of the project.
Comparative Analysis: Traditional vs. Modern Procurement
Various factors are included in the comparison between traditional and modern procurement systems:
Cost Considerations
Generally, costs are not known at the outset of the traditional method of procurement. Budgets of clients are often increased during construction operations because of changes. In contrast, when there is design to procurement, cost certainty begins with the start, as all things are dealt by one contractor.
Time Efficiency
Traditional procurement is slow as each stage has to be presented one after the other, whereas in modern, the phases overlap each other to ensure completion of the project sooner.
Risk Management
Traditional procurement contracts; there is less shared risk since most risks are outlined in categorization under client firms. In modern procurement, the risks are relatively shared between the parties involved by the fact that integrated teams work with a common objective.
Quality Control
Both traditional and modern methods have quality assurance, but in the traditional method, there is more oversight since a client can directly manage different contracts for design and construction.
Choosing the Right Procurement Method
Choosing the most appropriate procurement method makes a project successful. Among others, the following factors are taken into consideration:
1. Project's complexity: If projects necessitate teamwork among many parties or incorporate innovative design, management contracting would be more suitable.
2. Budget Cutting Measures: In case the budget has to be kept strictly in control, a traditional procurement or a design to procurement method should be used.
3. Time sensitivity: With a Design to procurement method, for instance, delivery of projects on tight deadlines is fast-tracked.
Knowing these differences by taking into consideration the needs particular to the project, one will be in a position to effectively make the choice of the procurement method that best caters for the given needs and enhances project success.
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