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INFRASTRUCTURE DELIVERY IMPROVEMENT PROGRAMME


CONSTRUCTION PROCUREMENT STRATEGY

Good Strategy in the delivery and maintenance of construction works includes the skillful planning and managing of the delivery process. It involves a carefully devised plan of action which needs to be implemented. It is all about taking appropriate decisions in relation to available options and prevailing ocircumstances in order to achieve optimal outcomes.

Procurement strategy is the combination of the delivery management strategy, contracting arrangements and procurement arrangements for a particular procurement. A procurement strategy can be developed for a single project, a programme of projects or a portfolio of projects to identify the best way of achieving objectives and value for money, whilst taking into account risks and constraints. Once the necessary decisions relating to the delivery management strategy, the contracting arrangements and the procurement arrangements have been made, the procurement strategy may be implemented in respect of each package. Thereafter, depending upon the choices that are made, the design team might need to be managed, and the contract managed or administered in accordance with the provisions of the contract. Programme management will also be required where projects are delivered in terms of a programme.

It is important to conduct an annual evaluation of the efficacy of decisions made. This will inform the choices made in the subsequent year and contribute to any improvements in decisions made in subsequent years. When making procurement arrangements, the management must decide on quality strategy which may be achieved through:

  • Specifications;
  • Life cycle costing;
  • Prequalification.
  • Evaluation criteria.
  • Undertakings at tender stage.
  • Preferences.
  • Eligibility criteria.

The different options for procurement procedures that can be used with or withoput eligibility criteria are as follows:

  • Competitive selection procedures ;. --> Nominated --> Open --> Qualified --> Quotation --> Proposal procedure using the two-envelope system --> Proposal procedure using the two-tendering system
  • Negotiation procedure;
  • Competitive negotiations procedure;

The targeted procurement procedure options are:

  • Preferencing
  • Incentives for attaining key performance indicators
  • Mandatory subcontracting
  • Contractual obligations