Procurement

Don’t forget essential reading (1of3):

The RICS’s

Developing a construction procurement strategy

and selecting an appropriate route

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 Developing a procurement
strategy
• The procurement strategy developed should
balance risks against project objectives at an
early stage.

What is the key criteria to be considered?

• The key criteria to consider:

– time (speed or certainty of completion date)
– cost (price level or cost certainty)
– quality (functionality and performance)

Is it realistic to priorities all three ie T/C/Q?

 Developing procurement strategy
• These criteria are interdependent and often in tension

• Emphasis on only one of the key criteria will almost certainly have a
negative effect upon the others

• The business case will help determine which criteria are most
important and which could constitute the greatest risk.

Can you give an example of where T/C/Q maybe priority?

• In most cases the priorities of the projects will fall into the areas
illustrated as B, C or D in the diagram where two of the three
criteria are identified as most important to project success. It is
rare for time, cost and quality to be equal in either importance or
impact.