Procurement of construction projects
In construction projects, the purchaser needs to select competent contractors for quality services. When the situation involves an invitation to bid, different contractors apply as per the qualifications. However, pre-qualification influences the evaluation and selection of capable bidders depending on the project terms. Purchasers select a contractor to outsource the project by first assessing the interest terms.
There are various benefits of using Public-private partnerships in construction projects. P3 arrangement helps in saving time and resources for faster and successful completion of specific projects. Also, to receive extra funding for the activities to avoid delays due to inadequate capital. In construction management, collaboration is essential in identifying problems and finding possible solutions.
Procurement refers to the process of purchasing and acquiring goods and services from external sources through the process of competitive bidding. The selection methods applied in procurement transactions include the non-competitive outsourcing proposal, competitive proposals, and sealed bids. Managers should select the appropriate sourcing tool to reach potential bidders. The type of desired outcomes, such as price, firm, and information proposals, determine the kind of sourcing documents to use. Therefore, Request for Quotation (RFQ) is a document used to outsource standardized projects, thus inviting bidders to submit proposals competitively, while Request for Proposals (RFP) is a notification document used in notifying potential suppliers about the outsourcing requirements of a project. After selection, the outsourcer provides the contractor with a Notice to Proceed document (NTP). NTP is a notification with an indication of the date that the contractor needs to start the project.
Best value selection is essential in construction services, and it involves consideration of all factors, including the cost and non-cost issues in outsourcing through fair evaluation, selection, and rewarding of construction bids. It is the responsibility of the main stakeholder in the construction project to create an RFP document. Hence, the benefit of construction management is to typically specify the plans and goals associated with a project to give the contractor a way forward.