Construction Procurement: Analysing Impacts and Innovative Ecosystem for Mega Infrastructure Projects

This report analyzes the impacts of sustainability, carbon financing, COVID-19, politics, and corruption on procurement for mega infrastructure projects. It also proposes an innovative procurement ecosystem for mega infrastructure projects in the UK. The report includes a discussion of the impacts of sustainability, carbon financing, COVID-19, politics, and corruption on procurement at the local, national, and international levels. It also discusses the importance of value for money and transparency in procurement.

Construction Procurement

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analysing the impacts of the given elements over the procurement of mega structure project at
the local, national and international level....................................................................................3
Innovative procurement ecosystem for mega infrastructure projects in the UK in pursuance of
superior Value for Money (VfM)................................................................................................8
Procurement ecosystem ..............................................................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Procurement refers to the process of acquiring goods and services in order to complete
the selected project. The type of procurement is depends upon the type of project. This report
will illustrate the concept of arranging procurement in mega structure projects. These projects are
considered as the big project that requires large amount of investment. Therefore, the
procurement of such projects consist more time and cost (Shen and et.al., 2017). The success of
the mega projects depends upon the procurement arrangement of the projects. And the
procurement arrangement highly gets impacted by the various factors. This report will describe
the various factors that affects the procurement arrangements of mega projects at the local
national and global level. The output of the project depends on the input of the project. The input
refers to the raw materials and resources. It is important to plan an effective procurement
strategies for the project. The report will highlight the proposal of an innovative procurement
arrangements for the mega projects.
MAIN BODY
Analysing the impacts of the given elements over the procurement of mega structure project at
the local, national and international level
Sustainability Agenda:
It refers to making commitment regarding the environment, social, economical and
ethical aspect. The sustainability agenda suggest that the environment should not get the harm in
relation of completion of the projects. As the resources that is required for the mega project are
acquired from the nature. The restriction over using more natural resources in arranging the
procurement leads to the less availability of the raw material for the completion of project. At
local level, the government focuses on protecting the local communities by putting restriction on
the over use of water and electricity (Kaming and et.al., 2019). Such decision affects the
procurement arrangements of the mega projects. As this project requires the water, electricity in
consistent form. The protection of local communities affects the arrangements of raw materials.
As a result, the resources are not fully acquired for the mega projects. The UN Sustainable goal
are affecting the Procurement arrangements at the national and global level. The sustainable
goals that has even developed by the UN determines the ethics that has to be maintained in the
procurement arrangement for the mega projects. The strategy of sustainable procurement has

been determined in this. Due to this, these practices, the suppliers are unaware about setting the
cost of the raw materials even this delay in the supplying of the raw materials to the mega
structure project.
The low level of awareness to the suppliers in providing the raw materials leads to large
number of conflict between the supplier and the manufacture of the mega projects (Bastianin and
Del Bo, 2019). The mega projects have been considered as the large investment project. This
involves the different source of energy as well such as solar energy, hydroelectric energy. These
energies are the renewable sources of energy. But the resources that are required for this energy
are the water and sun. The concept of sustainability focuses on creating and saving the resources
for the future generation and therefore, the major focus of the UN sustainable development goal
is to save the resources.
For example: the excessive use of water has made limited in using the different sources
of energy. On the other hand, these goals has been proven positive as well for the procurement
arrangement of the mega project (Leal Filho and et.al., 2019). In order to follow the concept of
sustainability in relation of performing the aspects towards the environment. The effective
strategies of the procurement has been made by the people that are involved in the mega
structure project. For example: Sustainability leads to using reuse and recycle method. The
procurement construction of the mega project becomes more effective by applying these
elements.
Carbon Financing
It refers to the purchasing of the green house emission in order to reduce the
environmental haems. It is linked with the process of sustainability. As it ensures the
effectiveness in the environment. The carbon financing has been introduced by world bank. The
world bank provides the investment to the business in order to buy green house emission that
mitigates the risk of environment. Mega projects are the wider project which requires the huge
amount of budget. The cost of raw materials indicates the over all cost of the project. The world
trade agreement has sign the local and national government in relation of using carbon financing
for mitigating the climate risk and reducing the cost of production for the mega projects (Fayezi,
Zomorrodi and Bals, 2018). Carbon financing involves the establishment of green house
emission, this green house emission promotes the clean energy sources such as hydro power.
Hydro power is the way of extracting the hydraulic energy from the water and supporting the

