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Procurement in construction sectors

The procurement in construction sector deals with the planning, management and control of the allocation of procurement expenditure to work on construction projects. Like any other sector, the ever-changing business landscape puts pressure on this industry to stay competitive and innovative. It starts with a detailed life cycle analysis, followed by an accurate procurement process. Most of the construction projects fail miserably because of the coordination difficulties related to material procurement. Some contractors deal with this issue by importing all required materials into the site.

Procurement in Construction Industry

Due to the current economic hardship, many organizations are encouraging their staff members to be responsible for what they buy, particularly in the construction industry. It includes the negotiation and structuring of contracts, subcontracting, purchasing of materials and many more. Procurement in Construction Industry allows construction companies to build highly efficient and cost-effective structures with minimum cost to the client. With the advancement in the field of construction and related research & development; procurement and cost-effective techniques have gained momentum and importance. Most of these procedures are incorporated into the bid process of tenders or the selection of the project by the clients.

The procurement strategies and their execution processes have to be properly monitored and reviewed to ensure efficiency. Procurement is a key function in any industry and this has to be handled efficiently to ensure proper utilization of resources and maximize return on investment. Proper implementation of quality management processes helps to reduce cost and also improves the quality delivered.
It is seen that most of the construction companies fail to implement proper cost reduction measures and have not been able to bring down the cost to what a reasonable level can be maintained. This has lead to problems in the overall efficiency and quality of the services rendered. Cost reduction measures include the following negotiating with clients on price, controlling waste and eliminating unproductive stocks.

Procurement training is important for individuals and organizations. As the field of procurement has changed dramatically in recent years, requiring new skills for procuring items from vendors, and managing vendor relationships are necessary.

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