Public Procurement Process Analysis

This assignment delves into the intricacies of the public procurement process. It requires a comprehensive understanding of legal aspects, including legislation and regulations governing procurement activities. The analysis should encompass various stages of the procurement cycle, from planning and tendering to contract management and evaluation. Additionally, it explores best practices for enhancing efficiency, transparency, and accountability in public procurement. The assignment also considers challenges and risks associated with the process and proposes strategies for mitigation.

Running head: PROJECT MANAGEMENT
Topic- Project Execution Planning and Management
Name of the Student
Name of the University
Author’s Note

1
PROJECT MANAGEMENT
Table of Contents
1. Project Delivery Method..............................................................................................................2
2. Financial Contract Type..............................................................................................................5
3. Procurement Method...................................................................................................................7
References......................................................................................................................................10

2
PROJECT MANAGEMENT
1. Project Delivery Method
The method of project delivery is generally referred as a system that is mainly used either
by an owner or by some agency that mainly assists in financing as well as organizing
construction, operations as well as maintenance services for the facility or structure that is
entered into some of the legal agreements. It is identified that each of the project mainly differs
in characteristic with others in context to delivery method that is mainly utilized for competing
the entire project (Wedin & Johansson, 2017). It is found that there are generally three types of
project delivery methods that include design bid build, design build and CM@ risk. Among the
three-project delivery method, it is identified that most appropriate method is mainly applied in
the public funded project. It is found that the application of method is generally dependent on the
alignment of method characteristics with various project related needs. The different types of
delivery method that are related with project are elaborated below:
Design Build: In this particular method, it is identified that the design as well as
construction related project module are generally procured. Design build type of project are
mainly characterized with the help of the contract from one entity (Da et al., 2014). It is
identified that usually request related with qualification and request for proposals are generally
employed in the entire project.
CM @ Risk: This type of method is generally have feature that are related with different
categories of construction as well as design procurement for executing the entire project
successfully (Jans, Alles & Vasarhelyi, 2014). The contract that exist between the construction
agency and the contract manager helps in determining the assumed time and cost that are needed
for completing the entire project successfully.

3
PROJECT MANAGEMENT
Design-Bid Build: This method is mainly considered as the traditional procedure that is
utilized for both construction and design (Hayden, 2016). In this method, it is analyzed that the
project design is mainly completed before the procedure of bidding. In this type of methods, it is
identified that various types of errors related with the construction of the project is considered
project owners responsibility.
Depending on the characteristics of the delivery model, proper score has been provided
within the evaluation matrix. In the evaluation matrix related with the project delivery method, it
is analyzed that the most significant method is design build for widening the highway of the
motorway which is mainly situated in Sydney. It is identified from the case study of widening
the network of motorway that the complexity as well as capacity of working is quite significant
and therefore they must be analyzed properly before the selection of proper delivery method
(Wedin Hansson & Johansson, 2017). It is predicted that M5 motorway will enhance the traffic
by 24% in weekdays. Therefore, it is analyzed that development of motorway network must be
carried out properly with proper care and safety so that it does not create any risk on the daily
life of the individuals. Design complexity is provided with maximum weight within the
evaluation matrix (Witjes & Lozano, 2015). Additionally, the failure or inability of managing
the structure of the entire organization that is related with widening of the motorway helps in
carrying proper potential for slipping different types of activities of the project. Risk assessment
management related with the project also have maximum weight. Therefore, the entire project is
scheduled to be completed within the year 2023.
Goals/ Criteria Criteria
Weight Project Delivery Method
Design-Bid Build Design-Build CM @ Risk

4
PROJECT MANAGEMENT
Score Weighted
Score Score Weighted
Score Score Weighted
Score
Schedule
delivery 15 9 135 9 135 8 120
Construction
related
innovation
5 4 20 8 40 10 50
Complexity
present in
design
20 4 80 10 200 8 160
Risk
Assessment 19 5 95 8 152 8 152
Experience of
the owner 11 9 99 7 77 3 33
Experience of
the staff 6 10 60 11 66 4 24
Experience of
contractor 7 5 35 9 63 10 70
Cost 10 4 40 9 90 8 80
Control level 7 10 70 8 56 10 70
Total 100 634 879 759
On the basis of evaluation matrix, design build method is considered as the most
appropriate procedure for project delivery that can utilized for motorway widening project.

