Last edited 25 Feb 2021

Collaborative procurement in the construction industry

Collaborative procurement, published by Constructing Excellence in 2009, defines collaborative procurement as: 'Two or more organisations (buy side or sell side) that agree to work together having identified the benefits that can be achieved by aligning their purchasing power and resources to deliver financial savings, efficiencies and effectiveness without any detriment to the project(s) and/or service objectives. It is the best use of procurement expertise and resources that eliminates duplicated effort. It should also lead to a collaborative working environment which brings about additional benefits not directly related to the procurement benefits.'

'Collaborative Procurement is an effective way for more than one client, contractor, consultant or supplier to join together to procure works, services, materials or goods, share expertise, promote efficiency and deliver value for money savings in the delivery of a project (or series of projects) or service objectives.'

It suggests that there is some confusion between this and collaborative working, which it defines as: 'Two or more organisations that work together in a collaborative team-based environment to deliver contract or service objectives efficiently and effectively that demonstrate value for money.'

The UN Procurement Practitioner's Handbook, produced by the Interagency Procurement Working Group (IAPWG) in 2006 and updated in 2012, defines collaborative procurement (or common procurement) as: ‘A procurement arrangement in which several (UN) organizations combine their efforts to undertake procurement in cooperation or share the outcome of a procurement process, thereby achieving benefits for the group in its entirety. The objective of collaborative procurement is to achieve reduced price or better service through economies of scale and to reduce inefficiency and duplication across the (UN) organizations.’