Last edited 12 Jul 2019

Procurement policy


[edit] Outline

Procurement is the process of purchasing goods or services. In construction, procuring a building project encompasses a whole range of activities – often via a competitive tendering process – that include establishing and agreeing to terms and contracts, acquiring goods, services and works, and the methods adopted for appointing, managing and completing the project.

There are various routes by which the design and construction of a building can be procured, therefore procurement policy is about which of these routes is being adopted on a particular project or is the client’s preferred option. The client may be a government department, a local authority, a housing association, a firm or a developer.

The selected route should follow a strategy which fits the long-term objectives of the client's business plan; in most cases, it will have been greatly influenced by the conditions of economic scarcity prevailing in all markets.

The procurement policy may be tied up with numerous factors including:

In 2012, an RIBA member's survey suggested that procurement routes commonly used by respondents were:

The procurement route chosen will depend on the client’s preferences so different clients are likely to favour different procurement routes.

[edit] Public procurement policy

In the UK, value for money is a fundamental component to the procurement policies of public sector buyers. In 2010 for example, the government moved to a centralised procurement system where common goods and services are purchased once on behalf of the whole government and not in individual departments.

[edit] Central government departments are required to adopt lean sourcing principles that include:

[edit] Other requirements part of government public procurement policy include:

Public projects or publicly-subsidised projects may be subject to OJEU procurement procedures for as long as the UK is part of the European Union.

For more information on procurement policy see: Procurement route, Public procurement, OJEU, PFI, Private developer scheme and Crown build.

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