This document discusses and compares two common procurement methods in the construction industry: traditional and design-build. It recommends the traditional method for Taylor's University's upcoming multi-story car park project.
The traditional method involves appointing consultants to design the project and a separate contractor to build it. This allows for better quality control but is more time-consuming. Design-build combines design and construction into one contract, speeding up the process but potentially compromising quality and flexibility.
While both have advantages and disadvantages, the traditional method is recommended as it provides more accurate cost estimates, on-time completion, quality control, and management over materials and labor. Proper evaluation of procedures could help improve the traditional method for current
Measures of Central Tendency: Mean, Median and Mode
Purpose
1. Procurement methods and recommendations
This part summarises the procurement methods and recommends for Taylor’s University. As the
dictionary definition stated that procurement is the act with the purpose of “to bring about” and “to
acquire”.The process includes preparation and processing of a demand and often be used by a company
asa strategyto purchase certainmaterials or services.A business will not be able to survive if the profits
are lesser than the price of procurement.
In construction industry, the client has the major choice to make decision on how to procure the
construction works that with most advantageous arrangement like for example an architect as the
building projector, an engineer for civil engineering projects, a quantity surveyor with preparations of
cost estimates and designer with preparation of drawing for the proposed scheme. There is a lot of
procurement systems used in the construction industry now a day because it is the process which
includes the steps of determination the criteria for the project, setting the contractual framework,
preparation tender and tendering process and awarding a contract that is very highly required in the
construction industry.
Procurement methods like traditional contract, design & build contract, management contract and
construction management contract are commonly used in construction industry in Malaysia. However,
the focus is only procurement methods that commonly used to be adopted in carrying out project of
building a multi-storey car park building in Taylor’s University campus. The two procurement systems
that can be considered as commonly used in construction industry are Traditional Contract and Design
& Build Contract.
1.1 Concept of Traditional Method
As we know that the word of “traditional” is defined as long- established which means traditional
method is the most common form of method that be used by different firms in past years. Traditional
method in procurement system is also known asDesign-Bid-Build (DBB).The construction is separated
from design which means by the contractor of the project has no responsibility for the design works
because client has control over the design through their appointed consultant asthe consultants are work
independently from the contractor in this method.
This is the way how it works, firstly the client will appoint consultants to produce a full design,
documentation and cost control. For example, architect will prepare a brief to the client about the
scheme outline and working drawings, quantity surveying will prepare cost estimate for client and so
on so forth. After that the client will invite tenders and administer the project by instructing and
inspecting the construction works. By using this traditional method, the client is able to have an in direct
contractual relationship with both the contractor and consultants.
2. 1.1.1 Advantages
High standard quality and better control ofworks
By using this traditional procurement method, client will be able to have a high standard quality and
better control of the construction works because client is able to request any variation of works to
contractor and consultants.
Familiar with its working
Besides that, traditional method has been commonly used in construction industry now a day so
everyone will be familiar with its working. This is because many construction firms have been using it
since many years ago.
Cheaper cost ofconstruction
However for the cost of construction work, is usually be cheaper than other method however the design
risk is taken up by the employer because it is done under the client’s requirement.
Client’s interest is protected
On the other hand, client’s interest is protected by the consultant quantity surveyor, who serve as an
advisor for client in the building contracts.
1.1.2 Disadvantages
Outdated method
Now a day traditional method has be considered as anoutdated method for currentconstruction industry
which has been a standard practice in construction industry for many years. Getting more and more
better procurement method occurs in construction industry for example: D&B method and construction
management method.
Creates a “Them & us” attitude
This method has creates a “Them & us” attitude in the construction team because contractor and
consultants are doing their works separately as the contractor with the construction building works and
consultants with the preparation of design and cost control works.
Difficulty to communicate
There will be incompetent communication channel among the various consultants and cause the client
difficult to coordinate with them.
Longer duration of construction work
However, the construction works will be more longer duration because there are a lots of phases like
contractor have to wait for the design to start the construction works.
3. 1.2 Concept of Design & Build Method
Design and build method is a procurement system that construction works and design works occur in
parallel which means an organization undertakes the responsibilities and risks on both construction and
design phased. This is because there are always problem arise in construction industry and when there
is a problem arise, the contractor will start to blame on the consultants and vice versa. The employer
may end up the half of project with the losing party. Besides that, there is a document called
“Employer’s Requirement” which is an agreement between Employer and Contractor. Contractor
design and build a project in accordance to the requirements stated in “Employer’s Requirements”.
In this Building & Build method, client will appoints consultants to prepare requirements, cost advice,
evaluate and select tenders. Then client’s contractor will have to produce a full design and completes
the design in parallel with the construction works. If the contractor has no design expertise in-house to
do the design, he might have to hire consultants to do the design job for him or take over the client’s
consultants through a process known as “novation”. With this design and build method, client will have
to appoint one contractor who completes all the designs and construction works. Client may appoints
independent advisor to monitor and administer the construction progress and quality of the work.
1.2.1 Advantages
Single point responsibility
By using this design and build method, the single point responsibility laid on the contractor who
responsible on both design work and construction services. So if there is any problem occurs, neither
contractor nor consultant shall put the blame on each other.
Saving time and cost
On the other hand, design and build method is able to save more time and cost of construction because
it is not essential for client to appoint consultants as the contractor have to do both design and
construction works.
Easier to communicate
Besides that, the client will be able to have a better communication channel with the contractor because
client only have to communicate with one party. The contractor will control over the subcontractors by
himself.
Speed ofprocurement
Other than that, the procurement will be faster because the design and construction work overlaps in
construction industry. The faster completion of the project brings benefits on the completion of
procurement.
4. 1.2.2 Disadvantages
Quality of works and design will be compromised
Due to all the works are prepared by the independent contractor, so the quality of works and design will
be compromised in the view of contractor’s profit.
Higher professional fee outlay
Besides that, even the cost of construction works are lesser but the fee to employ a professional
experienced contractor is much higher compare with other methods. Better experienced independent
contractor is required to complete a full project which includes design and construct works.
Not flexible on design and construction work
Otherthan that, it will be much little flexibility to change on the design and construction method because
it all done by one contractor so the design possibilities are not explored in full.
Minimise the involvement ofthe client
Because of all the job will be completed by the independent contractor which includes design and
construction works, client will be seldom involve in the construction project.
1.3 Recommendation
Throughout the explanations above, Traditional method undergoes by client appoint a team of
consultants to prepare the design works and cost estimate, and select one independent contractor. This
method would bring the client a more accurate project cost, able to finish the project within the duration
that listed down in the contract, have a proper management on the material and workers and also able
to construct the project as the standard quality specified in the contract documentation. Although this
method brings a lot of disadvantages like it was an outdated method in construction industry, difficulty
on communication and longer duration of work but they will still able to continue and develop to change
and challenge the needs of society and construction industry.
However for the Design and Build method, even though it was a relatively fast method but there are
still a lot of disadvantages like quality of material and work comprised, high professional fee outlay and
not flexible on design and construct work. These problems are hardly solve because now a day in
construction industry, getting more and more professional independent contractors and there are a lot
of choices for client to choose whether which contractor has a better experience and production work.
Besides that, client has no direct power on control over the contractor’s performance and the contractor
design expertise might be limited because client has little say in the choice of contractor on choosing
the specialist sub-contractors.
So, as a director from Super QS Consultant Sdn. Bhd., I would like to recommend Traditional
procurement system because it is the better procurement system that should be considered. However,a
proper evaluation on procedures is recommended to develop a good practice in procurement and also
improve the reflection in construction industry.