Improving Public Procurement Processes

This assignment requires you to critically analyze a set of academic research papers focused on public procurement processes. The analysis should delve into topics such as enhancing efficiency, promoting sustainable practices, ensuring legal compliance, and leveraging technology for improved performance in public procurement. Pay attention to the methodologies used in the studies, their findings, and implications for best practices in public procurement.

Project Execution Planning and Management
Name of the Student
Name of the University

Table of Contents
1. Project Delivery Method..............................................................................................................3
2. Financial Contract Type..............................................................................................................5
3. Procurement Method...................................................................................................................8
Bibliography..................................................................................................................................11

1. Project Delivery Method
The project delivery method is defined as an efficient process or procedure utilized in any
construction project for developing the design, scope, consultants and design sequence for
completing the project. Therefore, each project differs in characteristic with the other based on
the delivery method used for completion of the project. Currently, in the public funded project,
the three major project delivery methods are followed including CM @ risk, Design build and
design bid build. The selection of the appropriate project delivery method needs to be considered
based on the alignment of the project requirement with the characteristics of the method.
The various characteristics of the method of the three project delivery method are
illustrated in the section below:
Design-Bid Build: The process of Design Bid Build is considered as one of the
traditional process used for design and construction. In this process the design of the project is
completed before the bidding process, and the construction part of the project is provided for
construction project. In this type of delivery method, the errors regarding the design of the
construction project becomes the responsibility of the project owner.
Design Build: In the project delivery method of Design build, both the design and
construction module of the project are being procured. This type of project is being characterized
by the contract from one single entity. Usually the process of RFP (Request for Proposals) and
RFQ (Request for Qualifications) are being employed in the project.
CM @ Risk: This type of project delivery method is characterized with different
construction and design procurement for completing the construction. The contract between the

construction manager and the construction agency is at risks determining the final time and cost
required for the construction project.
Based on the characteristics of the three delivery methods, CM @ Risk, Design Build and
Design-Bid Build methods has been provided the score in the evaluation matrix.
In the project delivery method evaluation matrix, it has been identified that application of
design build method would be most appropriate for selecting the appropriate project delivery
method for the project for widening the existing highway for the Sydney motorway network.
From the case study for the project of widening of the Sydney Motorway Network it has been
identified that the working capacity and complexity in widening of the road are the significant
factor that needs to be considered while selecting the project delivery method. The M5 motorway
has been predicted to have an increase in the traffic of 24 % in the weekdays. Therefore, the
construction for widening of the motorway needs to be carried out with utmost care and safety
without risking the daily life of thousands of individuals. Therefore, in the evaluation matrix,
design complexity has been provided with maximum weightier. In addition to that, the inability
or failure to manage the organizational structure associated with the widening of the motorway
carries the potential for slipping out vital activities in the project. Therefore, risk assessment and
management in the project is the second most significant factor having the maximum weight.
Further, the project has been scheduled to be completed within 2023. Failure to complete the
project within set deadline will in turn increase the complexity and budget for construction.
Therefore, schedule delivery has been allocated as the second highest weight for the project. Cost
allocated and the owner experience has been provided with the thirst highest weight as AUD
16.8 billion has been contracted for the project.

Goals/ Criteria
Criteri
a
Weight
Project Delivery Method
Design-Bid Build Design-Build CM @ Risk
Score Weighte
d Score Score Weighte
d Score Score Weighte
d Score
Schedule
Delivery 15 4 60 10 150 8 120
Innovation of
the
Construction
5 4 20 9 45 10 50
Design
Complexity 20 3 60 9 180 8 160
Risk
Assessment 20 4 80 10 200 8 160
Experience of
the Owner 10 10 100 8 80 3 30
Experience of
the staffs 5 10 50 8 40 4 20
Contractor
Experience 8 4 32 10 80 10 80
Cost 10 3 30 10 100 8 80
level of control 7 9 63 8 56 10 70
total 100 495 931 770
Based on the evaluation matrix, Design-Build has been identified as the appropriate
project delivery method that can be employed in the widening of the motorway project.
2. Financial Contract Type
The project for the widening of the motor way required the creating four lanes from the
exiting two lanes in order o improve the transportation facilities. The financial contact for the
construction projects provides a legal agreement binding the contractor and the owner of the
project. The contract further provides the detailed information about the type and amount of
compensation provided to the contractors and designers for completing the project within the

