Procurement strategy — how you select and appoint your contractor — is one of the fundamental decisions in any construction project. The wrong choice can lead to cost overruns, programme delays, and disputes. The right choice sets the project up for success. This guide explains the main procurement routes and when each is appropriate.
What Is a Procurement Strategy?
A procurement strategy defines how the design and construction responsibilities will be divided between client and contractor, and how the contractor will be selected and paid. It also determines the level of cost certainty you can achieve before construction begins.
The main variables in a procurement strategy are:
Traditional Procurement (Design, Bid, Build)
The most established procurement route in UK construction. The client appoints a design team (architect, engineer, QS) who develop the full design before the project goes to tender. Contractors bid on a fully designed project, typically against a bill of quantities.
Advantages:
Disadvantages:
Best for: Projects where the client has a clear vision of the design and requires high cost certainty.
Design and Build (D&B)
The client appoints a single contractor who is responsible for both design and construction. The client provides an Employer's Requirements document defining what they want; the contractor responds with a Contractor's Proposals and a lump sum price.
Advantages:
Disadvantages:
Best for: Commercial developments where programme and cost certainty are priorities and the client is less concerned with detailed design control.
Two-Stage Tendering
A hybrid approach where the contractor is appointed early (stage one) to assist with design and pricing, then enters into a main contract (stage two) once the design and price are sufficiently developed. Increasingly popular for complex or fast-track projects.
Advantages:
Disadvantages:
Best for: Complex projects where early contractor input is valuable and programme is a priority.
Management Contracting and Construction Management
Niche procurement routes where the client appoints a management contractor or construction manager to manage multiple trade contractors directly. Rare in the UK market today, used mainly for complex phased developments.
Framework Agreements
Rather than tendering each project individually, a client appoints one or more contractors to a framework under which multiple projects can be instructed. Common in public sector and repeat-build programmes.
Best for: Clients with a pipeline of similar projects wanting to build long-term contractor relationships.
JCT vs NEC Contracts
The two most widely used standard form contract families in the UK:
JCT (Joint Contracts Tribunal): The most commonly used suite for private sector projects. Forms include JCT Standard Building Contract, JCT Design and Build, and JCT Minor Works.
NEC (New Engineering Contract): More common in public sector and infrastructure. Emphasises collaboration, early warning, and programme management.
The choice of contract family should align with the procurement strategy and the client's preference for risk allocation and management style.
How Volarex Can Help
Selecting the right procurement route requires understanding the project's specific drivers — budget, programme, design control, and risk appetite. Volarex provides procurement strategy advice as part of our pre-contract services, helping clients make an informed choice before committing to a route. We also manage the full tender process, whichever procurement route is selected.