Total Cost in Industrial Procurement

PRACTICAL GUIDE

Project context

Comparing bids beyond the initial equipment price. For projects in Afghanistan, early definition of operating conditions, site access, utilities, local skills and maintenance capability helps prevent avoidable procurement changes.

Planning and specification

Evaluation should include freight, duties, energy use, installation, commissioning, downtime risk, spares, maintenance and service life. Requirements should be recorded in a clear datasheet and linked to applicable standards, inspection stages, documentation, delivery conditions and acceptance criteria.

Typical equipment and supply scope

Commercial comparison sheets, lifecycle assumptions, energy data, warranty terms, service plans and risk allowances. The final package should also consider commissioning materials, recommended spares, special tools, training, warranty support and export packing suitable for the complete transport route.

Procurement approach

Comparable bids require one consistent technical scope. Supplier deviations should be listed separately, while drawings, certificates, test reports, country of origin, delivery schedule and after-sales support are evaluated before award.