Procurement Routes for Construction: Central Queensland University

This report discusses the procurement routes for a construction project at Central Queensland University. It explores the best procurement route for the university and provides a schedule and cost associated with the project. The advantages and disadvantages of different procurement routes are also discussed.

Running head: CENTRAL QUEENSLAND UNIVERSITY
CENTRAL QUEENSLAND UNIVERSITY
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................2
About different procurement routes for construction......................................................................2
Best procurement route for Central Queensland University............................................................4
Schedule for the development process of CQU...............................................................................5
Cost associated with the development of the project...................................................................7
Advantages and disadvantages of routes.........................................................................................9
Advantages of Management contract method.............................................................................9
Disadvantages of management contract method.......................................................................10
Advantages associated with Design and build:.........................................................................10
Disadvantages associated with design and build.......................................................................10
Advantages associated with Construction management:...........................................................11
Disadvantages associated with construction management........................................................11
Advantages associated with Admeasurements contract:...........................................................11
Disadvantages associated with admeasurements contract.........................................................11
Risks associated with CQU along with recommendation..............................................................11
Conclusion.....................................................................................................................................12
Contractual relationship diagram...................................................................................................12
Reference.......................................................................................................................................14

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Introduction
The aim of this report is to describe the procurement routes that help in conducting a
successful construction project. The project mainly focuses on the project that is going to be
carried out by Central Queensland University for the purpose of providing better facility towards
the student. With the increasing number of students there is a high need to implement proper
campus that will help in allocating the huge number of students in Melbourne campus. The main
elements that are going to be developed by the CQU includes a main lecture’s building so that
they can accommodate around 300 student, laboratories for engineering and computer and a
motel that will provide better accommodation towards the staffs and visitors. The motel will be
constructed with 50 rooms and a conference hall that will be able to accommodate around 250
people. However the working of the project has started in different phases that will help in
completing the task by January 2020 so that they can accommodate students accordingly. As a
consultant of PPMP2011 company strategy for better development of the campus will be
provided within this report. This will help in managing the activities effectively throughout the
university.
About different procurement routes for construction
Procurement method is basically referred to the process of buying goods or services that
will be able to provide better benefits towards the users. The main objective behind the
procurement method includes maintaining proper integrity, transparency, economy, fairness,
competitions and accountability that will help in conducting proper procurement that will
facilitate the construction projects. While constructing a campus it becomes essential to identify

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proper procurement method that will be able to provide better facility towards the client. With
proper procurement route it becomes easy to manage the design, construction and building of the
planned project. The main focus of the procurement route is to satisfy the project cost, quality,
addressing the risks, financing and controlling project constraints. The different types of
procurement routes are admeasurements contract, construction management, custom build,
design and build, engineering cost contracts, turnkey contract, fast track construction, EPCM,
management contract, lump sum contract and public procurement. This report will focus on
describing the major four routes of procurement. The four major routes are as follows:
 Admeasurements contract: this are mainly used for conducting a civil engineering
projects. The rates associated with the construction project will be provided in the
contractor’s tender by using a proper schedule of rates. Actual quantities are identified
and rates are applied accordingly based on the need of the project.
 Construction management: this procurement route includes conducting the work by
selecting different number of trade contractors that will help in construction. The trade
contractors are mainly contracted with clients but are managed by a construction
manager. Construction manager plays a huge role in the project as he is the one
responsible for performing the activities and will ensure better way of conducting the
project. The construction management will help the Central Queensland University to
develop the campus effectively.
 Management contract: management contract includes appointing proper workers for the
purpose of managing the contract. This tends to act like traditional contract and works
accordingly. The management contractor is responsible for managing all the activities

