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Building Procurement
Building Procurement, ISBN 9780470672433, by Roy Morledge, Adrian Smith, Publisher John Wiley, Imprint Wiley-Blackwell, Which Building Contract bookshop
Building Procurement

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Product Code: 9780470672433

By: Roy Morledge, Adrian Smith
Edition: 2 Rev ed
Publisher: John Wiley and Sons Ltd
Imprint: Wiley-Blackwell
ISBN: 9780470672433
Format: Paperback
Pagination: 344 pages, ill
Pub Date: 22/02/2013
As an industrial process, construction is unique in that the method of procurement of any built asset (building, infrastructure or process plant) defines many of the subsequent management processes that take place during the building phase – a very different situation to the purchase of goods and services in most other industries. The procurement process is therefore central to the success of any construction project and many of the problems which impact construction projects can be traced back to the procurement phase, so a good understanding of the methods of procurement and the influence it has on project success is essential for all those working in the industry.
Much has changed in the global construction industry since publication of the first edition of Building Procurement, for example the global liquidity & banking crisis and the debt burden of many major economies. This new edition has been rewritten to take account of these significant developments, but at its core it continues to provide a critical examination and review of current procurement practices in the UK, continental Europe (including EU procurement procedures), China and the USA. It retains its original strong emphasis on the need for clients to establish achievable objectives which reflect the project business case and focuses on development of suitable strategies and management structures to meet those objectives in the current construction climate.
Building Procurement will be essential reading for senior undergraduate and postgraduate students of construction management and practitioners working in all areas of construction management.
Preface to the second edition xii
1 Introduction 1
2 Procurement strategy: a literature review 6
Introduction and early history 6
Procurement strategy selection models 7
Towards a broader view 8
Defining project success 10
Team relationships, supply chain management and communication and their effect on project performance 11
Teamwork and team performance 11
Partnering: introduction and early development 12
Partnering: a critical review 13
Partnering variants 15
Partnering dissected 16
Procurement and multicultural teams 17
Supply chain management 17
The role of the client in the procurement process 18
The interrelationship between the components of the overall
procurement approach: strategic procurement management 19
Legal and contractual issues, including public sector procurement legislation, and their effect on project performance 20
International procurement comparisons and the impact of cultural differences 22
Risk allocation and reward 24
Bid evaluation techniques 25
Environmental and sustainability issues and the procurement of construction work 27
Conclusion 28
References 29
3 Principles of strategic procurement 42
Introduction 42
Procurement: a review of theory and practice 44
A strategic approach to procurement 45
Components of the procurement process 46
Conclusion 53
References 54
4 Public sector projects 55
Introduction: why should public sector projects be different? 55
What constitutes the public sector? 56
Central government 57
Local government 63
Best value 64
Procurement rules: European Union principles and procedures 64
Non-discrimination and transparency: the role of the EU 64 EU Directives 65
Tendering 69
Framework agreements 72
Electronic auctions 74
Sustainability and environmental issues 75
Timescales 76
Award procedures 76
The Remedies Directive 78
Enforcement of EU Directives 79
References 79
5 Project initiation 81
Introduction 81
Strategic fit 82
Payback 82
Assessment of options 86
Achievability 87
Affordability 87
Project initiation 87
Prioritisation of objectives 88
Conclusion 91
References 91
6 Briefing and the design process 92
Introduction 92
Project briefing: an overview 92
Types of construction client 94
Questions to determine the type of client 96
Project complexity 97
The briefing process: a historical perspective 98
Developing the strategic brief 100
The project execution plan (PEP) 101
What issues does the PEP need to address? 101
When should it be prepared? 103
Who prepares the PEP? 104
How is the PEP prepared? 104
Project briefing: the case of hospitals 105
Critical factors for success in the briefing process 106
References 108
7 Procurement strategies and procurement routes 110
Introduction 110
Procurement strategy 115
Procurement routes 117
Factors to be considered in selecting a procurement route 119
Factors outside the control of the project team 119
Client resources 120
Project characteristics 120
Ability to make changes 120
