Procurement: How Contracts Shape Your Experience

Procurement
Nick Kunzli

Avid lover of the outdoors but works behind a computer.

Introduction:

Procurement strategies and the form of contract used to administer a building development shape the experience and frame the relationships of Architects, Engineers, Contractors and Project Owners alike.
The two main forms of contract discussed in this article are traditional lump sum tender (Precriptive), and design and construct (D+C).

Let’s shift our perspective and apply the different procurement concepts to a networking event you have organised with clients.

Bear with us here, it may be abstract but the same principles apply.

By shifting your mindset and framing the relationships you have with the people around you, like a prescriptive or D+C contract, you may have a totally different, yet equally satisfying experience.

Preparation – The Shopping Experience

Have you got nothing to wear yet not enough cupboard space? Or been busted by the fashion police for your criminal ties?

You need a new outfit because your favourite Hawaiian shirt or silky blouse just won’t cut it, so you visit your favourite retail outlets to burn some cash.

Prescriptive mindset: (do what I say)

  • You enter the shop with a clear vision and prescribe to the assistant what you want.
  • Masculine perspective – “I want”:
    • Size 34 Platinum Slim Stretch Chino pants in sand colour.
    • Large Jericho slim-fitshort-sleeved shirt in navy floral print.
    • Brown Masons plaited leather belt.
    • Size 11 brown leather Harmon stitched boots.
  • Feminine perspective – “I want”:
    • Size 10 Julien strapless jumpsuit in tangerine.
    • Geometric patterned woven oversized clutch bag.
    • Size 8 Lani black mesh with high heel shoes.
  • You get exactly what you want and the responsibility of whether your outfit makes you look and feel amazing is your responsibility.
  • But you are limited by your own fashion sense, and if you are like me, the struggle is real.

Design and Construct mindset: (give me what I desire)

  • You enter the shop and describe your intent and parameters of what you’re looking for and rely on the assistant to use their expertise to offer a solution.
    • “I need your expertise in finalising an outfit that accentuates my natural shape and makes me look like Ryan Gosling/ Margot Robbie (prior to the Barbie movie).
    • I want to be on trend with current fashion, appear professional but not business-like, sophisticated yet approachable, attractive and empowered.
    • There will be eating, drinking and dancing, so the outfit can’t be too restrictive.
    • I am open to mixing patterns with solid colours and have this much money to spend.
    • It’s Spring so it’s to be warm enough to dine outside yet cool enough to dance in.”
  • You’ve indicated the type of look you want (the design intent), how the outfit must perform (performance requirements), and set some benchmarks (this is who I want to dress like).
  • Is the new outfit proposed a fashion faux pas, or is it better than you could have imagined?

Main Course – The Dining Experience

You’ve booked a table for 10 at the best emerging Italian restaurant in the trendy part of town.

You are offered the menu and specials list, and as the host of the event you have a choice; which approach to take?

Do you individually order a la carte, or invite assistance from the sommelier and waitstaff to suggest shared meal and drink options?

Prescriptive mindset: (do what I say)

  • You decided a la carte because the result is predictable.
  • Without input from the waitstaff or sommelier, everybody orders individual drinks and meals.
  • You order a glass of McLaren Vale 2008 Shiraz, Sicilian olives, arancini balls, prawn linguine, and tiramisu because that’s what you always order.
  • Guests ate their favourite meals and drank their favourite wines.
  • Considerations:
    • Was a la carte the right option for this type of event where your intent is to network? Or was there a lost opportunity to engage more openly?
    • Did your guestsappreciate the responsibility of choosing their own meals or would a night off making decisions have been welcome?
    • Could the individual drink cost have been rationalised if bottles were ordered instead?

