Posts Tagged ‘procurement’

Benefits and issues of design-build model

THE construction industry has seen a traditional method of procurement come to prominence, with many projects now being developed on a ‘design-build’ model as opposed to procuring separate design and build packages. (Read more..)

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Procurement trends in the Gulf

by Sachin Kerur

Despite the challenging world economic conditions, the Gulf looks set to remain one of the most significant global construction markets.

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The Procurement Process in Canada after the Supreme Court of Canada Tercon Decision*

by Joel Heard

The tendering and procurement process in Canada has traditionally been treated by the courts as a special area of contract law in which fairness and protecting the integrity of the tender process have been guiding principles.  Courts have implied terms into contract “A” bid contracts that have obliged owners to act fairly, and wide discretionary clauses have been interpreted narrowly to ensure the integrity of the tendering process. (Read more..)

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Building material firms adjust to price fluctuations

Construction sector in the UAE witnessed a massive drop in costs during the past 12 months. Prices of most materials dropped by more than half compared to 2008.

Producers and distributors said they experienced a difficult year as reduced cost coupled with falling demand led to severe drop in revenues.

Most affected were ready-mix companies. Many of them had to cut their production by more than 50 per cent and send several staff on leave in order to reduce operational cost. (Read more..)

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Tender Process

The tender process will be dictated by the choice of the procurement route. This will include short listing contractors including compliance with the European Union directives, issuing tender documentation, receiving tenders, tender interviews and selection. As an alternative to this competitive tendering process, tenders may be negotiated where this proves to be a better option for obtaining value for money. (Read more..)

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Contractor risk in the Gulf’s ‘new wave’ of EPC contracting

by Sachin Kerur

With global business headlines currently dominated by debt restructuring issues facing Dubai World, the Gulf region is again subject to the negative gaze of the West. Despite this, the UAE and the broader Gulf region is likely to be a fertile region for major international contractors over the coming years.
Imminent infrastructure projects in the Gulf, as well as the current one, will provide major contractors with opportunities when global pickings are slim. However, contractors are already facing, and will continue to face, an increased transfer of risk combined with compressed margins in respect of new infrastructure projects and EPC contracts. (Read more..)

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Tendering Tips and Traps

This article will touch on some of the fundamental legal aspects of the tendering process relating to construction and engineering projects and offer some guidance on how best to avoid problems during this crucial stage of contract formation. Tendering for large and complex construction or engineering projects can be a very expensive exercise for employers and tenderers alike. However, it would be money well spent if the objectives of tendering were achieved. (Read more..)

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Procurement Methods for projects

There are various methods of procurement which can be broadly classified under the following headings:
Design and Build
Two Stage Tendering
Public Private Partnerships / Private Finance Initiative
Management Contracting
Construction Management
Framework Agreements

There are various methods of procurement which can be broadly classified under the following headings: (Read more..)

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EPC / EPCM Definition & Comparison

Many different terms are tossed around the construction industry loosely describing the different methodology used to design and construct new facilities and turnarounds.  Unfortunately, there are no tried and true definitions for the different methods and numerous variations of each of the most popular methods. (Read more..)

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Two stage tendering

Two-stage tendering is slowly being recognised in the Middle East as a potential way to achieve an employer’s objectives and reduce risk, writes EMILY LAWRENCE*. (Read more..)

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