ABSTRACT

This chapter describes some of the activities that lie towards the middle column of this chart, concerned with purchasing materials, components, equipment and services of moderate value. Purchasing is part of a wider materials management function that might include vendor appraisal, contract negotiation, goods inwards inspection and the safe handling and storage of goods received. Delays caused by materials shortages or purchasing errors can be very damaging to a project, causing work interruption, delays and expensive idle time. Perhaps a good way to emphasize the importance of purchasing and materials control is to remember that purchased goods and services account for over half the total costs of many projects. Engineers and others responsible for initiating project purchases have a duty to identify those items that are likely to have long lead times and ensure that ordering instructions are passed to the purchasing department as soon as possible.