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Variations on design and build procurement

Design and build procurement has also been modified over the years.

The two main adaptations or variants are as follows:

  • Turnkey/package deal
  • Develop and construct

Turnkey/package deal

The package deal approach has been in existence for many years. As the title indicates, clients would be able to purchase a total building package which would satisfy their building needs quickly and at a competitive cost. Initially contracting organisations provided prefabricated building solutions, but this has adapted into bespoke design solutions to suit clients’ needs and based on the contractor’s expertise, ie steel-framed structures.

However, the fundamental procurement principle remains the same, ie the entire process of design, specification, construction and commissioning is carried out by contracting organisations. On certain projects the client may wish the contractor to finance, operate and manage the facility.

Develop and construct

When using this approach, the client’s design consultant is provided with a detailed brief, from which concept drawings, site layout and typical construction details are produced. The contractor then takes over this concept detail and produces detailed ‘working drawings’ and submits these drawn proposals with their bid in the same way as with design and build, as previously described.

The contractor has the option to use the original design team should they wish and should it be mutually agreed – if they do so, the transfer of the original design team is undertaken by a process called novation.

Your task

Identify the key issues which might persuade a client not to use the design and build procurement route.

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This article is from the free online course:

Procurement Strategies and Tendering

Coventry University