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Procurement Planning

Procurement planning is crucial to project success, as usually the projects long lead items, and vendor drawing reviews end up being on the critical path. It is important to bring the procurement team into the planning process early on in the planning cycle. The project team is required to determine and communicate the procurement plan, which must include information on both equipment, bulk purchasing, and subcontracting as identified by the scope of work. Procurement planning should identify the relationship of the scope of work to the work breakdown structure (WBS) and organization breakdown structure (OBS).

The individual activities required by the Procurement / Engineering team should be entered into the schedule including all estimated review times, approximate ordering and fabrication lead times, etc. Typical activities are as below, and can be repeated for multiple pieces of equipment: 

  • Develop MR
  • Client Review of MR
  • Incorporate Comments to MR from client
  • Issue MR for bid (IFB) to the client for review
  • Client review of IFB
  • Issue IFB to vendors
  • Bid Period
  • Technical Evaluation of Bids
  • Develop and send award recommendation to the client for review
  • Issue PO to Vendor
  • Vendor Fabrication Time
  • Receipt of the 1st round of Vendor Drawings (Milestone)
  • Review Vendor Drawings
  • Receipt of IFC Vendor Drawings (Milestone)
  • Ship Date
  • Received at site
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554 Riverfront Lane SE
Calgary, AB T2G 1K1


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