New year, new suppliers? Evaluating construction procurement
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Is your construction firm considering changing suppliers? Find out when the time is right and how to go about it.
The success of a construction project depends on many things.
Yes, you need a talented team of engineers, surveyors and architects. Yes, you need an adequate timeframe. But neither of these will pave the road to success without high-quality goods. And to get those goods, you need to think hard about procurement.
At its most basic, procurement means getting the goods you need for a project. It's often achieved through a procurement framework. This is a long-term contract with suppliers that sets out terms, conditions and pricing.
The advantage of a procurement framework is clear. It enables buyers to save time and reduce risk when procuring goods, ensuring compliance in the process.
The problem with procurement frameworks is that they can lead construction firms (and construction-adjacent firms) to become dependent on suppliers. This can become a problem if the supplier becomes unreliable or their cost-effectiveness is surpassed by a competitor.
As we enter the new year, could it be time for you to reevaluate your construction procurement? Are you getting the best-quality materials at the best price? To answer that question, we must look at why, when and how it can be important to ring out the old and ring in the new.
Why you should evaluate construction procurement
The simple reason you should evaluate construction procurement is that procurement isn't just about getting materials delivered to your door. It's a strategic decision that will have a direct impact on the success or failure of your construction project.
Your choice of supplier will affect your budget, of course. But it will also affect the timeliness of your delivery, the quality of the finished project and your ability to manage risk.
A thorough evaluation will help you identify the most cost-effective suppliers (not to be confused with the cheapest). It takes into account issues like hidden costs, budget overruns and unnecessary purchases. This can translate into savings and profits without compromising quality or safety.
Secondly, evaluating construction procurement helps ensure materials, equipment and services are available when needed. This is a key factor in keeping your project on time – and avoiding costly, time-consuming delays.
These kinds of delays are related to another area that evaluation can help with: supply chain risk mitigation. You don't need us to tell you that supply chains are less than ideally reliable right now. Regularly reviewing your suppliers can help you stay on top of supply chain disruptions.
Every project has to be completed in accordance with industry standards – and an evaluation of construction procurement helps ensure your materials meet widely recognised quality standards. This drastically reduces the risk of having to rework or redo parts of a project because of inadequate materials.
This emphasis on compliance also helps establish clear roles and responsibilities, enhancing accountability and building trust. This is especially important on complex projects with a range of stakeholders.
Finally, evaluating construction procurement can help you find suppliers you can establish long-term working relationships with. This can have a critical impact on the success or failure of your project – no matter what sector you're in and what materials you're using.
How to evaluate construction procurement
There's more than one way to evaluate construction procurement – but whichever method you choose, accuracy is all.
This means defining clear, weighted criteria. These typically include cost, quality and time. Are you getting the best bang for your buck? Is it delivered in a timely fashion?
When we say "best bang for your buck", we don't simply mean the cheapest. We mean the most economically advantageous. After an impartial evaluation, you may find that a slightly more expensive supplier is the best for you.
It's important to evaluate construction impartially. This means assembling a team or nominating staff who don't have a vested interest in retaining certain suppliers.
Finally, you should use metrics to define success and failure. Objectivity is all-important when deciding which suppliers to work with.
When to evaluate construction procurement
When it comes to evaluating construction procurement, there's no time like the present. Many businesses institute regular formal reviews, often quarterly or twice yearly. There are, however, specific times when it can be advisable to take a look at your procurement.
This could be the cause in the run-up to a contract renewal. In this case, it's worth planning ahead as you'll need to line up a replacement supplier when your existing contract expires.
You may also want to evaluate your suppliers if you spot a drop in your performance – or theirs.
Finally, you may want to evaluate your suppliers when there's a change of management. This can be a great time to spot any oversights holding back the overall success of your construction projects.
What to look for in a suppliers
There are many things to look for in a supplier. But in our view, two are indispensable: good communication and industry accreditations.
Good communication can sometimes seem like a needle in a haystack. Many suppliers are difficult to pin down, whether on a specific issue or at all. If your suppliers aren't cutting the communicative mustard, it may be time to look elsewhere.
Good communication is a sign of trustworthiness and can be the beginning of a valuable long-term relationship.
Industry accreditations, meanwhile, are a reassurance that your suppliers have your customers' interests at heart – not least because it shows that they meet industry standards for safety.
How we can help
Founded in 1993, ToughGlaze is one of the UK's most trusted glass processing firms. We provide businesses in a wide range of sectors with high-quality processed glass products.
All our products are cut, processed and fired here at our state-of-the-art facilities and can be extensively customised to meet your project requirements.
So, if you're looking to change glass suppliers, don't hesitate to contact us for a no-obligation chat. We'll have you fixed up with the right materials at the right price in no time.
