The Bid and Award phase, also known as the Procurement phase, is a crucial step in the construction project lifecycle. These two terms are often used interchangeably to describe the process of acquiring the necessary consultants, suppliers, installers, and contractors for a project. The aim is to ensure that all essential materials, services, and resources are procured efficiently and effectively, setting the project up for success.
Understanding the Bid and Award (Procurement) Phase
By the time you reach this phase, you should have a clear and fixed idea of what the project entails, how much you intend to spend, and the anticipated duration. This phase is critical in bringing the project closer to reality by completing the following key activities:
Tendering Process: Various contractors and suppliers submit bids to provide their services or materials for the project.
Selection of Contractors and Suppliers: Evaluating bids and selecting the most suitable contractors and suppliers based on factors such as cost, quality, and experience.
Engagement of Suppliers and Installers: Formalising agreements with suppliers and ensuring that all necessary resources are lined up.
Preparatory Activities: Obtaining permits and approvals necessary for the commencement of work.
By the end of this phase, the project's construction budget and timeline should be finalised, and the manufacture of long lead items should begin.
Methods of Procurement
There are several methods for procuring goods and services in a construction project. The choice of method depends on factors such as project complexity, budget, and timeline. Below are some key procurement methods:
Open Tendering: A widely used method where bids are invited from any interested party, promoting competition and ensuring cost-effectiveness.
Selective Tendering: A more controlled approach where only pre-qualified contractors are invited to bid, ensuring that only capable and experienced bidders participate.
Negotiated Contracts: A procurement method where a contract is awarded through direct negotiation with a preferred contractor or supplier, often used in highly specialised projects.
Framework Agreements: Long-term arrangements with multiple suppliers or contractors to provide goods and services as needed, commonly used for repeat work or ongoing maintenance.
Design and Build: A single entity is responsible for both the design and construction of the project, streamlining the process and reducing potential conflicts.
Outsourcing Procurement
For larger or more complex projects, the bid and award phase can be managed by a project manager or procurement specialist. These professionals bring expertise in contract negotiation, supplier selection, and risk management, ensuring that the procurement process aligns with the project’s goals and requirements.
The Bid and Award phase (or Procurement phase) is a pivotal moment in a construction project, laying the foundation for successful execution. By selecting the right contractors, securing necessary approvals, and finalising the budget and timeline, this phase ensures a smooth transition into the construction phase.
Author
Mike Weeks
Mike has over 20 years experience in the construction industry, delivering both single site projects and multi-site programmes of work. He has worked in the retail, aviation, commercial and real estate sectors, in both client and consultant organisations.
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