Last edited 11 Jul 2019

Procurement plan

Procurement is the complete process of acquiring the right goods and services under specific conditions. In the context of designing and constructing buildings, a procurement plan is the result of a process that involves deciding what to buy, when to buy it and from whom.

On a typical building project, the procurement items list to allow realisation of the project is usually very long and detailed. Not properly managing this list could mean higher costs and even losing money. It is the responsibility of the procurement manager to manage all procurement activities that fall under the project.

The procurement plan is an important document as it establishes the procurement framework for the project and throughout the project becomes a guide (which can be amended) for procurement management.

A procurement plan can include:

  • Project requirements, the project team, timelines, etc;
  • Items to be procured, their justification, requirements and the contracts that may be involved to procure them;
  • How costs will be determined and how they will be used as part of the selection criteria?
  • Establishes contract deliverables and deadlines;
  • Establishes the standard procurement documentation to be used – particularly important for large projects;
  • A procurement schedule, with timelines for the steps leading to contract award and fulfilment;
  • Specific actions needed to start and complete purchases;
  • List of procurement risks, their management and mitigation;
  • Listing and description of purchases made;
  • Assessments of any extra staffing requirements;
  • Comparison of how the actual procurement process compares with the procurement plan, and
  • Ensures any bids made are fair and in the interests of the client.

A typical procurement plan will list the items required and alongside each item will be the justification (i.e the reason it is needed e.g ‘required to attach trim to fascia’ etc) and the date it is needed by. In addition to the list of items, the procurement plan may also mention those individuals who are authorised to approve purchases on behalf of the project team.

Procurement planning is important because it:

  • Establishes buying requirements, timescales and available sources;
  • Enables a procurement strategy to be formulated for each item in the procurement plan;
  • Determines how realistic the expectations are;
  • Gives stakeholders the chance to get together and discuss procurement options;
  • The time required to complete the procurement process can be estimated upon which awarding contracts can begin. Planners can see whether fulfilment of the requirements can take place within the required timeframe.

[edit] Related articles on Designing Buildings Wiki