The use of procurement in modern infrastructure projects

The use of procurement in modern infrastructure projects

International procurement is an essential aspect of ensuring the success of a construction or engineering project. However, many steps must be taken before it can be implemented.

What is procurement?

Procurement is a vehicle for the disbursement of projects.Significant amounts of funds are allocated every year to infrastructure contracts, normally executed by contractors, suppliers and consultants.

Project preparation and procurement arrangements result in relevant decisions on contracts, contractors, suppliers and consultants that are key to the success of project objectives and outcomes. Such arrangements normally include identification of needs and appraisal of projects, procurement strategy formulation, selection documents, management of selection processes, evaluation and award of contracts.

Establishing procurement principles, systems and arrangements of the different organisations may have variations and specificities, often reflecting their policies and practices. In varying degrees, they strive to regulate, guide the design and the application of procurement processes. This is done as appropriate for the purpose of the project, and consistent with the principles of value for money, efficiency, economy, sustainability, fairness, integrity and transparency.

It is worth noting that the FIDIC contract forms (contract conditions) apply good international industry practice. The conditions may be adapted to the specificities of a contract with due regard being given to the FIDIC Golden Principles. The FIDIC body of knowledge includes the FIDIC Procurement Procedures Guide as a good practice guidance for the procurement of engineering and building works. The FIDIC Contracts Guide also provides an understanding of the contract arrangements and provisions. These publications are helpful for understanding and detailing how the procurement process and services could be better developed and carried out.

The pre-contract actions and decisions have significant implications on project outcomes, as do the application of FIDIC contract forms. In addition, having a strong contract management procedure in place can contribute to the successful outcome of infrastructure projects. This said, by the time of contract award, the project preparation and procurement arrangements would have already resulted in major decisions which would affect the degree of success of the contract. Procurement strategy and selection arrangements are therefore key to the delivery of quality and performance of infrastructure, optimized value for money, management of risks and sustainability.

This is one of the reasons it is essential to have a procurement expert who has expertise in providing procurement services and understands the complexities of managing contracts based on FIDIC contracts. 

As an international institution serving the needs of infrastructure industry across the globe, FIDIC has noted there is a gap which qualified experts working in procurement can provide to better serve the needs of the construction and engineering sectors.

A procurement specialist is a strategic enabler of infrastructure projects. In effect, such a expert would need to apply good industry practice to the specificities of the project, using sound judgment, while ensuring compliance with applicable requirements. This is why FIDIC is offering a Certified Procurement Specialist certification.

What is a FIDIC Certified Procurement Specialist?

A Procurement Specialist who is certified by FIDIC is someone with at least five years of work experience. This senior level experience should also include knowledge and expertise in managing procurement services as provided to the industry, as well as a strong understanding of the FIDIC standard forms of contracts and how they apply.

This FIDIC certification aims to assess the skills of professionals in the procurement aspects of project preparation and pre-contract award processes.

Such a qualification provides an excellent opportunity for procurement specialists to check their skills in relation to implementing good procurement practices in infrastructure projects.

It should be highlighted that this is a new certification programme that is being offered by FIDIC this year. For more information about it, check out the programme’s webpage. For those interested in applying, the programme is currently accepting applications until 15 November 2024.