Procurement is the process by which the Employer’s needs are appraised and the manner by which the project is to be delivered is selected. The Employer’s needs are established by an all-important preliminary process referred to as “briefing”.

Various procurement strategies are all over the landscape, spanning between the dominant fixed price Lump Sum contract at one end of the spectrum, to a cost reimbursable contract – in which the Employer’s requirements are continuously changing – at the other end. The selection of the correct strategy by the Employer is essential to the success of the project, as the process will affect the financing and cost of the project.

On a traditional Design-Bid-Build lump sum contract – in which design is separated from construction – it is assumed that the price is fixed. In reality, the design is never complete and the Employer is at the mercy of the Contractor for claims due to errors or omissions in the design resulting in a confrontational situation over the fair price for these variations. Inexperienced Employers are generally unaware of alternative procurement paths that may appear complicated.

On the increasingly popular Construction Management procurement route, development of the design is shared between the Designer and the Construction Manager. Problems are solved jointly with each party recognizing the other party’s capacity and willingness to contribute ideas.