Master Construction Procurement With These Five Methods

Master Construction Procurement With These Five Methods

Procurement in construction is the purchase and delivery of materials needed for the construction project. It requires building relationships with outside vendors and suppliers through contractual obligations. There are five types of procurement methods: general contracting, design and build, construction management, joint venture and private financing. General contracting is the most popular and widely used method of construction procurement, as it involves a company or individual delivering a design for the contractor to build. Design and build involves the contractor taking on all responsibilities, risks and management of both the design and the build of the construction project throughout all its phases.

Construction management is the preferred procurement method for construction, as it requires a larger internal staff with skilled facility management staff to manage every aspect of the design and build. Joint Venture is similar to construction management, but does not put the main control and accountability in the hands of the client. Private financing is an alternative for clients with poor financial backgrounds, as the contractor is responsible for all construction risks until the project is completed.