THE CONCEPT OF PROCUREMENT

THE CONCEPT OF PROCUREMENT

Procurement can be defined in so many ways; however, every definition might have something in common in general. Procurement is a comprehensive function which involves activities and processes for the purpose of attaining or acquiring products and services.

Procurements comes from the word “procure” which literally means “to obtain by care or effort”; “to bring about” and “to acquire”. Procurement system is about “organised method, approach, technique, process or procedure” (Ogunsanmi, lyagba and Omirin, 2003). In this context, project procurement is very much concerned with the organised methods or process and procedure of actualizing a construction product.

(Ogunsanmi O.E.,1997) defined procurements method as the management of the total process involved in construction project delivery.

According to the Merriam-Webster Dictionary Online, “procurement” is defined as: “the act or process of procuring; especially: the obtaining of military supplies by a government” (Merriam-Webster Dictionary 2013).

The Oxford English Dictionary defined “procurements” as “the action of obtaining or procuring something” or “the action or occupation of acquiring military equipment and supplies” (Oxford Dictionary, 2013).

Dictionary.com also has two (2) definitions related to “procurement:” “the act of procuring, or obtaining or getting by effort, care, or the use of special means,” and “the act of obtaining equipment, materials, or supplies” (Dictionary.com, 2013).

Procurement process is the entire procurements cycle starting from the identification of need, through to the completion of the contract. (Ogunsanmi, et al, 2003).

Procurement activities can cover up establishing fundamental requirements, negotiation of contracts, and sourcing activities including market research and supplier evaluation as well as purchasing activities required for the purpose of placing an order and receiving goods and services. The main goal of procurement is to receive the right product or service at the right and predefined time, at the specified location, with the right quality and at the right price carrying out the entire process of purchasing efficiently and effectively (Ogunsanmi, et al, 2003).