Understanding Project Procurement in Switzerland
When talking about construction and architectural projects, the word “procurement” refers to much more than simply buying materials. Procurement is the process through which a project owner decides how a project will be delivered, who will be involved, and how the necessary professional and construction services will be selected and contracted.
How does procurement work in Switzerland?
For a private construction project, the client generally has considerable freedom to decide how architects, engineers, contractors, and other consultants are selected. The parties can negotiate directly, request several offers, organise a competition, or use another selection procedure. The resulting relationships are then governed primarily by Swiss private law, including the Swiss Code of Obligations (CO) and, where applicable, contractual standards such as the SIA regulations incorporated into the contract.
For public construction projects, the situation is different. A public authority cannot necessarily choose a contractor or architect in the same way as a private client. Public procurement is subject to specific rules intended to ensure, among other things, transparency, equal treatment, fair competition and the economical use of public funds. At federal level, the principal legislation is the Federal Act on Public Procurement (PPA/BöB), while cantonal and communal projects may also be subject to the relevant cantonal procurement legislation.
Why is procurement important?
Procurement determines the framework within which a construction project is organised. The choice of procurement method can influence cost, time, risk allocation, responsibilities, design control and the relationship between the client, architect and contractor.
For example, under a traditional model, the architect or design team may develop the design before the construction work is tendered to contractors. In a design-build arrangement, by contrast, design and construction responsibilities may be brought together under one contractual structure. These different approaches can significantly affect who carries the risk for design, cost and coordination.
In Switzerland, procurement should therefore not be viewed simply as the act of obtaining competing offers. It is better understood as a project-delivery strategy combined with a legal and contractual process. The appropriate approach depends on the nature of the project, the identity of the client, the applicable procurement legislation, and the allocation of responsibilities and risks between the parties.
Ultimately, understanding procurement helps architects, clients and contractors understand how a project moves from an initial idea to a legally and contractually organised construction process. The principles described by AIA California provide a useful starting point for understanding these different project-delivery models, while Swiss procurement legislation and contract law provide the specific legal framework within which they operate in Switzerland.