The key to maximise the efficiency of the construction industry is the method of accurate cost estimating. Accurately estimating the costs incorporated within the industry aids not only investors, but also clients, consultants and contractors, as inaccurate cost estimating will lead to complications with tender results not matching clients' budgets. This is problematic as the investors and the associated parties will experience corresponding time delays and increased construction costs, which impact on the financial returns of a building project (Lawther, 2001). As stated in the base paper for this report, there are "little known, low visibility factors such as procurement methods and contractual arrangements that significantly affect estimate accuracy, but are distinctly unnoticed and disregarded" (Enshassi, 2013). Since this is an enduring issue with pre-tender cost estimating, this report will focus, firstly, on specific factors related to procurement methods and contractual arrangements that affect the accuracy of cost estimating. Secondly, this paper will highlight which procurement methods of building will ultimately increase the efficiency of pre-tender cost estimating.
Factors.
Procurement Methods and Associated Contracts.
Procurement in terms of construction is generally the merging of the following steps by a client to attain a building:.
• determining the criteria for the project.
• setting the contractual framework .
• setting the tender and selection processes.
• inviting tenders.
• awarding a contract.
There are three different types of procurement methods that are used in the construction industry. These include:.
Traditional Procurement.
Traditional procurement largely lays out each step of the process separately from each other. This means that construction will always be separated from the design stage . The employer contracts the design consultants to produce the full design and necessary documentation; i.
