Procurement Strategy For Jh Private Hospital Construction Essay

Procurement Strategy For Jh Private infirmary wind EssayIn regards to this Im glad to inform you that I provide be going though with report of procurement strategies. I will to a fault analyse distributively strategy and demonstrate a list of advantages and separates of each type with recommendations and in summary come with the most suitable rule to satisfy requirements vis--vis the key thickening requirements. I will try to decl are the report recommendations as clear to understand as possible and reasons for disregarding alternative methods again regarding the invitees brief. Thank you very much for contacting me i forwards long have no issues for further clarificationThe tralatitiousistic method has been employ in the locution industry for many years. It one of the most apply methods of procurement and has two main features. Firstly each stage is disperse with no everywherelap between the number and grammatical kink phases. Secondly only of the drawings, schedules and quantities must be given by the client in front asserter stinkpot get starting signaled tendering subprogram for carrying out any work (jctltd.co.uk/traditional-procurement).Pros ane advantage of the traditional procurement method is that the cost of the intent is commonly known before the construction is started so reducing any pay issues.A contractual commitment on equipment casualty gives the client more pieces of mind and greater security when applying for finance.Pricing is competitive for avowers.As the chassis is contained before the take a leak this generally substance the program is easily documented and therefore has better clarity for the construction stage.Low hazard in invent allocation. (Procurement_SingleStageTendering_Nov08)ConsWith the traditional procurement method use and construction are separate processes this means that the time on the particular tolerate will be vastly greater than that of other jobs.Another disadvantage wi th using the traditional procurement method is that as the design and construction are done at separate stages which means that any issues that hold up in the construction stage squirt be very arduous and costly to fix.If financial issues do arise the contract does have can adjust the costs.Traditional Method with Two Stage TenderingThe traditional procurement method with two stage tendering, is a slightly different process to single stage tendering. A asserter is appoint on the instauration of a first stage tender which determines the level of overhead and arrive at for each Contractor (designguidance.skillsfundingagency.bis.gov.uk). The Contractor works with the Project Team in the second stage and then develops the designs to determine costs for the work. This gets a unconquerable price for the designs.ProsEarly particular date of the main asserter and a quicker start on site.Securing the elaborateness of a affirmer on a competitive basisMore client employment in the appointment of subcontractors.Motivating the design and construction squads to reduce cost and enlarge cherish (all 4 above from www. take a leaking.co.uk).ConsThis method requires a second stage point in which to design and tender the different work which lengthens time before construction can start on site.Increases the risks of an increase in price and a less clarification on completion date (Procuement.PDF). externalise and BuildThe design and bod process is again a very commonly used method of procurement. The Client appoints a building contractor. As with traditional methods, cost for the chuck is agreed and set with contracts. The Contractor is responsible for(p) for design and construction. The Contractor can be chosen through a tender process. The client can appoint a consultant to deal the works. (designguidance.skillsfundingagency.bis.gov.uk)ProsDesign and build is a much quicker process than the traditional method.Main contractor is responsible for the design an d the construction of the project which means better flow between both processes.Costs are authoritative as with traditional which means easier gathering of funds from the bank.Almost 70% of traditional contracts end up over budget, compared to DB which is only more or less 25-30% over budget (wiki.answers.com)ConsCould cost more as bidders and can increase the price as they are tied into both the design and build stages.The contractor has no incentive to save money as they will always end up with a percentage.Some bidders will make things out looking for expensive changes. pull attentionConstruction steering is a fast track strategy this means a diminution in project time by overlapping the project design and construction phases. The provider will appoint a Construction passenger vehicle to manage the overall for a fee. Also the project has previous(predicate) involvement from the contractor. In this process the contracts for the sub-contractors are placed directly between the client and the sub-contractor. Construction precaution as well as has a high level of client involvement in both phases of work. Final costs unlike traditional and