Construction Procurement: Local, National and International Implications on Mega Infrastructure Projects

This report analyses the impact of local, national and international factors on mega infrastructure project procurement, including sustainability, corruption, COVID-19, political issues, carbon financing and Chinese financing. It also proposes an innovative procurement ecosystem for superior value for money in the UK.

Construction Procurement

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
The local, national and international implications/impact on mega infrastructure project
procurement.................................................................................................................................3
outline proposal of an innovative procurement ecosystem of mega infrastructure projects in the
UK in pursuance of superior Value for Money (VfM)................................................................7
CONCLUSION................................................................................................................................7
REFRENCES...................................................................................................................................7
Books and Journal........................................................................................................................7

INTRODUCTION
The acquisition of a product or service is referred to as procurement. It is a method of
assigning procurement and build duty on a building project. When it is being built Maintaining
control over the acquisition process is critical work that involves various stakeholders, like site
and program managers, and can have a substantial impact on the result of any building project.
As a result, in the construction industry, precision, punctuality, and procurement integrity are
crucial. Mega infrastructure projects are large-scale, complicated undertakings that cost us
billions and take many months to conceive and construct. They are transformational, include
various public and private players, and have an influence on millions of people. This report will
going to analyse the local, national and international implications as well as impact on Mega
interest structure project procurement like sustainability, corruption, political issues, COVID-19
pandemic, carbon financing, Chinese financing and many more. Apart from this this report also
going to highlight and outline the proposal of an innovative procurement ecosystem of mega
structure project in the United Kingdom in context of superior value for money
MAIN BODY
The local, national and international implications/impact on mega infrastructure project
procurement.
Procurement is a crucial part of any construction project that must be completed before
any activity can begin. There are numerous strategies that can be used to create a secure
procedure that is free of exaggerated faults. Because building materials are costly to obtain,
following the proper technique could save the owner a significant amount of money. When
deciding which approach to use, there is a risk of combining the project manager's objectives
with what is available on the market. Before any procurement strategy can be appreciated, it
must first be thoroughly evaluated to understand the potential dangers associated with it. The
construction business has a significant impact on the global market. It accounts for around 9% of
the nation's gross Domestic Product. The method of procurement used by project owners has a
significant impact on the construction industry's numerous economic participants. Furthermore,
the building sector has an impact on the environment, as well as people's health and safety. Any
building project requires materials that meet the appropriate standards. The owners must

guarantee that every element utilised meets the minimal criteria established by the bodies that
regulate the quality of building materials, according to the bodies that regulate the quality of
construction materials. The site's experts must adhere to the highest standards of ethics in their
line of work. Consumers have criticised the construction business because of rising service
charges, inadequate service output, and the length of time it takes to complete projects. There are
different kind of factors that great impact On mega infrastructure project document in context of
local, national and international implications and that are below mentioned:
Sustainability: Critical infrastructure activities have a substantial impact on sustainability's
bottom line. As a result, the harmful impacts of national infrastructure on the ecosystem, society,
and business can intensify over time. It is critical to keep these effects within the appropriate
parameters. Climate change is hastening and endangering the entire global environment by
creating severe weather disasters such as droughts, fires, and floods, which are growing more
common and severe. As a result, it is strongly recommended that climate change be mitigated.
Many people around the world do not have access to electricity and rely on fossil fuels for
cooking. This situation necessitates a shift in energy policy forward towards a greener, more
affordable, and effective system centred on the use of renewable energy sources to create more
sustainable. Excessive use of natural resources and environmental disturbance depletes soil and
harms marine habitats. To save energy and minimise gas emissions, it takes concentration and
attention to modify the food production model and eating habits, incorporating a much more
plant-based diet with local ingredients.
Carbon Financing: By its very essence, big infrastructure development is often exploitative.
Mining is one illustration, but other practises such as forestry, muddying, and deforestation to
make room for large-scale commercial different plantations and plantations can have a negative
impact on the environment. In the large infrastructure there are different modification that can be
made in order to reduce GHG emissions like low-carb and infrastructure is like real interest
action that helps them to overcome the number of carbon emitting trucks And there are different
kind of urban transport projects like Metro and light rail projects that reduce car usage. Carbon
dioxide emissions are mostly caused by the combustion of organic materials such as coal, oil,
gas, wood, and solid waste. The largest sources of emission of carbon dioxide are farming and

