Procurement Process, Negotiation, and Strategic Purchasing

Flashcards covering procurement phases, document requirements, site materials management, vendor evaluation, tactical vs. strategic purchasing, master agreements, and portfolio positioning.

Procurement Strategy (ProcStrat)

A planning document created by the Quantity Surveyor or Planner that details line items, subcontractor packages, prospective vendors, lead times, risks, and opportunities to strategize project procurement.

Procurement Programme Monitoring Report (PPMR)

A report managed by Project Procurement Officers to monitor the status of Material Approval Requests (MAR), Purchase Requests (PR), and Purchase Orders (PO) against required lead times.

Purchase Request (PR)

An internal document that initiates sourcing in the Procurement Department and triggers line item ordering by specifying descriptions, quantities, required site dates, and budget.

Material Requisition (MR)

A document containing detailed specifications and needed site dates for line items, used to initiate a Purchase Request for materials not originally included in Work Packages.

Capital Investment Request (CIR)

An additional requisition document required for fixed asset purchases, such as laptops or furniture, submitted under material requests and approved by the Accounting Department Head.

Material Approval Request (MAR)

A formal submission process owned by QAQC that secures required client approval for specific items prior to purchasing.

Request for Quotation (RFQ)

A document issued by a Procurement Specialist to prospective suppliers requesting pricing, lead times, commercial terms, delivery points, and price validity.

Canvass Sheet

A bid evaluation summary form that tabulates proposals from invited suppliers, normalizing data for an apple-to-apple comparison of pros and cons.

Vendor Accreditation

The evaluation of a selected supplier by a third-party service provider to assess legal, financial, tax, operational, and sustainability compliance files before contract award.

Purchase Order (PO)

A legally binding contract between buyer and seller detailing ordered items, quantities, prices, delivery dates, and mutually agreed terms and conditions.

Goods Receipt (GR)

An ERP (SAP) system documentation generated by site procurement or QS personnel to reflect the official receipt of purchased materials.

Goods Issuance (GI)

An ERP system process performed by warehousemen to document the physical distribution of stored items to internal requestors.

Delivery Receipt (DR)

A physical site document used to record the backloading of materials and the return of items to suppliers.

Material Delivery Inspection Report (MDIR)

A quality document where QAQC, discipline representatives, and MIA record inspection findings regarding item quality, quantity, and specification conformance.

Material/Asset Disposal Routing/Approval Form

A document used to secure management approval prior to disposing of excess materials or equipment with scrap value.

Material Inventory Monitoring

A manually-maintained record managed by the Warehouse Manager to summarize material inventory movements over a specific period.

Warehouse Audit

A monthly site inspection covering space layout, inventory management, emergency procedures, ESH and PPE management, manual handling, and waste disposal.

Vendor Performance Report (VPR)

A periodic evaluation tool completed by project teams to rate supplier performance across quality, ESH compliance, delivery timeliness, and responsiveness.

Tactical Purchasing

Executing routine administrative purchasing tasks on a reactive basis outside of an enterprise-wide focus, without pursuing continuous improvement or long-term goals.

Strategic Purchasing

Planning, implementing, evaluating, and controlling purchasing decisions to align all procurement activities with a firm's long-term capabilities and strategic objectives.

Master Purchase Agreement (MPA)

A pre-negotiated contract establishing agreed pricing, quality, and delivery terms to expedite Purchase Order issuance for repetitive goods purchasing.

Master Services Agreement (MSA)

An agreement establishing baseline business terms between client and vendor to speed up future contracting for recurring services like calibration and maintenance.

Leverage Items

Purchasing portfolio items with high profit impact and low supply risk, best managed through volume consolidation, umbrella agreements, and competitive tendering.

Non-Critical Items

Purchasing portfolio items with low profit impact and low supply risk, managed via product standardization, efficiency improvements, and delegated purchasing.

Strategic Items

Purchasing portfolio items with high profit impact and high supply risk, managed through strategic alliances, early supplier involvement, and long-term value focus.

Bottleneck Items

Purchasing portfolio items with low profit impact but high supply risk, requiring strategies like volume insurance contracts, alternative sourcing, and securing supplies.