Getting The Best From Your Procurement Strategy

Matthew Board
Early supply chain engagement, coupled with a good understanding of contractor aspirations and capabilities, sets the scene for procurement success.

It’s widely acknowledged that you can get more from your procurement strategy if you take the time to carefully formulate a route that works for all stakeholders, especially those focusing on delivery. This cohesive approach has become the norm in more mature construction markets, but still needs embedding here in the Middle East region.

The Middle East is a hub for growth in terms of construction capability.

All too often, clients only utilise a traditional contracting approach, expecting contractors to provide tenders to build to a specified design and programme. The rationale is the apparent cost and programme certainty gained by tendering based on detailed design. However, this certainty doesn’t always materialise during project execution, due to potential misalignment between the contractor, the scope and client objectives. Unless the right contractor is matched with the right scope, supported by discussion and debate of the appropriate strategy, potential quality issues and time/cost over-runs could arise.

There is a better way. The Faithful+Gould team is working with clients throughout the region to focus and, where possible, improve their procurement strategies. We’re building on lessons learned in many procurement exercises throughout the world, guided by regional team members who have had the benefit of representing all stakeholders within the industry. We’re already seeing some great results and predicting there will be more to come - hopefully contributing to a culture change in the industry. This approach certainly adds value when applied to portfolio, programme and major development procurement strategies.

Success begins with an early and clear understanding of the development aims...

Faithful+Gould believes in early and detailed dialogue with the supply chain. Market knowledge is a priority, enabling us to identify whether a contractor has the required aspirations and capabilities for the scheme. This also allows us to determine other critical feedback on any particular market challenges and opportunities facing the supply chain. We use this market knowledge and contractor feedback to establish the correct contractors for further engagement during the tender process. Building good relationships with contractors during this process is critical and promotes procurement success.

Contractors in the region are growing their capabilities in terms of understanding and implementing new construction technologies. Interaction with them is critical to obtain their views on the suitability of these methods. The supply chain also can provide beneficial pre-construction services (as applicable to the agreed strategy) at an early stage in the process. These could include design and buildability reviews, category management support, programme interrogation and logistics management development. These are all key drivers of success, and areas where clients and consultants need support from the supply chain.

Faithful+Gould’s procurement services aim to facilitate a synergy between our clients and the supply chain. This early interaction with the supply chain, starting with a clear brief of client aims and objectives, forms the basis of any good procurement strategy and promotes project success.

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