Sample PROJ6004 Contracts and Procurement

PROJ6004 Contracts and Procurement Case Study Sample

Context:

General

Procurement and contracts are integral to successful project management. Planning for purchases and acquisitions, requests for proposal, vendor selection, contract administration, and contract closure are integral parts of the process. Learning fromcase studies and benchmarking against better practices, standards and excellence is vitalto understand complexity of issues and successful strategies for procurement and contract management. It will also ensure improved responsiveness to key issues, promote supplier- client relationships through proactive management of risks and ultimately deliver higher level of focus on performance-basedoutcomes.

Specific (Assessment 2 Context)

Assessment 2 is about uncovering complexities in the procurement context generally, identifying key issues, looking at leadership, governance and key themes that will allow improved focus, and learning.

Assessment 2 is based on understanding the case study and other module Learning

Resources.

• Students are encouraged to look at the Essential and Highly Recommended Learning
Resources and other public documents associated with the case study.

• However, a careful thorough review of the report is required to understand the contracts and procurement issues that have arisen during the project execution, ongoing risks mitigations and lessons learnt that can be applied to other large infrastructure projects.

• Assessment 2 aims to encourage a deeper understanding of the challenges faced in large complex projects – particularly with procurement methods that involve private-sector finance to deliver complex projects – which is a significant method of procurement because it can mobilise global financial and procurement capability to innovatively build public infrastructure and facilities to meet the needs of the growing population.

• Students are also encouraged to understand and explore the related organisational issues, stakeholders and the funding and finance aspects associated with the project.

Solutions

Instructions:

Assessment 2 Individual Report (overall 2,400 Words) is designed around analyzing the procurement in the case study project. This assessment comprises of three parts:

• Part A: Introduce and summarise the procurement context and scope (life cycle journey of the case study project). Identify the project procurement components and tender evaluation that may have been used in the case study (according to your knowledge from the theory you have studied).

• Part B: Describe the complexities (and key issues/risks), discuss the project environment
and organisation aspects, leadership and governance and how these have influenced outcomes.

• Part C: Identify or suggest key mitigations and possible learnings. Explain how those learnings may require changesto roles and responsibilities of key project resources, changes to procurement briefsor specifications, scope and the procurement process itself. Identify dependencies and common themes.

INTRODUCTION

Procurement and contract are integral aspects of project management. They establish the foundation of the project and streamline the functions in order to manage it in the desired manner. It is part of the Planning phase of the project management life cycle. The current report is based on “PROJ 6016 Capstone Case Study – Bowen Terrace”. The contents highlighted are divided into 3 parts – A, B, and C, along with a reflective journal.

Figure 1: Project Management Life Cycle
(Source: created by learner)

PART A

Summary of Procurement Context and Scope (Life cycle Journey)

Procurement Management

The procurement management within the current case study is susceptible to supply chain issues that may arise. For Assignment Help, They are likely to face post covid-19 supply chain issues and it is the responsibility of the procurement manager to make sure that a reliability of supply quality of the items price and mitigation of are practiced appropriately within the life cycle. They would need to focus on these aspects and make sure that the required raw materials are procured for construction and development of the desired infrastructure (Demirkesen&Ozorhon, 2017).

Scope Management

The scope of this project is very broad and needs a strong control mechanism so that it can be insinuated within the project environment. Effective management of project activities needs to be undertaken in order to successfully define the project scope. It is vital to make sure that the scope of the current project would remain flexible so that the last-minute changes due to construction and infrastructure could be inculcated and adjusted within the same.

Identification of Project Procurement Components and Evaluation in Case study

Procurement Journey

Figure 2: Procurement Process
(Source: created by learner)

Identification of Requirements: procurement journey starts with identifying the requirements. They could be internal or external depending upon whether they are required by the business as a part of their current operations or the project will eventually use them within their output. This stage involves assessment of the needs and setting a budget (de Araújo et al., 2017). Within the current project of Bowen Terrace Campus site, it would be the duty of the procurement manager to identify the requirements and prepare a list of the same.

Selection of Supplier: this stage involves the Sourcing of suppliers and determining whether or not they would be able to provide the best value and quality goods as per the needs. It is vital for the business to identify reputable vendors who have a long-term partnership with the project site so that they don't fall susceptible to supply chain issues.

Petrovaet al. (2017) highlighted that strategic procurement should be employed in the construction projects as it is a less responsive procurement process as the preferred suppliers for the requirements will already be in place. The procurement manager of the campus would need to analyse supplier options based on their quotations and the services offered so that an informed decision is made in favour of the project.

