what is procurement in construction

Procurement in construction is the process of acquiring goods, services, and materials for a construction project. It involves the selection of suppliers, contractors, and subcontractors, and the negotiation of contracts. The process is an important part of the overall construction project management process, and it is essential to ensure that the project is completed on time, within budget, and to the desired quality standards.

The Role of Procurement in Construction

Procurement in construction is responsible for ensuring that the right suppliers, contractors, and subcontractors are selected for the project, and that the contracts negotiated are fair and equitable. It also ensures that the goods and services are delivered on time and within budget. In addition, procurement in construction is responsible for managing the risks associated with the project, such as ensuring that the quality of the goods and services is maintained.

Types of Procurement

There are several different types of procurement in construction, including traditional procurement, design-build procurement, and public-private partnerships. Traditional procurement involves selecting a contractor to design and build the project, while design-build procurement involves selecting a contractor to design and build the project as well as manage the construction process. Public-private partnerships involve the government and private sector working together to develop and construct a project.

Risks Involved in Procurement

Procurement in construction involves a number of risks, including the risk of not selecting the right supplier or contractor, the risk of overspending, and the risk of not meeting the quality standards. It is important to identify and manage these risks in order to ensure the successful completion of the project.

Evaluation of Suppliers and Contractors

In order to select the right suppliers and contractors for the project, it is important to evaluate them based on their experience, qualifications, and track record. It is also important to evaluate the terms and conditions of the contract, as well as the cost of the goods and services.

Selection of Suppliers and Contractors

Once the evaluation process is complete, it is time to select the right suppliers and contractors for the project. It is important to ensure that the selected suppliers and contractors have the necessary experience and qualifications to complete the project, and that they are able to meet the quality standards.

Negotiation of Contracts

Once the suppliers and contractors have been selected, it is important to negotiate the terms and conditions of the contract. This includes the cost of the goods and services, the payment schedule, the timeline for completion, and any other relevant terms.

You might find these FREE courses useful

Management of Procurement

Once the contracts have been negotiated, it is important to manage the procurement process. This includes monitoring the progress of the project, ensuring that the quality standards are met, and ensuring that the project is completed on time and within budget.