Identifying the project criteria of time, cost and quality
So let’s start the review of procurement by identifying the key risks on a project, which from the client’s perspective, are:
Cost risk – the risk that the final cost may exceed the client’s stated budget
Time risk – the risk that the project will be delivered later than planned or required
Design or quality risk – the risk that the client is unable to easily influence the quality of the project outcome and will not get what was anticipated
When these risks are prioritised by the client and linked to the operation of a procurement route, they are seen to clash, and in order to deliver the project, compromises have to be undertaken – not an ideal start to any project.
The procurement triangle of time, cost and quality, depicts the explanation that the key project criteria (the ‘risk’ at the top of the triangle) will drive the choice of procurement route, with the other ‘risk’ factors (at the base of the triangle) taking a lower priority.
*Many example procurement triangles of time, cost, and quality exist. This one is adapted from Cartlidge (2013). It is available in the ‘downloads’ section below.
Emphasis on only one of the key criteria will almost certainly have a negative effect upon the others.
From a client’s perspective, the cost, quality and time paradigm might be considered as being the highest quality, at the lowest cost, in the shortest time. Unfortunately, this is not always possible and a compromise has to be sought, based on the client’s priorities.
The procurement strategy eventually chosen should balance risks against project objectives at an early stage. The client’s business case ought to help determine which criteria are most important and thus constitute the greatest risk. The procurement strategy chosen should balance risks against project objectives at an early stage of the project’s life.
You are working on a project which is at an early stage, and you have been asked to question the client as to which are the key project criteria.
The project details are: the client is looking to develop a leisure park to the west of the city, in conjunction with the local government. The park will contain several phases over an anticipated five-year period. Phase 1 will be constructed first and comprises a 10-screen cinema and four adjacent restaurant and bars.
In order to ascertain from the client the most important project criterion to the success of Phase 1, what questions would you ask?
Share your questions with your fellow learners in the comments area below, and critically respond to a few peer contributions.
Cartlidge, D. (2013) Quantity Surveyor’s Pocket Book. 2nd edn. Abingdon: Routledge
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