Risk management 120
Cost issues 121
Project timing 121
Construction times 122
Performance 122
Selection of a procurement route 123
Procurement routes: a review 126
Traditional (design–bid–build) 126
Design and build 129
Measurement (remeasurement or measure and value) 134
Construction management 135
Management contracting 137
Design and manage 139
References 139
8 Project team selection 141
Introduction 141
The selection process 143
Prequalification 143
Tender invitation and submission 146
Tender evaluation 146
Interview 147
Award of the contract 148
Selecting a consultant 148
Selecting a contractor 151
References 152
9 Managing the procurement process 153
Introduction 153
The project manager 154
First tasks of the project manager 155
Developing the project execution plan 156
Identifying the project team 156
Implementing the procurement strategy 157
Project resources 157
Financial resources 157
Human resources 157
Physical resources 158
Temporary organisational structure 159
Contractual arrangements 159
Systems and controls 159
Time management 160
Design management 162
Design risk 163
Cost management 164
Quality control 167
Change control 168
Commissioning 169
Occupation and take-over 170
Conclusion 170
References 170
10 The value of design 171
Introduction 171
Considering value in the business context 172
The value of good design 173
Managing value 175
Value management 176
Value engineering 179
References 181
11 Risk management 182
Introduction 182
Risk and uncertainty 183
Types of risk 183
Risk management strategies 184
Identifying risk 185
Assumption analysis 185
Checklists 185
Brainstorming 187
Delphi technique 187
Cause and effect of risk 187
Examples of risks 188
Analysing risk 189
Qualitative assessment 189
Quantitative assessment 190
Choosing a risk management strategy 194
Risk management strategies 195
Risk allocation 196
The empty chair theory 197
Monitoring and controlling risk 197
References 198
Further reading 198
12 Partnering culture and the management of relationships 199
Introduction 199
The Latham review and subsequent developments 199
The rise of collaborative approaches to procurement 200
Collaborative approaches to construction work 201
Contractual approaches to collaboration 202
The JCT forms of contract including the Standard Form of Building Contract 202
The New Engineering Contract Engineering and
Construction Contract (NEC ECC) Edition 3 202
The ACA Project Partnering Contract (PPC 2000) 203
Perform21 Public Sector Partnering Contract (PSPC) 203
Target cost contracts 204
What advantages does partnering bring? 205
Managing a successful partnering arrangement 205
The role of the workshop facilitator 206
Facilitation guidelines 207
Team composition 208
Managing relationships 208
Why is relationship management important? 209
Establishing the ‘cultural fit’ 210
Mutual objectives 212
Team development 213
The nature of trust 216
Maintenance of the relationship 218
The project supply chain 219
The holistic approach 221
The bicameral approach 221
The unilateral approach 221
The collaborative approach 222
Conclusion 222
References 223
13 Privately financed public sector projects 225
Introduction 225
Historical development 225
Modern models for privatisation 229
Outright privatisation 229
Participative privately financed techniques 230
Corporatisation and the use of semi-private (mixed) companies 230
Management contracts 232
The leasing or build–lease–transfer (BLT) model 232
Prefinancing 233
Mixed models 234
Concession-based methods 234
Public private partnerships (PPPs) 238
The Private Finance Initiative 239
Genesis 239
Problems 240
Current developments 253
Conclusion 254
References 254
14 Construction procurement: Europe, the Middle East and China 257
Introduction 257
Europe 258
The French system 258
The northern European approach 265
The Mediterranean approach 267
The Middle East 271
The People’s Republic of China and the Hong Kong Special Autonomous Region 273
The Chinese construction industry 273
The construction professions 275
Opportunities for Western companies 275
Reference 276
15 Procurement of work to heritage buildings 277
Introduction 277
The heritage challenge 278
Procurement: The heritage context 280
The value of built heritage 284
The importance of cultural significance 286
Statutory protection for heritage buildings 287
Listed buildings 288
Conservation areas 289
Scheduled monuments 289
World Heritage Sites 289
Managing change in the historic environment 290
Planning for conservation 290
The role of the conservation advisor 292
Procurement processes and procedures 293
The investigation contract 294
A case study in the procurement of work to historic buildings: The Derby roundhouse 295
The existing buildings: historical background 297
The genesis of the project 302
The final scheme 302
Site surveys and pre-tender investigations 308
The tender process 308
The partnering process 309
Post-contract processes 310
Practical issues on site 310
References 312
16 Summary 316
Appendix: Procurement route selection checklists 320
Index 324
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