When it comes to the construction segment, procurement in construction refers to sourcing of services and other products. Procurement in construction stands for buying of materials and labor. It is basically allocation of construction work, handling design and choosing components that will be utilized for the building.
On the other hand, the procurement process involves managing multiple stakeholders. It is important to value and maintain control as well as accepting inputs from project and site managers. This will impact the outcome of the project and working with a complex supply chain is also a challenge that needs to be solved.
Moreover, procurement in construction is not easy as the supply chain is opaque and therefore, procurement becomes difficult. This means procurement can get complex as construction managers need to source high quality material and provide services within a specific budget.
On top of it, there is a pressure to comply with regulatory guidelines. Thus, in the construction industry it is imperative to adhere to timelines, maintain accuracy at each step and monitor quality aspects of procurement. It’s the reason why procurement is so important in construction as project success depends on it.
Why is proper procurement important?
Many construction managers believe that proper procurement is the product of proper procurement. This is why ProjectPro with Business Central is the best software to streamline your construction procurement requirements.
With 20 years of construction proficiency, you can rely on the expert guidance of our construction experts who have the experience, industry knowledge and the right technology to help you strengthen control over your construction projects.
For a construction manager, another challenging aspect is finding the right suppliers. Moreover, it is the quality of suppliers that matters in the construction business. At the end of the day, it is all about getting the right person to do the job.
Although the pool of suppliers can be quite vast and it may be challenging to deal with quality issues as construction firms work with those who handle multiple sites. Depending on the size of projects, the construction company has to deal with a number of suppliers.
A software system allows you to have a supplier information management system and with the help of technology, it gets easier to maintain an account and carry out the registration process. This helps you save valuable time and allows you to manage your suppliers. It also gives you a chance to keep your supplier information up to date and make sure that it is accurate.
Keeping supplier information on the system also gives you the added advantage to trade with suppliers who meet the standards when it comes to mandatory certifications on their part.
You can easily make use of software that has the added capability to integrate pre-qualification databases, track inventory, manage resource allocation and ensure all activities meet project compliance and requirements.
Procurement is pivotal for the success of construction projects. Contractors need assistance when it comes to drawing on the experience of construction experts, market know-how and what are the resources available.
Above all, there are significant advantages and disadvantages depending on how the process is implemented. Apart from this, procurement in construction minimizes risks of project failures and improves communication between suppliers and stakeholders.
Say yes to Strategic Sourcing
When it comes to procurement, construction managers need the knowledge and experience of professionals to source the best products and services. Apart from meeting the quality requirements, what matters for project managers is to procure materials on schedule and stay within budget.
When it comes to construction procurement, volume-leveraged pricing plays an important role. Since construction projects involve a significant amount of material and labor, a lot of material planning and management of purchases has to take place.
Hence, it becomes imperative to cut evaluation time upto a certain limit and reduce cycle time to adhere to project deadline. Technology deployment allows you to stay on schedule and align your construction sourcing activities with the project schedule.
With the help of a good procurement plan you can easily map out how you are going to manage the construction project. Although the advantages of this process are visible to all but the project manager needs to know what questions need to be addressed urgently, what is the scope of work and need to understand more about potential cost fluctuations. Construction procurement is the sum total of allowing construction managers to build their dream projects.
How ProjectPro with Business Central helps with Procurement?
With all-in-one construction software like ProjectPro with Business Central, the sourcing and procurement process becomes transparent and it gets easier to establish a large network of providers.
Going digital can help in being able to purchase directly for jobs, assisting in evaluating products and services. Some software have esourcing capabilities while others have the built-in geo-location functionality that help with logistics and transportation of materials to project sites as well.
So how does ProjectPro help with Job Purchasing and Procurement.
It provides you quick access to manage inventory and purchases. Here are the list of its capabilities:
It allows users to purchase directly for jobs
You can easily maintain a list of items needed to be purchased
Enhances the Job purchasing process and makes it easier
It is so simple to create the Purchase Orders here
Software suggests items that have to be purchased with the assistance of job material planning function
ProjectPro with 20 years of construction proficiency has helped contractors to achieve procurement excellence. Our fully integrated ProjectPro with Business Central is a complete construction solution that has helped construction owners to manage supplier risk and performance.
It also helps in gaining visibility and control across the large and complex construction supply chain. Learn more about procurement in construction and how to better control the procurement process with automation by using ProjectPro with Business Central.
To know more, schedule a demo with our construction experts to know more about job purchasing and procurement with ProjectPro. Book a consultation call on +1 647 696 4534 with our construction experts at ProjectPro and learn how to deal with procurement challenges and make your project a success today!