Supporting effective SPP
Supporting effective SPP

Supporting effective SPP

Created
Feb 9, 2023 7:39 PM

Construction projects are usually long and complex, involving the participation of different stakeholders throughout the different project stages. There are certain factors that are key to determine the sustainability of a project, and the monitoring of these factors necessarily entails the collection of relevant data variables throughout the procurement process.

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In this section, we introduce certain procurement approaches and procedures that support open collaboration amongst stakeholders, facilitating the collection and sharing of data during the process.

Define your needs and understand market capability

The following approaches promote data sharing and collaborative approaches in procurement. Applying these will help you to gather relevant information regarding how to best design the procurement process according to your needs, and according to market capability.

Market engagement practices
Early Supply Chain Integration (ESI)
Benchmarking hub

Select the best procurement practices

The following procedures can constitute the characteristics of a single procurement procedure, or individual characteristics of certain procurement processes.

Outcomes-based approaches
Cost ceilings
Two-stage tender
Integrated teams
Third-party insurance
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Resources

Guidance on using two-stage procurement processes in construction projects:

Guidance on including early supply integration in construction projects at the design stage:

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Case study

The construction of The Habitat Research and Development Centre (HRDC) in Namibia was procured using a two-stage tender. The two bidders chosen after the first stage, and their Quantity Surveyors, drafted the Bill of Quantities (BOQ) that would be included in the second stage.

Openly sharing information during the time between the two stages of the tender allowed the experienced team to come up with sustainable materials and methods to include in the BOQ, all of which they based on available local resources.

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Case study

In 2006, Scotland’s Forth Road Bridge showed in signs of significant deterioration. After a review, it was decided that a new bridge would be built next to the existing one. Due to the complexity of the project, Transport Scotland decided to engage with the market in order to gain knowledge and assess the procurement plan. This was done by organizing an Industry Day with top contractors, where a Questionnaire was distributed. Following this, bilateral conversations were established with suppliers to come up with the best possible plan. These activities shaped many aspects of the procurement procedure, including contract details and the employer’s requirements.