Equipment Procurement

5.
2 equipment procurement
5.2.1. Marketing aspects of construction
equipment (availability, dealers)
5.2.2 procurement method and practices
5.2.3 commissioning of equipment
5.2.1. Marketing aspects of construction equipment (availability, dealers)
Study market:
• Availability of various equipments, their
performance and prices
• Availability of dealers for selling of equipment,
servicing and spare parts
• Availability of spare parts, their quality and
prices
• Lead time providing spare parts
5.2.1. Marketing aspects of construction equipment (availability,
dealers)
• Comparisons of various equipment in different

parameters : engine power, engine performance,
blade and bucket capacity, fuel consumption,
• Durability or reliability of equipment and dealers
• Comparison of prices of same equipment from
different dealers
5.2.1. Marketing aspects of construction equipment
(availability, dealers)
• Provided services : sales , services and spare

parts of equipment
• Availability of skilled technical team for best
servicing or technical support
• Facility of hire purchase, number of installment
or terms of payment, interest rate,
5.2.1. Marketing aspects of construction
equipment (availability, dealers)
• Delivery period or schedule of equipment
• Warranty period of equipment
• Free service period
• Training program
• Taxes
• Transportation charge
• Place of delivery
• Installment or commissioning of equipment
5.2.2 Procurement methods and practices
Procurement deals with the sourcing activities,

negotiations and strategic selection of goods
and services.
Purchase is the process of how goods and
services are ordered. (procufy.com)
Procurement is concerned with acquiring
(procuring) all of the goods ,services and work
that is vital to an organization.
Procurement methods and practices
Procuring process for goods and services

a. Needs analysis: Determine the need whether
procurement provides the optimal solution
b. Funding approval : Determine the project scope
and development a business case for funding
c. Project procurement plan: Determine the
strategy for approaching the market to ensure
strategy objectives are achieved
d. Service provider selection : Evaluation of

responses, negotiations and awarding the
contract
e. Contract management : Transition between
contracts and managing performance.
f. Procurement evaluation: Assess service
provider performance and value of money
(www.procurepoint.nsw.gov.au
Procurement practices
Provision for public or institution procurement:
a. No need estimation if value less than NRs.
25000.
b. Invitation tender from national and
international if worth value more than NRs.
10,00,000.00
c. Invitation of sealed bid worth value less than
1million.
Procurement practices
d. Direct purchase if worth value up to
1,50,000.00
e. User or consumer committee can procure up
to 6000000.00
Procurement method for selecting consultant
1. Quality and cost based selection

2. Quality based selection
3. Fixed budget selection
4. Least cost selection
5. Consultants’ qualification selection
6. Single source selection
7. Individual consultant selection
(procurement of consulting selection by Rajendra P.
Adhikari, Ph. D)
Commissioning of equipment
Process by which an equipment, facility or plant
is tested to verify if it functions according to its
design objectives or specification.
(www.businessdictionary.com)
Check list for commissioning of equipment
1. Provide operator’s manual with machine

2. Provide short training to skilled operator
3. Explain warning labels and safety
precautions
4. Provide workshop manual or maintenance
hand book for preventive and break down
maintenance
5. Deliver parts book with equipment
6. Provide some equipment parts and tools

7. Provide all necessary attachments and their
installation if necessary
8. Provide certificates and documents (bill book,
warranty books etc.)
9. Operate all systems of equipment to ensure these
system functions properly
10.Demonstrate all operations : starting and stopping
engine, transmission system, cab, boom, stick, bucket,
ripper ,lightings etc.
11. Aware Health and Safety legislations

12. Aware of road regulations for equipments :
taxation, driver license etc.
Procurement method
• Select vendors
• Establishing payment term
• Strategic vetting (selection)
• Negotiation
• Contracts
• Actual purchasing of goods
Procurement process:
1. Define the business need
2. Development the procurement strategy
3. Supplier selection and evaluation
4. Negotiation and reward
5. Induction (initiation) and integration
(incorporation)
www.purchasinginsight.com/resource
1. Plan the procurement based on identified need
2. Scope the procurement
3. Determine the procurement method (tender)
4. Prepare to approach the market (tender evaluation)
5. Approach the market
6. Evaluate submissions and conclude the tender
process
7. Manage the contract
(www.finance.gov.au/Procurement)

Equipment Procurement

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5.

• Comparisons of various equipment in different

• Provided services : sales , services and spare

Procurement deals with the sourcing activities,

Procuring process for goods and services

d. Service provider selection : Evaluation of

1. Quality and cost based selection

1. Provide operator’s manual with machine

6. Provide some equipment parts and tools

11. Aware Health and Safety legislations

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