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Architectural & Engineering (A&E) Contract Management : Approaches to Contracting : Decentralized Contracting

Decentralized Contracting

In decentralized contracting, CMs maintain control over the contracting process for each project. A staff member from a central procurement office may be assigned to work with the CM.

Decentralized

Benefits

Disadvantages

Project manager maintains control of the contract award.

Contracting effort is tailored to a single project. Contracting person has fewer other responsibilities and is under the PM's direct control.

Contracting staff is located nearby, minimizing communication problems.

Duplication of effort in contracting, receiving, inspection, and accounts payable drive total costs higher.

Lack of standardized procedures makes the consultant's job more complex.