Construction procurement routes

One of the most important decisions an employer will make in the development process is the choice of procurement route. In the UK construction industry there are three main types of procurement:

1. •

   traditional

2. •

   design and build

3. •

   management.

There is a fourth type—partnering—which is also covered in this sub-topic, although partnering is usually considered as an additional concept to be covered in other contracts rather than a distinct form of procurement. Within each procurement category there are different arrangements and forms of contract which can be adopted.

The employer must consider whether it wants to adopt a single or two-stage tendering approach when procuring its construction project. A single stage tender process involves asking contractors to submit a bid for the works in a competitive tender process on the basis of the documents prepared by the employer, and the selected contractor and the employer then enter into the building contract with the contractor typically having no pre-construction involvement in the project. Two-stage tendering, on the other hand, allows employers to negotiate with contractors and use their expertise before the final price is agreed and