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3B Contracting Limited is a privately owned building and civil engineering firm on the east coast of Ireland. The company works predominately within the east Leinster region. The company falls into the category of being a small to medium size contracting company.
The procurement function is carried out by a number of small departments. Procurement is a key function for securing value for money and ensuring the successful continuation of the company.
Most projects tendered are done so using the traditional method of design-bid-build and as a result the subsequent sub-contract packages are secured in a similar manner. All plant and materials are procured by the purchasing department.
Currently the existing strategy lacks a cohesive strategic approach whereby different departments carry out separate elements of the procurement function and the function can be handled differently by different individuals due to the lack of procedural guidance. The main reason for this lack of cohesion is due to the procurement function not being centralised.
The proposals contained within this document have arisen due to the need for a centralised procurement function which would provide a collaborative, cohesive and consistent approach to procurement within the firm. This would be aided by the introduction of a sub-contractor and supplier database including a performance related review mechanism.
The competitive nature of the construction industry in Ireland highlights the need for a firm procurement strategy. 3B have opportunities to improve competitiveness by researching existing and emerging client based procurement routes. This familiarity will help to make 3B less risk adverse. Another area which will aid the company in gaining a competitive edge is to formulate a more formal strategy for sustainable procurement. New government driven initiatives will also be of benefit in this regard. Such a strategy would benefit the company and its profile which in turn would be of great importance in developing a competitive advantage over its competitors.
Mitchell, C. (2015) Procurement in Property and Construction - A review of practises under taken by a medium size contractor in Ireland. Report Submitted as part of and MSc in Quantity Surveying (M&E) in the University of Salford, Manchester, Uk. 2015.