ABSTRACT
The selection of the procurement route may have repercussions on the operation of the building throughout its life. The procurement process is one of the components that brings construction projects into existence. The Latham Report, published in 1994, recommended that initial construction costs should be able to be reduced by 30 per cent by the early part of the twenty-first century. The methods of calculating the costs of construction work are either on the basis of paying for the work against some predefined criteria or rules of measurement, or through the reimbursement of the contractor's actual costs. An inadequate design concept, poor constructional detailing, an incorrect choice of materials and a wrong choice of constructor are problems that will create obstacles to achieving overall good performance. In 2009, the Government Construction Board introduced project bank accounts as the primary vehicle for payments for public sector construction projects.
