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Introduction to construction procurement

We once again start this topic with another comment on terminology.

Whereas procurement is seen as the acquisition or purchase of something, the words that follow procurement can range from strategy, to options to routes. Confusing, yes, but generally it all means the same thing, ie what contractual organisational method will be used to realise the project.

Procurement, generally, is seen as the process of obtaining goods and services for a stated task, in return for money.

For construction procurement, the process of acquiring professional expertise in order to design and construct the project (led by the construction project manager), covers the acquisition of relevant expertise from professional construction consultants, main contractors, sub-contractors, manufacturers and suppliers. It is normal for this procurement process to be crystallised into a formal contractual arrangement.

In order to successfully deliver a construction project for the client, the construction project manager will need to enlist the support of a number of design, costing and constructing professionals and organisations.

How these professionals and organisations operate, when they are appointed, what they actually contribute to a project and when they carry this work out, is reflected in the chosen procurement route selected; and the selection of an appropriate procurement route is linked to key project criteria which in turn is determined from the client’s requirements.

Construction as a process is typified by project risks and once these risks have been identified and prioritised, a suitable procurement route to reflect the project risk profile can be selected.

Your task

Produce your own definition of construction procurement and identify the key tasks that you think are involved in procurement to ensure delivery of a successful project.

Post your thoughts on the discussion board.

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This article is from the free online course:

Construction Project Management: An Introduction

Coventry University