Procurement Route
A Procurement Route (or procurement strategy) is the method by which a construction project is organised and contracted. The choice of procurement route affects risk allocation, programme, cost certainty, and the level of client involvement in design.
Main Procurement Routes
Traditional (Design-Bid-Build)
The client appoints designers to complete the design, then tenders to contractors based on complete information. Offers high cost certainty but longer programmes.
Design and Build
The contractor takes responsibility for both design and construction. Provides single-point responsibility and potentially faster delivery, but less client control over detailed design.
Management Contracting
A management contractor is appointed early to manage trade contractors. Allows early start and flexibility, but less cost certainty.
Construction Management
The client contracts directly with trade contractors, with a construction manager providing coordination. Maximum client control but highest client risk.
Factors Affecting Choice
- Required level of cost certainty
- Programme requirements and flexibility needs
- Design quality and control requirements
- Risk appetite and allocation preferences
- Client experience and resources
Contract Forms
Different procurement routes typically use different standard forms, including JCT, NEC, and bespoke contracts.
Related Terms
See also: Tender, Contract Sum, Construction Management
