Procurement Advice.
Procurement Strategy / Advice
VFM has a
wealth of experience across the spectrum of varying contractual
arrangements and project frameworks.
Our specialist expertise encompasses
the entire range from the Government's high profile Private Finance
Initiative (PFI), to management arrangements and single stage and two
stage variations of the traditional procurement routes.
Specific areas of expertise are listed
below :-
- Traditional Sequential
Arrangements
- Management Contracting
- Construction Management
- Design Build
- Turnkey
- Other Integrated approaches
- Private Finance Initiative
- Single Stage
- Two Stage
- Joint Venture
- Prime Cost / Cost Plus
- Schedule of Rates
- Client Bespoke Arrangements
We have also been closely involved in
the latest forms of alternative and innovative joint venture procurement
solutions both in offering advice, and managing the process.
The recent trend towards PFI,
partnering, bespoke and complex joint venture approaches on high value
developments has kept us at the forefront of change in this field.
Our key personnel are specifically
trained in providing specialist advice on the selection of procurement
arrangements appropriate to the circumstance of individual clients and
project needs. The service includes specialist guidance throughout the
conceptual stages, identifying the specific requirements of each
particular project in conjunction with the client's priorities.
Many clients simply choose to adopt a
single strategy for all, or most of their projects and follow these
arrangements regardless of the potentially different requirements of
each. Whilst this approach can provide the advantage of familiarity with
that system, problems can occur where the contractual arrangements are
inappropriate.
It is essential that the procurement
arrangements allow for the correct balance of contractual risk and
control between the contracting parties and their consultants. The
principal procurement routes currently accepted in the UK construction
industry are briefly discussed below.
Management Contracting or
Construction Management
There are a number of alternative
approaches to management contracting arrangements however the nature and
merits of each are similar. Generally management contracting tends to
suit large projects which require to be completed quickly and are often
complex in nature, more readily allowing the introduction of design
changes during the construction phase. Time is saved by allowing
construction to commence before design is complete. Overlapping or fast
tracking these functions. Greater client control is evident along with
the associated risks which are borne largely by the Client. Works are
let to trade contractors while design of later works continues to be
developed. The Contractor has consultant status and can provide advice
during the design process.
Design Build or Integrated
Arrangements
The Design Build route is more suited
to projects where the Client can define requirements at the outset and
will therefore require limited variation during the construction phase.
Many of the benefits secured by the management route are evident under
Design Build however changes are not encouraged and client interference
during construction can cause problems. The Contractor bears the
majority of the projects risks and maintains more control as a result.
Traditional or Sequential
Arrangements
Traditional or sequential arrangements
require design to be largely complete prior to any involvement by the
constructor. Changes can quite readily be introduced thereafter with a
clear contractual mechanism for evaluation of variations set out in the
contract and pricing documents. More time is necessary however, to allow
for design to be completed before the appointment of the contractor. The
Contractor takes on the risk for most matters defined in the contract
agreement however the Client shares the risk for changes introduced and
design development thereafter.
These are the three principal
categories of procurement arrangements generally being applied in
today's market. Most modern day projects, no matter how complex, tend to
be variations of these alternatives which have been subsequently
developed to suit specific circumstances.
In practice we assess each project and
the client priorities, agree the main criteria, then advice on the
optimum arrangements to be adopted. Once agreed we can initiate and
implement the selected arrangements ensuring they are properly observed
and applied throughout the scheme.
Our fully experienced and qualified
staff will regularly monitor and ensure procurement of each development
is managed and controlled efficiently and effectively.
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