Presentation on Contract and Procurement Management

This presentation provides an in-depth understanding of contract and procurement management. It covers various procurement routes, including traditional, design and build, management contractor, and construction management. The advantages and disadvantages of each method are discussed. The presentation concludes with the selection of the management contractor procurement method for the construction of Central Queensland University (CQU) project. Suitable for the PPMP20011 course at Central Queensland University.

BY
NAME
INSTITUTIONAL AFFILIATION
PRESENTATION ON CONTRACT AND
PROCUREMENT MANAGEMENT

OUTLINE OF PRESENTATION
 INTRODUCTION
 METHODS
 DISCUSSION
 ADVANTAGES/DISADVANTAGES
 CONTRACT TYPE
 CONCLUSION
 REFERENCES

INTRODUCTION
 As the Construction manager of PPMP20011 Contract and
Procurement , there is need of providing in-depth and good advices
in terms of:
 Cost
 Quality
 Time
 This method will be involved during the expansion construction of
Central Queensland University campus to meet the increasing
number of students and also provide a suitable university lie within
the Melbourne campus

METHODS
Procurement Routes
Some of the procurement method that can be used by the CQU to ensure
quality, cost, and time in their project include:
 Traditional Procurement Route
 Design and Build Procurement Route
 Management Contractor Procurement Route
 Construction Management Method

Traditional Procurement Route
Advantages
 Easy to value and arrange
 Well-known procedures
 Price certainty
 Competitively fair
Disadvantages
 Reduced cost and time
 No input of contractor
 Longer duration

Design and Build Procurement Route
Advantages
 Reduced duration
 Design flexibility
 Potential cost saving
 Quality and time
Disadvantages
 Fixed cost
 Not good for inexperienced clients
 Lack of specialist

Management Contractor Procurement Route
Advantages
 Reduced duration
 Price certainty
 Quality
 Reduced cost
 Design flexibility
 Design flexibility Disadvantages
 Fixed cost
 Lack of available specialist

Construction Management Route
Advantages
 Reduced duration
 Price certainty
 Quality
 Reduced cost
 Design flexibility
 Design flexibility
Disadvantages
 Fixed cost
 Lack of available specialist

DISCUSSION
Selected Route: Management Contractor Procurement Method
 The traditional procurement method could have been an option in the Central Queensland
University (CQU) project.
 This procurement method is only good for quality project, flexibility in design, specialist
contractors.
 This management contractor method enables some work contracts to be tendered earlier than others,
and sometimes, even before the completion of design.
 The competitive tendering of each construction element by the management contractor on behalf of
the client.
 This will ensure that the company attain the best prices across the board for all the tenders hence
reducing the construction cost of the project.

 Management contractor procurement method has been preferred as the most
suitable procurement method for the construction of Central Queensland
University (CQU) project since the method satisfies:
 The quality factor
 The time factor
 The cost factor
 This method gives the provision of design flexibility which allows changes in
the design to improve quality of the project.
 The enables some work contracts to be tendered earlier than others, and
sometimes, even before the completion of design.

ADVANTAGES
 This method also gives the provision of design flexibility which allows
changes in the design to improve quality of the project.
 The contractor only selects the best design specifications that meets the
required client demand
 The management contractor will be acting as a principal such that no
contractor can make direct claim to the client in case the management
contractor becomes insolvent.

 The management contractor has powers to terminate the contract made by
suppliers of construction elements although there are potential implications on
the construction cost especially when contractors fail to deliver materials or
services.
 The management contractor covers both the construction and pre-construction
activities.
 This includes all the contracts and risks which will all be moved by the
employer to the management contractor.
 The management contractor is appointed by the employer previously in the
process of design due to their experience and management skills which can be
applied in the improvement of the buildability.

 The client gives the management contractor the
responsibility of performing both the construction and pre-
construction activities such as:
 Site management
 Monitoring key performance indicators
 Site coordination
 Cost planning
 Acting as the principal contractor
 Coordinating and managing works contracts
 Tendering works contracts

DISADVANTAGES
 Client makes the impossible decision of selecting a
management contractor
 Lack of suitable specialists
 Not suitable for unexperienced
 Contractor takes full responsibility clients

CONTRACT TYPES
 The best contract types for this project is Fixed Price or Lump Sum type of
contract.
 In this types of contract, a total fixed priced for all the activities related to the
construction process.
 Lump Sum is very suitable since the project has a clear scope of the project
since the University has made it clear that they wish to expand CQU and the
project will involve main lecture, laboratories, a motel, and conference hall

CONCLUSION
 The selected procurement method for the construction of Central Queensland
University (CQU) project is the management contracting since the method
satisfies the quality, time, and cost factors.
 The PPMP20011 Management Consultant Company may act as the
management contractor and will perform activates such as:
 Site management and site coordination
 Cost planning
 Coordinating and managing works contracts

REFERENCES
 Dada, M., 2013. Frequency of conflicts in construction project procurement: A
correlation analysis. International Journal of Construction Supply Chain
Management, Volume 3, pp. 1-15.
 Fenn, P., 2012. Introduction to Building Procurement. Construction Management and
Economics, Volume 30, pp. 493-494.
 Gandu, Y., Chindo, G. & Ali, A., 2011. Bidding model for sustainable projects using
the traditional procurement method. Information Manager (The), Volume 9.
 Goel, A., 2016. Understanding pre-qualification preferences of public clients in
traditional and design-build procurement systems. International Journal of
Procurement Management, Volume 9, p. 684.
 Goel, A., 2018. Analysing contractor prequalification criteria in construction: new
insights through interpretive structural modelling. International Journal of
Procurement Management, Volume 11, p. 667.