Procurement Strategy (Procurement Route)

What is a Procurement Strategy or a Procurement Route?

Procurement is the process of purchasing goods and services. In this topic, it refers to the process of getting a construction project completed.

Procurement Strategy refers to the way in which the clients objectives are met with respect to the project. Procurement Route is the means or the actions required to carry out the Procurement Strategy.

Selecting an appropriate Procurement Strategy is one of the foremost and important tasks to be undertaken before commencing on a project.

Why is selecting an appropriate Procurement Strategy important? Continue reading

Provisional Sums (PS)

What is a Provisional Sum?

Provisional Sum is a sum of money which may or may not be required to carry out work whose design is incomplete or whose total scope cannot be determined in the beginning. It is used to make an allowance for the said work in the contract. E.g. While excavating hard rock, the total quantity of hard rock cannot be determined beforehand. So a Provisional Sum will be allocated for the work.

How is it classified? Continue reading

Preliminaries (Prelims)

What are Preliminaries?

Preliminaries are items which cannot be directly attributed to any component, element or work section but are required to carry out the works specific to the project. They are usually provided in the beginning of any BOQ to make allowance for those costs which are necessary for the running of the project but are not specifically related to any one item or operation.

How are they classified? Continue reading

Bill of Quantities (BOQ)

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What is a BOQ?

As per the definition given by Cambridge dictionary, a Bill of Quantities is a document showing a list of everything needed to build something and how much each item will cost.

NRM 2 defines a BOQ as a list of items giving detailed identifying descriptions and firm
quantities of the work comprised in a contract.

Basically it is a list of items forming part of a construction project with information about their units, quantities, rates and amounts.

What does it contain?  Continue reading

Ethics

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What prompted me to write this article is a small incident that happened at work today. I got a call from a vendor inquiring about their submitted quotation for a small work. I informed them that their quoted price was quite high and they will have to reduce their price considerably. To which he replied that he will offer me 1% of the price if I help him. I was surprised as this is the first time such an incident has happened with  me. I politely told him “No thanks! I do not indulge in such activities” and cut the call.

Many times in our professional career, we come across many such incidents where our integrity is tested. However tempting the offer maybe, one must always refrain from unethical behaviour as it will not only destroy the image of you and your company but also reduce the trust in your profession. At the end of the day, you can go to sleep peacefully knowing that you have done the right thing!


Recently, I completed the Ethical Standards Walkthrough (you can also do it for free) as part of completing Formal CPD of my APC process. The learnings from the same are given below.

There are five Global Professional and Ethical Standards given by RICS which all members must demonstrate in their profession. They are:

1. Act with integrity  – it means being honest and straightforward in all that we do.

“Integrity is doing the right thing when no one is watching.”

2. Always provide a high standard of service – it means always ensuring that our client, or others to whom we have professional responsibility, receive the best possible advice, support or performance of the terms of engagement we have agreed.

“The quality of a leader is reflected in the standards they set for themselves.”

3. Act in a way that promotes trust in the profession –  it means acting in a manner, both in our professional life and private life, to promote our self, our firm or organisation we work for and the profession in a professional and positive way.

“Trust takes years to build, seconds to break and forever to repair.”

4. Treat others with respect – it means treating people with courtesy, politeness, and consideration, no matter their race, religion, size, age, country of origin, gender, sexual orientation or disability. It also means being aware of cultural sensitivities and business practices.

“Treat people the way you want to be treated. Talk to people the way you want to be talked to. Respect is earned, not given.”

5. Take responsibility – it means being accountable for all our actions – don’t blame others if things go wrong, and if we suspect something isn’t right be prepared to do something.

“Leadership is about taking responsibility, not making excuses.”

Reference: RICS Regulation – The Global Professional and Ethical Standards

Comparison Statement (CS)

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What is a Comparison Statement? 

It is a statement used to compare the quotations submitted by different subcontractors or suppliers.

What is compared? 

  1. The prices of different items in the BOQ
  2. Payment terms
  3. Delivery conditions
  4. Any other conditions put forth by them

Points to be considered while preparing a CS

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Request For Quotation (RFQ)

RFQ

What is an RFQ?

An RFQ is basically a Request for Quotation sent to a Supplier or a Contractor. It can be a letter or an email.

When is it sent?

  • Preparing an Estimate – when we need rates of specific jobs or materials to prepare an Estimate
  • Contract finalisation – when we need to finalise a Subcontractor or a Supplier.

What does it contain?

In a Real Estate construction project, an RFQ generally contains the following items:

Continue reading