Single-source procurement is typically used when a project requires specific expertise that only one contractor or supplier can provide. This method ensures that the chosen contractor has the necessary qualifications, experience, and technical capabilities to meet the project's unique requirements.
Lump-Sum Contract – Used when the scope of work is well-defined and the contractor agrees to complete the project for a fixed price. This method does not necessarily prioritize specific expertise but rather cost certainty.
Subcontracting – This involves hiring subcontractors for specialized work within a larger contract. While this allows for specialized expertise, it is not a direct procurement method for expertise but rather a division of labor.
Single-Source Procurement – This method is used when there is only one viable contractor or vendor with the required expertise, experience, or proprietary technology necessary for the project. It is commonly applied in cases where the contractor has a unique skill set, holds specific certifications, or possesses exclusive rights to certain technology.
Competitive Bid – In this traditional procurement method, multiple contractors submit bids, and the lowest or most competitive bid is selected. While cost efficiency is achieved, it does not ensure that the contractor has the most specific expertise.
Explanation of Contracting Methods:In construction projects, single-source procurement is often applied in high-tech projects, specialized infrastructure, or when the contractor has prior experience with similar projects and a proven track record.
References:
QA Library All.pdf – Project Procurement Management
Quality Management in Construction Projects.pdf – Contracting Systems Overview
Construction Safety Requirements Manual – DOE and NAVFAC Standards
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