Scope note. This is an educational overview of how contractors typically buy subcontract packages, materials and equipment. Arkan is not procurement software. It does not run RFQs or supplier bidding. Your employer's rules and your contract govern any real process.
What does procurement cover on a construction project?
Three kinds of purchase make up most of a contractor's spend: subcontract packages (for example MEP or finishes), materials and equipment. Each is handled differently, but the discipline is common: clear scope, comparable offers, written award and tracked delivery.
What are the stages of a sound process?
- Define the package. Write the scope, drawings, specifications, programme dates and commercial terms. Ambiguity here becomes variations later.
- Build the BOQ for the package. A BOQ gives every bidder the same items and quantities. Our BOQ management guide explains how to keep it clean, and the free BOQ template is a starting point.
- Invite offers. Send the same documents to all invited parties, set a deadline and route clarification questions in writing so answers reach everyone.
- Compare on a common basis. Normalise exclusions and assumptions before comparing totals. Look at programme, payment terms, retention, insurance and guarantees as well as price.
- Award in writing. Issue a letter of award or contract that matches the terms you evaluated, then agree the formal subcontract.
- Control delivery. Materials and shop drawings need approval before ordering; deliveries need inspection; payments follow measurement.
How should you choose the contract basis for a subcontract?
The pricing basis changes who carries risk. A lump sum shifts quantity risk to the subcontractor, while remeasurement pays for what is actually built. We compare them in types of construction contracts. Match the basis to how well-defined the scope is.
What happens after award?
Award is where the paper trail either starts or breaks. The usual controls are:
- Submittals for materials and shop drawings before procurement of long-lead items. See the submittals workflow.
- Inspections on delivery and installation.
- Variations controlled through a formal process; see variation orders.
- Payments against measured progress, with retention applied as the contract states.
In Arkan, the BOQ module holds the priced package items, Submittals tracks approvals, and Finance handles payment requests with retention, advance recovery and VAT. Those are post-award controls; the sourcing and bid comparison happen in your own process.
What are the common procurement mistakes?
- Inviting offers on different documents, then trying to compare them.
- Treating the lowest total as the best value without normalising exclusions.
- Awarding verbally or by email thread without a signed document.
- Ordering before submittal approval and discovering the product is rejected.
For the public-sector side in Saudi Arabia, see the Etimad tender basics.