Methods used by construction companies to procure materials

Introduction

Construction businesses employ a variety of strategies to assist the delivery of relevant materials to site, but particular issues such as budget and time management must be considered. Materials are typically ordered from the supply chain, usually from external sources with whom the team has previously worked or who are listed in the contract terms.

Procurement

A procurement team or one or more construction buyers may be in charge of product, material, plant and subcontractor procurement. They normally work for the main contractor (but on larger projects, subcontractors may have buyers as well) to ensure that supplies are delivered on time, according to specifications and within budget.

Within a specification, buyers may have different purchasing options, particularly if an architect or engineer has specified a product and included a provision enabling them to substitute another product that must meet the same requirements as the original.

Establishing the best material source is crucial. This can be based on pricing and stock availability, but the supplier's reliability will be just as important.

It is very important to review material prices on a regular basis, whether at the start of each project or every six months, to check if they are competitive with the rest of the market. The process of selecting, ordering, invoicing, paying for, and receiving the materials required to construct a project is known as material procurement .

Bidding

The practise of a contractor presenting a tender to a customer as a proposal to undertake or manage a specific construction project is known as construction bidding. The bidding procedure is critical to the success of any construction project.

Sustainability

Sustainability has been more important in the purchase of building materials in recent years, particularly because these materials represent the biggest single category of waste going to landfill and the sector is one of the top emitters of CO2.

Local governments, customers and contractors may all have an impact on procurement by requiring a certain number of recycled materials to be used. As a result, sustainable procurement evaluates value for money in terms of societal, economic and environmental advantages, as well as the buying organisation's specific requirements.

Related articles on Designing Buildings

• Bidding tactics.
• Construction materials.
• Managing the procurement process.
• Procurement route.