Procurement architecture refers to the systematic design and framework that defines how projects, particularly those involving construction or refurbishment, are initiated, planned, structured, and delivered from the client's perspective.
Understanding this concept begins with defining procurement itself. According to the provided reference, procurement is a term which describes the activities undertaken by a client or employer who is seeking to bring about the construction or refurbishment of a building. Fundamentally, it is a mechanism which provides a solution to the question: “how do I get my project built?”
The "architecture" in this context refers to the chosen method, structure, and organization of these procurement activities. It's not just doing procurement; it's designing the system through which procurement happens. This architecture dictates the relationships between parties, the flow of information, the allocation of risk, and the sequence of project stages.
Key Elements Composing Procurement Architecture
A project's procurement architecture is built from several interacting components that determine how the client engages with the market and manages the delivery process.
- Procurement Route or Strategy: This is perhaps the most fundamental element, defining the overall method used to appoint contractors and consultants and manage the works. Common routes include:
- Traditional (Design-Bid-Build)
- Design and Build
- Management Contracting
- Construction Management
- Integrated Project Delivery (IPD)
- Contractual Framework: The specific type of contract used (e.g., lump sum, cost-plus, target cost) and its terms and conditions form a critical part of the architecture, defining legal relationships and risk allocation.
- Roles and Responsibilities: Clearly defining who is responsible for design, construction, cost control, project management, etc., is central to the architecture.
- Risk Allocation: How risks (e.g., design changes, site conditions, delays) are distributed among the client, designers, and contractors is a key design choice within the architecture.
- Supply Chain Structure: The chosen architecture influences how the main contractor or project manager interacts with subcontractors and suppliers.
- Payment Mechanisms: The method and schedule for payments are integral to the financial structure of the procurement architecture.
Why is Procurement Architecture Important?
Choosing and designing the appropriate procurement architecture is crucial because it significantly impacts:
- Project Cost: Different routes offer varying levels of cost certainty and control.
- Project Duration: Some architectures allow for overlapping phases (e.g., Design and Build), potentially shortening timelines.
- Quality Control: The level of client involvement in design and construction varies, affecting control over quality.
- Risk Management: The architecture determines who bears specific project risks.
- Client Control: Some routes give the client more direct control over design and execution than others.
Selecting the right procurement architecture is a strategic decision made early in a project's lifecycle, aligning the procurement method with the client's objectives, risk appetite, and project specifics. It's the structural blueprint for getting the building built, providing the "mechanism" that solves the fundamental question: “how do I get my project built?”
Comparing Procurement Architectures
Here's a simplified look at how different procurement architectures structure the process:
| Feature | Traditional (Design-Bid-Build) | Design and Build | Management Contracting |
|---|---|---|---|
| Client Contracts | Designer + Separate Contractor | Single Entity (Designer+Contractor) | Consultant + Works Contractors |
| Design Responsibility | Client's Designer | Design-Build Contractor | Client's Consultant |
| Risk Allocation | High risk on Client (design issues) | High risk on D&B Contractor (design & construction) | Shared/Distributed |
| Cost Certainty | High at tender stage (detailed design) | Moderate (defined scope, but design can evolve) | Less certain upfront |
| Speed | Slower (sequential phases) | Faster (overlapping phases possible) | Can be fast-tracked |
The procurement architecture provides the foundational structure for undertaking the "activities" described in the reference, ensuring they are organized and managed effectively to deliver the construction or refurbishment project.