allocated amount of time. In the construction project, there are three major types of contract
followed for binding the contractor on the basis of financial amount.
Lump Sum Contract: The contract for the lump sum is characterized by the fixed
financial amount provided for the completion of the project. Completing the project before the
schedule would help in increasing the benefits and profits from the lump sum provided in the
beginning. The lump sum is applicable when the scope and objective of the project are
mentioned by the project owner. Application of lump sum contract helps in eliminating any risks
associated with the contractor.
Cost Plus Contract: In the cost plus contract the total budget provided by the owner is
based on the actual price required by the activities that have been followed during the
construction project. The cost plus contract provides the contractor with the ability to negotiate
the financial amount required for the construction project. During the determination of the
prince, all the direct and indirect cost are taken into consideration.
Guaranteed Maximum Price Contract: The financial contract of Guaranteed Maximum
Price Contract are distributed among the contractors based o the total price provided based on the
activities and construction module pre-define din the design of the project. in this type of
contract, the financial budget can only be increased after formal approval from the owner.
The project for the development of the widening of the motor way network needs to be
carried out on the lump sum of AUD 16.8 billion provided to the West LINK for completing the
entire project. Therefore, the fixed cost criteria have been allocated with maximum weight along
with the risks and quality factor for constructing and completing e entre project. Furthermore, the
project needs to be completed within the allocated deadline with 2023. Therefore, schedule has

been provided with second highest weight for the construction project. Similarly, all the other
criteria has been evaluated and judged based in the requirement as mentioned in the construction
project.
Goals/
Criteria
Criteria
Weight
Financial Contract Type
Lump sum contract
Guaranteed
Maximum Price
Contract
Cost plus Fixed
Fee Contract
Score Weighte
d Score Score Weighte
d Score Score Weighte
d Score
Fixed cost
for
constructio
n
20 10 200 8 160 7 140
Schedule
project 15 10 150 7 105 10 150
increased
performanc
e and
production
5 8 40 4 20 5 25
bidding
analysis 5 9 45 2 10 4 20
risk 20 7 140 5 100 9 180
design 5 4 20 2 10 8 40
higher cost
for
unforeseen
condition 10 8
80
4
40
8
80
quality 20 8 160 4 80 7 140
total 100 835 525 775
Based on the evaluation matrix, lump sum financial contract should be utilized for the
construction of widening the motorway of the project.

3. Procurement Method
The selection of appropriate procurement methods in the construction project helps in
ensuring the project success and client satisfaction. The application of appropriate procurement
process helps in improving the quality and standard of the construction project. Based on the
construction project criteria, three main types of procurement methods are followed namely best
value procurement, negotiated procurement and competitive procurement.
Competitive procurement methods:
The competitive procurement process allowed the all contractors with the process for
judging the contractors in the basis of various characteristics of the contractors on the basis of
technical quality of the contractors. The competitive procurement methods evaluated the
capability, experience and financial cost of the contractor. Further the experience and technical
capability of the contractor are judged before selecting the appropriate contractor.
Negotiated procurement methods: In the negotiation procurement process, the contractor
can discuss and negotiate the budget with the owner. The profit margin and risk factor associated
with the project are considered before selecting the appropriated contractors. This type of
procurement methods includes huge amount of financial budget by the contractors.
Best Value procurement methods: In the method for best value procurement process, the
contractor with the least amount of bid is chosen for the construction project. This process is
associated with less risks and future consequences of the construction. Further, the application of
the best value procurement process eliminates the assessment of the contractor based on the
quality and technical process employed for the construction project.

In this project for the widening the new freeway, a fixed amount has been provide by the
government and deadline for completion has been set. Therefore, the cost for the procurement
has been provided with the highest priority in the methods followed by the schedule. The
construction would help in improving the quality and safety of the people using the pathway. In
addition to that, mission out of any parts or activities in the construction would increase the risks
associated with the project. Therefore, the risks have been allocated to next highest weight in the
evaluation matrix.
Goals/
Criteria
Criteri
a
Weight
Procurement Method
Competitive Negotiated Best Value
Score Weighte
d Score Score Weighte
d Score Score Weighte
d Score
Cost 20 10 200 4 80 3 60
quality 10 8 80 10 100 10 100
Schedule 10 8 80 6 60 7 70
risk 13 9 117 7 91 4 52
public
accountabilit
y
5 5 25 1 5 6 30
project size 5 7 35 5 25 8 40
experience of
the
contractor
15 10 150 8 120 3 45
government
policy 5 5 25 3 15 4 20
Decision of
the owner 2 3 6 10 20 5 10
expertise of
the
contractor
15 10 150 8 120 6 90
total 100 868 636 517
Based on the evaluation matrix, competitive procurement method has been selected as the
appropriate method for selecting the procurement for the construction project. Therefore the

application of the competitive procurement could help in improving the quality and standard of
the project.

Bibliography
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