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Contract and Procurement Management Plan for Greenwich Private Limited

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Added on  2023/04/11

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This document provides a contract and procurement management plan for Greenwich Private Limited, a manufacturing company looking to renovate their working environment. It includes information on the project delivery method, evaluation criteria, ethical code of conduct, financial contract type, procurement method, issues and challenges, terms and conditions, service agreement, variations, insurance, communication strategy, project schedule, key performance indicators, and risk management plan.

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Project Management

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Contents
Project Background:...................................................................................................................2
Project Delivery Method............................................................................................................2
Evaluation Committee:...........................................................................................................3
Evaluation criteria..................................................................................................................4
Ethical code of conduct..........................................................................................................6
Financial Contract type..............................................................................................................6
Procurement method..................................................................................................................7
Issues and challenges:.............................................................................................................7
Terms and condition...............................................................................................................7
Service Agreement.................................................................................................................7
Variations:..............................................................................................................................8
Insurance:...............................................................................................................................8
Communication Strategy........................................................................................................8
Project schedule....................................................................................................................10
Key Performance Indicators.................................................................................................10
Risk Management plan.............................................................................................................10
Risk Register........................................................................................................................11
Review of Procurement Agreement:........................................................................................12
References................................................................................................................................12
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Introduction:
The Greenwich private limited is the manufacturing company which is looking forward to
renovate their working environment with the new technological innovation so that the
operational capability of the team members can be improved and it directly helps to increase
the turnover of the organization. The purpose of this paper is to develop a contract and
procurement management plan by identifying the evaluation criteria and risks associated with
the new project.
Project Delivery Method
The project will be completed by following the design-bid-build method. The design phase is
used to develop the construction engineering drawings for renovating the working
environment of the enterprise. The conceptual systematic design should be developed by the
engineer for identifying the requirement of the resources required in the development of the
project. In the bidding phase, the tenders from various contractors are collected. The
evaluation criteria and scoring is set for selecting the right contractor for managing the supply
of the resources at the construction site. In the building phase, the contract is signed with the
contractor to supply the resources on the construction and start the construction of the
undertaken project. The advantage of using this methodology is that it takes the active
participation of the project owner to identify and signed contract with the right contractor so
that the project can be completed within the specified time and cost.
Project Title Greenwich private limited company
Project Objectives The objectives of the project are:
Identify the problem domain in the existing working
system
Identify the requirement of the new environment
Identify the new technology required to be implemented
Identify the projected cost of the project
Identify the project timeline
Identify the risks associated with the project
Identify the success criteria of the project
Determine the evaluation criteria
Selection of the contract
Identify terms and condition
Project Scope The scope of the project focuses on:
Setting selection criteria for tender process
Develops evaluation criteria and weightage system
Signing service level agreement with the selected
contractor
Setting of terms and condition
Identify success criteria, constraints, and assumptions of
the project
Project start date The start date of the project is 5 April, 2019
Project finish date The finish date of the project is 10 Nov, 2019
Critical factors Supply of the physical resources at construction site
Supply of the human resources at construction site
Allocation of tasks to the resources
Project schedule
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Identify interdependencies between the project activities
Assumptions Team is highly skilled and expertise
Availability of resources as desired
Constraints Project should be completed within projected time
Project should be completed within projected cost
Rationale The success criteria of the project are:
Completion of project within available resources
Completion of project within allocated time
Completion of project within allocated cost
Grading (Criteria, weight, and
score)
Safety and health credentials
Cost
Services and facilities provided
Location of the contractor from the construction site
Historical reputation
Ethical behaviour of conduct
Goodwill
Availability of resources
Online connectivity
Evaluation Committee:
Name Role Responsibilities Key concern areas
Jim Corbett Project director Identify the problem
domain of the
organization
Proposing new
project
Develops
requirement
specification plan
Organization
problem domain and
complexity which
affect the growth and
profitability of the
company
K.L. Lias Project Owner Approval of project
Approval of project
budget
Approval of project
time
Project start up for
the betterment of the
organization
S.D Belley Project Manager Approval of the
project schedule
Distribution of role
and responsibilities
Allocating resources
and cost to the
activities
Project undergoing
process
Maggie Rose Planning engineer Preparation of the
project schedule
Identify critical path
Project delay
R.D. Thomson Financial Manager Preparation of the
project budget
Cost estimation plan
L.N. Lui Procurement
manager
Managing contract
with the contractor
and sub-contractor
Service level
agreement

