SABRA, Abdul Rahman CONTRACTS MANAGER
P
ROAD #4 GHANTOOT BUILDING FIRST FLOOR
Phone: +971 2 6414151 Fax: +971 2 6412010 Mobile: +971 50 6414151
[email protected] [email protected] www.ghantootgroup.com
PROJECT PROCUREMENT STRATEGY
A. DEFINITION:
is Procurement is
the acquisition the acquisition of goods, services, or works from an external source. It is favorable that the goods, services or works are appropriate and that they are procured at the best possible cost possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and location” “
In September 1983, Harvard Business Review published a ground-breaking article by Peter Kraljic on purchasing strategy that is widely named today as the beginning of the transformation of the function from "Purchasing", to something that is viewed as highly tactical to Procurement or Supply Management, something that is viewed as very strategic to the business. 1990s - Procurement starts to become more integrated into the overall corporate strategy and a broad-based transformation of the business function is ignited, fueled strongly by the development of supply management software solutions which help automate the source-to-settle process. 2000s - The leader of the t he procurement function within many enterprises is established with a C-Level title - the Chief Procurement Officer (sometimes called the Head of Procurement). Websites, publications, and events, and that are dedicated solely to the advancement of Chief Procurement Officers and the procurement function arise. 2010s - The elevation of the function continues as Chief Procurement Officers are recognized as important business leaders and begin to take on broader operation responsibility.
B.
PROCUREMENT IN PRESENT BUSINESS / CONSTRUCTION MANAGEMENT
In July 2011, Ardent Partners published a research report that presented a comprehensive, industry-wide view into what is happening in the world of procurement today by drawing on the experience, performance, and perspective of nearly 250 Chief Procurement Officers and other procurement executives. The report includes the main procurement performance and operational benchmarks that procurement leaders use to gauge the success of their organizations. This report found that the average procurement department manages 60.6% of total enterprise spend. This measure commonly called "spend under management" refers to the percentage of total enterprise spend (which includes all direct, indirect, and services spend) that a procurement organization manages or influences. The average procurement department also achieved an annual savings of 6.7% in the last reporting cycle; sourced 52.6% of its addressable spend, and has a contract compliance rate of 62.6%.
1. 2.
Reference: Weele, Arjan J. van (2010). Purchasing and Supply Chain Management: Analysis, Strategy, Strategy, Planning and Practice (5th ed. Ed.). Andover: Cengage Learning. ISBN 978-1-4080-1896-5 978-1-4080-1896-5.. WIKIPEDIA
PROJECT PROCUREMENT PROCESS / CYCLE
1- Procurement log (FP1) 2- Significant Packages 3- Long lead Packages 4- Procurement Strategy 5- Main Resources 6- Schedule of Works 7- Budget / cost of Works 8- Tender Files (FP2) 9- Contract Documents 10- Execution Plan
Planning Dept. Procurement Dept. Planning Dept. P.M. & Procurement Manager Procurement Dept. Planning Dept. Tender Department Tender Department Tender Department P.M.
PREPARATION
APPROVAL
1- Vendor List 2- Potential Vendor out of List 3- List at Tender Stage GETTING MANAGEMENT APPROVAL & FINALIZATION
NOT
1. 2. 3. 4.
ALANYSES OF QUOTATIONS / TECH. & COMMERCIAL
SELECTION OF VENDORS
REQUEST FOR QUOTATIONS / PROPOSAL
Collection of Quotat Collection Quotations ions / review review the Conditio Conditions ns / B.O.Q / exclusion exclusionss Any discrepa discrepancy ncy to be addressed addressed immedi immediately ately by by official official letter All information information to be represented represented in a comparison comparison sheet (Form (Form hereinafter) hereinafter) Recommend Recom mendation ation of Procure Procurement ment manag manager er after a negotiat negotiation ion process process with nearest two contractors / suppliers
Reviewed by GM
1. Identi Identify fy Packag Package e Scop Scope e 2. Prepar Prepare e relate related d Docume Documents nts 3. Review Review the Scope Scope with PM / Engineering / MEP 4. Identi Identify fy the the Type Type of Contr Contract act Supply/ Sub-Contract/ Maintenance/ Design / etc… 5. Identi Identify fy Perio Period d of Works Works relat related ed to schedule of Works of Project. 6. Identi Identify fy the the exclu exclusio sion n of the the Scope. 7. Specia Speciall Terms Terms and and condit condition ionss of the Package. 8. Prepar Prepare e & issue issue the the inquir inquiries ies as as per form hereinafter.
14 Days for Vendors clarification (RFI) addressed to the concern divisions to reply.
CONTRACTS DEPARTMENT
1. 2.
Reference: Weele, Arjan J. van (2010). Purchasing and Supply Chain Management: Analysis, Strategy, Strategy, Planning and Practice (5th ed. Ed.). Andover: Cengage Learning. ISBN 978-1-4080-1896-5 978-1-4080-1896-5.. WIKIPEDIA
