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Project Procurement II

This is a continuation of the procurement article from March. Part of the project process is developing TIC estimates. In the early stages you usually use budgetary quotes. These you will get from suppliers and condition them based on your experience. Depending on your company policy, you may get the budgetary quotes or procurement can get them. They are based on  preliminary information known at the time. In the later stages you will have to get firm quotes which is a procurement function. Typically the owner will procure the engineered equipment and the contractors will procure the  bulks.

The procurement cycle starts when you prepare the Request For Proposal (RFP) and the procurement group issues it to suppliers. Once the RFP is issued, all communication with the supplier should then go through procurement. The procurement groups function is to ensure the Purchase Order (PO) covers all the items asked for and tracks any changes. If o t h e r s a r e  h a v i n g  i n d e p e n d e n t conversations with the suppliers and changing items and quantities, you will have no control over the cost. In fact your procurement agent should advise the……………… click here

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