What procurement is
Procurement is how an owner buys the design, works, goods and services a project needs. It decides the packages, the contract types, how bidders are found and how the winner is chosen.
Public procurement must be fair, transparent and competitive. A typical process runs: prepare tender documents (instructions to bidders, conditions of contract, specifications, drawings and bill of quantities); publish the notice, now usually on an e-procurement portal; answer queries at a pre-bid meeting; receive bids by a deadline; open them in the presence of bidders; evaluate technical and financial bids; award; and sign the contract with performance security.
Evaluation methods vary: lowest compliant price, or quality-and-cost based selection for consultancy where technical merit carries weight. Pre-qualification shortlists firms with the experience and capacity for complex works.
Good procurement reduces disputes later by making the scope clear and allocating risk to the party best able to manage it.
Procurement also shapes what gets built. Splitting a project into too many packages creates interfaces where responsibilities blur; one large package may shut out smaller capable firms. Timing matters as well: long-lead items such as bearings, tunnel boring machines or special steel are often procured early so that they arrive when the site needs them. Finally, a clear record of every decision, from the evaluation scores to the reasons for rejecting a bid, protects both the owner and the bidders if the award is questioned later.
Quick quiz
1Name three documents in a tender package.
Instructions to bidders, conditions of contract, specifications (also drawings, BOQ).
2What is pre-qualification?
Shortlisting firms with adequate experience and capacity.
3Where are public tenders usually published now?
On e-procurement portals.
- FIDIC Conditions of Contract (Red, Yellow and Silver Books, 2017 editions) (International): Standard international contract forms for employer-designed, contractor-designed and turnkey works.
Cited by number and clause only. We do not reproduce clause text, tables or figures (BIS Act 2016, s.10(5) and s.11). Check the current edition and amendments before use.
References and further reading
Standard texts, listed in no order of merit. We do not copy text, figures, tables or solved problems from any book; our explanations and examples are original.
- F. Harris, R. McCaffer, Modern Construction Management, Wiley-Blackwell, latest edition.
Free and official sources
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