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taking place within the project and the worker tends to perform based on the fixed price
provided to them by the project manager.
 Design and build: design and build procurement route includes appointing a main
contractor that will be responsible for designing and constructing the works that are
essential for the project. This becomes important and attractive as the project focuses on
delivering the product with proper responsibility. The design and build project follows
either two stage tender process or single stage. This route can provide better help towards
the CQU in designing the project effectively.
Best procurement route for Central Queensland University
After analyzing the case study and the requirements set by the Central Queensland
University it can be3 stated that management contracting method is the best for the university.
The main reason behind choosing management contracting method is that it helps in developing
the project based on the needs set by the clients and conducting proper consultant who will be
able to carry out the project with proper requirements described by the project developer. The
main reason behind choosing management contracting is that it helps in managing the trade
contracts that are placed by the client. The main features that are offered with management
procurement route include advising people about the development associated with each stage.
This also advises on appointments and helps in advising the major needs based on the key
performance indicators. The major importance is that it helps in managing the contract with
proper cost and quality that helps in making the project successful. Moreover the project not only
supports in constructing the campus but also supports managing the other main constraints. This
are crucial for the purpose of developing the project.

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Schedule for the development process of CQU
Task Name Duration Start Finish
Central Queensland University 132 days Mon 5/27/19 Tue 11/26/19
Phase1: Initiation 20 days Mon 5/27/19 Fri 6/21/19
Developing organizational structure
and management
5 days Mon 5/27/19 Fri 5/31/19
Hiring subcontractor 6 days Mon 6/3/19 Mon 6/10/19
Risk management plan 6 days Tue 6/11/19 Tue 6/18/19
Contingency planning 3 days Wed 6/19/19 Fri 6/21/19
Considering requirements for legal 40 days Mon 6/24/19 Fri 8/16/19
Phase2: Planning 17 days Mon 6/24/19 Tue 7/16/19
New land purchase 2 days Mon 6/24/19 Tue 6/25/19
Planning for floor 5 days Wed 6/26/19 Tue 7/2/19
Contracting with interior designer 6 days Wed 7/3/19 Wed 7/10/19
Estimating budget 4 days Thu 7/11/19 Tue 7/16/19
Phase3: Execution 23 days Wed 7/17/19 Fri 8/16/19
Designing furniture 2 days Wed 7/17/19 Thu 7/18/19
Laboratory staffing 6 days Fri 7/19/19 Fri 7/26/19
Selecting furniture 5 days Mon 7/29/19 Fri 8/2/19
Defining equipments 4 days Mon 7/29/19 Thu 8/1/19
Monitoring development 10 days Mon 8/5/19 Fri 8/16/19
Phase4: Other project consideration 58 days Mon 8/19/19 Wed 11/6/19
Building structuring 2 days Mon 8/19/19 Tue 8/20/19

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Main building development 2 days Mon 8/19/19 Tue 8/20/19
Motel development 5 days Wed 8/21/19 Tue 8/27/19
Campus development 6 days Wed 8/28/19 Wed 9/4/19
Lab elements 5 days Thu 9/5/19 Wed 9/11/19
Development of marketing plan 6 days Thu 9/12/19 Thu 9/19/19
Project implementation 5 days Fri 9/20/19 Thu 9/26/19
Payment system implementation 7 days Fri 9/27/19 Mon 10/7/19
Recommendations for work force plan 8 days Tue 10/8/19 Thu 10/17/19
Implementing recruitment project
plan
8 days Fri 10/18/19 Tue 10/29/19
Implementation of policies and
procedures
6 days Wed 10/30/19 Wed 11/6/19
Phase5: Closure 14 days Thu 11/7/19 Tue 11/26/19
Stakeholder signoff 5 days Thu 11/7/19 Wed 11/13/19
Final project documentation 4 days Thu 11/14/19 Tue 11/19/19
Post maintenance 5 days Wed 11/20/19 Tue 11/26/19
Cost associated with the development of the project
Resource Names Cost
$81,888.00
$5,080.00
contractor $760.00
contractor $1,920.00

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contractor,sub contractor $1,776.00
labour,contractor $624.00
contractor,sub contractor $65,768.00
$49,208.00
Purchase of new land [1] $45,000.00
labour, $1,120.00
contractor,sub contractor $1,776.00
contractor $1,312.00
$4,720.00
sub contractor $288.00
$1,008.00
labour,contractor $1,040.00
$704.00
$1,680.00
$8,832.00

