Procurement in Construction

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Defining procurement

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Procurement is the process through which goods or services for a construction project are sourced and purchased.

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Procurement routes

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The process of procurement can be referred to as a ‘route’. There are many different routes or paths that can be followed to finalize a contract.

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Influence on procurement routes

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The procurement route can be influenced by the scale and type of project, categorized as domestic, commercial, or industrial.

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Session focus

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The session will consider common factors and stages in the procurement process and identify different routes that can be taken.

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Image of two people discussing in a construction setting

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Image of two people discussing in a construction setting

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Common factors in procurement

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Tendering and bidding involve contractors competing to secure a contract by calculating resource requirements and timescales.

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Tendering process

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The process where contractors submit bids, and the client decides which contractor to use.

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Contract award considerations

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The client may consider the contractor's reputation and past project success, not just the lowest bid.

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Tenders can be described in a number of ways.

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An open tender allows all qualified bidders to submit an entry.

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Submission of a tender.

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The sealed bids are opened in public, and the client chooses based on price and quality.