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What is Traditional Procurement?

Published in Procurement Method 2 mins read

Traditional procurement, often seen in construction and large-scale projects, is a widely used method for delivering projects. It is characterized by a sequential process where the key project stages are handled distinctly.

Understanding Traditional Procurement

At its core, traditional procurement follows a structured, linear path. This model separates the responsibilities for design and construction, assigning them to different parties under separate contracts with the project owner.

According to the reference provided, the traditional procurement process involves three main stages:

The Three Stages of Traditional Procurement

  1. Design: This is the initial stage where the project's detailed plans, specifications, and requirements are developed. An architect, interior designer, or engineering consultant typically performs this work.
  2. Bid: Once the design is complete, the project owner invites construction contractors to submit bids or tenders based on the finalized design documents. The owner evaluates these bids and selects a contractor.
  3. Build: In this final stage, the selected construction contractor executes the physical construction work according to the completed design specifications.

Contractual Relationships

A key characteristic highlighted in the reference is the separate contractual relationships: "In this process, the project owner negotiates separately with an architect (or interior design) practice and construction contractor."

  • The project owner first engages an architect or designer to develop the design.
  • Subsequently, the owner enters into a separate contract with a contractor for the construction phase.

This separation means the design is typically finalized before the construction contractor is brought on board, placing the primary responsibility for design coordination and completeness with the owner and their design team.

This method provides the owner with significant control over the design but also means they manage the interfaces and potential conflicts between the designer and the builder.

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