Commercial building contractors may be something you require for every project you work on. From groundwork specialists to piling contractors, no matter what type of specialist you need, it is important to have a procurement strategy in place to ensure effective hiring each and every time. Below, we provide you with a procurement strategy checklist to follow.
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The first thing you need to assess is your current approach to procurement. To move forward, you first need to know where you stand. Assess your current strategy’s shortcomings when hiring construction contractors, and put together a detailed list of needs. This is a so-called gap analysis.
Once you have done this, you need to organize your needs to determine which are the most crucial, and which can be dealt with at a later date. This can be difficult, as your needs, as the person in charge of procurement, and the needs of the overall organization do not always align. The business’s broader mission should always be kept in mind.
Next, it’s the opportunity analysis, which involves the identification of opportunities and evaluating how you can improve this process. How do you currently find projects to work on? How do you negotiate with building contractors? You also need to look at your goals. What does success look like for you? Not only in terms of any upcoming project, but in regards to every project.
After this, an implementation plan must be put in place, and you then need to continue to assess your procurement strategy to ensure it always delivers. Are your contractors doing the best job and meeting your expectations? From roof contractors to sewer inspections by drone; all elements of the construction project must be assessed.
Top Tips For Construction Procurement For Development Projects
Building contractors are widely available, but the procurement process is notoriously a difficult one in the construction industry. If you do not approach it correctly, not only could you end up with poor quality work, but also projects can run over budget, and there can be significant delays.
We have got some top tips to help you with the procurement of building contractors. Firstly, make sure that you factor in wider project constraints, such as quality/budget objectives, material orders, access, and working constraints, and title issues. You also need to consider third party needs. Development projects are typically complex by nature, as there is a wide range of organizations and individuals involved, all of which have their own interests. Purchasers, tenants, landlords, forward funding purchasers, and commercial funders may all need to be included at some point.
You must also be clear on liability for defects once the work is complete, and address security for contractual liability. If a contractor breaches the contract, security for damages needs to be addressed as a hedge versus bankruptcy. This may be addressed by property/asset charges, parent company guarantees, bonds, project accounts, or certain insurance cover. You also need to put binding services and works contracts in place, which fit correctly with other project contracts, think about dispute resolution before disputes come about, and be prepared for the occasional stormy weather; after all, even well-planned projects can go wrong!
Why Join A Professional Association?
Building contractors need to do all in their power to stand out from the other companies that are available. Competition is fierce, and there is always a battle to win the projects that are on offer. One way to give your business an edge over others is to join a professional association.
The benefits of joining a professional association are extensive. Of course, the specific advantages offered by each trade association differ, but we are going to take a look at the benefits you can generally expect to gain. Construction contractors can boost their credibility by joining a trade association. You will benefit from a logo that you can use on your website, vehicles, stationary, and such like. Buyers will have more confidence when choosing your firm, as they will recognize that the association you have joined will have codes of practice and strict quality standards in place, which you will have had to adhere to in order to be accepted as a number.
There are plenty of other benefits you could experience, depending on the association, for example, events, seminars, conferences, and networking opportunities. You may have free subscriptions to different industry publications, as well as training courses and certification. You could also benefit from access to industry schemes, legal advice, technical support and advice, and discounts on a variety of industry-related services. You will also have enhanced exposure to buyers in the construction industry, and you will feature in the association’s directory listings.
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