Are you confused about Procurement Strategy, routes, forms and types of contracts & Tendering approaches?
You’re not alone, many industry professionals often mix up procurement strategies and its three components
Let’s break it down simply.
Procurement Strategy
It is a Plan that defines how a client will acquire “design, construction, and related services” for a project balancing time, cost, quality, risk, and control. It sets the foundation for selecting the most suitable procurement route, contract structure, and tendering process.
Procurement Routes (How you buy – Design-Bid-Build vs. EPC vs. PPP)
Traditional
Client designs first, then contractors bid to build it. (DBB)
Design & Build
Single contractor handles both design and construction. (D&B)
Construction Management
Client hires a manager to oversee subcontractors directly.
Management Contracting
Client pays a fee to a manager who hires subcontractors.
Public-Private Partnership (PPP)
Private funds and operates the project long-term for the government.
Contract Structure (How you pay – Lump Sum vs. Re-measurable & Suitable forms of Contract such as Bespoke, FIDIC, ICE, etc.)
1️⃣ Forms of Contracts
➡️ Bespoke
It is a tailor-made, customized agreement that is specifically drafted to reflect the unique needs, obligations, and terms agreed upon by the parties involved. Unlike standard form contracts or templates, bespoke contracts are not “one size fits all.”
It is a tailor-made, customized agreement that is specifically drafted to reflect the unique needs, obligations, and terms agreed upon by the parties involved. Unlike standard form contracts or templates, bespoke contracts are not “one size fits all.”
FIDIC
Widely used international form of contract.
ICE (Institution of Civil Engineers)
Traditional UK civil engineering contract is mainly for public works.
ACA (Association of Consultant Architects)
JCT (Joint Contracts Tribunal)
Popular UK-based contract suite used for building works.
NEC (New Engineering Contract)
A modern, flexible, and collaborative Key Books:
2️⃣ Types of Contracts
Lump Sum
Fixed price for fixed scope (“You get what you paid for”).
Re-measurable
Paid per actual quantities (“Like a grocery bill for construction”).
Cost Plus
Actual costs + agreed profit (“Open-book, but risk stays with client”).
Target Cost
Shared savings/overruns (“We win or lose together”).
Tendering Process (How you select – Open vs. Selective vs. Negotiated)
Open Tendering
Anyone can bid, democratic but chaotic.
Selective Tendering
Only pre-vetted players compete (quality over quantity).
Negotiated Tendering
Handpicked contractor (speed over competition).