TENDERING AND ESTIMATIG

NAME:
KOK PEI WEN
LEONG PUI YEE
LIM JIA CHEN
ADLI ASSIF

What is procurement?
process

of purchasing
goods or services.

TYPES OF PROCUREMENT
1.
2.

Traditional Procurement Method

Non-Traditional Procurement Method
Package Deal Type

Design and Build

Management Type

Construction Management
Management Contracting

CRITERIA OF PROCUREMENT

CRITERIA OF PROCUREMENT
1.

Project complexity
Technical, functional, organization and activities

complexity
2.

Design and management separation

Try to avoid separating the design process from the

management
3.

Certainty of price
Lower cost

4.

Clarity of employers contractual remedies

Nature and extent of the remedies available for

employers in the event of the contractors default

CRITERIA OF PROCUREMENT
5. Duration

Speed from inception to completion is of utmost importance

being the primary criteria influencing the procurement decision

6. Flexibility of change

Hardly to find a project that has not been varied due to a change in the
employers requirement after contract award and before completion

7. Clients involvement

Normally employer do get involved in the implementation stage

only. They prefer to stay away from the contractual process.

TRADITIONAL PROCUREMENT
1.

Nature and Characteristics

Separate between design and construction
Clients employ consultant for design and cost control
Architect-produce overall design and appearance in detail
QS-ensure design within clients budget
Engineers-design structural elements and internal
engineered services
Contractor is selected later to construct according to the

design

TRADITIONAL PROCUREMENT

TRADITIONAL PROCUREMENT
2. Organization Structure
Contractual (liable for all acts, defaults)

between employer with professional team

and employer with main contractor
Even though main contractor contractually
liable to employer, but all responsibility to
give instruction and order comes from
professional team
Main contractor liable for all acts/default of
sub-contractor

TRADITIONAL PROCUREMENT
3. Sequence of Activities
Client appoint Consultants - Architects, QS,

Engineers
Client brief the requirement/objective
Consultants design, prepare tender
documents and initiate tender process
Select and award the contract
Contractor construct
Completion and handover

TRADITIONAL PROCUREMENT

ADVANTAGES:
o Accountability due to a competitive selection.
o Competitive equity as all tendering contractors

bid on the same basis.

o Design lead and the client is able to have a
direct influence which can facilitate a high level
of functionality and improve the quality in the
overall design.
o Price certainty at the award of the contract.
o Variations (changes) to the contract are
relatively easy to arrange and manage.

TRADITIONAL PROCUREMENT
DISADVANTAGES
Can be a timely process to produce the full contract

documentation. Tenders documents from an

incomplete design can be produced but can lead to
less cost and time certainty, and may lead to
disputes.
Overall project duration may be longer than other
procurement methods as the strategy is sequential
and construction cannot be commenced prior to the
completion of the design.
No input into the design or planning of the project by
the contractor as they are not appointed during the
design stage.

When should we used it?

A programme allows a sufficient time

The price certainty is wanted before the start of
construction
A balance of risk is to be placed on the client and
the constructor

References
1.

Davis, P., Love, P., Baccarini,D.. (2008, June). Building

Procurement Methods (Rep.). Retrieved March 21,
2016, from http://www.constructioninnovation.info/images/pdfs/Research_library/Resea
rchLibraryC/2006-034-C/reports/Report__Building_Procurement_Methods.pdf

2.

Traditional Procurement Method. Retrieved on 10th

November 2015 from http://www.jctltd.co.uk/traditionalprocurement.aspx

THANK YOU