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Smith Jones Operation manager Operating procedure
of the company
Operational working
of the company
M.N. Prasad Senior Consultant Advice and
innovative ideas
New marketing
trends
Evaluation criteria
Evaluation Criteria Criteria
Weightage
Sub
Weightage
Score (5
Point scal)
Weighted
Score
Score
Safety and health
credential provided
Machinery
Plant
Liaison
equipment
5%
1
2
1
1
1
2
1
1
4
12
4
6
26
Quality of
machinery used
Quality
controls
Quality
standard
Quality
Assurance
10%
2
3
5
3
4
5
5
0.560
0.440
6
Price of the
resources
Human
Resources
Physical
Resources
7%
4
3
1
2
6
8
14
Ethical code of
conduct
8% 8 5 21.064 21.064
Ethical behaviour 5% 5 3 4.0574 4.0574
Historical records
Supply of
resources
Quality of
resources
Management
of demand
and supply
10%
3
4
3
3
1
5
3
6
8
17
Goodwill
Patents
Trademark
5%
2
3
3
4
4
8.039
12.039
Reputation of the
company
4% 4 5 3.128 3.128
Identification of
risks
Risk
Identification
Risk Level
6%
1
2
1
2
3
4
3
4
1
24
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Risk
Severity
Risks
Likelihood
Risks
Ranking
Risks
Mitigation
policies
1
0.5
0.5
4
5
3
1
7
8
Services and
facilities provided
On-time
delivery of
physical
resources
On-time
delivery of
human
resources
Quality of
resources
provided
8%
3
2
3
4
5
2
12
10
7
29
Capacity of
resources delivered
Quantity of
physical
resources
Quantity of
human
resources
Quantity of
skilled and
expertise
labour
7%
3
2
2
2
3
3
5.024
7
9
21.024
Location of the
company from the
construction site
Distance
Connectivity
3%
2
1
3
3
12
19
31
Capability of
solving issues and
complaints
Grievance
handling
program
Friendly
environment
7%
3
4
4
5
4
8
12
Training and
development
4% 15
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program organized
for the team
members
Appointment
of trainee
Duration of
training
period
2
2
3
4
6
9
Monitoring and
control
6% 6 5 18.0583 18.0583
Reviewing of the
policies
Reviewing
of term and
condition
Reviewing
of quality
standard
Reviewing
of capacity
5%
2
2
1
3
4
4
19.21 19.21
Ethical code of conduct
It should be commenced that the procurement process will follow the ethical code of conduct
in the delivery of physical and human resources to the construction site. The auditing of the
evaluation report should be done periodically during the review process. The evaluation
report should be signed by arranging the round table discussion and interviews of the
contractor for supplying the required resources within the estimated time of the project. The
moral principles followed by the contractor company helps in influencing privilege to
manage contract with them. The ethical standards and principles should be developed for the
organization so that the conflict and chaos can be avoided at top priority. It helps in bringing
transparency in the working agenda.
Financial Contract type
The Guaranteed maximum price contract should be signed with the contractors and sub-
contractor to initiate the supply of physical and human resources according to the
requirement placed by the team members to complete the given activities of the project. The
GMP contract helps in hiring contractor at maximum price and is efficient in cost saving
procedures and controlling the project processes.
The fixed price of the contract is set during the project initiation phase in the service
level agreement.
It helps in minimizing the variation in the undergoing processes with respect to time,
cost, and resource allocation.
The contract can be expandable according to the change request posted by the project
director.
The alternative solutions are provided to keep balance between supply and demand of
the resources.
The potential risks associated with the project life cycle can be minimized.
The negotiation process can be easily handled with the contractor

