A procurement plan maps the goods, works and services a project expects to purchase, when they are needed, how they will be procured and which rules apply.
The Asian Development Bank and IFAD both treat procurement planning as a core control for donor-funded projects, linking procurement choices to project objectives, risk and value for money.
What should a procurement plan include?
- Item or service to be procured.
- Estimated value.
- Expected timing.
- Procurement method.
- Approval or review requirement.
- Responsible owner.
- Market or supplier considerations.
- Relevant donor threshold or rule.
Start from the work plan
Procurement should support implementation timing. If equipment is needed for activities in month two, procurement cannot begin in month four.
Donor rules override convenience
DanChurchAid procurement guidance stresses checking project-specific donor rules because donors may impose stricter procedures, thresholds or origin requirements.
Use market analysis
Before setting assumptions, confirm availability, prices, quality and realistic lead times. Procurement planning should reflect the market the project will actually buy from.
Use the Grant Budget Sanity Checker to test whether procurement assumptions align with the approved budget.
Frequently Asked Questions
Does every grant require a formal procurement plan?
No, but larger or procurement-heavy projects often benefit from one and some donors require it.
Should the procurement plan be updated?
Yes when timing, value or procurement needs change.
Can one supplier be preselected?
Only where donor and organizational rules permit that approach.
Should local procurement be preferred?
It depends on donor rules, market conditions, quality and value for money.
What is the biggest mistake?
Planning procurement after the implementation schedule has already been committed.
Conclusion
Procurement planning turns the budget into an executable purchasing schedule. Strong plans connect project needs, timing, market reality and donor compliance from the start.
Sources and further reading
Put this guide into practice
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