Procurement of Materials
In any construction organisation, procuring of material which covers the activities of buying equipment, construction material, construction machinery, tools etc. required for the purpose of construction work occupies an important position. Purchasing depends upon the nature and size of the project.
Objective of Procuring (Purchasing)
- To procure required material of the right quality.
- To procure in the right quantity.
- To procure at reasonable rates.
- To procure from reliable place.
- To procure at the right time.
Functions of the Purchase Department
- To prepare specifications of the materials required.
- To effect purchase of absolutely essential quantity of material to avoid locking up of finances.
- To keep an up-to-date list of reliable suppliers.
- To invite quotations.
- To analyse rate of supplies and prepare comparative statements on the basis of the quotations received.
- To effect proper inspection of the material procured.
- To ensure that the material is received within the given time.
- To keep proper and up-to-date record of the material received.
- To keep contact with the right sources of supply.
- To effect purchase of all such items where quotations are not required.
- To effect timely payment of the bills from the suppliers.
- To operate sub-contract carefully.
- To watch and study the market trends conditions and the price fluctuations.
- To prepare budgets for the purchases.
- Guard the interest of the construction organisation, while performing all these functions.
