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Contract and Procurement Management Assignment

   

Added on  2021-04-16

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Running head: CONTRACT AND PROCUREMENT MANAGEMENTContract and Procurement ManagementName of the StudentName of the UniversityAuthor’s note:
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1CONTRACT AND PROCUREMENT MANAGEMENTExecutive SummaryThe cleaning contract service is designated the task of cleaning a 5 storybuilding. With the help of the feedback of the customers, newer technologiesand utilization of them have been implemented to provide better services. Thecleaning service has identified several ways in order to customize thecleaning services according to the specification of the customers. They wouldalso try to maintain the best value for the investment in cleaning (Testa et al.2016).(1) Procurement Plan(1.1)Personal Vision Statement: The cleaning services can comprise ofregular and periodic cleaning of the interior areas of a 5 story officebuilding of an organization that is owned and it is located in the PerthCentral Business District (CBD). The primary purpose of defining thestatement is to set the necessities of procurement. This would furtherensure the smooth working of the cleaning procedure inside thebuilding (Pacheco-Blanco and Bastante-Ceca 2016).(1.2)What is to be procured: The cleaning service would need to procurewaste removal services(1.3)Market Analysis: The market analysiswould highly target the cleaningmarket. There are a lot of competitors and there is a good reason forthe competition. The type of contractors who are working are MobileCar Detailing, Office Cleaning, Home Cleaning, Window Cleaning andCarpet Cleaning. The cleaning business includes equipments such asvacuum, chemicals, mops and others. They can guarantee full serviceswithin the first week of the work. (Gustafsson, Herrmann and Huber2013). (1.4)Financial Consideration: The financial consideration can be definedas the amount of money or other options of payment that would beprovide in exchange for a service or act that would be helpful for anymodel of business. The average turnover should be 30,000 per month.In terms of yearly turnover, it might be 250,000 from regularcommercial cleaning. The credit card facilities are also available withno contract. There is also a setup for online invoice payment that mayinclude added surcharges and automatic reconciliation. The existingprices may range from $20,000 to $260,000 (Scott 2015). (1.4.1) Budget and financing method: The policy of the budget is a majorfactor among all the policies. The growth of the expenditure of the public,consumption, investments and the improvement of the national economy is alarge measure for the budget of the business (Sato and Hirao 2013). (1.5)Procurement Methods: The methods of procurement is being usedfor contracts for materials, services, goods and projects of public work.Under the Public Contracts Regulations 2006, the authority has
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2CONTRACT AND PROCUREMENT MANAGEMENTmentioned four choices of procedure of procurement (Bergman andLundberg 2013)The Open ProcedureThe Restricted ProcedureThe Competitive Dialogue ProcurementThe use of an Agreement of the FrameworkThe Open Procedure is based on an assumption that a simple processand form of contract would be applicable to the services ofprocurement. The Competitive Dialogue Procurement would be typically used whereit would be possible to determine the appropriate form of contract.These forms of contract could be also termed as complexprocurements. They are often used in the search of solutions forvarious projects. (1.5.1) The following procurement process will be used: Proper Use of Resources and Emissions: The authority shouldensure that the provider of the cleaning services should utilizeappropriate techniques of cleaning that would minimize the amount ofproducts, electricity and water, which would be used. This wouldreduce the impact of cleaning (Almeida et al. 2013).Management of Waste: They should also that the provider shouldhave appropriate policies of reduction of waste (Beuren, Ferreira andMiguel 2013).Contribution to the Sustainable Practices of Clients: The cleaningcontractor should engage providers of cleaning services who would beable to demonstrate the initiatives in order to contribute to the clientsfor their sustainable goals and practices. (1.6)Options Available: There are many different options that are availablefor the cleaning services in the Perth CBD. A thorough research shouldbe made in order to choose the service company that would be able toperform the job properly. There would be many available options suchas floor cleaning, window cleaning, cleaning of the air conditioners,waxing and many others. The staff who would be employed for thecleaning purposes should carefully understand the cleaning needs ofthe building and then proceed with the task of cleaning. (1.7)Procurement Risks Register: The risks of procurement includes thearrangements of the contracts that can bypass the entitlements of theemployee, compensation insurances of the workers and state taxes,which are meant to challenge the competitors and to maximize theprofits (Charron et al. 2017).
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3CONTRACT AND PROCUREMENT MANAGEMENT(1.8) Type of Contract: As cleaning is a big industry, it can include varioustypes of businesses. The different types of services of cleaning are:Commercial cleaning, Residential cleaning, carpet cleaning and steamcleaning (Gaiardelli et al. 2014)(1.9)External Factors: There are some factors that may have a majorimpact on the future of the cleaning industry. The factors are:Technology – This field has affected the way in which the cleaningcompanies have managed their activities in the business and the wayof communicating with the customers (Schmoller and Bogenberger2014).Customer Research – The cleaning companies should takeadvantage of the opportunity by engaging with their clients throughonline process. They should respond quickly and thus give a properresponse to their client (Heinonen, Strandvik and Voima 2013). Inexpensive Channels of Marketing – The cleaning companies haveaccess to various channels of digital marketing that might include acompany blog, social media and many others. The advent of socialmedia has allowed business owners to engage with their customers(Boone and Kurtz 2013). Newer Products of Cleaning – Innovation and technology are helpingto create newer products that are in high demand by customers andcould be used by different cleaning companies. In addition to this,nowadays customers are much more interested towards environmentalfriendly products (Van Ostaeyen et al. 2013). (1.10) Contract approval process: The owner and the contractor of thecleaning procedure should agree to be formally and legally bound with respectto the laws of the country. They should also accord to the technical codes andregulations of the country in order to provide services as per the contract theywould sign (Chudley and Greeno 2013).(1.10.1) Scored selection criteria: The selection criteria for the selection ofthe project should include two methods. They are: Benefit MeasurementMethods and Constrained Optimization Methods.Though the methods are time consuming, but employing the methods is verymuch essential to have an effective plan for business and services. TheBenefit Measurement Model is useful irrespective of the complexity of theproject. The Constrained Optimization Method is the best fir compared to theprevious method. The Benefit Measurement Methods is a technique of selection of project thatwould be based on the present value of the estimated inflow and outflow ofcash. The benefits of costs are calculated. After that they are compared to thevarious other projects to make a decision. The techniques that are mainly
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