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AboutRead In 3 Minutes
The Vital Role of Purchase Requisitions In Construction Procurement
A Purchase Requisition plays an important role in the overall construction procurement process. In 4castplus, purchase requisitions are the initial entry point for any procurement activity – whether that’s for purchasing goods and materials, renting equipment, or subcontracting services – everything starts with a purchase requisition. There are several purposes behind this, including:
- To provide a mechanism for submitting a “requisition to buy”. This can come from, for example, engineering, the jobsite, project management or from the project’s budget.
- To provide a staging area where the buyer team or engineers can prepare items for purchase or subcontracting; and also determine whether items need to first go through an RFQ/RFP bidding process prior to issuing a purchase order or subcontract.
- To perform initial data validation on items to ensure they are coded correctly and sufficient budget exists
- To provide a place for oversight on what’s being requested to ensure it’s correct and reasonable
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Streamlining Purchase Requisitions With 4castplus
Since purchase requisitions can originate from multiple places (i.e. engineering, the field, etc.), 4castplus provides several methods for how to create a requisition. For example, users can take a bill of materials (BOM) as an import file and simply import that into 4castplus as a purchase requisition. That BOM could have been, for instance, an export from a drawing package. Users can also create a requisition directly in 4castplus using the built-in costing databases, and load any number of materials, equipment, expenses, services, etc. to build it interactively using the tools provided in the software.
Another important method for creating requisitions can be done in 4castplus by linking items directly from the project budget. It’s common for contractors to build up their budget using take-offs, or other source, to build up the project’s estimate. Project estimates are often a large list of not just labor hours, but also consist of equipment, materials and subcontractor services. Those estimated items will, at some point, need to be purchased. So 4castplus provides a very easy system for capturing the items in the budget and allowing a streamlined way to merge those into the procurement module for a clean and simple way to move them onto purchase orders.
It’s that last method that I want to show you more on in the video below. This video shows how 4castplus enables users to link the project’s budgeted items to the construction procurement system to eliminate duplication of effort and better project controls. I hope you enjoy!
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Maintain tight visibility and control on the costs, activities and productivity of all your subcontractors and suppliers. Materials management, equipment rentals, miscellaneous purchases and subcontracted services can all coexist together with full control over budget, accruals, project inventory and much more. There is no other software system on the market that provides such comprehensive procurement management for construction projects.