A framework for developing construction procurement strategy

Abstract

There are a number of different approaches to procuring goods, services and works, each of which can result in different outcomes. Procurement strategy is all about the choices made in determining what is to be delivered through a particular contract, the procurement and contracting arrangements and how secondary procurement objectives are to be promoted. This paper outlines the components of a procurement strategy, the available options and the factors which need to be considered. It draws upon the menu of options embedded in the ISO 10845 construction procurement standards and the Fidic and NEC3 families of contracts. It then presents a framework within which choices can be made in support of project objectives in the delivery or maintenance of infrastructure. The application of the framework enables resources and objectives to be matched to the choices made regarding the manner in which needs are to be met and provides a platform for achieving optimal project outcomes.