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Procurement and Tendering - Projects

Procurement is an essential part of all projects and programmes, either of internal or external resources.

For most procurement, the organisation will have to comply with the same policies and procedures that exist for the organisation as a whole, for which there should be clear authority levels and protocols to ensure that whatever is procured meets two key criteria:

• The requirement is clearly stated and will be fit for its intended purpose
• Procurement meets internal and external governance and regulation requirements

Accordingly,

• Managing procurement needs to be effective
• Suppliers need to be chosen with a clear view of what they will provide

In addition, in the context of projects for which the requirement might never be repeated:

• There might be no previous relationship with the supplier
• There might be little technical knowledge by the buyer
• There might be strong commercial aspects for the supplier

Risks are therefore different from those involved in routine and regular operational procurement.

Setting out the technical and commercial requirements is crucial to establishing a robust basis for the buyer-supplier relationship.

While this is always the case for all procurement, for purchases relating specifically to a single project there are project-specific risks in the event of delays and failures.

If you have any concerns about your procurement policies, procedures and processes either for projects or for your organisation as a whole, please contact us for an informal discussion.