Building contractors London wide need to have an expert procurement strategy in place if they are to run every project efficiently and keep their costs down. The process of developing a procurement strategy can be broken into three steps: gathering and analysing project data, determining the preferred delivery model, and planning a considered approach to market.
In this post, we are going to look at the components of a good procurement strategy in further detail, as well as the key success factors when putting an effective procurement strategy together.
Let’s begin with the components. Your procurement strategy should begin with a statement of objectives, followed by a summary and analysis of project objectives, requirements, characteristics, and risks. Potential risks to consider include stakeholder management, political risks, market capability, market maturity, client risk culture, constructability, materials, design, permits, and site issues. Construction contractors then need to review client and market capabilities. This is followed by the analysis of various options of delivery model, and then the identification of the best delivery model. Building contractors in London should proceed by analysing potential procurement methods and identifying a recommended method. Other critical components include a project plan, which shows timing and sequence, as well as agency contract management requirements. You need to also identify opportunities for unbundling or bundling work and contracts. For example, when speed is a priority, splitting contracts may be the best option. Alternatively, to increase economy of scale, bundling projects of a similar nature can be the most effective. You also need to look for opportunities for the use of collaborative methods.
Of course, the amount of detail required for each step can be adapted based on the complexity and scale of the project. Low value and low risk projects may not require all of the elements that have been expressed above.
Now, let’s take a look at what factors are important when developing a successful procurement strategy. Firstly, you must completely understand the characteristics of the project, including risks, constraints, and key drivers. Building contractors London wide must also assess the client in regards to the market, as well as their capacity and capabilities.
Next, evaluate potential delivery models and an approach to market for suitability. Involving key stakeholders and experts early on in the planning and development process can also be highly beneficial, as can challenging assumptions in order to achieve better desired outcomes. To support the decision-making process, it is also vital to use practical analytical techniques. If London building contractors use this approach when putting together a procurement strategy, they can increase their chances of success considerably.
As you can see, there is a lot that needs to be considered when putting together a successful procurement strategy, and this is something we can assist with. At Construction Link Limited, we have made procurement easy for building contractors London based and beyond. At C-Link, we make it easy for you to manage all the elements of your procurement strategy, as well as finding the best specialists for any construction project you undertake.