Lecture 1 introduction to construction procurement process.
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Transcript of Lecture 1 introduction to construction procurement process.
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INTRODUCTION TO CONSTRUCTION
PROCUREMENT PROCESS
Date : 20 September 2012
Dr. Md Asrul Nasid Masrom
Universiti Tun Hussein Onn Malaysia (UTHM)Department of Construction Management
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CONTENT
1.Construction Procurement
2.Framework of Construction Procurement Process
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CONSTRUCTION PROCUREMENT
SIMPLE THEORY:
Procurement- the process of obtaining goods and services from another for some consideration
For this lecture, the term ‘Procurement’ is used in the context of construction & refers to the processes of acquiring construction project.
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CONSTRUCTION PROCUREMENT
Procurement Triangle:
Cost Time
Quality
Cost
Quality
TimeCost
Quality
Time
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CONSTRUCTION PROCUREMENT
Definition:
A strategy to satisfy client’s development and/or operational needs with respect to the provision of constructed facilities for a discrete life cycle.
-making the contract (type of contract, conditions, terms)-selecting the contractor-establishing the contract price-economic considerations (Labour, materials, plants, capital)
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Type of procurement systemsSeparated systemCo-operative system Integrated procurement system
Management-oriented procurement system
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Framework of Construction Procurement Process
Can be divided into 2 categories:
1. Processes during pre-construction stage (pre-contract)
2. Processes during construction stage (post contract)
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Framework of Construction Procurement Process
Pre-construction:
4 phases as follows;
1. Initiation
2. Feasibility study
3. Design
4. Tendering
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Framework of Construction Procurement Process
Construction Stage:
2 phases as follows;
1. Construction
2. Commissioning & hand over
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Initiation
1.It is known as promotion.
2.It is the process of recognizing the need for a facility for owner occupation, as an investment or as a speculative development.
3. Come from owner (individual, government, private sector or developer.
4. Involve 2 key element: - Preparing project brief
- Preparing the feasibility study
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Initiation
5. Both elements are crucial (the future of project in terms of its potential to succeed or otherwise are depends on it).
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Initiation
2. Feasibility Study
1. Project Brief
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Project Brief
Definition:
A statement of the needs of the client & how the proposed facility will be used.
It should define the client’s requirement (concept of project, time, cost & functionality)
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Project Brief
1.Preparing it is a very tedious & time consuming activity. - Requires great expertise & knowledge of project by the personal who prepares them.
2.Poorly prepared it: - Can be subjected to a lot of interpretation & understanding which could make the whole exercise useless & certainly not the best interest of the client.
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Elements of Project Brief
The requirement of the project (area of space, type & no. of units of quarters / classrooms, no. of hospital beds etc.)Target date of completionDesign featureAmount of money allocated for the projectEmployer attitudeEnvironmentOperational factorsSiteMarketDevelopment control
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Attributes of A Good Project Brief
A good project brief is the one which adequate in terms of:
1.Clarity
- Its purpose should be clear, accurate & capable of detailed development so that due consideration can be given to each aspect of the construction project.
2.Priorities
- It should establish the project priorities & define those particular items / requirements that are necessities & those that are optional wishes.
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Attributes of A Good Project Brief
3. Consistency
- It should be consistent throughout & devoid of conflicting statements & frustrate the determination of construction project & cost.
4. Completeness
- It should be completed enabling production of a building that satisfies the client needs.
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Attributes of A Good Project Brief
5. Relevance
- It should contain the relevant information & decisions essential to the successful realization of the client’s development objective.
6. Benefits of development
- It should establish the benefits that the client hopes to obtain from the proposed project & the means of achieving them.
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Attributes of A Good Project Brief
7. Realism
- It should be realistic & hence shaped to a greater / lesser extent by resources available & the quality to be achieved.
8. Flexibility
- It should be broad & lend itself to exploration of design problems, options & uncertainties.
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The Brief Functions
Once it has been developed, agreed & formalized as a document, it can serve as various functions as :
1.A channel of communications
- Conveying instruction, decisions & information between a client, & his / her project team.
2.A key working document setting out the client’s requirement;
- In term of net use floor areas (specific details of the various space functions their relationships and details of the involvement of other parties .
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The Brief Functions
3. A mean of stimulating communication & discussions among project participant by facilitating the setting of priorities, analysis, problem identification & information flow.
4. Provides a collective thinking through of the project.
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The Brief Functions
5. A record of decisions, instruction, information, agreement, amendment, conflict & uncertainties.
- It can be used to ensure continuity & consistency during construction process / as a reference document.
6. A contractual document accompanying a legal agreement between the client & the design team.
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The Brief Functions
7. A tool for evaluation of proposed construction project aims & resources against which design contents & framework can be appraised.
8. A basic for estimating resources required giving information of general comfort standards, cost, timescale for design / production of construction product & estimated useful life.
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The feasibility study
Developing the design and preliminary cost estimate will lead to a feasibility report, advising the employer whether the project is feasible functionally, technically and financially.
- Sketch scheme-Cost estimate
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The feasibility study
Sketches of house
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The feasibility study
Cost estimate
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Next Lecture: Next Lecture:
Other phases in pre-construction & construction.Other phases in pre-construction & construction.
Universiti Tun Hussein Onn Malaysia (UTHM)Department of Construction Management
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Universiti Tun Hussein Onn Malaysia (UTHM)Department of Construction Management