Civil Engineering Reference
In-Depth Information
• Logistics - market soundings may provide evidence that on a particu-
larly large or complex programme the logistics of delivery and distri-
bution across multiple contracts may be an area of concern or may
require greater clarity during procurement to avoid bidders including
elements of risk pricing.
Market soundings create an early opportunity for fi rms to be given an
understanding of the client's approach to specifi c projects or package
procurements. They also allow suppliers to provide their views on these
approaches by giving their feedback. Market soundings can assist fi rms
to consider their approach when compiling their submissions. Upon
completion of the engagement exercise with suppliers, key themes and
recommendations received in the responses provided can then be fed
into the fi nal wording of specifi c packaging, contracting and procure-
ment. The feedback from the market soundings can also be used to
model the capacity of the respondents to deliver future demand and
further refi ne the target list for engagement, once the actual procure-
ment begins.
In order to engage with the marketplace and glean feedback and views
on emerging procurement strategies, the fi rst step is to identify the
target supply market. This market might be global or local, depending
on requirements. It could embrace multiple disciplines and long and
complex supply chains, or it might require very specifi c and specialised
skills. It may also look to large multinational suppliers with a wealth
of resources to draw upon, or it may require a boutique or bespoke
response tailored to a specifi c need.
As stated earlier, if appetite leads to competition, then the main aim
of competition is to leverage the best-value response from within that
competition. Knowledge of a target supply market needs to be narrowed
down to specifi c market sectors, trade bodies or even specifi c suppliers.
The aim of engaging a target supply market is to gain specifi c intelli-
gence from the suppliers operating within it in relation to a number of
key questions regarding:
• Appetite - is there interest in responding to the opportunity?
• Capacity - is interest coming from suppliers who have the capacity
to deliver?
• Capability - do the interested suppliers have the right capabilities to
deliver the specifi c requirements of the opportunity?
• Demand - what is the extent of current and future demand from other
construction projects for similar kinds of work and are we, as clients,
