Project Procurement Management

This article discusses project delivery contract models for construction of libraries, their advantages and disadvantages, contract clauses that should be tightened, risk registers and their mitigation, and contracting approach and procurement schedule. The most suitable project delivery method is identified as CM Multi Prime. The article also provides a detailed table of risk register and mitigation.

Running head: PROJECT PROCUREMENT MANAGEMENT
Project Procurement Management
Name of the Student
Name of the University
Author Note

1PROJECT PROCUREMENT MANAGEMENT
1. Project delivery contract models that needs to be adapted for the construction of the
libraries
According to the laboratory facilities requirement that GovMed, the Government
Research Organization has right now, there are two delivery contract models that can be put into
use for the construction of the laboratories they need. These can be listed with their contract
models as below:
Design-Bid-Build: The delivery contact model of design with belt are commonly termed
as the conventional method or heartbeat is a process in which the owner, which in this case is
GovMed, contracts with the different entities for acquiring the actual design and the construction
that is required for the project which is the designing and developing of the Laboratories. In this
process there are three phases applied to the entire construction delivery contract(Nicholas and
Steyn 2017). These are the design phase, the tendering phase, and the construction phase. In the
design phase GovMed would like to retain the architect who is skilled in Consulting for the
Engineering infrastructural Works to design and producer documents for bidding. This bidding
documents would also include the drawings and technical specifications for the Constructions
which can be referred by different general constructors for the progression of the project. The
next phase is the bid or tender phase, in which anybody who is qualified me participate and
select the general contractors bidding. Once these bids are received, the main architect reviews
them and clarifies any inconsistencies that define from the end of the bidders. Further the
architect indulges in ensuring that all the documents and order and investigate the qualifications
of the contractor. If any inconsistencies are found the key architect in abandon the project
completely(Maharjan and Shrestha 2017). The final phase of this delivery contract is the
construction of the project that the contractor gets after having approval of the construction

2PROJECT PROCUREMENT MANAGEMENT
drawing and all the technical specification which are not allowed to be altered. The architect also
accesses the Agent of the owner while the construction phase is going on to evaluation if the
progress of the word recounts to the request from the outworker that has been presented to him
or her. If any issue is found in the construction process that may seem to be not synchronizing
with initial documents, the project can be halted.
Figure 1: Design-Bid-Build
(Source: Created by Author)
CM Multi Prime: There are several project delivery methods within the field of
construction management that happened to deal with contractual obligations. Although a
construction manager or a CM of multiple Prime is similar to a construction manager at risk both
of them are very separate project delivery systems(Kristensenet al. 2015). The multi Prime CM
is adopted by the owners of construction that are not staffed with too much work force to support
and manage the construction work all by themselves and has to hire an agency CM for
performing all the management of construction work for the form(Carpenter and Bausman
2016). However it is find that probably most of the organizations that use this project delivery
OwnerArchitect

3PROJECT PROCUREMENT MANAGEMENT
method are mostly the public sectors. Therefore in this case where GovMed is a public
government organization it is a probable choice for the construction work to follow this delivery
method. This project delivery method ensure the providers are the owner of the organization are
assured with the flexibility to select any contractor that suits several factors of the construction
project rather than only depending on the price. Videos of this agency CM during the design
development and the transition from design to construction this project delivery method appears
more seamless which is why it becomes much more appropriate.
Figure 2: CM Multi Prime
(Source: Created by Author)
2. Advantages and disadvantages of these contract models and the most suitable one of
them
Design-Bid-Build:The advantages of this Project Delivery Method can be as listed as
follows:
 Better interest of the owner is paid heed to the most.
OwnerSub-contractorArchitectEngineerCMasContractor

