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CHAPTER 4 PROCUREMENT

Construction Law

CHAPTER 4

PROCUREMENT


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Introduction

4.01 Procurement refers to the mechanism by which resources are marshalled and deployed, and contracts agreed, for the purpose of implementing a project.1 The


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concept of procurement embraces not only consideration of the process and means by which contracts are to be let, but also the choice of contractual arrangement for the particular project; for example, whether a project is let on a “traditional” basis, a design and build basis, or some other basis.2 In government infrastructure projects, it is common in the United Kingdom and increasingly common in Australia for a PFI/PPP procurement route to be used, so as to shift risks and responsibilities to the private sector for the delivery of what would otherwise be a government-provided asset or service.3 This is to be contrasted with more traditional forms of government procurement of public works, where the work is either undertaken in house, or a contractor is engaged to perform certain works that, when completed, are proffered for public use and maintained by the government itself.

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