Negotiation of Contract Terms: after the preferred supplier is shortlisted it is necessary to negotiate terms of contract with them. It is the responsibility of the procurement manager to reach a price which is favourable for the supplier as well as the project (Putri et al., 2019). It is suggested that the procurement manager of the campus site should reflect upon previous negotiations to identify opportunities which will allow them to streamline costs and save money.

Finalization of the Purchase Order: the next step involves the preparation and finalization of purchase orders which includes a description of the required goods and services, total cost of quantity, and workflow management of the same. When a purchase order is approved in procurement management it is sent to the friendship team with reference number agreement of payment terms and any other essential information regarding the same.

Generation of Invoice and Payment: once a supplier has received the purchase order, they will send an invoice to the procurement manager with instructions how to pay. Currently this part is being done automatically through invoice automation and digital channels. Procurement manager of the campus site would need to make sure that the payment terms are developed on the basis of contractual agreement and the strength of the relationship instead of domination (Lemar, 2018).

Delivery and Audit: after the payment is made it is the duty of the supplier to deliver the ordered goods as soon as possible. The key responsibilities of the procurement manager of the campus site should double check that all the contents ordered have been delivered and if there is something missing, they should contact the supplier and rectify the problem.

Maintenance of Accurate Invoices for Future Audit: the procurement manager should ensure that the records of purchases are kept up to date along with invoices and payments so that when they are due for a cash flow audit by the project manager, they can undertake calculation precisely (Shehu et al., 2019). Theprocurement manager of Campus site needs to maintain accurate invoices so as to make sure that they are not overspending or understanding and rather focused on satisfying the needs.

Scope Journey

Figure 3: Process of Defining Scope
(Source: created by learner)

Planning: this stage aims to plant all the deliverables that the project will deliver. For example, in the current case study, the project deliverable would be the accommodation facility at Brisbane.

Collection of Requirements: it is necessary to ask all the stakeholders what are the specific requirements of the project that will allow it to achieve its entire deliverable(Al-Rubaieiet al., 2018). Here, the requirements would be water supply, electricity supply, safe accommodation facility, and catering to the needs of athletes.

Definition of Scope: these elements are then integrated into a single statement that defines what the project aims to achieve. The project manager of the Brisbane campus site would define the scope while discussing the same with the stakeholders and identifying their peculiar requirements within the

PART B

Description of Complexities

Potential risks are based on project changed elements and external environmental factors in the project life cycle. It is vital to know that planning is required to make sure that the integrity of the project is maintained. This postulation includes the factors of various stakeholders, physical site, and nature of site activity. It is necessary that the planning of this project satisfies the scrutiny of the board of directors of the Olympic Committee which are monitoring the 2032 games. It is essential that they have confidence within this project and also assist with the deliverables so that it is managed well. The complexities of the current project in the form of risks and key issues are stated below:

Figure 4: Types of Risks and Key Issues of the Case Study
(Source: created by learner)

Logistical Risk: various Logistical complexities need to be addressed before commencing the project. These risks included transportation facilities, necessary equipment, labour, and fuel. If the project manager of the terrace campus site does not address these logistical issues the current project is likely to face delays and Finance losses (Keshk et al., 2018).

Environmental Risks: these include natural disasters and weather implications. These risks are likely to go undetected when the members of the project team are unfamiliar with the local climatic conditions(Serpell et al., 2017). Within the present context, it would be made sure that the team has some local residents of Brisbane so that they can win the other members regarding complications that may arise in the project life cycle.

Management Risks: the most common management through which the Brisbane campus site is likely to undergo is that of uncertain productivity of resources. The project manager would have to make sure that the killed team members are appointed and have adequately defined their responsibilities and roles.

Financial Risks: the budget for building is $39 Million, which is the below market expectations. It has been said that the construction project is likely to undergo budget constraints due to its proposed allocation and also the Global constraints on the Australian economy. These are the constraints which are likely to reduce the competitiveness of the project and comprise the financial risk that can interfere with the final output.

Political / stakeholder risk: the current project handles various resources which have political connections and are likely to bring politically charged complications in the project environment. It is necessary that an effective and responsible reporting system should be set up to fight off political wrangling and construct a world class building into the spotlight because of intended use(Ansah et al., 2017).

Quality risk: the Olympic movement has rated different countries upon the standard of quality that can deliver if the games are held in specific locations. It is the duty of the Brisbane Olympic community to make sure that their bid is being rated the highest.

Discussion of Project Environment and Organizational Context

Brisbane suffers from a shortage of suitable local accommodation. Brisbane City Council has requested that such accommodation should be developed and Torrens University will be developing a site close to its Bowen terrace campus that would be used to provide documents issued to everything that would be participating in the Olympics in 2032. After the international event, the accommodation facility would be used for student rental accommodation at the campus site only.