cattle, which include fertiliser, waste, and the combustion of agricultural leftovers, as well as
burning fuel. All of these things have an impact on domestic and international mega
infrastructure.
Covid-19 pandemic: COVID-19 pandemic create impact on the business and also create impact
on the operations of the activity particularly on the buildings project and capital expenditure
program that have so many moving parts. It creates impact on the delays, loss of sufficiency and
also create impact on the cost because of COVID-19 pandemic. There are several contractors,
subcontractors, suppliers and Labour sources get affected because of restrictions in the United
Kingdom. It has become very critical for the organisation to work on it and complete the
construction programs. COVID-19 is a demand and supply shock that has caused construction
halts or delays around the world due to a lack of workers, supply chain problems, or delays in
government clearances. In numerous areas, assets that rely on user charges have seen a
significant drop in demand, resulting in significant lost revenue for key stakeholders. Default
events, cancellation, instability, and federal contract breaches have all grown as a result of this.
Political issues: In context of political a negative is there are different kind of categories of
approvals which are required across the project cycle at every stage while developing and me go
into structure project procurement. There are different kind of challenges that include community
a position on the particular investment, gingers to accept specific rules and contract terms. There
are different kind of projects that have been delayed because of land acquisition. There are
different kinds of reasons that leads to delay in the land acquisition and dumb major reason is
resistance from farmers on local communities whose land or whose asset is being acquired.
Apart from those that another challenge in context of political issue is environmental impact in
context of the environmental safeguards as well as guidelines are evolving that all pretty much
same or similar to the complexity as well as a scale of the infrastructure project. That is why it is
very important for the new projects to comply with these kind of regulations in the execution of
stage. Access to financing also great impact on the finances as well as Great impact on the
investors who are looking for the long-term returns but after different kind of global financial
crisis it’s become very challenging for the United Kingdom to do long-term lending.
Corruption: Corruption creates huge impact on the project performance because it create impact
on the delayed delivery time and also increase the infrastructure cost. Apart from this it also

reduce the potential economy of the infrastructure due to different kind of suboptimal projects
that are implemented. Apart from this corruption also create impact on the development of the
infrastructure as well as development of the country because it create impact on the equitable
distribution of the different resources across the population and also increase the income
equalities so it create impact on the international as well as national level. Corruption exists in
various forms in the design industry. Payoffs and bribes, front businesses, price fixing and
collaboration, theft, and conflicts are the most common. Authorities and program authorities can
divert cash from initiatives by requesting gratuities from subcontractors in return for award of
contract, bill payment, contractual modification authorization, or other activities. So these all
activities create impact on the Mega structures as well as also create impact on the society. It
creates a negative impact on the business operations and also affects the Growth of the particular
project. So it is really important for the individual to overcome the corruption because corruption
Improver increase the difficulties of corporate governance and also decrease the cost in order to
controlling the family or miss using firm assets.
Chinese Financing: Infrastructure development is it really important component in order to
motivate dog nation economic growth it helps the country to improve the efficiency of the
production, transportation and communication and it also support the company to provide
economic incentive to the public as well as private sector participants. In context of China
infrastructure investment that create huge impact on the United Kingdom again press structure
project procurement and it is very important for them to work on it so that they can overcome the
negative impacts and improve the efficiency of the project. According to the research, the
expenses of almost half of China's infrastructure capital invested in the last three decades are
higher than the risks they yield, implying that the initiatives destroy rather than create economic
value. The number of a strategic partnership between the United Kingdom and between the
Chinese organisation is now on the rise. China is providing different kind of opportunity towards
the United Kingdom infrastructure and also providing appropriate investment. This development
in this relationship is expected to modify fire or change the landscape of the interest of the
industry in the United Kingdom because China country entering into the supply chain of the
United Kingdom over the next 10 years so it create I need to provide significant opportunities for
the United Kingdom market in an appropriate manner.

outline proposal of an innovative procurement ecosystem of mega infrastructure projects in the
UK in pursuance of superior Value for Money (VfM)
CONCLUSION
From the above mentioned report it has been analysed that construction procurement is
the kind of strategy or acquisition of the services which is referred to as procurement. It is the
strategy of assigning procurement and builds a responsibility on the particular project. There are
different kinds of procurement process which are considered by the interest doctor organisation
while preparing and processing their project and that process include preparation of the month
end approval of the payment and also include budget planning, specification determination,
supplier research, selection, Price negotiation and many more. As this report considered different
kind of factors that create impact on the mega infrastructure projects at local, national and
international level and create huge implications for the organisation as well as for the project.
There are different kinds of factors like sustainability, carbon financing, COVID-19 pandemic,
political issues, corruption, Chinese Financing that provide different kind of opportunities as well
as create a negative impact on the infrastructure projects. Apart from that this report also
highlights a proposal of an innovative procurement ecosystem of the mega infrastructure project
in context of superior value for money. This activity provide a quantitative analysis in order to
support a best procurement option for the infrastructure
REFRENCES
Books and Journal