Last Updated on January 9, 2022 by Admin
What is Procurement?
Procurement is acquiring the materials, equipment, and services needed to operate a construction business or complete a project. In construction, this refers to the goods and services required to complete a building from inception to finish. Procurement needs to be approached in a decisive way for construction companies to maximize their efficiency on each project.
A construction firm must take a carefully planned approach to procurement by purchasing the supplies required most cost-effectively. The procurement strategy needs to consider multiple factors, like the timeline, budget, and project quality.
Read more about what are the types of procurement and procurement methods?
“In a simple form, the procurement process is how we go about obtaining the goods and services we need.”
What is Tendering?
Tender means to invite bids for a project or to accept a formal offer such as a takeover bid. Tender usually refers to how government companies invite bids for large projects that must be submitted within a restricted deadline.
Tendering is when the client invites contractors to place a bid for work on a construction project. Contractors’ bids are based on the tender documents issued by the client.
The successful tenderer becomes the ‘contractor’ and a ‘party’ to a ‘client’ contract. The tender documents are legally binding and are signed by all parties involved. The completed tender documents become part of the contract documents.
Tender request documents also referred to as invitations to tender, Requests for Tender (RTF), Requests for Proposal (RFP), etc., outline what is required, that is, what the requesting organization’s needs are. These documents also outline the particular requirements, criteria, and instructions to be followed.
Future tenders are generally publicly advertised to offer opportunities to several suppliers, encourage competition, and provide a more excellent pool of offers to select from.
“In construction, tendering is a process for getting a contractor and agreeing on a price.”
Online Course on Procurement Strategies and Tendering In Construction
Explore procurement strategies and the procurement process in the construction industry context.
- Course Offered by Coventry University
Weekly study3 hours
100% Free online Course (Extra Benefits From $74)
Understanding the procurement process in construction
What is procurement? How does the procurement process work? What procurement strategies are available? Find answers with this course that aims to develop your understanding of procurement in the construction industry context.
You’ll have the chance to examine the factors that affect the choice of procurement strategy and work to develop an understanding of tendering and its application in the construction industry.
You will also have the opportunity to evaluate depreciation principles and the methods for calculating depreciation in a construction context.
- What is procurement?
- The need for different procurement routes and the variables between them
- Procurement strategies
- Examples of procurement strategies within projects
- Recent UK procurement strategy
- Principal phases in tendering
- Bidding strategies
- Bidding models
When would you like to start?
Start straight away and learn at your own pace. If the course hasn’t started yet, you’ll see the future date listed here.
What will you achieve?
By the end of the course, you‘ll be able to;
- Develop an understanding of what procurement is in the context of the construction industry
- Explore the purpose and requirement for procurement in the construction industry
- Explore the factors that affect the choice of procurement strategy
- Develop an understanding of the tendering and its application in the construction industry
- Develop an understanding of the principles of depreciation and the methods for calculating depreciation in a construction context
Who is the course for?
This course is for anyone looking to understand procurement strategies and the procurement process in construction management.