5
PROJECT MANAGEMENT
2. Financial Contract Type
In order to improve the transportation facilities, the project of widening motorway
network helps in creating four lanes from the existing two lanes. It is identified that the financial
contract of the construction project helps in providing proper legal agreement for bidding both
the contractor and owner of the project (Hawkins et al., 2015). Additionally, the financial
contract is also beneficial in giving proper information that is related with type as well as amount
of compensation that is given to the contractors and designers for completing the entire project
effectively. It is found that are three major categories of financial contract, which are as follows:
Cost plus contract: In this type of contract, the entire budget that is provided by the
owner is mainly dependent on the actual price that is mainly needed by the activities that are
required to be followed during the construction of the project (Lippman & McMahon, 2017). It
is found that the cost plus contract mainly helps in providing ability of negotiating the entire
financial amount that is needed for constructing the entire project successfully. It is identified
that both direct as well as indirect cost are considered during price determination of the project.
Lump sum contract: It is identified that this contract type is mainly characterized by
fixed financial amount that is mainly provided for completing the entire project successfully.
Completion of the project before schedule helps in enhancing the entire benefit from lump sum
that is mainly given at the initial stage of the project (Lozano et al., 2016). The lump sum is
mainly applicable when both the objective as well as scope of the entire project will be
mentioned with the help of project owner. Lump sum contract application mainly assists in
eliminating the various types of risk that are generally related with the contractor.

6
PROJECT MANAGEMENT
Guaranteed Maximum Price Contract: This financial contract is mainly distributed
among various contractors that are mainly dependent on the total price of construction as well as
activities that are generally pre-defined (O'mahony, Noone & Prihodova, 2015). In this type of
contract, it is identified that the entire financial budget can be enhanced after proper formal
approval of the owner.
The project that is related with the widening of the motor way network, which is mainly
carried out properly on the lump sum, that is around AUD 16.8billion. The amount is mainly
provided to West LINK to complete the entire project successfully. Therefore, it is identified that
the criteria of fixed cost are generally allocated with weight along with quality and risk factor in
order to construct the entire project successfully (Mishra, Devaraj & Vaidyanathan, 2013).
Furthermore, the project must be successfully completed with the deadline that is around 2023.
Therefore, proper schedule is mainly provided with appropriate weight so that the project can be
constructed properly.
Goals/
Criteria
Criteria
Weight
Financial Contract Type
Lump sum contract
Guaranteed
Maximum Price
Contract
Cost plus Fixed Fee
Contract
Score Weighted
Score Score Weighted
Score Score Weighted
Score
Fixed cost
related with
construction
11 9 99 8 88 8 88
Schedule of
the project 15 9 135 9 135 12 180

7
PROJECT MANAGEMENT
Increased
production 7 7 49 5 35 6 42
Bidding
analysis 6 10 60 3 18 5 30
Risk 17 6 102 5 85 10 170
Design 20 5 100 2 40 9 180
Cost related
with
unforeseen
risk
8 9 72 5 40 9 72
Quality 16 9 72 4 64 8 128
Total 100 689 505 890
Depending on the evaluation matrix, it is identified that lump sum financial contract must
be utilized properly for constructing the widening of the entire motorway project successfully.
3. Procurement Method
It is identified that proper selection of procurement method helps in providing client
satisfaction as well as project success. It is identified that the application of effective
procurement procedure assists in improving both the standard as well as quality of the project
(Asher, Sharma & Sheikh, 2015). Depending on the criterion of the construction project, there
are number of procurement methods that include negotiated procurement, competitive
procurement and value procurement.
Negotiated procurement methods: In this method, the contractor can negotiate as well
as discuss the budget of the project with the owner. The risk factor as well as profit margin,

8
PROJECT MANAGEMENT
which are mainly associated with the project, is mainly considered earlier than the selection of
the contractors.
Best Value procurement methods: In this method, the contractors who have very much
less bid is mainly selected for the construction of the project. This procedure is mainly associated
with the risk as well as various types of future consequences of construction (Gruenen, Bode &
Hoehle, 2017). Furthermore, it is identified that best value procedure of procurement generally
assists in eliminating the assessments related with the contractor in context to various types of
technical as well as quality related procedure.
Competitive procurement methods: The competitive procurement procedure mainly
helps in allowing all the contractors to judge based on the ability o technical quality of the
contractors. This procurement method mainly helps in evaluating experience, financial cost as
well as capability of the contractor (Lawal, 2016). In addition to this, both the technical as well
as experience capability of the contractor is mainly judged before the selection of proper
contractor.
In this project, it is identified that widening of the motorway network project is mainly
given with the government so that the entire project can be executed successfully. Thus, the cost
that is associated with procurement is mainly offerred with highest priority within the method
that generally follows proper schedule for completing the project (Lima et al., 2015). The project
construction would be quite helpful in improving both the safety as well as quality of the project.
Goals/ Criteria Criteria
Weight
Procurement Method
Competitive Negotiated Best Value
Score Weighted
Score Score Weighted
Score Score Weighted
Score
Quality 10 10 100 6 60 3 30

