Procurement

Construction Procurement

Procurement, in the construction sector refers to the structured process of appointing a suitably skilled team including contractors, consultants and suppliers to deliver a defined programme of works, at an agreed cost, within agreed timelines and to an agreed standard.

Procurement is a strategic process that determines how risk is allocated, how costs are managed and how performance is guaranteed across a project lifecycle.

Key issues in procurement include responsibility for design issues/errors, management of delay and disruption risk, resolution of documentation flaws and handling variations to scope and cost.

Procurement Routes And Strategies

Choice of procurement strategy should reflect project complexity, risk appetite and delivery timeline.

1. Traditional (Design-Bid-Build)
   
   • Advantages:
     
     • clear separation of design and construction
     • competitive pricing
   • Disadvantages:
     
     • longer timeline
       
     • limited contractor input during design
2. Design and Build (D&B)
   
   • Advantages:
     
     • single point of responsibility
     • faster delivery
     • cost certainty
   • Disadvantages:
     
     • less client control over design
     • potential quality compromises‍
3. Construction Management (CM)
   
   • Advantages:
     
     • fast-tracked programme
       
     • flexibility in design and package tendering
   • Disadvantages:
     
     • higher management risk for client
     • less cost certainty
4. Management Contracting
   
   • Advantages:
     
     • flexible and suited for large or complex schemes
   • Disadvantages:
     
     • client retains significant risk
     • complex contract structure‍
5. Public-Private Partnerships (PPP/PFI)
   
   • Advantages:
     
     • long-term funding
     • transfer of operational risks
   • Disadvantages:
     
     • complex negotiations
     • long-term contractual exposure

Key UK Procurement Laws And Regulations

Procurement in the UK, particularly for public sector construction projects, is governed by a robust legal framework to ensure fairness, transparency and value for money:

1. Procurement Act 2023: A unified legal framework for public procurement across the UK, simplifying rules and enhancing supplier engagement
2. Procurement Regulations 2024: Secondary legislation under the Procurement Act 2023, detailing procedures for competitive tendering, transparency obligations and remedy mechanisms
3. National Procurement Policy Statement (NPPS): Outlines strategic priorities such as promoting innovation, social value and climate- related goals in procurement decisions

Our Construction Procurement Legal Services

Our Team supports clients across every stage of the procurement cycle, from project conception to completion, decommissioning and/or termination.

1. Procurement Strategy Advice: We help clients assess project objectives, risk tolerance and delivery constraints to recommend the most appropriate procurement route
2. Tender and Bid Management: We assist clients in drafting and reviewing Pre-Qualification Questionnaires (PQQs) and Invitations to Tender (ITT) and provide advice on tender evaluation criteria and scoring matrices
3. Negotiation and Contractor Appointment: We lead or support negotiations with preferred bidders, ensuring contract terms reflect agreed deliverables, risk allocations and liabilities
4. Advising on Appropriate Forms of Contract: We advise on and draft construction contracts, including standard form JCT, NEC and FIDIC contracts, as well as bespoke contracts, in line with the selected procurement method

Legal Assistance

We understand that procurement is a substantial undertaking in any construction project. We aim to alleviate the procurement burden and free our clients to focus on project delivery.

Whether you are a developer, contractor or public authority, we offer cradle to grave support on construction procurement. We deliver practical, tailored and innovative solutions designed to achieve the best possible outcomes for our clients.

How To Get In Contact

If you require advice on Construction Law and are interested in finding out how we can help, please contact Paul O’Donnell at paul.odonnell@culbertellis.com or call 07521 417579.

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