Management Procurement model
This model overall design is the responsibility of the principal ,s consultant ,while the contractor is responsible for managing the performance of the works though separate trade contract.
The principal appoints the consultants and prepares the project drawing,specification and cost plan,and retains overall design control through its professional team.
As detailed design can proceed in parallel with construction work ,the length of the project programmer may be reduced.
However there is no certainty over costs at the outset and works proceed on the basis of a contract cost plan.
Final costs are not known until the last contract is let .Speculative risks lie largely with the principal.
This form of procurement model requires in house expertise and good working relationship with trade contractor .In terms of design and quality, this is a relatively low-risk procurement option for principals, but high risk in respect of costs and time.
There are two principal forms of management procurement model.
In management contracting, a management contractor undertakes to perform the works through trade contractor who are contractually accountable to the management contractor.