Project Procurement Management – Assignment 3

MATERIAL PROCUREMENT STRATEGY

GROUP 3 I RUCHITA DASGUPTA I BEM_781

PART A: Material Procurement Strategy for NBCC on behalf of AIIMS (Employer’s Organization)

GENERAL POLICIES FOR PROCUREMENT OF GOODS

Procurement All goods shall be procured from accredited agencies as per proposal enclosed
procedures with bid document. Procurement of goods shall, on prior basis, evaluate all
parameters related to environmental, social, health & safety, allocation of
responsibilities, risks and liabilities associated with project scope.
Project For EPC contract, contractor shall be responsible for all procurement related
procurement cycle services, including
1. Raising ad verifying purchase order,
2. Mobilization of goods to site,
3. Testing of goods at/before arrival, storage on site,
4. Mobilization and Site handling,
5. Disposal of scrap and
6. Testing and commissioning on project completion
All records for effective procurement shall be documented and maintained through
the subsequent systems.
Classification of General classification of good shall be according to
goods 1. High value, low quantity items such as electrical and sanitary fixtures,
specialized glazing, lift, DG Set, HVAC plants, etc.
2. High value, high quantity items such as steel, cement, flooring, paint, etc.
3. Low value, bulk items such as sand, aggregate, electrical and sanitary fittings,
railing, glass, etc.
Contractor shall formulate a detailed framework of materials categorized under
these subheads according to project specific bill of quantities and cost estimation.
Material logistic Material logistic plan shall be submitted on basis of above classification before
plan commencement of construction. This plan shall include project specific details of
procurement related to
1. Prescheduled ordering system applied for long lead items such as aluminium
formwork, specializes glazing, lift, hi side MEP plant and equipment, etc.
2. Periodic ordering system applied for bulk items such as sand, aggregate,
cement, paint, railing, flooring, etc.
Procurement plan shall include an analysis of all materials in above categories
distinctly segregated as per project milestones. The analysis shall include
1. Quantity and cost estimation,
2. Requirement of inventory, stock level and control,
3. Procedures for on-site / off site testing and quality assurance,
4. Procurement source and associated accreditation and
5. Terms of storage of goods on site.

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Electronic E-procurement or Central Public Procurement Portal shall be used, wherever
Procurement possible, for management and issue of procurement documents.
systems
Procurement Online planning and tracking tool such as MIS, BIM, etc. shall be used to manage
planning & all procurement related procedures and documents.
tracking tool
Ordering Contractor shall be the sole ordering agency for procurement of goods. However,
Authority all materials shall be procured by the contractor at his own risk and responsibility.
The contractor shall maintain all quality standards and enclosed in subsequent
points.
Direct Direct procurement without formal quotation will be implemented for
procurement procurement of all goods. However, contractor shall seek verification and
without quotation approval for procurement of high value, low quantity items.
BASIC AIMS OF PROCUREMENT OF GOODS
Right Quality o Standards and technical specifications in procurement documents shall be
maintained at all times to ensure systematic performance of goods procured.
o Quality shall be maintained as enclosed in Tender documents, in compliance
with BIS codes and/or CPWD specifications.
o List of make and material specifications shall be as per Tender document.
o Unsatisfactory performance and/or failure to meet above requirements shall
result in rejection of the lot.
Right Quantity o Reassessment of all quantities shall be submitted for all materials procured
as bulk purchase or small purchase. Procurement plan shall be submitted
beforehand to NBCC for establishment and monitoring of adequate stock
level.
Right Cost o Purchases to be categorized under following categories to achieve maximum
Value for Money
1. High value, low quantity items and
2. Low value, bulk items
Right time and o Procurement panning shall specifically consider planning for long lead items.
place o In case of bulk purchase, appropriated and adequate storage on site shall be
provided to minimize deterioration and wastage of materials.
Right Source o Source for procurement of all goods shall be submitted and verified by NBCC
before commencement of construction.
STEP WISE REQUIREMENTS
Purchase order 1. EIC to be informed before raising purchase order for high value, low quantity
items shall be verified and approved by EIC.
2. Weekly purchase order to be submitted to EIC for high value, high quantity
items to maintain adequate stock level.
3. Low value, bulk items shall be directly procured without quotation to maintain
adequate stock level.
Mobilization to site 1. High value, low quantity items shall be procured without consideration to
distance from site.

