In: Operations Management
Compare and contrast the procurement methods used in humanitarian organizations with those of Governments?
The procurement methods used in humanitarian organizations
According to the organization structure the procurement methods will also vary, Procurement is the method in which the purchase of goods and services which is relevant to the particular organization ,it will included all the transaction,communication,procudere to collect the products ,the approach will depend on the circumstances, business plan and overall objectives.
procurement method will be vital to the success of the procurement project, therefore making an informed choice is the key to making a profit from the particular project.
There are three main procurement methods you can choose from, which are as follows:
Sl No |
General Contracting (Traditional Method) |
Design and Build (D&B) Method |
Construction Management Method |
1 |
Accountability as the result of competitive selection |
fast track construction |
Suit for the experienced developers |
2 |
Price certainty of the award of contract |
the contractor often should dictate a fixed cost or a guaranteed maximum price that offers certainty to the client. |
Elements of construction works is packaged up and tendered |
3 |
Easy to arrange and manage the variations changes in the contract |
Single point of contact |
The main benefit to this is costs. By competitively tendering each element of construction works, you know that you are getting best price across the board. |
4 |
Process to produce the full contract is timely |
Create a smoother line of communication |
The developer will also retain maximum control of quality |
5 |
Longer Overall project duration |
Minimum availability of fall outs |
the most time and management intense process. |
6 |
Contractor have less participation to manage the price |
Lowest risk for the client |
The developer will have the extra expense of hiring a construction manager and with the potential for a large amount of contracts to be put in place, the room for error because larger. |
7 |
Testing will be in familiar market |
Cheapest approach to procurement |
Maximum need of additional resources |
8 |
Quality is compulsory |
Compromise in quality and as well as quality |
Quality is not much compulsory |
9 |
Fixed cost throughout the process |
Contractor may apply for the huge penalties |
Contractor will not apply for the huge penalties |
10 |
Inflexible approach in design and build |
Reduce the need of commit resource and time |
|
11 |
Time consumption in design, tender, build |
Quickest approach to the procurement |