Management Contracting Procurement: The Key to Successful Project Management
In the world of project management, procurement plays a vital role. It is the process of acquiring goods, services, or works from an external source to fulfill project requirements. One of the most common procurement strategies used in project management is management contracting procurement. This procurement method is popular among contractors who have experience in project management and construction.
What is Management Contracting Procurement?
Management contracting procurement is a procurement method in which a contractor is responsible for managing the construction project from start to finish. This procurement method is commonly used in construction projects where the complexity and size of the project make it difficult for the client to manage. In this procurement method, the contractor is responsible for managing the entire team, coordinating with subcontractors, and ensuring that the project is completed on time and within budget.
Advantages of Management Contracting Procurement
1. Expertise: The contractor in charge of the management contracting procurement process has a wealth of experience in managing construction projects. They have a deep understanding of what works and what doesn`t, and they can bring this knowledge to the table to ensure the project is successful.
2. Time savings: With management contracting procurement, the contractor is responsible for managing the project, which means the client can focus on other aspects of their business. This saves time and allows the client to focus on what they do best.
3. Cost savings: With management contracting procurement, the contractor is responsible for managing the project budget. They have the expertise to ensure that the project is completed within budget, and they can identify areas where cost savings can be made.
4. Reduced risk: With management contracting procurement, the contractor takes on a significant amount of risk. This means the client is protected from potential cost overruns and delays.
Challenges of Management Contracting Procurement
1. Communication: Effective communication is critical in management contracting procurement. The contractor must be able to communicate effectively with the client, subcontractors, and other stakeholders. Failure to do so can result in delays and cost overruns.
2. Expertise: The contractor in charge of the management contracting procurement process must have a high level of expertise in project management and construction. Failure to have this expertise can result in a failed project.
3. Accountability: The contractor is accountable for the success of the project. This means they must be able to manage the project effectively and ensure that it is completed within budget and on time.
Conclusion
Management contracting procurement is a procurement method that offers many advantages to clients looking to manage a construction project. It provides expertise, time, and cost savings, and reduces risk. However, it does come with its challenges, such as effective communication, expertise, and accountability. To ensure the success of a project using management contracting procurement, it is important to select a qualified contractor with experience in project management and construction.