The word "procurement" means to gain something after going through an extensive process (in this case of trading) in order to do so. This can help explain the meaning of this terms. Construction management procurement basically involves a client holding a central role and delegating tasks to many individuals during a construction process. For a client interested in saving money and time during building, this may be a good practice to use. However if the client is not disciplined and willing to devote significant time to the construction, it can end up being more costly than hiring a construction contractor.
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In construction management procurement the client is responsible for leading the project and therefore must take liability for any risks or mistakes. In this scenario they hire designers to design the building. The client then has a trade contractor then adds details to this plan and finalises it with the client. After this, the client typically hires a construction manager to oversee the process and manage workers. Though the construction manager takes a strong, second-hand position the client is the person that is ultimately in charge.
A few parts of this process are unclear and therefore can raise issues during the construction unless the client clearly specifies them in advance. For example, there is no one other than the client to manage and coordinate the different phases of this project as it goes through the different trade packages. Typically in building, trade coordinators are employed throughout the process to act as a director and make sure their ideas are implemented properly. This is not necessarily the case in construction management procurement. On a related note, the relationship between all involved parties is not nearly as clearly drawn out as in a usual construction project.
This construction practice give ultimate power to the client. Therefore, they have more flexibility in their choices and more power in the overall building process. They may chose the specialist contractors early in order to assure they are a good selection. Additionally if they are decisive, select a strong construction manager, and are adamant about sticking to a schedule, building this way can ultimately save time and money. Furthermore, since the client has one-on-one contractual agreements with traders, they can act upon poor performance by these individuals.
Since the client does have so much power and flexibility in this project, indecision or delay in choices may not only stall the project but also increase the cost of it. Additionally if an ineffective construction manager is hired, he may create delays or charge additional fees. The client must devote significant time and energy communication to he specialised contractors. Furthermore, since there are many individuals working together on this project, there is likelihood of disagreement and costly design change.
In this process, so much emphasis is put on the role of the client. Because of this, if an individual doesn't have this sort of management experience, it can be a daunting task. In order to help avoid risk, a client should most importantly be very careful and selective in choosing the construction management team. He should prepare a lump sum of minimum costs and expect this to be between 70 and 80 per cent of the final building price. Additionally, a client should communicate effectively and not be afraid to reiterate important directions. This individual should oversee all elements of the project and monitor the construction manager.
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