Last edited 08 Feb 2021

Procurement policy in the construction industry

[edit] Introduction

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 prices, terms and contracts for acquiring goods, services, equipment and so on.

There are many routes by which the design and construction of a building can be procured. Procurement policy determines which of these routes is adopted on a particular project or is the client’s preferred option.

The selected route should be consistent with the long-term objectives of the client, and may be influenced by a number of factors:

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

For more information see: Procurement route.

[edit] Public procurement policy

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

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

For more information see: Public procurement.

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