environment and sustainability without creating pollution. This leads to the less cost of
production for arranging the procurement in mega structure project.
The carbon financing by the government in the mega structure projects enables to open
up green house emission. And this green house emission generates the clean source of energy.
Along with this it also helps in mitigating the risk of climate that hinders the arrangement of
procurement for the mega infrastructure project. The change in climate leads to affect the natural
and man made resources equally (Dolla and Laishram, 2018). This further leads to put a
limitation over the procurement strategy for the mega project as the resources becomes less
available. Therefore, the carbon financing mitigates the risk of change in climate by reducing the
emission of carbon in the environment. This leads to less cost of production and timely
availability of the resources for the mega projects.
COVID 19 PANDEMIC:
The pandemic has impacted in drastic manner over the procurement arrangement. At the
time of COVID, the social distancing has given the priority in order to ensure the protection of
the people. The movement of resources from one country to another gets the pause. As it has
been known that there is uneven distribution of the resources in the world. Therefore, the
economies are interdependent for acquiring the resources. But due to COVID the transportation
has been stopped and it affected the supply of raw materials. The mega structure projects get the
pause as well. After the pandemic the local government has reduces the cost of raw materials. As
a result, the mega structure projects gets the benefit in relation of acquiring the raw materials.
The COVID 19 has put the major impact at the international level in the procurement
arrangement of the Mega structure project (Semieniuk and et.al., 2021). The movement across
the border has been stopped in relation of passing the resources. And when the government
provided the permission of transportation of the resources across the countries then the suppliers
has increases the prices of raw materials. As a result, the cost of production has been increased.
All the principles that are the part of procurement principles has been denied by the suppliers
after the pandemic.
This somewhere has influenced the construction of mega infrastructure project. After the
pandemic the public investment that has been made by the government in the mega projects
provided a keen focus over mapping and generating the effective procurement strategy. The
major strategies that has been adopted for the mega structure projects were approaching large

number of suppliers in relation of one particular resources (Macías Bermúdez and et.al., 2020).
More of the alternatives created more options for the arrangement of procurement from different
suppliers. As a result, those suppliers can be approached that ensures the low cost of the
resources.
Politics:
The politics has been considered as one of the important aspect that affects the
procurement arrangement of the mega structure project. The government makes the investment
for the mega project. And the procurement arrangement of the project is depends upon the
government budget that has been sign by the government for the particular mega project. The
political instability leads to affect the international supply chain. For example: The BREXIT is
affecting the procurement strategies (Cardwell and Ghazalian, 2020). The Brexit has put the
certain restriction over the transportation of raw materials between the countries. The
introduction of the tariff and custom duties at the international level has added to the cost of raw
materials. As a result, it is increasing the cost of over all procurement for the mega structure
project.
Government has power to make consistency in procurement activity but the major
essential thing is to identified best and sustainable feature for managing various aspects like at
local level people not consider to managing their task and politics influence perfect development
and expansion of new infrastructure. Also, at international or multinational area government and
political disabilities and if in case one country not develop higher interest and not engage with
new project then it badly affects on process and activities of project completion and managing
resources.
Corruption:
Its all above refers to incudes such factors like criminal aspects, offensive activities on
legal framework by individual human being or group of people. And it directly damages the
structure and planing with bad manner. Consideration about this term make sure that project
manager when decide to implement new project related to financial aspects they do have to
develop safety and security for control on corruption activity.
Procurement is all above effective process where company project management team
identified good and services. According to requirement basis it develops product with resource

engagement and provide services into market on the basis or customer requirement. Therefore,
its also known as supply chain management process.
Corruption in procurement activity is all above influence rule of project which means
supplier product management to goods and service distribution. In context of mega project
procurement agreement influence and affects by various activity. Project developer when decide
to prepare develop infrastructure on large scale corruption is one of the mots challenging aspect.
At international or multinational area mega infrastructure project face corruption from
human resources activities when government or other private sector decide to take new project
on large basis they directly provide specific amount, and they consider to properly watching
which activities happen into project like in the construction activity. Project leader decide to
choose good, and they not engage raw material at same price, and they not show which amount
will take to buying goods. In this activity human can easily corrupt money. Because they have no
specific idea about how much amount spend buying raw material to manufacturing to provide
good and services into market. So mega infrastructure procurement activity face challenges at
local, multinational and international level (Di Franco, 2021).
Almost mega infrastructure procurement develop by government with large amount
investment on specific project. Consideration about this term they do have responsibility to
engage and select large amount of human resources for construction activity.
Because of large scale of project government only distribute funds to contracture leaders,
so they do have authority to buy good with their own responsibility to they do have power to not
explain all the buying resources things and not showing bill detail. But from the involvement of
technology its easier to reduce corruption which is very beneficial aspect for mega infrastructure
project development.
Chinese financing:
China market is one of the most stable in financial, technology and multiple aspects.
Chinese financial mainly refers to provide fund availability when mega infrastructure decide to
expand business at international or global area. China has power to provide large amount fund
facilities in project for performing task. But it takes large amount of interest and its agreement of
fund is also not easier as well.

