Procurement
Procurement in
construction projects is the process of acquiring all goods, materials,
equipment, and services required to support the execution of the project. The
main goal of this process is to ensure that all project needs are available on
time, meet the required quality standards, and are procured at competitive
prices.
Procurement in construction typically involves several key stages:
1. Procurement Planning
· Identifying all project requirements (materials,
equipment, and services).
· Developing a procurement schedule that aligns with the
overall project timeline.
· Determining the appropriate procurement method: direct
purchase, tender, work contract, etc.
2. Vendor/Supplier Search and Selection
· Preparing a list of potential suppliers or service
providers.
· Conducting technical and commercial evaluations of
vendors (including quality, pricing, production capacity, reputation, etc.).
· Issuing invitations for quotations or tenders (Request
for Quotation – RFQ, or Tender).
3. Negotiation and Contracting
· Preparing and signing procurement contracts with
selected vendors.
4. Procurement Execution
· Purchasing or placing orders for goods and services.
· Monitoring the production and delivery processes.
· Ensuring that all items meet the required technical
specifications.
5. Receiving and Handling of Goods
· Inspecting the quantity and quality of goods upon
arrival at the project site.
· Preparing the Minutes of Goods Receipt (known in
Indonesian as BAST).
· Coordinating with the warehouse and logistics teams.
6. Payment and Administration
· Verifying and matching invoices, Purchase Orders (PO),
and Goods Receipt documentation.
· Managing payments to vendors as per the agreed terms.
· Keeping complete records and documentation of the
entire procurement process.