9
PROJECT MANAGEMENT
Schedule 15 8 120 11 165 10 150
Cost 10 8 80 5 50 7 70
risk 11 9 99 8 88 4 44
Project size 8 5 40 2 16 6 48
Experience of
the contractor 9 7 63 6 54 8 72
experience of
the contractor 10 10 100 9 90 3 30
Public related
accountability 7 5 35 4 28 4 28
Owner's
decision 4 3 12 9 36 5 20
Contractor's
expertise 16 10 160 8 64 6 96
total 100 809 651 588
On the basis of evaluation matrix, competitive procurement method is generally selected
for constructing the project successfully.

10
PROJECT MANAGEMENT
References
Asher, M. G., Sharma, T., & Sheikh, S. (2015). Public Procurement Legislation Essential for
Improving Public Financial Management in India.
da Silva Barboza, L., Gilberto Filho, A. D. A., & de Souza, R. A. (2014, August). Towards a
legal compliance verification approach on the procurement process of IT solutions for the
Brazilian Federal Public Administration. In Requirements Engineering and Law
(RELAW), 2014 IEEE 7th International Workshop on (pp. 39-40). IEEE.
Gruenen, J., Bode, C., & Hoehle, H. (2017, May). Predictive Procurement Insights: B2B
Business Network Contribution to Predictive Insights in the Procurement Process
Following a Design Science Research Approach. In International Conference on Design
Science Research in Information Systems (pp. 267-281). Springer, Cham.
Hawkins, T. G., Gravier, M. J., Berkowitz, D., & Muir, W. A. (2015). Improving services supply
management in the defense sector: How the procurement process affects B2B service
quality. Journal of Purchasing and Supply Management, 21(2), 81-94.
Hayden, M. A. (2016). Engaging Users through the Application of Value Stream Mapping to
Streamline the Procurement Process for Office Equipment (Doctoral dissertation, Ohio
University).
Jans, M., Alles, M. G., & Vasarhelyi, M. A. (2014). A field study on the use of process mining of
event logs as an analytical procedure in auditing. The Accounting Review, 89(5), 1751-
1773.

11
PROJECT MANAGEMENT
Lawal, S. O. (2016). Procurement Process Design.
Lima, F. S., Gonçalves, M. B., Samed, M. M. A., & Hellingrath, B. (2015, June). Integration of a
Mathematical Model Within Reference Task Model at the Procurement Process Using
BPMN for Disasters Events. In International Conference in Swarm Intelligence (pp. 440-
452). Springer International Publishing.
Lippman, E., & McMahon, M. (2017). Professionalism and Politics in the Procurement Process:
United States Civil War Early Years. Accounting Historians Journal, 44(1), 63-76.
Lozano, R., Witjes, I. S., van Geet, C., & Willems, M. (2016). Collaboration for Circular
Economy: Linking sustainable public procurement and business models.
Mishra, A. N., Devaraj, S., & Vaidyanathan, G. (2013). Capability hierarchy in electronic
procurement and procurement process performance: An empirical analysis. Journal of
Operations Management, 31(6), 376-390.
O'mahony, B., Noone, D., & Prihodova, L. (2015). Survey of coagulation factor concentrates
tender and procurement procedures in 38 European Countries. Haemophilia, 21(4), 436-
443.
Wedin Hansson, L., & Johansson, S. (2017). Institutional Incentives for Sustainable Public
Procurement: a Case Study of Sustainability Considerations in the Swedish Construction
Sector. The Public Procurement Law Review, 26(5), 220-235.
Witjes, S., & Lozano, R. (2015, July). Developing a holistic framework to understand the
contribution of sustainable public procurement to the development of more sustainable
business models.

12
PROJECT MANAGEMENT