PROJECT PROCUREMENT MANAGEMENT

 

Our consultants apply tested analysis procedures to evaluate issues typically arising during the planning, conducting, controlling and closing out of procurement activities for a construction project, including procurement audits; the contractor/vendor qualification & selection process; inquiry document preparation; contract/subcontract administration; vendor submittals management; change management; and procurement status reporting.

We deliver authoritative guidance on all processes within the cradle-to-grave process of purchasing and material management to help ensure equipment, bulk materials, and services are fully identified, quantified, estimated, acquired, delivered and distributed to a construction jobsite.  Our approach involves an in-depth audit of the planning, execution, control and closure processes for procurement management of a capital project.

PROCUREMENT PLANNING MANAGEMENT SERVICES

Using expert procurement and material management judgement, results of market research on vendor capabilities and meetings with appropriate stakeholders, we examine an existing procurement management plan or provide guidance on development of a plan for a new project. Key areas of focus are clear definition of plans and policies for work statement definition, integration of client policies and procedures, standard forms, evaluation and selection criteria, procurement risk identification, contract relationships, expediting and inspection, and integration of the procurement activities with the project’s estimating, scheduling, cost, and material management processes.

PROCUREMENT EXECUTION MANAGEMENT SERVICES

Procurement and material management operations examined include preparation of procurement documents (purchase specification, inquiry, proposal, evaluation, and purchase order or contract), and vendor and contractor selection criteria for compliance with planned strategies. Key areas of focus are coordination with engineering on material and equipment requisitions and vendor submittals; bidder conferences; purchasing or contract negotiation techniques; expediting and inspection, and the award process.  Purchase order and contract terms and conditions, change provisions, procurement status reports and contract administration processes are vetted to for compliance with downstream construction operations.  

PROCUREMENT CONTROL MANAGEMENT SERVICES

A structured performance review of contract performance and change management processes is conducted to ensure both contractual and legal aspects of buyer/seller relationships meet project requirements. The project organization’s performance of planned procurement monitoring and control processes and compliance with contract or P.O. requirements are evaluated to determine the extent to which quality standards and risk management methods are being satisfied. Areas of focus include procurement status reporting; vendor inspection and internal audits; formal acceptance, payment authorization and claim administration processes; record management; verification of shop inspection and testing processes; and retainage for submittals such as as-built drawings and operating manuals.

PROCUREMENT CLOSURE MANAGEMENT SERVICES

Using expert judgement and sampling techniques we investigate the planned completion and close-out processes for purchase orders and contracts, and preservation of documentation for future reference. Special attention is given to final inspection and acceptance procedures, claim finalization, procurement record updates, archiving processes, and written notices of completion. If applicable, assistance is provided for contract termination or dispute resolution processes.

DELIVERABLES

Clients are provided with a comprehensive report of observations and recommendations on the health of a capital project’s procurement management process. Benefits include but not limited to strong knowledge that purchasing and material management plans are sound; a clear understanding as to where outside procurement support is needed; high level confidence in procurement execution with inclusive work statements and procurement documents for each procurement based on a verified baseline management process; alignment of internal and external procurement expectations through vetted agreements and control tactics; improved assurance of both owner and contractor performance meeting procurement requirements, and clear identification of P.O. and contract closure requirements.