{"id":1554,"date":"2025-11-21T04:43:23","date_gmt":"2025-11-21T04:43:23","guid":{"rendered":"https:\/\/rspqss.in\/?page_id=1554"},"modified":"2025-11-21T10:53:52","modified_gmt":"2025-11-21T10:53:52","slug":"procurement-strategy-contract-types","status":"publish","type":"page","link":"https:\/\/rspqss.in\/index.php\/procurement-strategy-contract-types\/","title":{"rendered":"Procurement Strategy & Contract Types"},"content":{"rendered":"\n
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Are you confused about Procurement Strategy, routes, forms and types of contracts & Tendering approaches?<\/h1><\/div>\n\n\n\n

You’re not alone, many industry professionals often mix up procurement strategies and its three components<\/p><\/div>\n<\/div><\/div>\n\n\n\n

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Let\u2019s break it down simply.<\/h2><\/div>\n\n\n\n
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<\/path><\/svg><\/span>Procurement Routes<\/span><\/div>\n\n\n\n
<\/path><\/svg><\/span>Contract Forms & Contract Types<\/span><\/div>\n\n\n\n
<\/path><\/svg><\/span>Tender Strategies<\/span><\/div>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n
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Procurement Strategy<\/h2><\/div>\n\n\n\n

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.<\/p><\/div>\n<\/div><\/div>\n\n\n\n

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Procurement Routes (How you buy \u2013 Design-Bid-Build vs. EPC vs. PPP)<\/h2><\/div>\n\n\n\n
<\/div><\/div>\n\n\n\n
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<\/path><\/svg><\/div>\n

Traditional<\/h4><\/div>\n\n\n\n

Client designs first, then contractors bid to build it. (DBB)<\/p><\/div>\n<\/div>\n\n\n\n

<\/path><\/svg><\/div>\n

Design & Build<\/h4><\/div>\n\n\n\n

Single contractor handles both design and construction. (D&B)<\/p><\/div>\n<\/div>\n\n\n\n

<\/path><\/svg><\/div>\n

Construction Management<\/h4><\/div>\n\n\n\n

Client hires a manager to oversee subcontractors directly.<\/p><\/div>\n<\/div>\n\n\n\n

<\/path><\/svg><\/div>\n

Management Contracting<\/h4><\/div>\n\n\n\n

Client pays a fee to a manager who hires subcontractors.<\/p><\/div>\n<\/div>\n\n\n\n

<\/path><\/svg><\/div>\n

Public-Private Partnership (PPP)<\/h4><\/div>\n\n\n\n

Private funds and operates the project long-term for the government.<\/p><\/div>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n

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Contract Structure (How you pay – Lump Sum vs. Re-measurable & Suitable forms of Contract such as Bespoke, FIDIC, ICE, etc.)<\/h2><\/div>\n\n\n\n
<\/div><\/div>\n<\/div><\/div>\n\n\n\n
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1\ufe0f\u20e3<\/strong> Forms of Contracts<\/strong><\/h3><\/div>\n\n\n\n
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\u27a1\ufe0f Bespoke<\/h3><\/div>\n\n\n\n

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.”<\/p><\/div>\n\n\n\n

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.”<\/p><\/div>\n\n\n\n

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<\/path><\/svg><\/span>Offer and acceptance<\/span><\/div>\n\n\n\n
<\/path><\/svg><\/span>Lawful consideration<\/span><\/div>\n\n\n\n
<\/path><\/svg><\/span>Lawful object<\/span><\/div>\n\n\n\n
<\/path><\/svg><\/span>Free consent (no coercion, fraud, undue influence, etc.)<\/span><\/div>\n\n\n\n
<\/path><\/svg><\/span>Parties are competent to contract<\/span><\/div>\n\n\n\n
<\/path><\/svg><\/span>Not expressly declared void (e.g., wagering agreements, agreements in restraint of trade)<\/span><\/div>\n<\/div><\/div>\n<\/div>\n<\/div>\n\n\n\n
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FIDIC<\/h3><\/div>\n\n\n\n

Widely used international form of contract.<\/p><\/div>\n\n\n\n

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<\/path><\/svg><\/span>FIDIC White Book – Consultant<\/span><\/div>\n\n\n\n
<\/path><\/svg><\/span>FIDIC Red Book – DBB<\/span><\/div>\n\n\n\n
<\/path><\/svg><\/span>FIDIC Yellow Book – (D&B)<\/span><\/div>\n\n\n\n
<\/path><\/svg><\/span>FIDIC Silver – EPC\/Turnkey<\/span><\/div>\n\n\n\n
<\/path><\/svg><\/span>FIDIC Green – short-term or simple construction projects<\/span><\/div>\n\n\n\n
<\/path><\/svg><\/span>FIDIC Gold Book – Design, Build and Operate (DBO) projects<\/span><\/div>\n<\/div><\/div>\n<\/div>\n\n\n\n
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ICE (Institution of Civil Engineers)<\/h3><\/div>\n\n\n\n

Traditional UK civil engineering contract is mainly for public works.<\/p><\/div>\n\n\n\n

