Basically procurement method is a process to obtain a product (construction) using a specific management system agreed by all parties.
This procurement involves several aspects of the work ranging from management, planning, project management auction until way. In general, this process involves the following aspects: -
- The auction system
- Project management
- Type of contract
- Type of contract terms
In general, this procurement method or system can be divided into two major categories, namely traditional procurement methods and alternative procurement methods.
TRADITIONAL PROCUREMENT
Traditional procurement is where the Planning and Implementation (contractors) are in two different organizations. By way of management as this is a lot of building at the time of first (and until now) was built.
Sistim Procurement basing the BQ (firmed BQ)
This system uses the auction by basing the complete BQ (firmed BQ) and is a system that is very common and many do. With this system, the auction will be conducted after all drawings and specs completed and then prepared BQnya by QS. How to auction can be open or limited way. BQ and the unit price is binding for the duration of the contract and is an integral part of the contract. Properties typically lump-sum contract. With this system, commitment to task giver at the expense of already known from the outset and is not expected to change much at the end of the work.
Advantages of this system are: -
a. Each party (Task giver and contractors) know the size of the final cost of their agreement.
b. The unit price can be used for job variation (add / subtract), if any.
c. Details of the contract value may be seen or available in detail (via BQ).
The disadvantage of this system are: -
a. Takes a long time to prepare the documents.
b. Difficult to determine the variation of work because they have to change the character or condition of employment as compared with the conditions at the time the contract.
Type of contract terms that may be used include JCT with quantities (1963/1980), FIDIC (1987/1999)
Sistim procurement basing the Bill of Approximate quantities (BAQ)
This system uses the auction with a fairly complete BAQ basis, in relation to the subject of work, but it has not entirely true. The volume of work will be recalculated at the end of the work. Drawings and specifications are not yet fully completed planned so that binds only the unit price work alone and that is the unity of the contract. Nature of contract usually use the way of re-measurement contract. The contract system can be implemented earlier than the way firmed BQ, so that when the early implementation of the work could be accelerated and will accelerate the overall job turnaround time.
Advantages of this system include: -
a. Implementation of the work can be done earlier.
b. Extra costs or expenses for the preparation of the BQ can be reduced.
The disadvantage of this system include: -
a. There is no exact value for the commitment fee (for the giver Duties) at the beginning of the project.
b. Volume shall be calculated in accordance with the work carried out in the field.
c. Planners make feel less obliged to make a detailed planning.
Type of contract terms that may be used include JCT with Approximate quantities (1980), FIDIC (1999).
Sistim procurement basing the drawings and specifications
This system is commonly used for small-scale projects and simple. The basis used was Drawings and Specifications issued by planners without the need for BQ. Bidders are only given Drawings and specifications to calculate the amount bid. All the Drawings and Specifications must be complete before the auction conducted. This is to reduce the risk of employment variations that are difficult to quantify or assessed (if any). The nature of the contract is usually a Lump Sum. The way auctions for these systems is usually limited and serialized auction. Commitment fee giver task was clear from the outset so long as no change in plans.
Advantages of this method are: -
a. Time to prepare BQ can be eliminated.
b. Each party may determine the final value of the contract and the clarity of their agreement.
The disadvantage of this method are: -
a. No details of the contract price, unless QS prepare a general overview.
b. Difficulty determining the variation job.
c. Calculation 'daywork' (if there are bills) will be difficult, even if the contractor has included additional percentage for profit and overhead.
Type of contract terms used among others JCT without quantity.
Sistim procurement basing the Unit Price List
The procurement system is a form of fast-track existing in this traditional procurement methods. The main thing of this system is that the execution of the work can be done early, because they do not have to wait for the drawings and specifications or while planning is still in the process of completion.
In the system of this auction can be done while planning is still running, by using the Unit Price List, which is then binding contract. The nature of the contract using a type Contract Re-measurement, where the final figure will be obtained after the volume of work to be recalculated at the end of the work. Re-measured as the principle of Contract, then the risk will be shared between the contractor and the client. Way auction for this system is limited by way of auction.
There bebarapa variants in this procurement system: -
(i) the procurement system with the basic 'Standard Unit Price'
Auction basis, with reference to the 'Standard Unit Price "outstanding or issued by a competent authority. Contractors are required to include an additional percentage or reduction of the unit price list. Once agreed, the contract is signed and the contractor can immediately work.
(ii) procurement system with a basic list Unit Price 'Ad Hoc'
List price of the unit is taken not from a certain standard unit price, but deliberately made based on the pictures that have been there and on QS estimates that the work will be the subject later. QS can create a list for later asks bidders to enter the percentage increase or the reduction on the unit price. Or the unit price list is emptied and filled by the bidder. Regardless, the evaluation of this system will be difficult, in the absence of volume that can show high and low bids.
(iii) procurement system by basing Other Projects Unit Price List
In general, the same way as in the list of 'ad hoc' at the top but taken from BQ for similar work on previous projects or other. Usually done for auction serial or series.
5. The procurement system that bases the cost of replaced (cost reimbursement)
This method can also be regarded as an alternative to the system of procurement for the work are difficult to quantify at the beginning of the planning, such as the project of renovation and repair of buildings. This method bases the value of the contract to the costs incurred by the contractor for the execution of a job (Prime Cost) and coupled with wage (Fee) and profit. This method is not favorable for the task giver as more wasteful or careless contractors carrying out the work the greater the cost will be borne by the Task giver. However, the way the work could be done earlier.
