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Procurement Strategy and Execution

   

Added on  2021-04-21

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Running head: CONTRACT AND PROCUREMENT MANAGEMENT
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1CONTRACT AND PROCUREMENT MANAGEMENTContentsExecutive Summary.......................................................................................................21.Procurement Plan....................................................................................................21.1.Vision Statement:.................................................................................................21.2.What is to be procured:........................................................................................21.3.Market Analysis:..................................................................................................21.4.Cost analysis:.......................................................................................................31.5.Financial Consideration:......................................................................................31.6.The following procurement policies will be used:..................................................41.7.Type of Contract and Options Available:.............................................................51.8.External Factors:.................................................................................................51.9.Contract approval process:..................................................................................61.10.Scored selection criteria:...................................................................................61.11.Time Frames of the process procurement:........................................................71.12.Project Timeline:..............................................................................................71.13.Procurement Risks Register:.............................................................................72.Scope of Work SOW................................................................................................82.1.Introduction:........................................................................................................82.2.Purpose/Objectives:.............................................................................................82.3.Rates schedules....................................................................................................82.4.Assumptions:......................................................................................................102.5.Glossary:............................................................................................................102.6.Responsibility Matrix:........................................................................................102.7.Contractor Deliverables:....................................................................................112.8.Contract Exclusions:..........................................................................................112.9.Performance Requirements:...............................................................................112.10.Communication Management plan:................................................................123.Key Performance Indicator (KPIs):.......................................................................12References....................................................................................................................14
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2CONTRACT AND PROCUREMENT MANAGEMENTExecutive SummaryA 5 storied office building located in Perth Central Business District (CBD) decides todevelop a clean and sterile work environment. The company’s main objective is to create aplatform such that it can enhance employee productivity. The clean and tidiness of thebuilding can create a beautiful perception of the visitors. The report illustrates the cleaningservice market. The project report predicts how much the organisation should spend forcleaning. Procurement risk register has been developed in the project report. The organisationcan get to know about the risks and can make decisions accordingly. The report also measuresthe performance of the contractors through KPI. The project report thus explains the cleaningdepartment can help the organisation in fulfilling their mission. Procurement Plan1.1.Vision Statement: The cleaning services can comprise of regular and periodic cleaning of the interiorareas of a 5 story office building of an organization that is ownedand it is located inthe Perth Central Business District (CBD). One of the organization'svision towardsemployees and visitors of customers, suppliers and stakeholders is to create a clean,orderly and sterile work environment to prevent many accidents, diseases and injuries,and thus increase of employee productivity and reflecting a beautiful perception of theorganization to visitors.1.2.What is to be procured: The cleaning service would need to procure waste removal services.
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3CONTRACT AND PROCUREMENT MANAGEMENT1.3.Market Analysis: The market analysis would highly target the cleaning market. There are a lot ofcompetitors and there is a good reason for the competition. The cleaning servicemarket-based in Western Australia is segregated into two types of service. One kind ofservice consists of residential cleaners. The cleaners are responsible for cleaning thetownhouses, flats and apartments. However, those cleaners cannot clean the 2500m2 5storied building. The cleaners do not have enoughworkforce, expertise and thenecessary equipment to keep the building clean and tidy. Commercial cleaners are another cleaning service staff. They are responsible forcleaning large office buildings, schools and hospitals. They work in the constructionarea and use heavy cleaning equipment. The facility manager of the organisation canrely on them as they can be reliable, trustworthy and they come up with good workethic. The commercial cleaners canrecognize the customers’ demands. They arecapable of providing quality service to the customers. The cleaners know to use thecleaning equipment well in the construction area. They can offer protection to thecustomers’ property. For this reason, the cleaners are suitable to keep one organizationtidy and clean.1.4.Cost analysis:The commercial cleaning cost depends on the job size. The commercial cleaning alsodepends on the number of workers required and the services they offer. The dailywage of the workers working in the construction site in Western Australia typicallyranges $25-$30 per hour. In several cases, the commercial cleaning staff charges lowfor the repeat business. If cleaning service is scheduledonweekly or monthly basis,the rate will be relatively lower. However, the cleaning staff charges more in case of more specialised cleaning. Theycharge anywhere between 5 cents to 55 cents for every square foot. If we consider a2000 square foot office building is having washroom and waxing floors, thecommercial cleaners charge about 25 cents to 55 cents for every square foot.Therefore, the commercial cleaners charge $2000-$4000 every month to clean 2000square foot office.
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