For the procurement activity government has major responsibility identify which project
they do have to done with which processors. Completion of this activity next if budget decision
and most of the case if project is all above for international market, its essential to engage
Chinese banking survives because it gives large amount of fund with good manner. Chines
financing useful for boost economic growth in recipient areas or countries. So for the
international level chines financing not work, this only perform and provide fund facilities into
African countries (Chirumamilla and Sindre, 2021).
Consideration about this term makes clarity about local level procurement not influence
but Chinese financing. Also, when government develop project at local level they don't have
need to take fund from other. And in case they need some amount they can easily take funds
from multiple bank services which provide fund facilities. Procurement process and activity at
multinational and international area require area large amount of fund so different countries
government decide to develop fund, and then they effectively start their project work on the basis
or specific budget. Chinese financing institutions and banks has power to boost fund facilities but
from the difficult agreement and it provides fund facilities on specific conditions, other counties
not mainly prefers to using their fund facilities.
Innovative procurement ecosystem for mega infrastructure projects in the UK in pursuance of
superior Value for Money (VfM)
Procurement ecosystem mainly refers to includes activities which evaluate and prepare
by identification of external an internal element identification. And selection of the best
alternative and making creative decision for project long term sustainability (Bingham, and et.al.,
2021).
Value for money is essential concept for managing cost-effectiveness development with
proper consideration of essential things and resource investment for procurement activity
completion. Stability in financial activity is major essential for any type of project, if its for local
level, international or at multinational level. Without preparation and effective fund distribution
of raw material buying, manufacturing to financial goods and in construction activity. Raw
material at good price is one of the major important to development proper and effective
construction process and activity (Kraus and Kraus, 2021).

Mega infrastructure planing is manly depends on government or private sectors when
decide to develop procurement process they do have to involve experts advices in financial to
raw material involvement and selection of effective human which has great sense to managing
various task with great manner.
Procurement ecosystem
Needs Explanation
Expansion of fairness, effectiveness and
transparency
Mega infrastructure and construction activity
mainly depends on government decision-
making and it also prepares by government for
new project development like government
decide that it develop connectivity throughout
the air service expansion, so government has
responsibility to engage raw material, higher
new employee and many more essential
aspects with quality involvement. Engage
transparency and effectiveness with hire
sustainable human resource which has great
idea about managing given task (Song and
et.al., 2021).
Support of employee for centric procurement
administration and application
Consider providing support which means
engagement of employee is effective but its
essential and ensure to gives them training for
specific task completion on effective manner.
In context of value for money is engaged
candidates for construction its import to
provide them training and important skills for
better performance and completion of task with
sustainable pattern.
Changes involvement on the basis or
requirement identification
Identification of human behaviour and raw
material activities its essential to evaluate that

individual performing their task with good
manner and individual human not develop
interest when leaders clearly identify that they
don't have potential to do task with suitable
manner then leader or project manager has
responsibility to remove unnecessary resources
who have not capability to completion of task
with great manner.
Expanded new resource which improve quality
and consistency in project completion
Reduce time limit of work, motivate towards
with work, expansion of new and essential
facilities into project, quality check and if
require new resource for more efficiency in
procurement according to requirement basis.
Application of new and essential resources
defiantly provide long term substantiality in
project completion.
Identified the global trend towards higher
effectiveness in ecosystem procurement
process.
Consistency identify external forces which not
influence activity of manufacturing and
construction activity. Changes in global market
performance which influence activity of
procurement activity so knowledge about this
term project manager and team has responsibly
to gives knowledge about how to managing
and performing task with involvement of new
practices and its mostly happen when global
transportation, interest, fund flow, cost
structure, financial activities changes in by
variation in inflation rate.
Advantages of ecosystem in procurement process

Application and involvement of procurement system develop quality and consistency and
performing activities by human as well as its essential for handling and multiple task at local,
internation and multinational are with great manner. Suitability in construction process mainly
depend on in activities of human and their activities also affects by internal and external forces
which means political aspects or government decision. Idea about this term makes sure that when
government decide to develop mega project they do have to consider multiple aspects and
continues performance indicators sources for analysing constructive and manufacturing activities
performing by human is great manner or require new applications. Continues checking process
makes better consistency in project completion as well as it improves quality with new material
and other essential resources' involvement into infrastructure procurement activity. Knowledge
about this term mega infrastructure defiantly reach success and it perfectly done by effective
resources involvement and sustainability in country government decisions.

CONCLUSION
From the above report it has been concluded that, the procurement arrangement gets
affected by the numerous factors. The impact towards the procurement arrangement leads to
influence the cost of raw materials. As a result, the over all production cost of the mega structure
project increases. The report has described the certain elements that are affecting the
procurement strategy of the mega structure projects. The effective understanding of all those
factors leads to develop the effective procurement strategies for the mega structure project. The
report has highlighted the sustainability agenda, carbon financing, COVID-19, politics,
corruption and Chinese financing as the factors that impacted the procurement arrangement of
the mega structure project. These components have influenced the procurement arrangements in
positive and negative manner as well. Lastly, the report has described the innovative
consideration that has been taken in making effective procurement strategies for the mega
structure project.

REFERENCES
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