Procurement in property development is a fairly straight forward concept, but one which needs a bit of thought and planning way ahead of placing a contract with a builder. The procurement method must be decided upon at an early stage of a project as this will help the entire development process and create a solid place to start from.

Three procurement methods -

1. General Contracting (Traditional Method)
2. Design and Build
3. Construction Management

1. General contracting - This method is as old as the construction industry. The major feature is that the design process is different from construction. It also requires full documentation before the contractor can be divided to tender for the work. In summary, traditional method simply involves the step design , bid and build.

2. Design and build - Design and build is a term describing a procurement route in which the main contractor is appointed to design and construct the works, as opposed to a traditional contract, where the client appoints consultants to design the development and then a contractor is appointed to construct the works.

3. Construction management- Construction management is perhaps best summed up as the procurement route whereby designers design, trade contractors detail and deliver their packages, and where the construction manager manages the process, leaving the client to lead and accept the risk on a project for which they are ultimately responsible.

The criteria for choosing procurement method by a company will depend on its experience, the experience of the contractor and the type of project company are undertaking. The sort of decision making involved in procurement methods in property development are complex. It demands quality information provided in a timely manner. Therefore, if it has a fixed idea of the nature of the project from the start and this is likely to go unchanged – then traditional contracting should offer the best approach.

However, if they are undertaking something a little more experimental, then they are more likely want to employ a construction manager, especially if costs are critical to them, and they have the experience.

If company need a fixed cost, then design and build may feel more comfortable but if it want quality over value – then it probably want to retain more control over the nature of the materials and techniques employed.

It is about weighing up all the different factors in the decision-making and come to the best fit for company situation.