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Describe 5 Main Components Of A Procurement Strategy

Paul Naybour Paul Naybour

Published: 6th February 2013

Prepare/ define – This stage of the strategy is to identify and quantify exactly what scope of works will be tendered for and how that piece of work or works will be procured competitively. Once a defined scope of work and spec has been established the PM must consider the type of contract, type of payment method and have a weighted criteria predetermined as to what will finally award the contract to a competitor.

ITT – This sees the process involved with the selection of tendering, is this to be open public tender, selective tender, framework etc and how this correlates with best value for money to the project. This should also include consideration to E.U competition and procurement law and the requirements for thresholds surrounding directives. Once this has been identified the tender must be sent out individually to those who have the option to tender with dead line date and supplementary details attached.

Ongoing Tender Support – during this part of the tender process the PM must be able to provide technical assistance and have support from his bid team to help answer any questions which may arise over its tender period. This aids transparency to all bidders where answers should be communicated throughout to help with the pricing and let bidders know of any unknowns prior to their tender commitment that may not have otherwise been included.

Receive and Evaluate – Once the tenders have all been sent back to the PM/ bid team they must analyse and evaluated for merit against its defined weighting criteria and worth against other tenders. Comparing and contrasting the tenders help arrive at what is best value for money of (MEAT) most economical advantageous tender. The PM/ bid team must consider any adjustments for day works or prelims outside of the scope and contingencies against items found within the bid identified and measured accordingly in a comparative manner.

Award – This basically sees the winning bidder awarded the contract which best suits the weighted criteria’s and a follow up agreement of acceptance must be contractually established. Each party must be able to perform to the capacity stated in the contract and be intent on being legally bound. Key ingredients to the contract like offer and acceptance, consideration all form part of the award. The type of contract is usually based around industry and should be applicable to the project In hand.



thanks paul, any comments would be much appreciated.

  1. Paul says:

    Steve yes I really like the way you have answered this question, well done, ten more like this and you will be in the pass zone.

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