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 2. High value, high quantity items shall procured from within a radius of 25km of
site.
3. Low value, bulk items shall be shall procured from within a radius of 5km of
site.
Testing of goods / 1. High value, low quantity items shall be procured without consideration to
quality assessment distance from site.
2. High value, high quantity items shall procured from within a radius of 25km of
site.
3. Low value, bulk items shall be shall procured from within a radius of 5km of
site.
Site storage 1. High value, low quantity items shall follow just in time delivery mode.
2. High value, high quantity items shall be stored in covered storage
(temporary/permanent) as per CPWD guidelines.
3. Low value, bulk items shall be shall be stored in open or covered storage as per
CPWD guidelines.
Site mobilization All procedures related to site mobilization and handling shall be as per CPWD
and handling till guidelines.
erection
Disposal of o Excess materials shall not be disposed from the site without approval of EIC.
materials Documentation of reuse or resell shall be provided and signed off.
o Scrap materials shall not be disposed and/or sold without consent/approval of
EIC.

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PART B: Material Procurement Strategy for GLCPL

Project Name Redevelopment of Residential Colonies of Ayur Vigyan Nagar of

AIIMS, New Delhi (Package 1/ Phase 1).
Site Area 49.4 Acre
Contracting Agency Girdhari Lal Construction Private Ltd.

MATERIAL PROCUREMENT POLICIES: PRE CONSTRUCTION STAGE

Description of responsibility Authority/ Time of
person. in submission
charge
Procurement To prepare an effective procurement plan related to Project in DPR
objective environmental, social, health & safety associated with charge
project scope.
Project Detailed procurement plan shall include Engineer in DPR
procurement cycle 1. List of all categories of goods, charge
2. Method of raising and verifying purchase order,
3. Source of goods and mobilization to site,
4. Testing and quality assurances of goods at/before
arrival on site,
5. Planning for just in time delivery or storage on site,
6. Site handling and mobilization and
7. Disposal of scrap
The complete plan need to be prepared, submitted,
presented, verified and siwithout approval from EIC
assigned by NBCC.
Classification of General classification of good shall be according to Engineer in DPR
goods 1. Group A: High value (50%), low quantity goods charge
(20%).
2. Group B: Medium value (30%), medium quantity
goods (30%).
3. Group C: Low value (20%), bulk items (50%).
A detailed framework of materials will be formulated
under these subheads according to project specific bill
of quantities and cost estimation.
Material logistic Material logistic plan will include milestone wise Engineer in DPR
plan details of quantity and cost estimation, details of charge
inventory, stock level and control, procedures for on-
site / off site testing and quality assurance, procurement
source and associated accreditation and storage of
goods on site. The logistic plan will be categorized as
per following ordering systems
1. Prescheduled ordering system for Just in time
delivery applied for Group A and Group B items.

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 2. Periodic ordering system applied for Group B and
Group C items.
Electronic E-procurement or Central Public Procurement Portal Engineer in DPR
Procurement shall be used, wherever possible, for management and charge P. execution
systems issue of procurement documents. Site
supervisor
Site engineer
Procurement Procurement planning and inventory management shall DPR
planning & be commenced effectively through online planning and P. execution
tracking tool tracking portal such as MIS. P. closure
Lessons
learnt
Procedure for GLCPL shall raise purchase order to regional agency Site P. execution
Ordering (Delhi/NCR) of NBCC for verification. Once supervisor
approved, GLCPL shall proceed with purchase of Site engineer
goods. In case prior verification is not done, for items
such as small value items less than INR25,000 (as
specified by CPWD), amount shall be raised with
formal documentation in weekly audit reports.
Direct Direct procurement without formal quotation will be Site P. execution
procurement implemented for procurement of all goods. However, supervisor
without quotation high value items shall be verified and singed by EIC Site engineer
before purchase order is issued. Small value items shall
be procured and verification of quantity, etc. shall be
done with monthly RA bill.
MATERIAL PROCUREMENT MANAGEMENT AT CONSTRUCTION / POST CONSTRUCTION
STAGE
LOG BOOK FOR DAILY ENTRY
Item description Time / Source Quantity Unit Cost Quality Person. in
place of Cost verification charge
entry
Group A Site
Group B engineer
Group C
MEASUREMENT BOOK FOR ALL ITEMS
Item description Take off Unit Quantity Total Quantity Person. in
measurem As As used As charge
ents procured for disposed
constr.
Group A Site
Group B engineer
Group C
INVENTORY LOG BOOK

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Item description Item Unit Quantity
Delivery Arrival Stock Next
name mode date level delivery
Group A JIT
Group B JIT/Stock
Group C Stock
QUALITY CONTROL AND MATERIAL HANDLING
Item description Item Mode of QC: Mode of QC: Person. in
name arrival at site testing & commissioning charge
Group A Site
Group B engineer
Group C
MATERIAL MANAGEMENT PLAN
Item Del. Material Material Material Material Person. in
name mode Storage Handling Wasted Disposed charge
Group A Site
Group B engineer
Group C

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