ABSTRACT

Projects vary enormously in size, complexity, duration and the nature of their location. Some are less innovative and more routine than others but most require the procurement of materials and equipment such as pipe, valves and cables, none of which was designed specially for the project and the acquisition of which falls more into line with routine purchasing. Purchase departments are involved on both sides of the contract: on the client's side, in obtaining and helping to analyse tenders and in contract negotiation; and on the contractor's side, in obtaining information from subcontractors and suppliers that is needed in preparing the bid or tender. Purchasing departments may need to engage in a variety of activities aimed at subsidiary objectives, including purchase research and supplier development. The project purchasing manager is responsible for both to the project manager and to the purchasing director in the permanent organization structure. Project purchasing has two main subdivisions: buying parts and materials, and placing subcontracts.