The Design-Build Procurement Strategy

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Requirement

its based on FAST TRACKING method

THE PART I HAVE TO DO IS THIS:

Guide and support the owner though the preferred procurement strategy

approach and recommend the type of contract and how the contract is to be managed during development and construction

Solution

Introduction:-

This section is concerned with understanding the preferred procurement strategy that can be utilized for the project under consideration. The type of contract that should be undertaken has been suggested along with the way contract needs to be managed during the development and construction.
There can be variety of strategies that can be considered for the construction and, therefore it is imperative to suggest the one that is cost effective and respects project schedule. Moreover, the learning curve within the  is generally steep and in such cases management of cost becomes beneficial.
There are certain risks that need to be addressed while selecting the right procurement strategy (Sutton, 2013). The risks associated with the costs or the delivery is core to the construction projects. There are three criteria that are interdependent and are of major concern with the construction projects, namely, costs, time, and quality.

The three most common procurement strategies for the construction project are design-bid-build, design-build, and construction management. The design-bid-build helps the sponsors in achieving cost certainty related to the project design. The process in this strategy is sequential (Dada, 2013). The design-build strategy is related to the cost and speed. However, the design of the project is majorly associated with the contractor. In this strategy, the ongoing design can be matched with the ongoing construction simultaneously. The final strategy, management construction, provides enough speed for the project. However, one can find minimum certainty as per the cost is concerned. 
The traditional strategy of the design-bid-build strategy is the most common form of method used in the construction. However, the method is not preferable for the fast-track projects. As the project under consideration is fast-track, therefore, this method cannot be suggested.
The design-build method is the suitable procurement strategy for the projects that are fast-tracking (Ramsey et al, 2016). In this form of strategy, the contractor will have the responsibility of designing as well as constructing. Therefore, the design-build procurement strategy has been suggested for the project that has been under consideration in this study. 
In design-build, the contractor will be contacting consultants or manage activities through in-house designers. The sub-contractors will be playing major role in this process. This approach allows the client with one-person contact point. The risk is majorly associated with the contractor in this strategy. 
The type of contract that has been suggested for this project is Admeasurement contract. In this form of contract, the payment will be paid on monthly basis for the activities that complete within a month (Haswell and De Silva, 2013). As the design and construction will be an ongoing process, therefore this contract method is suitable. The reason is that the contract allows the client to make changes based on the additional payment throughout the project.
The preference would be on clients that which one of the Admeasurement contract forms they would prefer to choose. The two forms are Bill of Quantities Contract and Schedule of Rates Contract. In the BQC form, the rates are placed against the activities that will be undertaken within the month and the payment is released accordingly (Nadeem et al, 2015). There is the provision of measuring the quantities during the course. In the SRC form, the presence of inaccurate work quantities can be witnessed along with the upper and lower assumed limits. 

References

• Dada, M. O. (2013). Client and Contractor Organisations’ Assessment of Design-Bid-Build Procurement Practice in Nigeria. Civil Engineering Dimension, 15(1), 1-10.

• Haswell, C. K., & De Silva, D. S. (2013). Civil engineering contracts: practice and procedure. Butterworth-Heinemann.

• Nadeem, A., Wong, A. K., & Wong, F. K. (2015). Bill of Quantities with 3D Views Using Building Information Modeling. Arabian Journal for Science and Engineering, 40(9), 2465-2477.

• Ramsey, D., El Asmar, M., & Gibson Jr, G. E. (2016). Quantitative performance assessment of single-step versus two-step design-build procurement. Journal of Construction Engineering and Management, 04016033.

• Sutton, B. (2013). Procurement and its role in corporate strategy: an overview of the wine and spirit industry. International Marketing Review.