What does project procurement mean? An article to bring you up to speed

In the bidding industry, different project procurement uses different procurement methods. In order to improve your understanding, today I will introduce what is called project procurement, take a look together!

Project procurement, also known as procurement project, is the entire procurement process of obtaining the subject matter from outside the system, which can be divided into engineering procurement, procurement of goods and procurement of consulting services.

(1) engineering procurement project, engineering procurement belongs to the tangible procurement, engineering procurement project refers to the process of selecting qualified contractors to undertake the construction tasks of engineering projects through bidding or other agreed upon methods. Such as the construction of highways, large hydroelectric power plants, irrigation projects, sewage treatment projects.

(2) Goods procurement project, goods procurement belongs to tangible procurement, goods procurement project refers to the process of purchasing inputs required for the project, such as machinery, equipment, instruments, meters, office equipment, construction materials (steel, cement, timber), agricultural means of production, etc., and includes services related to it, such as transportation, insurance, installation, debugging, training, and initial maintenance.

(3) Service Procurement Project, Service Procurement is an intangible procurement, and Service Procurement Project refers to the process of hiring consulting firms or individual consulting experts to provide a variety of executive services, technical assistance or training services.

Which the engineering construction project service procurement can be broadly divided into 4 categories: project investment pre-consulting services; engineering design, bidding agent and other phase services; project management, construction supervision and other executive services; technical assistance and training and other auxiliary services.

Methods of Project Procurement

1. Open Competitive Bidding: It is also divided into International Competitive Bidding and Domestic Competitive Bidding. Tenders are publicly advertised to attract all interested contractors to participate in the bidding, and the winner is selected from among them in accordance with prescribed procedures.

2. Limited competitive bidding: also known as invitations to tender or selective bidding. Based on self-knowledge or information provided by authoritative consulting organizations, select a number of qualified contractors (more than three) to issue an invitation.

3. Inquiry procurement: that is, the price comparison method, "comparison of goods", based on three or more suppliers offer decision, without formal tender documents. Suitable for spot purchases that can be obtained directly, or smaller value, belonging to the standard specifications of the product procurement.

4. Direct procurement: no competition, direct contract, suitable for competitive bidding advantage does not exist, inconvenience or no need for bidding, such as products with the nature of the monopoly, can only be obtained from one.

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