Level: Intermediate
Venue: 2019 AACE International Conference & Expo, June 16-19, 2019, New Orleans, LA, USA
Abstract: Project procurement is a major cost factor in construction. The method by which a project is procured and the strategy behind the selection of project delivery significantly impact project costs throughout the project lifecycle. This is especially true in public construction, which is generally subject to more onerous statutory, regulatory, and audit requirements than private-sector construction.
Almost all projects are procured or contracted; however, AACE International addresses procurement of construction only obliquely in the TCM Framework and in recommended practices 61R-10, Schedule Design – As Applied in Engineering, Procurement, and Construction and 88R-15, Tracking the Procurement Process using a CPM Schedule – As Applied in Construction. A recommended practice for the procurement process, describing the cost and schedule impacts of its component activities and providing methods to mitigate such impact, would enhance AACE International’s technical body of knowledge. A recommended practice for procurement would also help bridge the endemic disconnect between project management, project controls, and procurement.
Specifically, this paper will provide:
Venue: 2019 AACE International Conference & Expo, June 16-19, 2019, New Orleans, LA, USA
Abstract: Project procurement is a major cost factor in construction. The method by which a project is procured and the strategy behind the selection of project delivery significantly impact project costs throughout the project lifecycle. This is especially true in public construction, which is generally subject to more onerous statutory, regulatory, and audit requirements than private-sector construction.
Almost all projects are procured or contracted; however, AACE International addresses procurement of construction only obliquely in the TCM Framework and in recommended practices 61R-10, Schedule Design – As Applied in Engineering, Procurement, and Construction and 88R-15, Tracking the Procurement Process using a CPM Schedule – As Applied in Construction. A recommended practice for the procurement process, describing the cost and schedule impacts of its component activities and providing methods to mitigate such impact, would enhance AACE International’s technical body of knowledge. A recommended practice for procurement would also help bridge the endemic disconnect between project management, project controls, and procurement.
Specifically, this paper will provide:
- An understanding of the cost and schedule impacts of the procurement process on the project.
- A discussion of the need for a recommended practice to address these cost and schedule impacts by managing the procurement process.
- An outline of a potential recommended practice to manage procurement coordinated with the TCM Framework.