4PROJECT PROCUREMENT MANAGEMENT
 Bids are placed on the documents that are prepared by the design team. These
bids are placed by different contractor aiming for the project. This is done with
the ‘cheaper is better deal’ in mind (Nikou, Asmar and Bingham 2014). It is often
found that the addenda placed during the bid is often consisting of missed items,
are incomplete or incorrect.
 This process provides the owners a huge variety of suitable options to choose
from and identify the potential contractors, which is also fair to the potential
bidders.
 The owners are realized to establish reasonable prices for their project.
 Selection of the architect and the contractor to uses effective competition improve
the efficiency and quality for owners (Naoum and Egbu 2015).
The disadvantages of this Project Delivery Method can be as listed as follows:
 If the entire project is made to redo for reducing the budget and similar purposes,
the entire design team can be disintegrated and any probable cost during the
design phase can increase.
 The project redesign model can have a disputed expense if the key architect do
not pay much attention to the revamped model after cost revision redesign
process(Reynolds et al. 2018).
 Since this project development method suggests the tagline of “the cheaper the
better”, there is a high chance that lowest bidding sub-contractors may be taken
into consideration without looking at their design models or feasibility of plan
(Sanzet al. 2017).

5PROJECT PROCUREMENT MANAGEMENT
 Very little effort is put to find the alternatives at such low bidding post design
process by the general contractors.
 Maintaining cost and quality product at the same time becomes much more
complicated during the construction is in progress, which has often seen to raise
conflicts between the architect and the contractor.
CM Multi Prime:The advantages of this Project Delivery Method can be as listed as
follows:
 This process retains the control of design to the owners.
 The contractors are involved much earlier in this project delivery method
process(Chen et al. 2015).
 This project delivery method amalgamates faster delivery process with the lowest
bidding.
The disadvantages of this Project Delivery Method can be as listed as follows:
 The owner becomes the sole responsible person for the gaps, changes or overlaps
in the scope of the project.
 Sub-contractor involvement is very low in this project delivery method.
 The CM’s lack of proper oversight can be exposed in this project delivery
method.
Therefore, analyzing both the Project Delivery Methods, it can be concluded that the CM
Multi Prime is a better option between the two, since it has better options of maintaining quality
at lower prices which is pretty underrated process of the former project delivery method.

6PROJECT PROCUREMENT MANAGEMENT
3. Contract clauses that should be tightened to ensure the requirements for project cost,
timeline and delivery performance
The clauses that should be tightened to ensure the requirements for project cost, timeline
and delivery performance for GovMeds laboratories are as listed as below:
 Payment and related documents to be submitted for the payment procedure
 Frequency of the contractor’s payment
 Proper and clearly defined terms within the contract
 Scope of work description in the planning documents(Ogunsanmi 2016)
 Defining “reasonably inferable” within the scope of work
 Convenience clause should be terminated
 Change orders and payment hold clauses
 Liquidation damages clauses
 Proper discrimination of time and cost
4. Risk registers and how these are mitigated in the contract
Risk Effect of Risk Level of
Risk
Mitigation in Contract
Lack of acceptance of
investors of the design for
the GovMed Laboratory
Increased cost due to
suspension of work
Low Market observation, alternative
design solution
Delays and difficulties in
having opinions and
permits
Distributed designing
process
Medium Earlier diagnosis of the situation
Conflict amongst designing Distributed designing Low Team leader to mediate in all sorts

7PROJECT PROCUREMENT MANAGEMENT
team members process of conflicts
Too optimistic assessment
of employee workload
Delay in designing
process
Low Proposing employees to work
overtime or ordering part of work
to another design team
Incorrect information from
investor or lack of clear
guidelines
Verifications of errors
increases cost and time
due to design revision
High Application to investor for
extension of time to complete
designing
Staff having less
knowledge about designing
a laboratory
Verifications of errors
increases cost and time
due to design revision
Medium Designing team leader strengthens
control over work with providing
the employees consultation with
and expert
Acceptance of unrealistic
deadlines in contract
Deterioration of design
quality and failure of
deadline
High Employment of new employees or
ordering part of work to another
party during a contract
Understanding of design
budget
Deterioration of design
quality
High Limiting scope of design to
necessary minimum
Table 1: Risk Register and Risk Mitigation
(Source: Created by Author)
5. Contracting approach and procurement schedule
A contracting approach should start with planning the entire project of construction. But
before proceeding math anything else it is needed to be kept in mind that all the work that has to

