What is Procurement in Construction?
Procurement in construction is the strategic process of acquiring necessary products, materials, services, and equipment for a project. It ensures transparency and planning for material readiness, serving as a guide throughout the project's life cycle. Solidus offers procurement loans that enable contractors and subcontractors to acquire materials by paying in cash on delivery. This streamlines the process, saves time, and allows for potential discounts, ultimately keeping the project on schedule and within budget.
The Importance of Procurement Schedules in Construction
Procurement management plans strategically schedule timely deliveries to maintain construction timelines. They determine item purchase timelines, track critical procurement milestones, and gauge project impact through updates. Procurement is vital for various construction projects, including residential homes, commercial housing, retail fit-ups, and medical facilities. These detailed schedules offer transparency, combining deliverables at a commodity level, and encompass other essential elements for procurement success.
Key Components of a Procurement Schedule
An effective procurement management plan encompasses key elements for successful procurement, including: project scope, suppliers and sourcing, lead times, engineering deliverables, project schedule, advanced work packaging (AWP), and logistics planning. These elements ensure a clear understanding of project requirements, mitigate risks in material acquisition, account for manufacturing capabilities and global market impacts, align engineering deliverables with the project schedule through AWP, and address logistics such as material sources, site delivery methods, and import duties.
The Process of Creating an Effective Procurement Schedule for Construction
Unlocking a successful procurement management plan is the key to streamlined project execution and timely material delivery.
Steps include
Establishing a successful procurement management plan for efficient project execution and timely delivery.
Analyzing project blueprints and identifying appropriate suppliers from the AML.
Anticipating lead times, tracking material origins, and setting ROS dates.
Grouping requirements, delegating requisitions, and setting procurement milestones.
Updating the plan, managing scope changes, and tackling challenges with adaptability.
Transparently sharing the approach with the team for a seamless journey from blueprint to project completion
The Role of Procurement in Construction Project Management
A well-organized procurement strategy is pivotal to the success of any construction project. With a comprehensive procurement schedule, project requirements in terms of time on the schedule are easily noted and managed. A clear, shareable visual representation of time for each procurement item is vital for project success.
For example, if the cabinets for a room are needed 12 weeks into the project schedule, and the lead time for the cabinetry is 4 weeks, then submittals and approvals are required the first 6-8 weeks of the project. If a project team fails to successfully submit approved drawings and catalog cuts completed for ordering, it will cause the construction schedule to fail and will lead to delays.
Your team needs to have the material, products and equipment on the site when the schedule requires installation. Your team certainly cannot install cabinets on time without procuring the items needed for the task!
The Relationship Between Procurement Schedule and Construction Schedule
A construction schedule is a chronology of tasks for a construction project that managers utilize to set the sequence and duration of building activities. These schedules are key in monitoring crucial events, deliverables, and interdependencies to keep projects on track and within budget.
A procurement schedule, on the other hand, is an essential instrument that identifies all necessary materials for the project and outlines the timing for their delivery. The procurement schedule should encompass all items requiring acquisition within the construction project. When used in harmony with the construction schedule, the procurement schedule enhances the efficiency of the construction schedule by pinpointing all procurement needs and the corresponding delivery timelines. This synchronization is crucial in assuring the project aligns with its anticipated completion date.
Leveraging Procurement Schedules for Construction Success
With our procurement loans, you can secure better pricing and discounts, leading to improved cash flow and increased revenue. Moreover, our team is committed to providing exceptional service, partnering with you throughout the procurement process to ensure that your projects run smoothly and efficiently while improving your bottom line.
