ABSTRACT

The purchasing function typically devours well over half the costs of a project. This chapter explains procedures intended to achieve the 'rights' of purchasing: getting the right goods of the right quality to the right place at the right time at the right price. Project purchase schedules begin their lives as enquiry schedules, in which every foreseen purchase of significant value is listed. That means moving them physically into the project area so that they will feel part of the project team and the project engineers can more readily bond with the purchasing function. An essential part of communications between the project and purchasing functions is to keep track of total purchasing costs and compare these with the authorized budget. That early warning depends greatly on receiving feedback from the purchasing function and that, in turn, means having very good communications as outlined above.