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It signs the pre-agreement with the contractor
Less administration is required
The positive alliance is developed with the contractor
Procurement method
Issues and challenges:
During the working of the project, the issues and challenges occurs between the human
resources than contractor will take the step forward for resolving the issues and conflict
among the team members. The proper communication strategy should be placed to settle
down the disputes at an early stage of the project (Merrit, and Ricketts, 2012).
The escalation and setting down of the disputes should be reported to the project manager and
project director.
The legal agreement should be signed between the resources if disputes are not settled down
properly between the working parties because it will affect the completion of project on time.
Terms and condition
Two years contract is signed with the contractor which can be expandable for 1 year
according to the future requirement
Safety and health credentials should be provided by the contractor to the resources
used
The contract can be terminated if unethical code of conduct is shown by the contractor
Good quality resources should be provided
Availability of resources according to demand placed
Monitoring and control policies
Minimum price of resources
Handling of chaotic working environment
Service Agreement
Service Agreement particulars Description
Contractor Company Title L & T contractor company
Client company title Greenwich Private limited
Date of commencement 12 May, 2019
Term of agreement 2 years + 1 year expandable
Framework Sole Authority
Contract Value $ 160,000
Duration of project 2 Years
Resources Physical and Human Resources
Location BTown-104, Queensland, Australia
Project Director Sign off
Project Manager Sign off
Contractor Sign off
Email contractor: L&Tcontractor@gmail.com
Email client: Greenwichprivate123@gmail.com
Telephone 7895940123
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Variations:
The change request placed by the contract manager can be handled at top priority
(Passenheim, 2015)
The changes in the agreement are assessed as breach.
Negotiation process with the project director can be approved for contract variations
Scope and risks should be discussed
Proper documentation of the variation should be prepared
Insurance:
The service level agreement should be developed to provide insurance cover to the human
resource in case of any casualty occurs during the working hours of the organization.
Name of the
insurer
Policy Number Amount of
insurance
Date of Expiry Excluded value
Xxxx Xxxx Xxxx Xxxx Xxxx
Communication Strategy
Project
Audience
Messages Frequency Communication
tools
Receiver
Project director Identify the
problem domain
of the
organization
Proposing new
project
Develops
requirement
specification
plan
Weekly Email
Formal Letters
Audio and
Video
teleconferencing
Circulars
Notices
Online chats
Newsletter
Project Owner
Project Manager
Project Owner Approval of
project
Approval of
project budget
Approval of
project time
Monthly Email
Formal Letters
Audio and
Video
teleconferencing
Circulars
Notices
Online chats
Newsletter
Project Director
Project manager
Project Manager Approval of the
project schedule
Distribution of
role and
responsibilities
Allocating
resources and
cost to the
activities
(Wilson, 2012)
Daily Email
Formal Letters
Audio and
Video
teleconferencing
Circulars
Notices
Online chats
Newsletter
Project Director
Project Owner
Senior
consultant
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Planning
engineer
Preparation of
the project
schedule
Identify critical
path
Within 15 days Email
Formal Letters
Audio and
Video
teleconferencing
Circulars
Notices
Online chats
Newsletter
Project manager
Financial
Manager
Preparation of
the project
budget
Weekly Email
Formal Letters
Audio and
Video
teleconferencing
Circulars
Notices
Online chats
Newsletter
Project manager
Procurement
manager
Managing
contract with the
contractor and
sub-contractor
Weekly Email
Formal Letters
Audio and
Video
teleconferencing
Circulars
Notices
Online chats
Newsletter
Project Manager
Financial
Manager
Operation
manager
Operating
procedure of the
company
Weekly Email
Formal Letters
Audio and
Video
teleconferencing
Circulars
Notices
Online chats
Newsletter
(Monnappa,
2017)
Project Manager
Senior
consultant
Advice and
innovative ideas
Daily Email
Formal Letters
Audio and
Video
teleconferencing
Circulars
Notices
Online chats
Newsletter
Project Manager

