Procurement procedures as per FIDIC for construction projects

In this ever changing world that has become so competitive that the expectations in the construction industry regarding deliverable's, cost, time and quality have made companies shift to more robust and competitive operational strategies. Other industries have successfully implemented new and improved strategy but the construction industry still has to follow suit. One of the major factors that are identified in the construction industry is the rather slow changing procurement chain management system. The current strategies used for procurement do not live up to the market requirements and rather is stifling the growth of this particular industry. Understanding these various models are being implemented throughout the industry which will have a significant impact on the growth as well as improve productivity to help this industry sustain the drastic economic changes.

Historically, the sourcing of subcontracting services was the most neglected element in the construction process. Only when the cost of materials and the subcontracting increased did management investigate alternative methods to planning and control. Labor was the focus since this industry is labor intense and more emphasis was given to the cost of labor. Firms also started investing heavily into technology and technology related products.

The traditional view of purchasing and sourcing management as a clerical function has been negated and emerged as a viable and profitable function more than any other functions in the construction industry. The life cycle of a typical construction project consists of the following stages,

The construction life cycle stages are mutually exclusive or independent of each other. Many of these stages occur concurrently. Depending on the size of the organization the supply sourcing maybe implemented in varying degree of ownership. Regardless of the size of the company ownership in the supply souring function must be well defined.

The supply sourcing must be carried out according to the specification of the projects, budgetary and scheduling constraints. Supply sourcing function involves working with upstream and downstream relationships, inside and outside each organization. The supply sourcing process involves assisting the project manager with subcontracting services, bulk material and equipment requirements.

The construction manager or contractor coordinates the transnational process based on three basic criteria which is completing the project on time, making sure he/she sticks to the budget and delivered with an accepted level of quality

please find enclosed herewith the detailed purchase procedure as per FIDIC.
 

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