Procurement Strategies In Construction

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2.4 PROCUREMENT STRATEGIES Procurement strategies for building projects have not changed in the last thirty two (32) years. Even though the industry is still encountering cost and time overruns in most projects funded by the public sector e.g. South Gauteng High Court project, Norwood Police hostels project, etc. as a result procurement method chosen for a particular project, particularly the public renovation projects, is ought to be expected to play a significant role in minimizing the cost and time overruns. In addition to the procurement method to be chosen, these methods need to match with both the objectives and priorities of the client, which in this case would be the public sector (Hampson and Brandon, 2004). As times change in the…show more content…
Between procurement and the project management exits a series of relationships throughout the project’s whole life cycle. Both of which have essential roles to play as project management is regarded the application of knowledge, skills, tools, and techniques to a broad range of activities in order to meet the requirements of the particular project. With construction procurement, it is considered best when it is applied to a project management process in areas such as where and how resources should be sourced (Oyegoke, Dickinson, Khalfan, McDermott and Rowlinson,…show more content…
As a result, price alone cannot be used as a reliable indicator on the government projects as it will not help obtain the best value for money. With achieving the best value for money in the construction projects funded by the public sector, it means that accepting the lowest bidder does not necessarily help to meet the project’s requirements or rather goals which the client has. The South African government considers best value for money to be the best available outcome when all relevant costs and benefits over the procurement cycle are considered. The procurement function itself must also provide value for money and must be carried out in a cost-effective way. It is required by the government that the procurement organisations should have certain approaches which will help with regards to the
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