• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • HOME
  • ABOUT

The Fortunate Investor

Investing, Business, Saving, Debt, Money, Retirement, Taxes and Family Finances

  • Business
  • Invest Your Money
  • Save Money
  • Get Out of Debt
  • Make Money
  • Family & Money
  • Taxes
  • Retirement
    • Retirement Calculator
You are here: Home / Business / Managing Key Procurement Risks

Managing Key Procurement Risks

October 22, 2020 By Bobby | This article may contain affiliate links. For more information visit our Disclosure

Tweet
Share
Pin
Share
Share

Managing Key Procurement RisksContractors may be something you need for an upcoming development project. But, before you start your search, it’s important to be aware of the key procurement risks at present and how to manage them.

Although it seems like a long time ago since the UK voted to leave the EU, the effects of Brexit is going to be felt for many years to come, and it brings with it the possibility of further labour shortages. If, as seems likely, the freedom of movement of workers provisions is no longer applicable, it means that procurement professionals are going to have a smaller selection of contractors to choose from. One way to attempt to overcome this is by supporting the Tradeswomen in Maintenance Project. While this problem is unique to the UK, if you’re based somewhere else, this sort of situation could easily arise and you need to have a risk management plan in place.

You will also need to find more effective ways of appealing to contractors, ensuring that your company manages to secure business over the other firms that are attempting to do so. This is not the only challenge – there is also sustainability. 

A key area of risk is, undoubtedly, the sustainability of contracts. Some contractors are withdrawing from key markets, such as social housing, as they are under amounting pressure regarding costs. Moreover, increasing volatility can be seen in material rises. The best thing to do to manage these risks is to make sure that your procurement processes result in bids that are sustainable. Also, getting the right products for intense and dangerous projects is another risk. Navigate to this site for more information about this. You don’t want to take risks when mixing potentially explosive materials and such like.

Mistakes To Avoid When Choosing Contractors For Your Project

There are some critical errors you need to avoid during the hiring process. Read on to discover more.

One of the biggest mistakes that project managers, quantity surveyors, and alike make is choosing contractors based on price and price alone. This is a recipe for disaster. There are several reasons why a company may be charging such low rates. Of course, it could simply be because their service is of such poor quality or they are inexperienced. Another reason could be because they use poor quality materials, which are only going to cost you more money in the long run when problems happen. Finally, it may be because they exclude a wide range of necessary services in the quote, meaning you will be charged more money down the line. 

Another mistake to avoid is rushing into the decision. Procurement is a process that should be meticulously planned, and you need to take the time to carefully assess all of the construction contractors that are interested. This involves researching them online, assessing the tender document they have provided, looking at their past work, and reading reviews from previous customers as well. Finally, don’t rely on the company’s own reviews, make an effort to source comments that have been posted on independent review websites to ensure they are genuine. 

Primary Sidebar

Popular Articles

Real Estate Tycoon: 5 Must-Know Tips for Investing In Commercial Real Estate

Making Your Mark in Real Estate: Factors to Kickstart Your Investment Journey

Investing in real estate is like planting a seed that can grow into a sturdy oak tree over time. … Read More about Making Your Mark in Real Estate: Factors to Kickstart Your Investment Journey

Struggling to Grow Your Business Here Are 6 Simple SEO Tips for Your Small Business

Money-Savvy Tips To Drive Innovation For Your Small Business

Any successful small business relies on innovation. It can drive the organization forward, allowing … Read More about Money-Savvy Tips To Drive Innovation For Your Small Business

How To Make Sure You’re Compliant In Business

How To Make Sure You’re Compliant In Business

When you run a business, you’ll have a lot of rules and regulations to stick to, and sticking to … Read More about How To Make Sure You’re Compliant In Business

Tips for Dealing with Conflict in the Workplace: What You Need to Know

No one expects to be best friends with all of their coworkers, but at the same time, not getting … Read More about Tips for Dealing with Conflict in the Workplace: What You Need to Know

Final Checks To Carry Out Before A Safety Audit

Final Checks To Carry Out Before A Safety Audit

Keeping the people in your business safe and sound is one of the primary responsibilities you have … Read More about Final Checks To Carry Out Before A Safety Audit

Footer

TOPICS

SAVE MONEY
INVEST MONEY
REDUCE DEBT
MAKE MONEY
FAMILY & MONEY
TAXES
START A BUSINESS
RETIREMENT

THE FORTUNATE INVESTOR

ABOUT US
ADVERTISE
CONTACT US

The Fortunate Investor focuses on personal finance topics to build wealth. Topics include saving money, investing, managing debt, family and money, taxes, making money, college planning, starting a business, coupons and retirement.

SOCIAL MEDIA

FACEBOOK
TWITTER
PINTEREST
YOUTUBE

Copyright © 2023 Fortunate Investor. All Rights Reserved. | Disclaimer & Disclosure | Privacy Policy | Terms of Service