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Procurement Strategy

Procurement Strategy

When making procurement for construction of a building, extremely delicate coordination is often required between the business owner asking for good products at the best possible prices and the contractor who wants to gain as much profit as possible. Thus, the most appropriate procuring method varies depending on purposes, site location, construction contents, and supply and demand balance, and there are various possible choices suitable to the characteristics of a project.
Even if products can be procured at lower prices, operational cost and the risk posed to the business owner will increase when the products do not have good quality. In order to maintain the balance between the cost and the quality of products, and achieve the goal to complete a building in a safe and secure manner, we support a business owner to fulfill accountability in procurement process and achieve the most appropriate procurement through the best possible ordering distribution, ordering packages, evaluation methods, and selection of participating contractors for quotation.

What We Do

■ Planning of Procurement Strategy
For the selection of a designer and a contractor and order placement, we propose a flexible procurement strategy in accordance with the characteristics of a project. In considering the policy of procurement, we actively set up the selection method, procurement style, long/short listing of candidate companies, procurement schedule, and manage those items. This goes beyond a support to a typical design-and-construction separate ordering method or design-build method, and we flexibly set up a procurement strategy utilizing our procurement experience in WTO or ECI methods.

■ Support for Quotations Request
According to the policy defined by the procurement strategy, we prepare quotation outline document, prepare and supervise cost estimate document and make a proposal (setting up evaluation criteria for quotation/ technical proposal document) for contractor selection outline that are suitable for the procurement method. We also conduct management to evade any risks of the project in advance by setting up cost estimation conditions that predict the variation of costs and construction period after signing the contract.

■ Support for Preparing Cost Estimate
We conduct on-site briefing sessions, respond to inquiries, give additional instructions, and collect quotes when requested to prepare various types of quotations. We provide support in developing more accurate quotations following the procurement strategy, by continually sharing ideas and eliminating information gap with the parties preparing quotations through close communication.

■ Support for Selecting Designer and Contractor
We quickly review the contents of each quotation and examine the structure of the cost estimate document and its quantitative validity of the prices. We also examine the quotation contents and evaluate the technical proposal documents and work system. Through evaluation based on presentation and interview, we provide comprehensive selection support, taking into account the elements not examined solely by the cost amount in the quotations. The status of the selection and its outcome are constantly reported to the owner with clearly described summary reference for smooth decision making within the company.

■ Support for Signing Various Types of Contracts
After selecting the party with the First Refusal Right, we support signing a contract for design and construction works based on the contents of the quotation outline documents. In terms of the conditions of the contract, we coordinate intensively in advance during the company selection phase to avoid any discrepancy between the understanding of each company and manage to avoid any misunderstandings after signing the contract.


Katsuyuki Suzuki
Chief Manager

Mikiyoshi Matsuura
Construction Manager

Tomoko Kumamoto