The proposed location of the complex site is behind the campus building at Brisbane which is underutilised commercial facility in the fortitude valley. Estimated 44 months of planning and build time is anticipated which will also include demolition of the existing infrastructure in February 2022. In order to satisfy the demand of the Brisbane City Council the building would be constructed for 15 floors above the ground level with a ground floor that will have a leisure area, internet cafe, and laundry facilities.

Single and double room combinations would be there at the accommodation floors which are capable of providing housing to minimum 20 individuals per floor. Each room would be composed of a bed and writing desk along with air conditioner, television, and fridge.

Leadership and Governance and their Impact

The project leadership and governance set directly puts an impact on the decision-making process of the environment (Drouin et al., 2018). As per the views of Pilkiene et al. (2018) the role of leadership is highly important in project management as it encapsulates a wide range of activities including task coordination, effective planning, inspiring team members, overseeing projects, and making vital decisions to set a plan for conducting actionable. The management of the project will be done through a project management contractor that will report directly to the project management panel. This panel is established for the particular project and is based in Brisbane.

It is the responsibility of the project manager of the terrace campus site project to recruit a project team as per his requirements and their skill set (van Meerkerk&Edelenbos, 2018). The major impact of effective leadership in the project environment is that it allows streamlined operations and makes sure that the activities are conducted in the desired way with no discrepancies in human resources or physical resources.

Müller et al. (2019) explained that governance is a framework which integrates the factors of accountability and authorities while defining the control in the project environment. It aims to monitor the outcomes and benefits from the project and how it will satisfy the needs of the stakeholders. Effective governance gives the required confidence to the board of directors that they approve the funding of the project and make sure that they are managed well.

The governing entity of the terrace campus site project is Brisbane City Council. This is so because the development of the site was their primary request and the entity is well qualified to manage the projects on a city level due to their extensive understanding of the need and the way accommodation facilities should be constructed. It is suggested that the City Council should work in alliance with the project management team so that a collaboration could be stirred and deliverables could be achieved in the desired manner.

PART C

Identification and Suggestion of Key Mitigation and Learning

Selecting up on the project brief it has been identified that mitigation strategies need to be developed and implemented within the risk management procedures so that if the project Encounters any of the risk displays it would be able to find the same without hurting its progress or over spending its resources. It has been learnt that the needs of the athletes and the students should be the prime focus of this brief as they would be the end users of the accommodation facility at the Brisbane campus of Torrens University. By doing so the project manager will be able to ensure that the deliverable is in compliance with the requirements and is capable of satisfying the needs of the end users in the most appropriate manner.

Impact of Learnings on Roles and Responsibilities of Key Project Resources

It is vital to note that the learnings and identification have an impact on roles and responsibilities of key project resources. For example, the leisure room should be able to reflect the interests of the students and the athletes in the form of books, basketball court, chess boards etc. This is likely to change the roles and responsibilities of key project resources as they need to be scrutinized by keeping the needs of students and athletes in perspective. The resources such as logistical requirements and raw materials are also likely to change because a student accommodation facility is different from normal one and is a symbol of youth and dedication instead of just a place to live.

Changes to Procurement Briefsor Specifications

As per the learning there would be changes in the procurement briefs and specifications. The items that were earlier being made specific as per the needs of Brisbane City Council, how to reply the perspective of the end-users so that the utilisation of time and resources is fruitful and allows the project management and it to cover up its cost. The scope management section of the brief will need to accommodate the demands of students and athletes within the scope statement. The nature of raw materials and other procurement requirements is also likely to change so as to make sure that they are in compliance with the needs and wants of the stakeholders.

Identification of Dependencies and Common Themes

The dependencies of the current case study lie within satisfaction of stakeholders. If they do not approve of the final deliverable, the business organization can land up in huge loss. The common themes of the current report are based on the principles of project management, with specific reference to the aspects of procurement and contract. The common themes of the report and case study are Procurement Management and Scope Management.

REFLECTIVE JOURNAL

After completing the assignment, I felt that my core concepts of procurement and contract are clarified. This assignment also allowed to apply the principles of project management into real time basis which enabled to understand how theoretical knowledge can be implemented in practical life. I faced some difficulties understanding which concepts need to be implemented in what context, but I feel that, that is something I will able to improve with time and practice.

CONCLUSION

From the current report, it can be concluded that the extensive procurement and scope process will need to be followed within the case study in order to streamline the operations. Complexities at the Bowen terrace include a variety of risks such as logistical, management, and quality etc. Leadership and governance are an integral of a project environment and can impact the operations and activities. The key consideration of the case study is that it needs to emphasis more on the needs of the final users – students and athletes in order to achieve success.

References