design and build are not known until after the project work has finished (designguidance.skillsfundingagency.bis.gov.uk).ProsQuick method to use as design and build stages overlapEarly involvement from contractor which benefits the client, getting early cost estimates (www.davislangdon.com).Design can be changed during the build process farthest easier than with traditional methods.ConsFinal costs are unknown until work has finished.Construction manager has no direct contract with the trade contractors (www.worldservicesgroup.com).Difficult to aver cost increases (www.worldservicesgroup.com). existence Private Partnerships (uvulopalatopharyngoplasty), Private Finance Initiative (PFI)Public Private Partnerships (PPP), particularly Private Finance Initiatives (PFI) projects are were a project is designed built and p aid for by a business who appoints a contractor it is then hired back to the client usually over a 30 year period. This tendering process in this procurement channel is expensive and requires negotiation rather than competitive tendering. (designguidance.skillsfundingagency.bis.gov.uk)ProsThe Risks of the project lye with private welkin rather than the client.Method involves specialist private sector construction experience (www.worldservicesgroup.com).ConsIn comparison with other procurement methods it takes a lot interminable for work to start on site.Loss of control in the construction trade by the public sector.Can be hard to show value for money (www.worldservicesgroup.com).Confusion over what happens at the end of the buildings lease also brings up issues.Management ContractingManagement contracting is also a fast track strategy which overlaps the design and construction stages and allows the project construction to start before the design is fully completed. The Managem ent Contractor is appointed early in the design (designguidance.skillsfundingagency.bis.gov.uk). However like PFI and PPP final costs cannot be determined until the build is finished as adaptations to the design can increase cost.ProsManagement Contractor has early involvement and manages works contractors (www.worldservicesgroup.com)One management structure which means the project can run more smoothlyConsNo responsibility for design and construction.Management Contractor only responsible for workmanship to the extent that works contractor is responsible /able to pay (www.worldservicesgroup.com).Decision MatrixCriteriaS= worstWS= Weighted ScoreWeightingTraditional Method.TraditionalMethodWith 2 Stage.Design and Build.Construction Management.PFI, PPP.Management Contracting.SWSSWSSWSSWSSWSSWSA). Early contractor scuttlebutt into the design process.6212212530636636636B). Early start and finish or shortest total procurement time.53151563052515420C). The building is passing specialis ed and technical schoolnologically advanced.4624624416416520416D). A high quality of finish is important.3515515391326412E). Project sponsor to retain design team control.248486125104836F). flexibleness to make changes once the work has begun.1111133554455Total Weighted Score7565100957995Recommendation of the Most sufficient Client-Financed Procurement OptionThe recommended procurement type for the John Hopkins Private Hospital in the Northeast is design and build. This is for many reasons. Firstly on the end matrix the order of priority which has been specified by the client, design and build arrives at the highest score of 100. Design and build also rates highly on the top 3 most important positionors in the finding matrix.A key aspect in the design brief is the fact the hospital must be high spec containing high tech equipment to make the John Hopkins Private Hospital a European centre of attention of excellence. Design and build performs well to create a high spec building as there is no incentive by the contractor to save money which may be considered a disadvantage in some cases but not in this instance. Also in the budget sense unlike construction management, PFI and management contracting, the precise costs are known from the outset of the project once the design has been finished and before the construction begins and unlike the traditional methods, the majority of design and build projects finish on budget.Another important factor specified was early input from the contractor. Design and build performs well here too, as the contractor is appointed early and also as an added bonus runs both the design and build stages of the project which means smoother running and less likelihood of mistakes in both the design and construction stages of the project.However unlike construction management, PFI and management contracting, design and build does not perform as well as it is more difficult to alter the design once construction has started, in so far this is not particularly high on the agenda for the project.Finally design and build projects on whole do have an early start and finish time which is high up on the criteria. This is because as the contractor is selected early and runs both the design and construction stages the project runs smoother and therefore faster yet maintains quality.