What Is Procurement in Construction

Learn what procurement means in the construction industry, the different procurement methods, and why choosing the right strategy is crucial.

What Is Procurement in the Construction Industry?

Procurement in the construction industry refers to the structured process of acquiring goods, materials, services and works needed to deliver a construction project from start to finish. It plays a central role in how projects are planned, managed and delivered, and can have a major impact on cost, quality and timelines.

Whether you are building a residential home or managing a multimillion-pound infrastructure project, procurement decisions will shape everything from who designs the project to who builds it, and how risks and responsibilities are allocated along the way.

In this article, we explain what procurement means in construction, the different types of procurement routes, and why it is so important to get it right.

What Does Procurement Mean in Construction?

In simple terms, procurement is the process of sourcing and securing all the inputs required for a construction project. This includes:

  • Appointing consultants and designers

  • Selecting contractors and subcontractors

  • Buying materials, equipment and services

  • Choosing the method and structure for how contracts are managed

It is not just about getting the lowest price. Effective procurement ensures that the right people, products and services are chosen to meet the project’s goals within budget and on time.

Key Stages of Construction Procurement

While the process can vary depending on the size and complexity of the project, procurement usually includes the following key stages:

  1. Project planning and brief
    The client defines what is to be built, including the scope, budget, timeline and performance requirements.

  2. Procurement strategy selection
    A decision is made on how the project will be procured. This includes choosing the contract type and how the different project roles (such as design and construction) will be allocated.

  3. Tendering and bidding
    Contractors, consultants and suppliers are invited to submit proposals. These are assessed based on cost, capability, quality, and compliance.

  4. Contract award
    The client selects the most suitable bidder and formalises the agreement with a contract.

  5. Delivery and management
    The project is carried out according to the agreed terms. Procurement teams may remain involved to monitor performance and manage supplier relationships.

Common Procurement Routes in Construction

There are several recognised methods for procuring construction projects. The choice of route affects the project’s risk, cost control, flexibility and delivery speed.

1. Traditional Procurement

  • The design and construction stages are separated

  • The client appoints consultants to complete the design

  • Once the design is complete, contractors bid for the construction work

  • Contracts are awarded based on detailed drawings and specifications

This method offers high control over design but can be slower to deliver.

2. Design and Build

  • A single contractor is responsible for both design and construction

  • The contractor often works with their own design team

  • Provides faster delivery and a single point of responsibility

This approach reduces client risk but may offer less design flexibility.

3. Construction Management

  • The client appoints a construction manager to oversee the build

  • Trade packages are tendered and managed individually

  • Gives the client more control but increases their responsibility

Used for complex projects where flexibility and early start are important.

4. Management Contracting

  • A management contractor is hired to coordinate the project

  • Separate packages are let to subcontractors

  • Offers overlapping design and construction phases

Helpful when early completion is required.

5. Public-Private Partnerships (PPP) and PFI

  • Private sector funds and delivers public infrastructure

  • Long-term contracts covering design, build, finance and operation

Used for schools, hospitals, and other public projects.

Importance of Procurement in Construction

Choosing the right procurement strategy is critical because it affects:

  • Risk allocation between client, contractor and designer

  • Speed of delivery and ability to start construction early

  • Budget certainty and cost control

  • Quality and compliance with standards and regulations

  • Dispute avoidance through clear contractual arrangements

Poor procurement decisions can lead to delays, cost overruns, legal disputes and unsatisfactory outcomes.

Who Is Responsible for Procurement?

Procurement is typically led by the client, supported by professionals such as:

  • Quantity surveyors

  • Project managers

  • Procurement officers

  • Contract administrators

  • Legal advisors

Larger organisations may have internal procurement departments, while smaller clients may rely on consultants or architects for advice.

Final Thoughts

Procurement in the construction industry is about more than just buying materials or selecting a builder. It is a strategic process that shapes how a project is delivered, who delivers it, and how well it performs in terms of time, cost and quality.

With the right procurement strategy, clients can manage risk effectively, foster collaboration and achieve better project outcomes. Whether you are a developer, public body or private client, understanding procurement is key to building success.