This document provides an overview of procurement methods for construction projects. It introduces traditional Design-Bid-Build (DBB) procurement, where design and construction are separated and contracted to different entities. It also introduces Design-Build (DB) procurement, where design and construction responsibilities are integrated and contracted to a single entity. The document compares the processes and contractual relationships for each method. It also discusses factors that influence the choice of procurement method, including client requirements and priorities around cost, time, and quality. Accelerated DBB and fast-tracking strategies are introduced as ways to reduce project timelines within the different procurement frameworks.

1. Procurement (CONS6817) Lara Tookey
Introduction to Separated - Traditional / Design-Bid-Build (DBB) &
Integrated - Design & Build (DB)
PROCUREMENT - SESSION # 2

2. Procurement (CONS6817) Lara Tookey
Today:
• Clients and their requirements
• Overview of procurement delivery methods
• Intro into Traditional (DBB) and Design &
Build (DB)
• Review of your assessments

3. Procurement (CONS6817) Lara Tookey
Procurement
• The structure of the interaction between the
purchaser of a new building and the supplier
of goods and services that enable the
building to be created.
• “Procurement is defined as the process from the
completion of design to the successful handover
of the building. It is also the contractual and
financial arrangements between the parties.”

4. Procurement (CONS6817) Lara Tookey
user
owner
developer
design team
contractor
subcontractor
supplier
Procurement system
financiers

5. Procurement (CONS6817) Lara Tookey
Building
Consent
Progression of a Project
Initiation DesignFeasibility
Construction
Commissioning
and hand over
Concept
Design
Developed
Design
Construction
Drawings
Resource
Consent
Building
Consent

6. Procurement (CONS6817) Lara Tookey
WHAT PROJECT CHARACTERISTICS
CAN INFLUENCE THE CHOICE OF
PROCUREMENT METHOD?
Reading S01_R2 (pg 170-174)

7. Procurement (CONS6817) Lara Tookey
Changing Construction Procurement for the Millennium
Smith, Love and Jackson (available on moodle)
Table 1 Comparison of past and present construction industries

8. Procurement (CONS6817) Lara Tookey

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CLIENTS

10. Procurement (CONS6817) Lara Tookey
• Differing objectives & priorities
• Different levels of experience
• Different attitudes to the risks they are
willing to take
Clients
>>DEPARTMENT of CONSTRUCTION

11. Procurement (CONS6817) Lara Tookey
Taking the first step in
delivering client requirements
• You need to understand the Client’s reason
for requiring the new facility.
• Clients will require advisers who know about
solutions.
• You cannot provide guidance until you
understand this….

12. Procurement (CONS6817) Lara Tookey
• Constructing a new facility might not be the
only way to meet the client’s requirements.
• All options must be assessed and evaluated
soonest during project development phase

13. Procurement (CONS6817) Lara Tookey
Smith, Love and Jackson
Changing Construction Procurement for the Millennium

14. Procurement (CONS6817) Lara Tookey
CLIENT REQUIREMENTS – THE
START….
• Three key criteria are interdependent and
often in tension
• Time (speed or certainty of completion date)
• Cost (price level or cost certainty)
• Quality (functionality and performance)

15. Procurement (CONS6817) Lara Tookey
Best
Adequate
Cheapest
Economical
Fastest
Reasonable
What about FUNCTIONALITY?

16. Procurement (CONS6817) Lara Tookey
• Emphasis on one will have a negative effect
upon the others.
• Must determine which are most important &
which carry the greatest risk.
• Most cases the priorities will fall into A, B or
C where two of the three criteria are
identified as most important to project
success.
• It is rare for all to have
equal importance
Time
Cost Quality
A B
C

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PROCUREMENT OPTIONS

18. Procurement (CONS6817) Lara TookeyOur focus for the course

19. Procurement (CONS6817) Lara Tookey
The Chosen procurement
arrangement dominates….
• How the parties (designer & contractor)
‘connect’ with the design
• How the project is performed
• Contractual duties of the parties concerned
• Terms and conditions of the contracts to be
executed

