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 PROCUREMENT
Procurement is the acquisition of goods, services or works from an outside
external source.

For this lecture, the term ‘Procurement’ is used in the context of construction &
refers to the processes of acquiring construction project

In construction management, by definition procurement encompasses securing

all of the goods and services needed to bring the construction project to
completion in a timely and satisfying manner.

It is favourable that the goods, services or works are appropriate and that they are
procured at the best possible cost to meet the needs of the purchaser in terms of quality
and quantity, time, and location. Corporations and public bodies often define processes
intended to promote fair and open competition for their business while minimizing
exposure to fraud and collusion
 Pre-qualification of contractors

Sometimes works are awarded on the basis

of quotations invited from a group of
‘selected tenderer’ (a group of known
reputed contractors) who are considered
suitable for that job. This method is known
as ‘pre-qualification’ and saves a lot of
time.

In the advertisement itself it must be

mentioned that only contractors having
experience in the particular work should
submit the tender.
 Pre-qualification of contractors

Sometimes works are awarded on the basis

of quotations invited from a group of
‘selected tenderer’ (a group of known
reputed contractors) who are considered
suitable for that job. This method is known
as ‘pre-qualification’ and saves a lot of
time.

In the advertisement itself it must be

mentioned that only contractors having
experience in the particular work should
submit the tender.
Prequalification of Consultants
Importance & Philosophy of Prequalification
• Prequalification of Consultants is an important step in the selection
process to ensure high quality proposals for a meaningful proposal
evaluation in shorter time for grading of firms for ultimate selection of
suitable consultants.

• It may be remembered that registration of firms in general terms is not

a substitute for Prequalification before inclusion in the shortlist.

• The qualifications and experience of the qualifying consultant should be

such as to reflect its previous association with such project(s) and
capability to handle the project with dexterity.
 WHY PREQUALIFY CONSULTANTS?
Prequalification and short-listing of Consulting Firms from the long-
list has following inherent benefits not only for the client formations
but also for the consulting profession and the consultants
themselves:
• Encourages consultants to prepare high quality proposals.
• Increases the possibility of selecting most suitable consultants.
• Facilitates a closer and meaningful evaluation of Technical
Proposals.
• Reduces time for evaluation of proposals.
• Reduces the chances for extraneous influences.
• Reduces the cost of business development of consulting houses
which is part of consultants’ overhead costs and ultimately
chargeable to the clients.
 Bidding
Bid
-to offer to do work for a particular price.
Construction Bidding
- the process of submitting a proposal to undertake, or manage the
undertaking of a construction project.