Conventional approaches to construction and infrastructure

Paper detalis:

Assessment task details
and instructions Context
Conventional approaches to construction and infrastructure
procurement have been consistently criticized for continuing to focus the competitive element – the tendering process – almost solely on the determination of an initial price for a given design. Modern approaches to procurement are expected to consider wider client and stakeholder values. Both public and private sector clients have sought to introduce approaches that focus competition not only on economic but also, wider social and environmental outcomes.

In 2017 the UK government put it this way – “We will maximize the contribution that… investments can make to growth and
Productivity by strengthening consideration of broad strategic outcomes at the earliest stage… and then carrying them through all subsequent parts of the design and procurement process”. In
addition, in September 2021 it was emphasized the “The
Government is committed to using its position as the single largest construction client to support adoption of a more productive,
efficient and sustainable business model within the UK construction sector”.

Task details
Your employer – as part of a strategic review of the business – has asked you to produce an internal report on the significance of these moves towards “procuring for value” by both government and
private sector clients. You are tasked to
• explain why clients are attempting to shift the dial away from procuring on “lowest price only” towards making value- based procurement decisions that are “more likely to deliver the environmental, social, and economic outcomes” they want. The focus should be on what is meant by value.
• explain and critique the claim that framework contracts are an efficient method for government bodies to procure public works, goods and services and can provide an opportunity to both access economies of scale and to deliver wider social and environmental value.
• discuss in detail your firm/how firms in the construction
industry should be considering how their current business
model helps or constrains them in addressing these changing procurement approaches.

You may choose to apply the learning from the module directly into your current or recent workplace.