20. Procurement (CONS6817) Lara Tookey

21. Procurement (CONS6817) Lara Tookey
Design – Bid – Build (Traditional)

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Feasibility Design
Tender/Neg.
Construction
Appointment of
design team
Appointment of
contractor
Sketch
plan
Developed
design
Construction
drawings
DBB

23. Procurement (CONS6817) Lara Tookey
• Responsibility of design & construction are
separated.
• Carried out by different independent
organisations
• Designers (Architect or Engineer)
• Main Contractor
• Traditionally, complete working drawings must
be prepared by designers before tender and
construction activities can take place.

24. Procurement (CONS6817) Lara Tookey
Contractual relationships
(DBB) Owner
Main
Contractor
Architect
/
Engineer
Contractors /
Subcontractors

25. Procurement (CONS6817) Lara Tookey
Sequential Process of traditional
procurement system
Project brief
Feasibility
study
Concept
design
Detail design
Tender &
contract
Construction
Commission
& handover
Client & Consultants responsibility
Contractor’s
responsibility

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27. Procurement (CONS6817) Lara Tookey
Design & Build

28. Procurement (CONS6817) Lara Tookey
Agreement on
price
DB
Feasibility
Design
Construction
SketchPlan
Developed
Design
Construction
Drawings
Selection of DB
contractor

29. Procurement (CONS6817) Lara Tookey
• As name implies, integration (combination) of
both design & construction responsibilities.
• Both functions are contracted to a single
contracting organisation.
• Client & consultant will prepare a bidding
document that includes project brief & client’s
requirements & then invite a number of
contractors to bid.
• Contractors will produce their own design,
construction & cost proposals.

30. Procurement (CONS6817) Lara Tookey
Contractual relationships (DB)
Owner
Design /
Builder
A/E
Contractors /
Subcontractors

31. Procurement (CONS6817) Lara Tookey
Process of project design &
construction in design & build
procurement system
Project brief
Feasibility
study
Tender
documentation
Concept
design
Detail design
Tender &
contract
Construction
Commission
& handover
Client &
Consultants
responsibility
Contractor’s responsibility

32. Procurement (CONS6817) Lara Tookey
Scenario 1 questions
• What are the strengths and weaknesses of
the DBB system in this circumstance?
• What are the strengths and weaknesses of
the Design & Build system in the same
scenario?
• Which method meets the clients needs?

33. Procurement (CONS6817) Lara Tookey
• How can the clients objectives be met within
the separated systems framework?
• Hold your thoughts while we get some more
information
>>DEPARTMENT of CONSTRUCTION

34. Procurement (CONS6817) Lara TookeyOur focus for the course

35. Procurement (CONS6817) Lara Tookey
Accelerated DBB
• A contractor is employed in the early stages of
design on the basis of partial information
• By negotiation or competition.
• Contractor makes input in the design
development and may well start mobilizing on
site, whilst the design is being fully developed.
• Overlapping of design & construction (fast
tracking) reduces project completion time.

36. Procurement (CONS6817) Lara Tookey
Concept
Design
Acceleration of a Project
Design
Build
Structure
Envelope
Services
Fit out
Fit out
Structure
Envelope
Services
Construction Drawings
Developed Design
Brief
Construction Drawings
Vs

37. Procurement (CONS6817) Lara Tookey
Acceleration vs Fast tracking
• Fast-tracking is a means of reducing project time by
overlapping design and construction.
• Each trade’s work commences as its plans and specifications
are substantially completed.
• It is NOT a method of delivery, rather it is a management
strategy within a delivery method and can be used on any
procurement option to speed up the process.
• While often successful in achieving schedule reductions,
problems on fast-track contracts can create a domino
effect on follow-on contracts for the project.