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Construction Industry Development Board Act, 2000 (Act No. 38 of 2000)

Board Notices

Construction Procurement Best Practice

2. Uniformity, Ethics and Efficacy in Procurement Methods, Procedures and Processes

 

Procurement can broadly be regarded as being the sequence of activities that creates, manages and fulfils contracts, the principal activities being:

 

1. Establish what is to be procured
2. Decide on procurement strategies
3. Solicit tender offers
4. Evaluate tender offers
5. Award contract
6. Administer contracts and confirm compliance with requirements

 

There are a limited number of generic procurement methods, procedures and processes associated with each of these activities. For example, tender offers may be:

• solicited form a single tenderer;
• invited only from tenderers who have expressed an interest to undertake the work and are qualified to do so;
• submitted in response to an invitation to do so; or
• solicited from those tenderers whose proposal are considered to be acceptable.

 

Likewise, tender offers can be evaluated in terms of price, price and preference, price and quality or price, preference and quality.

 

There can be different approaches to procurement between the public and private sector as best value may take on different meanings in these two sectors. Capability and capacity to engage in specific procurement strategies may also necessitate that certain clients limit their procurement options. Nevertheless, many of the fundamental procurement methods, procedures and practices apply equally to both the public and private sectors.

 

Uniformity in construction procurement procedures, processes and practices promotes improved industry performance and improved value to clients. It engenders a culture of consistency and predictability within the procurement process.

 

➢ CIDB Construction Procurement Best Practice Guideline A1 (1001), The procurement cycle, establishes desirable and appropriate procurement processes and procedures.
➢ CIDB Construction Procurement Best Practice Guideline A2 (1002), Applying the procurement prescripts of the CIDB in the Public Sector, establishes desirable and appropriate construction procedures and methods that are consistent with the public sector regulatory environment.
➢ CIDB Construction Procurement Best Practice Guideline A3 (1003), Evaluating tender offers, provides desirable and appropriate standards for the evaluation of tender offers.
➢ CIDB Construction Procurement Best Practice Guideline A4 (1004), Evaluating Quality in Tender Submissions, establishes desirable and appropriate procedures for the evaluation of quality in all forms of construction procurement.
➢ CIDB Construction Procurement Best Practice Guideline A6 (1006), Applying the Registers to Construction Procurement.
➢ CIDB Construction Procurement Best Practice Guideline B1 (1007), Formulating and Implementing Preferential Procurement Policies, provides desirable and appropriate procedures to enable the legislative requirements to be satisfied in construction procurement.
➢ CIDB Construction Procurement Best Practice Guideline B2 (1008), Methods and procedures for implementing Preferential Procurement Policies, establishes desirable and appropriate procedures and methods for implementing preferential procurement policies.