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labour,sub contractor $400.00
$0.00
$880.00
contractor $912.00
labour,sub contractor $1,000.00
$1,008.00
sub contractor $720.00
contractor $1,064.00
labour $448.00
$1,344.00
$1,056.00
$2,208.00
$880.00
contractor $608.00
sub contractor $720.00

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Advantages and disadvantages of routes
The procurement routes are important for the purpose of constructing the project. This
helps in successfully completing the task within the given deadline. The project needs to be
completed within January 2020 so that they can accommodate the students within the campus.
The advantages and disadvantages associated with each routes are described below:
Advantages of Management contract method
The major advantages that are offered with management contract are that it helps in
saving the time and resources that are used for the purpose of developing the project. This also
helps in distributing the responsibility in a better way is that it can provide better resource
management towards the human. This offers a better organization and expertise towards the
construction projects. This ensures proper business continuity is maintained throughout the
organization so that proper performance can be done by the organization.
Disadvantages of management contract method
There are several disadvantages that come along with the implementation of management
contract method. It becomes difficult to manage the operational control as it impacts the
management for company and functioning gets impacted. It has also observed that a conflict
associated with interest arises while managing the project.
Advantages associated with Design and build:
The major advantage that is offered with the use of design and builds procurement
method is that it offers a single source of accountability towards the project and helps in
managing the budget throughout the project. The build and design management also ensures that
proper communication is carried out by the development team. It is expected that by using design

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and build procurement route the project can be completed effectively with proper quality and
offers better control over the quality as compared to the other procurement route.
Disadvantages associated with design and build
The major disadvantages that are associated with this procurement method include less
control over the details associated with the planning and specifying the requirement associated
with the project. Secondly the development process needs to have a proper requirements
de3finition at early stage so that the project can be executed effectively.
Advantages associated with Construction management:
The advantages that are offered with the use of construction management are that it offers
a better way of building the projects, mainly in large scales. This also offers an improved way of
increasing the reliability and creativity throughout the development project. The strategy also
ensures better communication among the stakeholders that will help in managing the team for
developing the project.
Disadvantages associated with construction management
While constructing a project the main issues that are faced with using construction
procurement route is that due to open end nature of the method it becomes difficult to manage
the task. In addition to this it also leads to unnecessary exposes that has the potentials of risking
the budget of the project.
Advantages associated with Admeasurements contract:
The major advantages are that it manages the quality of the project effectively. Offers
better reliability and ensures better control over the systems requirements.

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Disadvantages associated with admeasurements contract
The disadvantages includes it becomes difficult to manage the time and that impacts the
overall performance of the construction.
Risks associated with CQU along with recommendation
The selected route for the project is management procurement method. There are several
advantages of using this method as it provides proper management facility along with the best
suggestions for performing the construction. However there are several risks that arise with the
use of this procurement route. The main risk that is associated with the management contracting
is that the control over the project tends to loose and that eventually impact the overall
performance of the project. In addition to this the decision making process gets impacted while
developing the project. Thus it is important to have proper recommendation that will help in
successfully completing the project by overcoming the risks. It is highly recommended that there
is a high need to have proper control over activity by assigning proper supervisor who will be
responsible for monitoring the activities that takes place within the construction site. The main
reason behind recommending this route is that it has the ability manage the task as per the need
of university and works in a way that it meets all the three constraints set by the client.
Conclusion
The report has explained the entire major concept associated with the procurement routes.
Thus from the above report it can be stated that the procurement route helps in managing the
activities effectively within a construction project. It is the responsibility of the consultant to
suggest proper procurement route that will help the project manager to execute the project as per

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the needs of Central Queensland University. The procurement routes needs to maintain the
proper way so that they can have proper control over the budget, time and quality associated with
the project. It is expected that the management contracting procurement route will be able to
develop the project based on the constraints set by the University. Thus it is considered to be the
suitable for the Central Queensland University.
Contractual relationship diagram

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