The success of any construction project depends on acquiring the right materials, services, and expertise at the right time and for the right price. This is where construction procurement comes in. Understanding procurement is crucial for smooth project delivery. This guide dives into what construction procurement entails and why it matters.
Jump to:
● What is construction procurement?
● Why use one of our solutions for construction procurement?
● Our Routes into Construction Procurement
● Importance of having a solid construction procurement strategy and how to develop?
● Why choose our construction solutions?
What is construction procurement?
Procurement is the process of acquiring goods and services needed to complete a construction project. It involves selecting contractors, consultants, and suppliers, negotiating contracts, and managing the overall supply chain. A well-defined procurement solution ensures timely, cost effective, and safe project execution. In essence, construction procurement is the process of securing everything needed to bring your project to life. This encompasses a wide range of activities, including:
- Defining Objectives: Gather key stakeholders to establish clear project goals, risk assessments, and timelines. A well-defined construction management plan is crucial.
- Budget Clarity: A set budget ensures realistic expectations for both you and potential contractors. It also helps narrow down suitable frameworks based on project scope and size.
- Defining project requirements: Identifying the specific materials, labour, and specialist services needed.
- Selecting suppliers and contractors: Our procurement solutions ensure you find reputable, preapproved suppliers who have undergone rigorous vetting that can deliver on quality, budget, and schedule.
- Negotiating contracts: Establishing clear terms and conditions for all parties involved.
- Managing contracts: Overseeing the performance of suppliers and contractors, ensuring adherence to agreements.
Why use one of our solutions for construction procurement?
A well-defined construction procurement solution goes beyond just getting good deals. It establishes efficient project delivery, mitigates risks, and ultimately, contributes to project success. Here's how:
- Cost control: Our solutions help ensure you get the best value for money without compromising on quality.
- Reduced risks: A clear selection process and well-defined contracts minimise the risk of delays, disruptions, and cost overruns.
- Improved project timelines: Ensures a steady flow of materials and avoids delays in acquiring specialist services.
- Enhanced collaboration: Better communication and collaboration with suppliers and contractors.
Our Routes into Construction Procurement
Our solutions provide a compliant route to market for entering construction procurement in the UK. Each of our solutions brings its own set of benefits:
- Benefit Major Projects Framework 2 (MPF2): Major Projects Framework 2 provides a variety of construction work across England & Wales, Scotland, and Northern Ireland. MPF2 sets out to be the most socially conscious, greenest, financially robust, and flexible construction framework available. Early engagement allows framework partners (Willmott Dixon, Robertson or Farrans) to get an early insight into a project and help the customer achieve their desired outcomes. The framework is also set up with the lowest fee structure in the public sector – ranging from 0.5% to as low as 0.15%.
- Benefits of Development Contractors DPS: The Development Contractors DPS is designed to offer maximum flexibility for any project. The wide range of work streams and value bandings mean that whatever development projects you require can be accommodated. Additionally, because this is a DPS, customers can add their existing local supply chain into the DPS, to ensure their potential inclusion in any contracts
- Benefit Construction Works DPS: The Construction Works DPS is designed to help members source local trades for construction projects rather than using main contractors or large national companies. Whether you are looking to complete a small refurb or a new build housing estate, the DPS enables you to choose your weightings, tender questions and contract type. Additionally, because this is a DPS, customers can add their existing local supply chain into the DPS, to ensure their potential inclusion in any contracts
Importance of having a solid construction procurement strategy and how to develop?
Construction projects are becoming increasingly complex. With new building safety legislation, a dynamic supply chain, fluctuating commodity prices, and availability of skilled labour, construction projects must navigate several challenging factors to deliver a successful outcome. This is before we even consider the objectives of the customer – net zero aspirations, environmental benefits, social value creation etc.
By engaging at the earliest stage of your project with Procurement Hub, and our Client Relationship Managers, you will significantly increase the potential for your construction project is delivered on time, within budget, and to the highest quality standards.
Understanding the processes, methods, and benefits of solutions, you can make informed decisions that ensure your project's smooth execution. Each of our solutions caters to specific public sector needs, with all suppliers meeting high quality standards.
Delivering a successful construction process relies on many organisations working in harmony towards the same goal, and Procurement Hub are perfectly positioned to assist you with this.
Why choose our construction solutions?
Procurement Hub is part of Places for People, the largest social enterprise in the UK, and we own and manage over 240,000 properties – so we understand the importance of procurement construction!
At Procurement Hub, we select only the best top-tier suppliers who are known for their excellent service and extensive public sector experience.
We believe wholeheartedly in being open and honest with our customers. We charge the suppliers on our frameworks a small fee ranging from 0.15% to 2% of the contract value. We publish all of these fees clearly and prominently on our website. All surplus from those fees is reinvested back into social housing, social value projects, or donated to charities, ensuring community benefit.
Discover our construction procurement solutions which are most suited to help deliver your project.