The advantages to be gained from this method include: -
a. Time to prepare tender documents which can be shortened or reduced.
b. Peaksanaan work can be done as early as possible.
The disadvantage of this method include: -
a. Not rigorous or exact value of the end of the project to make each of the parties is not satisfied or convinced by its commitments.
b. The total cost, usually will be greater than the other way.
c. Recording of expenditures contractor should be investigated as possible.
ALTERNATIVE METHOD OF PROCUREMENT
Alterntif procurement system is a development of the traditional procurement system were deemed no longer able to keep up with technology and the need giver of the building or project task he wants. The main characteristic of this alternative system is an attempt to combine the implementation of the planning period to period, the following also combine or merge Planner organizations which had previously been on a different side to the Contractor into one organization with the Contractor. In other words, planners and contractors tried to be on the same side.
Some of the reasons used to develop alternative systems are: -
a. Increasing the length of time the implementation of construction projects and the growing complexity of the building at this time resulted in the increasing number of investments that should be planted to finance the project.
b. Higher interest rates result in increasing the amount of interest to be borne giver task in financing the project, if the construction is too long.
c. Task giver of the increase of knowledge will be governance construction and the construction industry so that they are increasingly taking account of 'Value for Money' and want a more rapid return of their investment.
d. More advanced or sophisticated construction technology requires a higher quality of the construction industry.
e. The tendency 'They and Us' between planners and contractors, causing the gap between the two that eventually resulted in the project's main objectives are not achieved or are not perfectly achieved.
For the reasons mentioned above that the alternative system is the problem of time is emphasized and be extra attention. To press time, both during the planning and the implementation period, all efforts sought. Besides the problem 'They and We' try eliminated by involving contractors in the early stages of planning for the requested opinion and knowledge in solving problems related to the implementation of the plan. This is done solely to obtain project goals, time, quality and cost effective and efficient manner.
Procurement System Design (Design & Build)
This method is already long known as the 'Architect - Builder' which has long been used in the 16th century - 19. In the early 70s the system is growing again, after the beginning of the 20th century was abandoned, with the name of the Design and Build.Kontraktor will be responsible the planning and execution to meet all the requirements of Task Giver (Employer's Requirements). For the Contractor will earn as a planner. In this way the responsibility for planning and execution are in the organization, namely the Contractor. In this way also the execution time of the job can be withdrawn as early as possible. Procedures or administration of this system are as follows: -
a. Contractors enter perdasarkan proposals and bidding requirements Task Giver (Employer's Requirements - ER). ER was made by the Task giver. ER can be a common specification, layout (layout) building, room, soil, site plan, floor plans, schematic design drawings and / or a brief description of the project.
b. Contractor to evaluate the bids, the Giver Task formed a team of planners, QS and PM. The first proposal was evaluated contractor designs, if it meets all the ER. After that the new terms of the financial bid.
c. Once the preliminary design is approved, as well as the overall contract price, the Contractor shall proceed to the design stage of production information. Contractor Planning Team will work on the development of this design to be supervised by the Technical Team Task giver.
d. As soon as the design is ready to be implemented, the Contractor will provide the design of the operational part to be implemented and supervised by the Technical Team Task giver.
Of the basic forms Design system there bebarapa derivatives or variations thereof, namely Develop and Construct and Turnkey or a Package Deal Contract.
Contract terms commonly used is the JCT Design and Build Standard Form of Contract, FIDIC Design and Build Form.
Management Contracting (MC)
In this way began in the 30s and began to grow used to the 70s - 80s. The principle of this method is that the 'Management Contractor' (MCR) does not work on physical development but submitted to the sub-contractors based on the work packages. The contract between the sub-contractors carried out by MCR. The main task of the MCR is to prepare for the implementation of construction management services on the basis of wages that have been approved as part of the management team taskmasters. MCR have to prepare and establish the organization, coordinating the implementation on the ground and must make and maintain facilities and infrastructure implementation (such as warehouses, roads, shelter workers, electrical work, water work, field equipment or other things like those listed in the Preliminaries) ,
The combination of the system 'Design & Build' and systems 'Management' produces a system called 'Design & Manage'. This system is rarely used in the construction industry. Usually done for a very special buildings such as room process, factory or other industrial buildings.
Joint Venture (JV - Joint Operation)
Joint Venture (JV) is a form of cooperation between two or more companies for the purposes of an auction and execution of construction or other jobs, where each party has a responsibility to work together and a contractual obligation to the giver task. Companies belonging to the JV may come from a business background that is the same or different.
JV developed in accordance with the development of the construction industry are increasingly sophisticated and complex. JV used for projects that are of great value and require special expertise, whether related to technology and financing.
The contract will be made made between giver duties and JV JV where all the participants were also signed. With the JV, enabling the specialist contractor who usually become sub-contractors (in the traditional system) becomes part of the JV. How to tender for this project can use the open tender, restricted or even negotiations.
G-Maxatau GMP (Guaranteed Maximum Price)
GMP contract is an alternative method of procurement that gives maximum benchmark contract price for a work by a particular design. With this system, the contractor will guarantee or 'guarantee' that total construction costs will not exceed the value of GMP approved. GMP system is beneficial for use on a project or a job that has a tendency for significant differences from the initial value of the contract, such as if the work was auctioned at the moment still in the early stages of planning or in the concept phase.
For GMP can be studied in more detail (attached) because the procurement system is often used in developed countries and Singapore.
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Engineering, Economics & Business
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