On its own, procurement is difficult, and more complications arise when it comes to types of procurement in construction. So, let’s take some time to look over the methods of procurement in construction.
In essence, procurement is a process of obtaining a product or service. In your case, it specifically relates to providing the materials/labour needed to complete a job/product. For most construction firms, a clear, concise, and cost-effective strategy is needed to complete the job. Budget, quality, and timeline are heavily considered here.
When it comes down to it, price and quality are where the competition element lies in construction procurement. If the buyer discovers a cheaper contractor which rivals or exceeds the quality of its competitors, it’s a no-brainer.
So, across the UK’s construction sector, there are generally two elements within the construction process. There are other processes, but the ones below are the one’s you’ll most likely encounter. Let’s work our way through them.
So, the first of our types of procurement in construction is pre-qualification questionnaires.
Also known as PQQ’S, they are used by buyers in the initial stages of construction procurement. A frequent question we get asked is ‘what is the difference between PPQ’S and PAS91’S?
Well, the biggest difference is the length of the documents, with PAS91’s being on average larger.
Dependent on the buyer, they could also utilise SQ’s (selection questionnaire’s) or SSQ (Standard selection questionnaire’s). You could state that this is the first gate you need to cross. Basic requirements are covered here so that whoever bids for the contract is meets the minimum needs. Depending on whether the process was open or closed, a PQQ and ITT could be required as well. Although its dependent on the size of the contract, the document will include:
Depending on the buyer, they could also request:
For most of these questions, the PPQ will require a brief answer. Another option is a score in which to describe your proficiency in the given question. Either way, you’ll need to elaborate on your scores/brief answers later in the process.
So, you’ve passed the PPQ with flying colours, proving you fulfil the requirements for the contract. Now it’s time for the ITT. It’s here that the buyer invites you to tender. Time has been utilised efficiently due to the PQQ shortlisting the potential contractors.
Within the construction industry, this document may include:
Now you know what the ITT may contain, it’s good to cover what you should respond with:
So, we’ve arrived at the end of this blog regarding types of procurement in construction. You now have a greater understanding of:
Now you’re better equipped to understand the types of procurement in construction, you may be wondering how we can help…
Our Tender Writing service covers PAS-91s, PPQ’s, and much more. We will complete the written, technical, and professional ability sections and/or PAS91 modules on your behalf.
Alternatively, our Tender Ready service will see our team of bid writers prepare case studies and policies. Each are essential in passing pre-qualification questionnaires and PAS91s – in-line with best practice across the industry.
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