ABSTRACT
This chapter discusses the processes that take place before the purchase order for project goods and services. So it stresses that mutual trust and cooperation must be engendered between those who engineer projects and those in the purchasing organization who are charged with the responsibility for buying relevant materials, equipment and bought-out services. In addition to the issue of purchase orders or contracts for services, the materials management function generally includes following up purchase order issues with expediting activity to help keep vendors reminded of their delivery dates. Unfortunately this ideal cooperation between the engineer, the buyer and the vendor is not realized in some organizations owing to conflict between the design and purchasing departments. Whilst the technical discussion part of this process is often desirable, it is far preferable for all binding contracts to be made via the purchasing department, which should be staffed with people having the essential commercial skills and negotiating ability.
