Posted: December 19th, 2015

Explain how consideration of cost risk affects the choice of method of procurement.

The construction sector is often considered to show a number of limitations regarding efficiency and effectiveness of procurement methods utilised on various projects. Various conclusions have normally been drawn irrespective of project procurement method used and despite common assumptions that differences among approaches exist regarding these aspects. You are a consultant project manager who has been involved in various procurement approaches. You have been approached by Muscat Municipality, Department of Community Services through their Assistant Director of Community Services, to write a report, with examples from your own experience, which should include the following:

1)         An explanation highlighting the basis of “Design Build Finance and Operate” for
procuring a major public sector project. Explain what you consider to be the major

advantages and disadvantages of this method of procurement by comparison with one other
procurement method for: clients, consultants and contractors?                      [35 Marks]

2)         A discussion about the range of benefits that the client, contractor and the supply
chain can expect to see when entering into a partnering relationship in the design and
construction of civil engineering projects. Explain what disadvantages are there and what
management systems you would suggest to minimise them?                         [35 marks]

3)         Explain how consideration of cost risk affects the choice of method of procurement.

[20 Marks]

4)         Report structure, style and presentation.            [10 marks]
Maximum 2500 words

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