Essay Example on Acquisition stage of a new parcel of Land

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Following the acquisition stage of a new parcel of land and the decision to develop a new housing scheme the developer needs to select a procurement method based on market research and funding capabilities by keeping in mind the lowest risk and lowest cost When selecting procurement one must consider various criteria so as to ensure that the employer developer chooses the best possible method applicable to the development at hand Generally there are three types of procurement methods which include 1 General Contracting 2 Design Build and 3 Construction Management The selection would therefore by based on the various advantages and disadvantages of each Since the developer in question relies heavily on time frames and consistency of branding having a set brief with detailed specifications one must understand that quality and time are essential to the project's execution In general contracting a selected contractor would be responsible for managing and building the development as specified by the employer and in which they are responsible for subcontractors time of delivery and quality In such cases the employer would only have one point of reference in the general contractor however there will not be any direct control on subcontractors and the resulting works This in turn may lead to prolonged timeframes in the eventuality of unsatisfactory quality of work even though the general contractor is solely responsible

Furthermore a general contractor may lack the same motivation or level of commitment of employer In design and build procurement specifications may unwittingly be left too open to interpretation and this may be exploited by the contractor by proposing and supplying low grade products which are at the minimum of established requirements In case of established company branding standards this is would not be acceptable Consequently a developer may also pay more when compared to other methods due to a higher level of risk which has been allocated onto the contractor This however is concealed in the cost certainty of the project whereby a pre established lump sum is paid for the contract On the other hand construction management may be the most viable route of procurement for the project in question The developer s greatest risk in this method is price certainty Although this is not available at an early stage since design and construction elements are provided sequentially this route carries more advantages to the project's scope and requirements In construction management the developer may appoint a project manager in case of large projects to coordinate the different phases of the project Such a procurement method may be similar to general contracting in some instances however in this case the developer s one point of reference is its own representative which means that the company's branding specifications are still within reach and control The developer through the project manager is involved in all stages 



Through this method of procurement the design and construction of the project are also kept apart allowing for better quality design and execution With regards to the complexity of such a project this can be overseen and better control of work would be obtainable Finally a construction management procurement method would allow for faster timeframes and adherence to established dates WHY In view of the above WHICH In tendering the developer and the contractor require an agreement based on offer and acceptance whereby the contractor submits an offer for the specifications and design of the developer s requirements and the developer then decides to accept There tendering is a process in which an employer invites contractors to submit offers Documents will therefore describe what is required and outline certain specific instructions The developer may in such cases opt for open tendering process in which one would place an advert to notify all interested contactors to apply This process is traditionally used in the public sector and in such cases the developer would possibly receive a very long list of offer which require resources to assess and verify 



However due to other important factors of complexity of the project in question and the company's branding a more appropriate mode of tendering would be single stage selective tendering In Single stage selective tendering the developer restricts the number of tenderers to just a few from a specific shortlist that would identify certain attributes which are essential to the project's scope timelessness and quality This method of tendering improves the quality of offers from prospective tenderers which would ensure competence and achieve the requirements set in the design of the project In such cases it may be established that all offers are compliant with regards to skill technical expertise financial stability and necessary experience and thus the award of the contract may be solely dependent on the most economically advantageous offer Such a tendering process would also reduce the cost of tendering for the developer since there would be less documentation to process and thus less use of resources and shorter tendering time Furthermore the developer may opt for a two stage selective tendering In which at first stage a contractor is involved at an early stage of design so as the developer may benefit from the contractors expertise and advice and thus increasing cost savings and aid buildability This mode of tendering is usually used in very complex projects and may lead to complaints from prospective tenderers at the second stage



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