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Construction
Before You Start
Overview to Construction Procurement
The main success criterion of a construction project is the value of the facility to the organisation over time. Successful delivery requires an integrated process in which design, construction, operation and maintenance are considered as a whole - together with an understanding of how the project will affect business efficiency and service delivery over the lifetime of the project. It also requires effective use of project management techniques such as risk and value management. This guide will take you through a typical procurement journey for a high value, possibly complex, Construction procurement project. It outlines the decision points and processes involved in the delivery of construction projects. It sets the project procurement process in the context of Gateway Reviews, the design and construction stages and key supporting processes such as risk management, value management and quality, cost, time and change control. Links to more detailed guidance, best practice and templates are included.
This guide is only a starting point. You should also refer to your internal policies and guidance. For Construction procurements, you will always need specialist procurement or legal advice.
The Legal and Policy Context
Public sector procurement is governed by the regulations that implement the EU Procurement Directives. These apply to the majority of procurements with a total value over a specified threshold. They stipulate the procedures to be followed for the procurement process, especially relating to time limits, specifications, advertising, and tendering and contract award. You must adhere to these regulations in all your procurements exceeding the threshold. You will need to define the most appropriate procedure for your procurements on a case-by-case basis. Refer to the UK procurement regulations.
You must apply the key principles of public procurement. These require the achievement of value for money, including appropriate quality and service to meet business needs, and appropriate governance e.g. adherence to HM Treasury rules concerning the use of public money in procurement. There are also a number of other key OGC policies to incorporate in your procurement approach including those relating to environmental sustainability and social issues, innovation and collaboration.
Guidance
- Achieving Excellence in Construction Guides
- Common Minimum Standards (PDF, 668KB)
- Guidance to Best 'Fair Payment' Practices (PDF, 636KB)
