Considering key project criteria

In order to select the most appropriate procurement route for a project, key project criteria need to be considered.

We are concentrating on the selection of a procurement route for the construction works.

Selection of a particular procurement route starts with examination of key project requirements of time, cost and quality, as client prioritisation of these leads to a particular procurement route being chosen, as different procurement routes prioritise these key project aspects in a different way.

However, it needs to be stated that identification of the prioritisation of these key criteria often produce clashes, and often procurement selection is seen as a compromise decision.

Emphasis on only one of the key criteria will almost certainly have a negative effect upon the others. The client’s business case should help determine which criteria are most important and which could constitute the greatest risk. It is rare on projects for time, cost and quality to be equal in either importance or impact.

Key project criteria Explanation
Time
ie speed or certainty of project completion date
Time aspects can be considered from two perspectives: either time is of no concern to the client or it is. Different procurement strategies take different times to deliver projects.
Cost
ie price level or cost certainty
Cost consideration also has two perspectives: if project funding is limited, the most important criteria could be to establish cost certainty before the project commences, or cost certainty is not as important as other project considerations.
Design/quality
ie functionality and performance
There are a couple of key points to decide upon here: is the client ‘bothered’ whether the design is completed by an engineer/architect or by a contracting organisation? Is the client expecting the design to be completed before the work goes out to tender? This generally gives greater certainty on costs.
The type of building will have an influence on the above decision, identification of whether the building is of a straightforward construction and scope, and the client does not require close control over quality and design as opposed to where the client wants closer control over a more specialist-type building. Consideration of design input for specialist works will also influence the procurement decision.

Your task

Your dream home, from the earlier task, is now being realised and you have been asked by the project team to identify what you consider to be the main priorities for this project in terms of its time, cost and quality requirements.

Are there any other project considerations you would also consider?

Post your time, cost and quality considerations in 1, 2, 3 format (where 1 is most important) and include (if you can) another key project criteria to consider. Share your answers with other learners in the discussion.

Further information

Ng, T., Duc, L., and Swee, C. (2002) Decision Criteria and their Subjectivity in Construction Procurement Selection [online]. available from https://epress.lib.uts.edu.au/journals/index.php/AJCEB/article/view/2888 [5 July 2019]

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This article is from the free online course:

Procurement Strategies and Tendering

Coventry University