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WHY IS A PROCUREMENT ENGINEER NEEDED IN THE CONSTRUCTION INDUSTRY?

Let's first understand the word "PROCUREMENT" and then we will explore everything about PROCUREMENT.

16th Feb 2023.

What is PROCUREMENT?

In the construction sector, procurement describes the process of obtaining the tools, staff, and supplies required to finish a job. It involves choosing and overseeing the providers of the necessary goods and services, including suppliers, contractors, and subcontractors.

 Procurement in the building sector can be complicated and involve a number of parties, including owners, architects, engineers, contractors, and suppliers. Creating a thorough project plan that specifies the project's scope, budget, and schedule is a typical step in the procurement process. The procurement team will then decide on a procurement strategy after determining what supplies, labor, and services are required to complete the project. 

The procurement strategy typically entails identifying potential vendors and contractors, distributing requests for proposals (RFPs), assessing submissions, settling on a contract, and ultimately choosing vendors and contractors to work on the project. To guarantee that the project is finished on time, within budget, and to the necessary quality standards, effective procurement is essential in the construction industry.


What are the key skills required to become a Procurement Engineer?

Several essential skills are needed to succeed as a procurement engineer in the construction sector. These comprise:

Technical Understanding: Procurement engineers need a solid grasp of the technical facets of construction materials, machinery, and procedures. Engineering requirements, design guidelines, and material properties are all included in this.

Analytical skills: Procurement engineers must possess analytical skills in order to select suppliers, negotiate prices and select prices based on data. For the best supplier evaluation and construction project decision-making, strong analytical abilities are essential.

Negotiation skills: Procurement engineers must be skilled negotiators in order to secure the best value for the construction project. They must be able to negotiate contracts and pricing with suppliers. To manage costs effectively and guarantee the project stays within budget, strong negotiation skills are a necessity.

Communication skills: Procurement engineers must be proficient communicators with both internal and external stakeholders, including project managers, engineers, and contractors. To ensure that everyone is on the same page and to avoid misunderstandings that could harm the project, it is crucial to have strong communication skills.

Project Management Skills: Procurement Engineers must be able to manage procurement activities within the framework of the larger construction project. To guarantee that procurement activities are completed on schedule, within budget, and to the required quality standards, strong project management skills are imperative.


Why is PROCUREMENT needed in the construction industry?

Because of a number of factors, procurement is crucial in the construction sector.

Obtaining the required labor, materials, and services: Construction projects call for a variety of labor, materials, and services that may not be readily available on-site. The process of procurement aids in locating and acquiring the required resources from outside sources, ensuring that the project can be completed to the necessary standards.

Cost savings: For construction projects, efficient procurement can lead to cost savings. Procurement experts can get the best prices on materials and services by haggling with suppliers and contractors, which helps to keep the project within budget.

Quality control: Procurement is essential in making sure that the goods and services bought for the project are of the required caliber. The project will be completed to the required standard of quality thanks to procurement professionals' ability to assess suppliers and contractors based on their quality standards.

Risk management: Procurement aids in reducing the risks connected to construction projects. Procurement professionals can lower the risks of delays, cost overruns, and other issues that may arise during the project by choosing suppliers and contractors based on their experience, reputation, and financial stability.

In order to guarantee that projects are finished to the required standards, on schedule, and within budget, procurement is crucial in the construction industry. A successful project can be completed with the help of effective procurement, which can also lower costs, manage risks, and guarantee that the required resources are on hand.


Who is responsible to do Contracts & Tendering works in the construction industry?

In the construction industry, contracts and tendering tasks are frequently managed by a specialized team or department within the organization, frequently referred to as the procurement department. The management of the procurement procedure, which includes contracting, purchasing, and tendering, falls under the purview of the procurement department.

The procurement department may be charged with a variety of duties in large construction firms, including:

Procurement Manager: The manager of procurement is in charge of supervising the department and making sure that procurement tasks are carried out successfully and effectively.

Contract Manager: The manager of contracts is in charge of drafting and negotiating contracts with vendors and contractors to make sure that the terms and conditions are advantageous to the company.

Tendering Manager: The tendering manager is in charge of overseeing the tendering process, which includes putting out requests for proposals, assessing responses, and choosing suppliers or contractors.

The purchasing manager is in charge of purchasing the supplies, tools, and materials needed for the construction project. These responsibilities may be combined in smaller construction firms, and one person may oversee the procurement procedure.

In the Construction industry contracts and tendering projects are ultimately the responsibility of the organization's management, which is also in charge of making sure that the project is completed on schedule, within budget, and to the necessary quality standards.


How CivilGuruji is helping you to learn Contract & Tendering?

CIVILGURUJI “CIVIL ENGINEERS TRAINING INSTITUE” is giving you the entire knowledge related to Contract & Tendering and costing both ONLINE as well as OFFLINE MODE of training, to know more about the Contract & Tendering course you call us at 9111001234 or click to 
BUY NOW  or below have your entire syllabus that we give in the Contract & Tendering course.
  • How an agreement converted to a contractual agreement.
  • What are the roles and responsibilities of a contract engineer or procurement engineer?
  • What are the different stages involved in tendering process?
  • Types of contracts.
  • Types of tenders.
  • Drafting of agreement and work order.
  • Tender fiscal aspect.
  • Price bid comparative.
  • Pre-qualification of contractors.
  • Important clauses of construction contracts etc.
  • Live interactive doubt sessions.
  • Discussion chat forum.
  • Telephonic doubt panel.
Contract and tendering to develop your own business ideas about construction fields i.e., as a contractor. How a contractor gets a contract by filling out a tender form step by step. through NIT, TENDER DOCUMENTS, CONTRACTUAL AGREEMENT, LETTER OF INTENT, WORK ORDER, LETTER OF AWARDS, GENERAL CONDITION OF CONTRACTS &SPECIAL CONDITIONS OF CONTRACTS ETC and details about more important clauses used in a construction contract that is mobilization advance and its recovery process, what is secured amount, what is defect liability period, what is earnest money deposit, the process of retention money, what is liquidated damage, what is CAR POLICY, change order clause, extra item & substitute clause, RA bills, water and electricity clause, etc. what is virtual completion certificate and what is successful completion certificate?

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BUILDING SKILLS - CONSTRUCTING CAREER

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