‘Newer’ methods of procurement

Over the last 20 years or so, clients have experimented with a number of ‘newer’ procurement methods available, including those listed in the Designing buildings wiki.

As well as routes from that extensive list of ‘newer’ procurement routes, there have been a number of government-sponsored procurement initiatives. For example, the most recent ‘newer’ methods of procurement in the UK have been outlined in two government documents:

Central government recommendations in New models of construction procurement.

Local government recommendations are included in National construction category strategy 2018 and deemed applicable for the next five years.

To influence where your independent research into newer procurement trends should be focused, consider the table below, which has been taken from the NBS National Construction Contracts and Law Report 2018, which evaluated responses from UK construction industry participants into procurement methods used on projects:

The procurement method frequency graph shows traditional procurement at 46%, design and build at 41%, partnering or alliancing at 3%, construcion management at 3%, contractor approved without any tender process at 2%, measured term at 1%, private finance initiative (PFI)/public private partnership (PPP) at 1%, cost plus at 1%, and management contracting at 1%

*The procurement method frequency graph is also available in the ‘downloads’ section below

As we can see from the graph, traditional procurement and design and build procurement are still the most popular choices by a long way.

You can obtain information on newer procurement routes from the publication Building and construction procurement guide principles and options by concentrating on pages 21-33.

Your task

Discuss why you think there are so many procurement route choices available and why there seems to be a lack of longevity for newer procurement routes?

Is this good for construction’s image or does it reinforce the image that construction project professionals cannot really guarantee that a project will be completed on time, within budget and deliver to the required quality and function?

References

NBS (2018) ‘National Construction Contracts and Law Report 2018’. [online]. available from https://www.thenbs.com/knowledge/national-construction-contracts-and-law-report-2018 [6 June 2018]

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Construction Project Management: An Introduction

Coventry University