Procurement management in construction is a critical process that involves acquiring services, goods, and materials essential for successful project completion. Successful procurement management is critical in construction projects as it directly impacts project profitability and overall success. Procurement errors can have significant financial consequences, making them a key aspect of project planning and implementation. Since procurement in construction can range from the acquisition of services required for a construction project to materials and equipment, it plays a vital role in ensuring that the required resources are efficiently obtained within budget, on time and in accordance with quality standards.
Here are the key aspects that EK Innovative Engineering implements:
- Responsibilities and process: We divide the procurement process into several key stages, including creating a procurement management plan, requesting proposals (RFP/RFI), evaluating bids, awarding contracts, monitoring the construction process, and closing contracts. Our Procurement Managers play a key role in conducting tenders according to global best practices, finding cost-effective solutions, monitoring procurement, ensuring timely delivery and managing procurement activities. We control the timing of the purchase of materials according to the schedule, and responsibility for the purchase of materials in construction usually lies with the General Contractor, who, under our control, ensures the delivery and installation of materials and equipment in accordance with the requirements of the project.
- Types of procurement methods:
- Construction management: Ideal for larger and complex projects. Construction management involves procurement by the Client’s Representative at the tender stage and subsequent transfer of various project aspects to the General Contractor and his specialized subcontractors. It can be time-consuming, but is cost-effective if managed effectively.
- Design and build: In this method the General Contractor assumes all responsibilities, risks and management during both the design and construction phases. Effective project management requires skilled internal staff or partnerships with other contractors. In this case, qualified control on the part of the Client is extremely important.
- General Contracting: This method involves the Client’s company providing the contractor with a design for construction. This method is widely used and is suitable where design is completed before the construction project begins, ensuring a clear separation of responsibilities and budgetary commitments. Nevertheless, high-quality Technical supervision and control of the issuance of shop drawings is essential for proper construction control.
- Private financing: Less common, but an alternative solution for Clients with financial constraints. Private financing transfers construction risks to the General Contractor until the project is completed, after which it is transferred to the Client. EK Innovative Engineering helps Clients in matters of budget and cost control at all stages of the project.
Therefore, effective procurement management in construction is essential for acquiring service providers and contractors, procuring services and materials, reducing risks and ensuring project success and maximizing efficiency. Based on our wealth of experience, we have an understanding of the procurement process, responsibilities and various techniques that are critical to optimizing resource allocation, budget and cost management and successful project delivery in the construction industry.
To find out more, please contact us at info@ek-innovative.com to receive information from experts competent in the respective field.