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<\/path><\/svg><\/span>ICE Conditions of Contract (7th Edition)<\/span><\/div>\n\n\n\n
<\/path><\/svg><\/span>ICE Design and Construct Conditions<\/span><\/div>\n<\/div><\/div>\n<\/div>\n\n\n\n
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ACA (Association of Consultant Architects)<\/h3><\/div>\n\n\n\n
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<\/path><\/svg><\/span>PPC2000 \u2013 Project Partnering Contract<\/span><\/div>\n\n\n\n
<\/path><\/svg><\/span>TAC-1 \u2013 Term Alliance Contract<\/span><\/div>\n\n\n\n
<\/path><\/svg><\/span>FAC-1 \u2013 Framework Alliance Contract<\/span><\/div>\n<\/div><\/div>\n<\/div>\n\n\n\n
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JCT (Joint Contracts Tribunal)<\/h3><\/div>\n\n\n\n

Popular UK-based contract suite used for building works.<\/p><\/div>\n\n\n\n

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<\/path><\/svg><\/span>Standard Building Contract<\/span><\/div>\n\n\n\n
<\/path><\/svg><\/span>Design and Build Contract<\/span><\/div>\n\n\n\n
<\/path><\/svg><\/span>Intermediate Building Contract<\/span><\/div>\n\n\n\n
<\/path><\/svg><\/span>Minor Works Building Contract<\/span><\/div>\n\n\n\n
<\/path><\/svg><\/span>Management Contract<\/span><\/div>\n<\/div><\/div>\n<\/div>\n\n\n\n
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NEC (New Engineering Contract)<\/h3><\/div>\n\n\n\n

A modern, flexible, and collaborative Key Books:<\/p><\/div>\n\n\n\n

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<\/path><\/svg><\/span>Engineering and Construction Contract (ECC)<\/span><\/div>\n\n\n\n
<\/path><\/svg><\/span>Term Service Contract (TSC)<\/span><\/div>\n\n\n\n
<\/path><\/svg><\/span>Professional Services Contract (PSC)<\/span><\/div>\n\n\n\n
<\/path><\/svg><\/span>Framework Contract<\/span><\/div>\n<\/div><\/div>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n
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2\ufe0f\u20e3 Types of Contracts<\/strong><\/h3><\/div>\n\n\n\n
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Lump Sum<\/h3><\/div>\n\n\n\n

Fixed price for fixed scope (“You get what you paid for”).<\/p><\/div>\n<\/div>\n\n\n\n

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Re-measurable<\/h3><\/div>\n\n\n\n

Paid per actual quantities (“Like a grocery bill for construction”).<\/p><\/div>\n<\/div>\n\n\n\n

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Cost Plus<\/h3><\/div>\n\n\n\n

Actual costs + agreed profit (“Open-book, but risk stays with client”).<\/p><\/div>\n<\/div>\n\n\n\n

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Target Cost<\/h3><\/div>\n\n\n\n

Shared savings\/overruns (“We win or lose together”).<\/p><\/div>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n

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Tendering Process (How you select \u2013 Open vs. Selective vs. Negotiated)<\/h2><\/div>\n\n\n\n
<\/div><\/div>\n\n\n\n
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<\/path><\/svg><\/div>\n

Open Tendering<\/h4><\/div>\n\n\n\n

Anyone can bid, democratic but chaotic.<\/p><\/div>\n<\/div>\n\n\n\n

<\/path><\/svg><\/div>\n

Selective Tendering<\/h4><\/div>\n\n\n\n

Only pre-vetted players compete (quality over quantity).<\/p><\/div>\n<\/div>\n\n\n\n

<\/path><\/svg><\/div>\n

Negotiated Tendering<\/h4><\/div>\n\n\n\n

Handpicked contractor (speed over competition).<\/p><\/div>\n<\/div>\n<\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"

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…<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_uag_custom_page_level_css":"","footnotes":""},"class_list":["post-1554","page","type-page","status-publish","hentry"],"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"yith-woocompare-image":false,"construction-light-medium":false,"construction-light-portfolio":false,"construction-light-team":false,"construction-light-post-format":false,"construction-light-aboutus":false,"woocommerce_thumbnail":false,"woocommerce_single":false,"woocommerce_gallery_thumbnail":false,"shop_catalog":false,"shop_single":false,"shop_thumbnail":false},"uagb_author_info":{"display_name":"rsp","author_link":"https:\/\/rspqss.in\/index.php\/author\/rsp\/"},"uagb_comment_info":0,"uagb_excerpt":"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…","_links":{"self":[{"href":"https:\/\/rspqss.in\/index.php\/wp-json\/wp\/v2\/pages\/1554","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rspqss.in\/index.php\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/rspqss.in\/index.php\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/rspqss.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/rspqss.in\/index.php\/wp-json\/wp\/v2\/comments?post=1554"}],"version-history":[{"count":191,"href":"https:\/\/rspqss.in\/index.php\/wp-json\/wp\/v2\/pages\/1554\/revisions"}],"predecessor-version":[{"id":1806,"href":"https:\/\/rspqss.in\/index.php\/wp-json\/wp\/v2\/pages\/1554\/revisions\/1806"}],"wp:attachment":[{"href":"https:\/\/rspqss.in\/index.php\/wp-json\/wp\/v2\/media?parent=1554"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}