Beyond the buzzwords: choosing the right procurement model for your project
In our work across New Zealand’s construction sector, one question comes up time and again: Which procurement model will deliver the best outcome? After years of seeing projects succeed – and fail – under different approaches, one truth stands out: there’s no one-size-fits-all procurement model.
Yet, we still see clients gravitating toward the ‘model of the moment,’ whether that’s Design & Build, Early Contractor Involvement, or Build-only. Each has its place, but popularity doesn’t equal suitability. When procurement decisions are made on trend rather than fit, projects pay the price.
Procurement choice matters because it shapes cost certainty, risk allocation, and collaboration. A poor fit can lead to disputes, delays, and inflated costs. A well-matched model creates conditions for success. Each option has strengths and weaknesses but those only matter when they align with the realities of your project.
Design & Build: Attractive, but not always what it seems
D&B is often chosen for its promise of early cost certainty and a single point of responsibility. For clients under pressure, that sounds reassuring. But if you engage a D&B contractor off a concept design or preliminary package, you’re not buying certainty, you’re buying risk-priced certainty. Contractors will include allowances for unknowns like contingencies, design development margins, supply chain assumptions. The price looks fixed, but it’s padded to cover uncertainty.
When D&B works well:
A robust Principal’s Requirements Document is in place.
The project is repeatable or standardised.
End-user needs and performance expectations are clearly defined.
Used too early or without clarity, D&B can cost more than it saves.
Early Contractor Involvement: High value, high risk without clarity
ECI can unlock real benefits, like constructability insights, smarter sequencing, realistic programming, and supply chain strategies. For complex projects with staging constraints or technical challenges, ECI can genuinely reshape outcomes for the better.
But ECI is not a shortcut. Without clear deliverables and agreed expectations, it can lead to duplication, wasted effort, and strained relationships before construction begins.
When ECI works well:
Success criteria and decision-making responsibilities are defined upfront.
The client has a strong vision but welcomes contractor input.
Innovation or methodology will materially change the project.
Build-only: Control and clarity, with caveats
Build-only remains a cost-effective option for clients who know their product, can deliver a coordinated design, and want competitive tendering. Historically, ambiguity around design responsibility has caused friction. The 2023 revision of NZS 3910 provides long-awaited clarity, introducing several improvements, including definitions, stronger liability provisions, and improved design review processes, reducing disputes and giving both parties confidence.
How do you choose the right model?
Start with the fundamentals:
Complexity: Does the project involve unique technical challenges or interfaces?
Design maturity: Is the design complete or still evolving?
Risk appetite: How much uncertainty can you tolerate?
Control: Do you want to retain design authority or delegate it?
Collaboration needs: Will contractor input materially improve outcomes?
Timeframe: Is speed critical, or is early planning possible?
The right model is the one that reflects these realities and not the latest buzzwords or what “everyone else is doing.”
Final thought
Procurement decisions alone don’t guarantee success on their own. Clarity does. Alignment does. Early definition of roles and risks. These are the foundations that turn a mere contract into a delivery mechanism rather than a source of friction.
Tools like Project Charters can help. When developed early and embraced by all parties, a charter becomes a practical anchor for governance and behaviour, keeping teams aligned from concept through completion.
Choosing a procurement model is a strategic decision that shapes the entire project. The right delivery partner can operate within or alongside integrated delivery models and still bring objectivity to the table: challenging assumptions, sharpening analysis, and helping you weigh complexity, risk, design maturity, and the level of collaboration you need. Fit the model to the project, not the project to the model.
How can I help?
Engage early with TBIG to set your project up for success. Our team brings independent thinking and plenty of experience to guide your analysis of options. We’ll work with you to define the right procurement strategy that fits your project’s complexity and aspirations, not a gamble on the latest industry trend. Get in touch to find out more.
Mā te huruhuru ka rere te manu — with the right preparation and alignment, your project can truly take flight.
Jamie Summers
Project Director / Auckland
Jamie Summers is a Project Director with The Building Intelligence Group in Auckland. You can get in touch with Jamie at j.summers@tbig.co.nz and find him on LinkedIn here.