8PROJECT PROCUREMENT MANAGEMENT
be done in the project should be there in the contract(Scott and Dunne 2018). In addition to that
the plan for any extra purchase and acquisitions also be mentioned in the contracting approach. It
is necessary to put focus on the managing of the contract the metrics that will be needed to make
in order to be successful picking up of a seller and administration of the contract while the work
is in progress.
The procurement, the scheduling and the management however follows a logical order.
The schedule plan details on the procurement process in which it will be managed (Meloet al.
2016). For GovMed laboratory construction the project procurement schedule is to be listed as
below:
 Delivery date for the work under contract is the top priority list
 The standard documents that the company uses
 All the vendors and contractors that are involved in the project and the management for
each of them is utmost necessary
 Assumptions made during the project plan and the purchasing of items have an impact on
the project
 Purchasing lead times and the coordination of this constraint with the development of the
project schedule
 Prequalified sellers and the modes of their identification

9PROJECT PROCUREMENT MANAGEMENT
References
Carpenter, N. and Bausman, D.C., 2016. Project delivery method performance for public school
construction: Design-bid-build versus CM at risk. Journal of Construction Engineering and
Management, 142(10), p.05016009.
Chen, Q., Jin, Z., Xia, B., Wu, P. and Skitmore, M., 2015. Time and cost performance of design–
build projects. Journal of Construction Engineering and Management, 142(2), p.04015074.
deMelo, R.S.S., Do, D., Tillmann, P., Ballard, G. and Granja, A.D., 2016. Target value design in
the public sector: evidence from a hospital project in San Francisco, CA. Architectural
Engineering and Design Management, 12(2), pp.125-137.
Kristensen, K., Lædre, O., Svalestuen, F. and Lohne, J., 2015. Contract models and
compensation formats in the design process. In Proc. 23rd Ann. Conf. of the Int’l. Group for
Lean Construction. Perth, Australia, July (pp. 29-31).
Maharjan, R. and Shrestha, P.P., 2017, December. Relationship between Project Performance
and Contract Procurement Factors for Design-Bid-Build Texas Highway Projects.
In Construction Research Congress 2018 (pp. 150-160).
Naoum, S. and Egbu, C., 2015. Critical review of procurement method research in construction
journals. Procedia Economics and Finance, 21, pp.6-13.
Nicholas, J.M. and Steyn, H., 2017. Project management for engineering, business and
technology. Routledge.

10PROJECT PROCUREMENT MANAGEMENT
Nikou Goftar, V., El Asmar, M. and Bingham, E., 2014. A meta-analysis of literature comparing
project performance between design-build (DB) and design-bid-build (DBB) delivery systems.
In Construction Research Congress 2014: Construction in a Global Network (pp. 1389-1398).
Ogunsanmi, O.E., 2016. Risk classification model for design and build projects. Covenant
Journal of Research in the Built Environment, 3(1).
Reynolds, C., Stair, M., Miller, B. and Stryzinski, T., 2018. Design Bid Build vs. Design Build
Best Value.
Sanz, M.A., Franz, B., Molenaar, K., Esmaeili, B. and Pellicer, E., 2017. Anexplorationof team
integration in design-bid-build projects. In 9th International Structural Engineering and
Construction Conference: Resilient Structures and Sustainable Construction, ISEC 2017. ISEC
Press.
Scott, L. and Dunne, J.E., 2018. Analyzing the Restoration of the Oklahoma State Capitol from
the Perspective of the Design Build Process: a Descriptive Case Study.