In general, there are three types of construction:
- Building construction
- Heavy/highway construction
- Industrial construction
Each type of construction project requires a unique team to plan, design, construct, and maintain the project.
Building construction
Building construction is the process of adding structure to real property. The vast majority of building construction projects are small renovations, such as addition of a room, or renovation of a bathroom. Often, the owner of the property acts as laborer, paymaster, and design team for the entire project. However, all building construction projects include some elements in common - design, financial, and legal considerations. Many projects of varying sizes reach undesirable end results, such as structural collapse, cost overruns, and/or litigatios reason, those with experience in the field make detailed plans and maintain careful oversight during the project to ensure a positive outcome.
Building construction is procured privately or publicly utilizing various delivery methodologies, including hard bid, negotiated price, traditional, management contracting, construction management-at-risk, design & build and design-build bridging.
Procurement
Procurement describes the merging of activities undertaken by the client to obtain a building. There are many different methods of construction procurement; however the three most common types of procurement are:
- Traditional (Design-bid-build)
- Design and Build
- Management Contracting
Traditional
This is the most common method of construction procurement and is well established and recognised. In this arrangement, the architect or engineer acts as the project coordinator. His or her role is to design the works, prepare the specifications and produce construction drawings, administer the contract, tender the works, and manage the works from inception to completion. There are direct contractual links between the architect's client and the main contractor. Any subcontractor will have a direct contractual relationship with the main contractor. it is a stipulated price contract type of method.here, design risk is allocated to owner and cost risk is allocated to contractor
Design and build
This approach has become more common in recent years and includes an entire completed package, including fixtures, fittings and equipment where necessary, to produce a completed fully functional building. In some cases, the Design and Build (D & B) package can also include finding the site, arranging funding and applying for all necessary statutory consents.
The owner produces a list of requirements for a project, giving an overall view of the project's goals. Several D&B contractors present different ideas about how to accomplish these goals. The owner selects the ideas (s)he likes best and hires the appropriate contractor. Often, it is not just one contractor, but a consortium of several contractors working together. Once a contractor (or a consortium) has been hired, they begin building the first phase of the project. As they build phase 1, they design phase 2. This is in contrast to a design-bid-build contract, where the project is completely designed by the owner, then bid on, then completed.
Kent Hansen, director of engineering for the National Asphalt Pavement Association (NAPA), pointed out that state departments of transportation (DOTs) usually use design build contracts as a way of getting projects done when states don't have the resources. In DOTs, design build contracts are usually used for very large projects. [1]
Management procurement systems
In this arrangement the client plays an active role in the procurement system by entering into separate contracts with the designer (architect or engineer), the construction manager, and individual trade contractors. The client takes on the contractual role, while the construction or project manager provides the active role of managing the separate trade contracts, and ensuring that they all work smoothly and effectively together.
Management procurement systems are often used to speed up the procurement processes, allow the client greater flexibility in design variation throughout the contract, the ability to appoint individual work contractors, separate contractual responsibility on each individual throughout the contract, and to provide greater client control.
