Procurement Processes | Assignment

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Added on 2019-11-20

Procurement Processes | Assignment

Added on 2019-11-20

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PROCUREMENT1Procurement.By[Student’s name]CourseInstitutionDate

PROCUREMENT2Table of ContentsExecutive summary.........................................................................................................................2Introduction......................................................................................................................................3Open tendering method....................................................................................................................3Restricted tendering method............................................................................................................5Single-source procurement..............................................................................................................7Conclusion.......................................................................................................................................8References........................................................................................................................................9

PROCUREMENT3Executive summaryProcurement is the process of acquiring goods and services needed by an organization so that it can operate efficiently. There are various methods of procuring the needed goods and services. The methods include direct tendering process, restricted tendering process, request for proposal, request for quotation and open tendering method but this report has highlighted the main ones which are open tendering, restricted tendering and direct procurement. The client should select the method that is most effective to suit his requirements. This report seeks to highlight the factors that should be considered before choosing a certain procurement method. The elements are not limited to cost of the method, time to be consumed, the complexity of the project at hand and even the financial stability of the suppliers. For urgent projects, this report recommends that direct procurement should be preferred but with considerations of the factor that the supplier can run out of stock or even become bankrupt. Where the deadline is long, this report recommends that open tendering or restricted tendering method can be employed.

PROCUREMENT4Introduction. For every business to grow effectively, it needs to have projects which will help in the production of quality goods and services that satisfy customers. The project to be constructed require different materials and even labor which most of the times the business is not able to provide. To make the project successful the business will have to procure the material and the other requirements which it is not able to provide from other businesses through a process called procurement (Georghiou,et al.2014, p.10). There different methods of procuring the requirements. This report is written to highlight some benefits and problems of using various procurement methods and recommendations for best procurement methods for different construction projects.Open tendering method.This is a method which allows competitive bidding as all the companies capable of providing therequired material can bid without any restrictions (Guccio, et al.2014, p.50). This method focuseson the value for money and seeks to give the tender to the product provider who will provide quality products and services at the lowest cost. CharacteristicsThe procuring company is required to adhere to the following requirements and characteristics ofopen tendering procurement; advertise locally and even internationally when required (Georghiou,et al.2014, p.10). Make the process open to all qualified bidders, the tender given to the least cost provider who meets the minimum requirements for the products needed, have clear and neutral product specifications and also adhere to the objective evaluation measures set by theprocurement regulations act in the country.Benefits of open tendering to project developers

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Procurement Processes | Assignment