Procurement

Overview

We have the experience, the tools, and the know-how to best handle procurement. Materials management is an important element in project planning and control. Materials represent a major expense in construction, so minimizing procurement or purchase costs presents important opportunities for reducing costs. The main sources of information for feedback and control of material procurement are requisitions, bids and quotations, purchase orders and subcontracts, shipping and receiving documents, and invoices. The materials for delivery to and from a construction site may be broadly classified as: (1) bulk materials, (2) standard off-the-shelf materials, and (3) fabricated members or units. The process of delivery, including transportation, field storage and installation will be different for these classes of materials. The equipment needed to handle and haul these classes of materials will also be different.

Objectives

To manage the procurement process and supply base efficiently and effectively, procurement must follow the following key steps:

Evaluation and selection of suppliers based on sound ethical norms and standards

All purchases must go through the approved procurement processes

Engineering and other functional inputs are part of this process

Contractual agreements will be done with the involvement of Procurement

Increased use of sourcing teams

Review of specifications or scope of work

Review the requirements for the material or service being provided

If possible, suggest alternative standardized materials that can save the organization money

Periodic review of categories can allow greater leveraging of requirements

Purchasing will act as the primary contact with the supplier

Manage the supply base, identification and mitigation of risks

Identify new potential suppliers and develop relationships

Improvement and development of non-competitive existing suppliers

Determine the method of awarding contracts

Support local business (local procurement) and consider social responsibilities wherever possible