Design and Construct mindset: (give me what I desire)

  • You ask the waitstaff to provide a variety of shared dishes, based ontheir knowledge of seasonal availability, chef’s specialities, and guest’s allergies and preferences.
  • Using typically overstated hand gestures, the sommelier suggests a bottle of Merlot from the Bordeaux region and Verdelho from Margaret River.
    • Merlot being lighter coloured, medium-bodied and with reduced teeth staining*, and Verdelho for its terrific food pairing.
  • The starters arrive: Antipasto boards, split barbecued king prawns and bruschetta.
  • The mains arrive: Prosciutto pizza, mushroom risotto with truffle oil, roast pumpkin salad, and fettuccine with lamb shoulder.
  • Dessert arrives: Chocolate gelato and ricotta and strawberry cheesecake.
  • Considerations:
    • Did everybody enjoy the food and wine?
    • Was there enough, or was too much presented and gone to waste?
    • How did the sharing of meals go? Shared meals are great for sparrows, but for big eaters, it’s disappointing seeing that last piece of pizza being eaten by someone else.
    • Did guests appreciate experiencing new cuisines they may never order, or were some meals hit and miss?
      • Truffles can be polarising, you either love it or hate it.
      • Authors tip: Drizzle truffle oil over your steak when it’s off the BBQ and resting. Thank me later.

Party Time – The Dancing Experience

Who’s keen to continue and get your dancing shoes on? Insert high-pitched “yew” for those keen, or “umm I hurt my ankle, I might head home” for those with two left feet.

Remaining with the concept, let’s explore some options.

Do you want clarity on the outcome or are you open to suggestions?

Prescriptive mindset: (do what I say)

  • You love Salsa and know of a Salsa dance studio which is a controlled environment with instructor-led classes followed by an open floor.
  • You’re playing to your strength and know the building blocks of Salsa, from basic steps, right and left turn, cross body lead, block, New York walk and Enchufa. This is a good way to show off your expertise.
  • Considerations:
    • Do all your guests like salsa dancing?
    • There’s less risk of embarrassment and a clear definition of the purpose because it’s a safe learning environment.
    • You can predict the outcome, but some toes may still be stepped on.

Design and Construct mindset: (give me what I desire)

  • You’re keen to dance somewhere with great music, but not sure exactly where to go. Your guests have suggestions, as does the restaurant staff, and you collectively decide on the Cuban Club.
  • You haven’t been there before and are relying on others to navigate, and have a diminished level of control over the safety of your guests, and the outcome.
  • Considerations:
    • You’re utilising industry knowledge to decide on the best venue.
    • The music caters to a wider audience and dancing is optional. Guests can dance or relax in the lounge.
    • You can’t determine what the vibe will be like at the club that night.

Overall Considerations

In the above analogies, the tone of the interactions between you and the service providers is different, therefore the relationships are different.

This is true with different construction contracts.

When do you take one approach over the other?

Prescriptive contract:

  • Consider utilising a prescriptive contract when you are fully confident in your own knowledge and expertise, and have the ability to be precise and warrant your decisions.
  • You retain greater control of the products and have certaintyof the performance.
  • However, you are limited to your own knowledge, receive limited industry initiative, and hold the risk for the performance of the project.

Design and Construct contract:

  • Consider using a design and construct contract when there is a desire to work collaboratively and utilise the experience of industry or specialists to access a wider range of solutions.
  • You must outline clear and determined design intent and performance requirements.
  • However, there is risk of non compliance and you lose some control, and defining the design intent and performance requirements can be difficult.

Conclusion:

By applying the concepts of prescriptive and design and construct procurement, you likely end up with two different experiences.

Which one is preferable and suitable to your situation? That depends on the type of project, your expertise in that sector and the competence of the service providers.

Why not experiment with the different approaches and gauge the results? The result may determine your preference for building contracts.

Earlymark Specification Consultancy have tailored baselines to both Traditional and Design and Construct procurement routes. If you want further protection for yourself, your client and the project, get in touch HERE.

So reach out to us, and let’s improve the natural and built environment with every project together.

* According to Rutgers Health University Dental Associates there are 3 reasons why red wine stains your teeth.

  1. Anthocyanins: Pigments that give wine that purply red colour.
  2. Tannins: Found in the seeds, skins, and stems of grapes that bind coloured pigments to your teeth.
  3. Acidity: This makes your enamel more porous and susceptible to the stain sticking to your teeth.

An interesting table topic for the wine connoisseurs out there.

Engage with Us:
Does this scenario resonate with your life experiences? Share your experience in the comments below.

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