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Project schedule
Project Activities Duration Start Date Finish Date
Posting of the
proposal
5 days 10 April, 2019 14 April, 2019
Setting of the
evaluation committee
3 days 15 April, 2019 17 April, 2019
Meeting of the
evaluation committee
6 Days 18 April, 2019 23 April, 2019
Approval of the
proposal
3 days 24 April, 2019 26 April, 2019
Setting of
advertisement
10 Days 27 April, 2019 6 May, 2019
Collecting Tenders 12 Days 7 May, 2019 18 May, 2019
Preparing of Service
level agreement
7 Days 19 May, 2019 25 May, 2019
Setting of evaluation
score
5 Days 26 May, 2019 30 May, 2019
Establishment of
procurement contract
4 Days 31 May, 2019 3 May, 2019
Key Performance Indicators
Key
Performance
indicators
Standard value
for KPI
Frequency Date of
commencement
Data source
Delivery of
resources on
time
95% Weekly 16 May, 2019 Audit report
Delivery of raw
material
88% Monthly 20 May, 2019 Audit Report
Cost estimation 100% Once 25 May, 2019 Audit Report
Time Estimation 100% Once 15 Aug, 2019 Audit Report
Risk Management plan
The risks which are identified during the signing process of contract agreement with the
contractor are listed below:
Risk Identified Risks Description
No legal documentation with
contractor
The legal documentation is not signed with the contractor.
The process of delivering resources to the construction site
is carrying on the basis of verbal communication which
can create complexity and chaos at the end of the project
(Mansfield community, 2013).
Historical performance of the
contractor is not analysed
properly
The market analysis is not properly done to know their
performance and efficiency of delivering the resources
according to the demand placed by the site engineer
Termination of the contract
cannot be done
Without having any legal document, the contract cannot
be terminated because the working of the company is not
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based on any term and condition (Lockamy and
McCormack, 2015
Poor Quality of resources
provides
The quality standard is not mention in the verbal contract
which can create chaotic environment because the
contractor cannot supply the desired quality of raw
material
Delay in delivery of resources The resources are not delivered on time because the
contract is not signed with the two working parties.
Risk Register
Risks
Identification
Risks
Severity
Risks Level Risks
Likelihood
Risks
Ranking
Risk
mitigation
plan
No legal
documentation
with contractor
3 High 4 7 Signed a
legal service
level
agreement
with the
contractor
Historical
performance of
the contractor
is not analysed
properly
2 Medium 2 4 Market
analysis and
goodwill of
the contractor
should be
measured
before
signing
contract
Termination of
the contract
cannot be done
1 Low 2 3 Legal
document
should be
read
thoroughly
before
signing the
document
(Kharaiweish,
2013)
Poor Quality
of resources
provides
2 Medium 2 4 The quality
of the raw
material
should be
checked
before
delivery of
resources to
the site
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(Habib, 2014
Delay in
delivery of
resources
3 High 3 6 The location
of the
contractor
should be
near to the
site and have
a good
connectivity
Review of Procurement Agreement:
Extension of 2 years is provided according to the requirement of the client company
after the completion of the tenure (Kang, 2010).
No training and development program organized after the completion of the project
Documentation should be properly handover to the project manager
Status report of KPIs and milestones should be provided periodically (James, 2012)
Work should be completed according to the planned project activities
The termination of the contract can occur in following condition:
Agreement terms and conditions are not properly followed
Health and safety credentials are not properly driven
Insurance cover is not properly provided
Unethical behaviour at work place
Quality standards of raw material is not met
Conclusion:
It can be conclude that the auditing of the evaluation report should be done periodically during
the review process. The evaluation report should be signed by arranging the round table
discussion and interviews of the contractor for supplying the required resources within the
estimated time of the project. The proper communication strategy should be placed to settle
down the disputes at an early stage of the project
References
Habib, M. 2014. Supply chain management: Its future implications. Open journal of social
science, 2014(2). Accessed March 2, 2019. https://www.worldcat.org/title/purchasing-
and-supply-chain-management/oclc/967523255.
James, A. 2012. "A New Introduction To Supply Chain And Supply Chain Management:
Definition And Theories Perspectives". International Journal Of International
Business Research 5 (1). Accessed March 2, 2019.
https://www.worldcat.org/title/purchasing-and-supply-chain-management/oclc/
967523255.
Kang, B. (2010). Research support building and infrastructure modernization. 1st ed.
Available at:
https://www-ssrl.slac.stanford.edu/lcls/reviews/rsb_project/2009_rsb_may18-19/
supporting_docs/rsb_risk_management_plan.pdf

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Kharaiweish, M. (2013). Project Monitoring and control measures. International Journal of
computer science and information technology, 5(5). Retrieved from:
http://airccse.org/journal/jcsit/5513ijcsit03.pdf
Lockamy, A., McCormack, K. 2015. The development of a supply chain management process
maturity model using the concept of business process orientation. 1st ed. Accessed
March 2, 2019.
https://pdfs.semanticscholar.org/c5cf/b8482b9644502f55256e9adbd708001179b1.pdf
Mansfield Community. (2013). Introduction to project management. 1st ed. Retrieved from
http://www.mansfield.vic.gov.au/Libraries/Community_Development/Intro_to_Projec
t_Management_Manual.sflb.ashx
Merrit, F., and Ricketts, J. (2012). Building design and construction handbook. 1st ed.
Retrieved from
https://www.uop.edu.jo/download/research/members/[Architecture_Ebook]_Building
_Design_and_Construction_Handbook.pdf
Monnappa. (2017). Project scope management: What it is and why it is important. 1st ed.
Retrieved from https://www.simplilearn.com/project-scope-management-importance-
rar89-article
Passenheim, O. (2015). Project Management. 1st ed. Retrieved from
http://home.hit.no/~hansha/documents/theses/projectmanagement.pdf
Wilson, D. (2012). Project Governance. Retrieved from
http://www.masterresearch.com.au/downloads/pdfs/Project_Governance_V2.pdf
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