Contracts and Procurement for Olympic Accommodation Complex in Brisbane

This case study discusses the procurement process and key risks involved in building an accommodation facility for Olympic athletes in Brisbane. It covers the procurement scope and context, project procurement components, and project environment. The project involves a strict control over the factors existing in the project environment to enable project manager to realize the success by writing plan in such a way to examine the potential change needed and act accordingly.

CONTRACTS AND
PROCUREMENT

INTRODUCTION
Here the case study regarding the public project of building an accommodation facility for
Olympic athletes that are going to participate in 2032 Olympics. The demolition of existing
building will be commence from February 2022 and the accommodation complex so built for
2032 athletes will be utilized for student accommodation till 31st December 2031 studying at
Torrens University. Through such a social establishment, a constant development of the public
project management goals can be achieved. The present case study is a similar case of such
social establishment. Initially the scope of the project is very broad and it will be further adjusted
according to the information gathered about the end users. There a requirement of strict control
over the factors existing in the project environment to enable project manager to realize the
success by writing plan in such a way to examine the potential change needed and act
accordingly. The detailed analysis is needed to ensure appropriate performance of variety of
operations and maintenance requirement in the process of development of the project. The
procurement cycle for this project begins with need based ideology and then ends when a set of
competent contractors are selected for the accomplishment of desired objectives. The project
incorporated through the procurement of project management contractor who will be reporting
directly to the project management panel and then leads to analysis of segment required and
elimination of unnecessary and unidentified segments. Inventory control and logistics
management are the most important aspects associated with the function of procurement of this
project. At the last, planning and simultaneous identification of necessary requirements and their
timely provision is crucial for the success of the procurement process. Management of scope,
risk, stakeholders, resources and quality of work are another most important aspects of this
project which is considered to be crucial for the attainment of the objective of Brisbane Olympic
Committee that is, their bid of getting best games ever.
Procurement Scope and context
To ensure the achievement of desired objectives from the establishment of accommodation
facility at Brisbane in required framework and design of the project, there is a need to efficiently
utilize the funds and resources so gathered from various public and private sources. Management
are required to make effective decisions to select those contracts out of the available alternatives
which is highly feasible under the given circumstances and dimensions. The various steps
involved in the life cycle of the procurement process begins from planning for purchases &
requisitions, inviting proposals, review of proposals, solicitation process, evaluating alternative
contracts, selecting vendor and managing orders, administering contract by managing with
invoice approvals and related disputes, keeping record of each and every acquisitions and then
ends at closing of the contract at the finishing of the project. The features of efficient and
effective procurement process are as follows:
 Transparency
 Fairness
 Integrity
 Competition
 Economy
 Accountability

 & Openness
Project procurement components
There are series of components included in the present procurement process. These components
have a crucial role to play in initiating operational requirement along with idealizing for the
accommodation complex for Olympic project at Brisbane.
Request initiation
With regards to the present project, it is the first stage in the process of procurement. Here
identification is done for the requirement of each segment of the operation undertaken to achieve
the desired outcome.
Requirement development
A general ideology granted to the contractors available pertaining to the resources required.
Request approval
Many approvals are required to be formulated and idealized to examine the abilities and needs of
the project. It includes different operational sectors across the determined fragments.
Purchasing authority
Here for different processes, there different authority and resources needed to be acquired. It also
include definition of how resources so contracted and information system has been installed will
be utilized in the project.
Proposal review
The present project involves large scale operations, so there is a need of series of proposals in
order to avail best opportunity or select best alternative. Both contracting companies and
individual contractors submit their respective proposals in order to obtain operational contracts
and accordingly the concerned authority of the project assess eligibility of each and every
proposal.
Contract management responsibility
The proposals includes the contract for the project and after reviewing the proposals, the process
of granting approval begins by incorporating the necessary requirements if it is missing in the
proposals and also changes with regards to operational models has been marked by the authority
which depends upon the ability of the organisation.
Contract closure requirements
After completion of the process of application review successfully and the acceptance of contract
from the most desirable vendors, the process of closure of contracting has been initiated by
finalizing the order. Here the assessment of resources is done in terms of analyzing their usability
for each of the process selected.

Procurement process flowchart
Flowchart involves ideal representation of each and every unique or potential ways which can be
utilized to produce better results in the long run. Here, an organisation is able to explore and
interact with each and every section of the selected process in an intensive manner.
Tender evaluation
The accomplishment of the process of tender evaluation is done through available processes and
each of its divisions all the format so described. There must be accomplishment of all the
mentioned ideologies previously under an evaluation process in order to manage and measure
each and every factors involved in the development of the project.
Key risks or issues
A large scale projects like the one which is Olympic accommodation complex, there are series of
operations needed to be carried out and accordingly, such conditions resulted in frequent
occurrence of risks at each and every stage of the project. Some of the highly prominent factors
that can cause risks inclined to this project are discussed as follows:
Construction risks
A process of construction is sometimes become an unpredictable process as the case with the
present project situation where there are very much high risks pertaining to the shortages of
resources and time. As the Olympic Committee of Brisbane aims to have highest quality games
ever, so the contracting companies are liable produce such a significant impact with the
completion of this project that could lead to the creation of highest impact till time. Accordingly,
it will cost uniquely to the Committee or concerned authority. Therefore, with such a high class
demand, there are many contractual obligations involved in the agreement that take place
between the Brisbane Olympic Committee and Multiplex construction contractor. The agreement
involves the term that if there would be any kind of delay in the completion of the project the
contractor’s side then it will give rise to the production of compensation. Apart from this
limitation pertaining to time, there are many other restrictions that has been put on by the project
sponsor, such as the design of the project, technological capabilities of the site in term of quality,
meeting highest possible standard of quality for the project, etc. The importance of project
delivery which is a time oriented one is very crucial as in the event of missing timelines, there
are provisions of penalty which must be met anyhow. The construction contracting company that
is Multiplex, needed to accomplish the project within the duration of 44 months which includes
both planning and building. Therefore, this constraint in the form of time element acts as a
biggest risk factor for the Multiplex Construction Contractor and the Brisbane Olympic
Committee. To overcome this risk, there are various provisions made in order to facilitate the
availability of a sound system which can be utilized to attain better process of construction for
the complex. The process of construction has also been managed through equal distribution of
authority and financial responsibility between the contractor and Brisbane Olympic Committee.

Operating risks
Running a complex is a huge responsibility which demands timely maintenance and thus there
are higher probability of misconducts and risk occurrence throughout its operations. If
operational costs of the complex is higher the acceptable limit, there would be a financial crisis
among all the individual departments involved in the maintenance of the complex. In order to
overcome these crisis in future, there are many financial sources such as the banks and financial
institutions which can be resort to as mentioned in the operational model duly modified during
the testing process and accordingly, required financial relief can be extended to the concerned
authority responsible for the operations of the complex. Such a relief allows for minimizing the
operational risks to a great extent. In addition to this, the vacant complex before and after the
international event of Olympic will be utilized for accommodating four hundred students
studying at Bowen Terrace Campus site as a rental accommodation. Therefore, the complex will
be located behind the Brisbane Campus Building which will guarantee a regular income for the
operation and maintenance of the complex. All these financial support are useful in minimizing
the operational risks and thus the operation of the complex can be achieved as per the desired
ideology and pace.
Project environment
The proposed project is associated with the building and construction of an accommodation
facility and therefore the environment surrounding the project is of great importance. The
environment provides with the factors that should be evaluated and analyzed, so that justification
can be made regarding the need of project management all along the operational dimensions.