GROUP 08

PURCHASING
EXPEDITING
RECEIVING

CONSTRUCTION MANAGEMENT
 PURCHASING, EXPEDITING AND RECEIVING
PRESENTED BY: GROUP 08

CHLORIS BRENDAN IDOS DIANALYN D. SAMANIEGO

PURCHASING PUBLIC AND
GOVERNMENT
PROCUREMENT

ARBIE MAGCALAS DORONILA MARK SIBAL PANGILINAN

EXPEDITING RECEIVING
OUTLINE

INTRODUCTION

PURCHASING

PURCHASING MANAGEMENT

PURCHASING CYCLE

PURCHASING PROCEDURE

SUPPLY CHAIN

PROCUREMENT

GOVERNMENT AND PUBLIC PROCUREMENT

PURCHASING
REVISED CYCLE
IMPLEMENTING RULES AND REGULATIONS OF RA. 9184

EXPEDITING

RECEIVING
 PURCHASING, EXPEDITING AND
RECEIVING

Purchasing, expediting, and receiving are critical

functions within the construction industry.
Efficient management of these processes ensures
timely acquisition of materials, adherence to
project schedules, and cost control.
 PURCHASING
“Purchasing in construction refers to the procurement
process specific to the construction industry, where
materials, equipment, and services are acquired to
complete construction projects.”

"Construction Purchasing & Supply Chain Management"

-W. C. Benton Jr., Linda McHenry

CONSTRUCTION MANAGEMENT
-W. C. Benton Jr Linda McHenry
PURCHASING

• SOURCING

• NEGOTIATING CONTRACTS

• ORDERING

• MANAGING DELIVERY
PURCHASING MANAGEMENT

PURCHASING
• is the function of buying Goods & Services
from External Source to an Organization.

PURCHASE DEPARTMENT
• Buys Raw Materials, Spare parts, services etc.
as required by the company or organization.
PURCHASING CYCLE

Identify Material
Needs

Material Preparation of Requisition

Procurement Documents

Vendor Selection Vendor

and Purchase Evaluation
Preparation of Requisition Documents
 PURCHASING
PROCEDURE

1 2 3 4

PURCHASE
CANVASING DELIVERY PAYMENT
ORDER
PURCHASE ORDER
SUPPLY CHAIN

A very simple way to define a supply chain in

construction is as a series of interconnected activities to
procure, manage, and deliver materials necessary for
the successful completion of a construction project.
SUPPLY CHAIN

Who is Involve in the Supply Chain?

SUPPLY CHAIN

Archiects
SUPPLY CHAIN

What Is Included in the Supply Chain?

• As everywhere where the storage and quantity of goods are involved,
inventory management is crucial in the construction supply chain.

• Quality control processes should be integrated throughout the entire

supply chain, from sourcing materials to final delivery.

• Demand forecasting or accurate prediction of the required data based

on past performance, market conditions, and other factors also helps
to optimize the supply chain process.
SUPPLY CHAIN

What Is Construction Supply

Chain Management?
• The complex and multi-faceted supply chain process in construction
requires effective management to ensure that all the moving parts
work together seamlessly.
 PROCUREMENT

Procurement is the process of obtaining goods, services, or

works from external sources. It involves a series of steps,
from identifying the need for a particular item or service to
selecting a supplier, negotiating terms, and managing
contracts. Procurement is a critical function for organizations
across various sectors, including businesses, governments,
non-profit organizations, and other entities.
 GOVERNMENT
PROCUREMENT

The procurement activities of governmental bodies at the national,

regional, or local level. This includes federal, state, provincial,
and municipal government agencies.
PUBLIC PROCUREMENT

Encompasses a broader range of entities within the public sector,

including not only government agencies but also public utilities,
state-owned enterprises, educational institutions, healthcare
organizations, and other public entities that engage in procurement
activities.
 REVISED IMPLEMENTING
RULES AND REGULATIONS OF
REPUBLIC ACT 9184

The Government Procurement Reform Act, officially known as Republic Act No.
9184, is a law in the Philippines that aims to modernize and standardize the
government's procurement processes. It came into effect on January 10, 2003.
COMPETITIVE BIDDING

Government construction contracts often require a

competitive bidding process, where multiple
contractors submit proposals or bids for the
project. The bidding process aims to ensure
fairness and transparency in selecting the
contractor.
PREQUALIFICATION
REQUIREMENTS

Before participating in the bidding process,

contractors may need to meet certain
prequalification criteria to demonstrate their
capability to undertake the construction project.
These criteria could include financial stability,
experience, and technical expertise.
BID EVALUATION CRITERIA

Government agencies typically establish criteria

for evaluating bids, which may include factors
such as price, technical qualifications, project
schedule, and past performance. The evaluation
process aims to select the bid that offers the best
value for the government.
QUALITY AND PERFORMANCE
STANDARDS

Contracts may specify quality standards that

construction projects must meet and include
provisions for monitoring and ensuring
compliance with these standards throughout the
project lifecycle.
DISPUTE RESOLUTION
MECHANISMS

Contracts may include procedures for resolving

disputes that may arise during the construction
process, such as mediation, arbitration, or
litigation.
ENVIRONMENTAL AND
SUSTAINABILITY
REQUIREMENTS

Government construction projects incorporate

environmental and sustainability considerations,
such as green building standards, energy
efficiency requirements, and environmental
impact assessments.
EXPEDITING
a concept in purchasing and project management for
securing the quality and timely delivery of goods and
components. Make happen sooner or be accomplished
more quickly.
 CLASSIFICATIONS OF
EXPEDITORS

TYPICALLY WORK IN AN OFFICE OR CENTRAL

LOCATION, MANAGING ADMINISTRATIVE TASKS
DESK EXPEDITORS RELATED TO PROCUREMENT, SCHEDULING, AND
COORDINATION.

THEIR PRIMARY FOCUS IS ON-SITE

COORDINATION AND MANAGEMENT OF
MATERIAL LOGISTICS, ENSURING THAT
FIELD EXPEDITORS
CONSTRUCTION ACTIVITIES ARE SUPPORTED
EFFICIENTLY.
 EXPEDITING PROCEDURES
AND SCOPE OF WORKS

These procedures collectively ensure that materials, information, and tasks are managed efficiently to keep construction projects on
schedule, within budget, and meeting quality standards.

1 2 3 4 5
FOLLOW-UP AND
INITIAL SUPPLIER ORDER DOCUMENTATION
COORDINATION
PLANNING COMMUNICATION TRACKING MANAGEMENT

6 7 8 9 10

PROBLEM QUALITY SCHEDULE CONTINUOUS

REPORTING
RESOLUTION ASSURANCE ADJUSTMENT MONITORING
RECEIVING
Large volume of expensive materials will
be control in the field. Procedures which
cover the receipt, storage, and issuance of
these materials will be necessary in order
to assure proper stewardship of this
function .
STORAGE
Areas for storage should be chosen during
the initial design stages of a project and
you should ensure that they are clearly
defined at the start of the project. This will
prevent the areas from becoming overfilled
and ensure that they remain suitable for the
materials.
Coverage of Receiving
Procedure:
1. Adequate identification by purchase order,
vendor, description, quantity, and date of receipt.
2. Required receiving inspections consistent with
the quality control plan .
3. Overage, shortage, and damage reports which
must be properly filled out.
4. Daily receiving logs should be distributed to
management on “need to know” basis .
THANK
YOU!

END SLIDE