Report on Procurement and Post Contract Management

Procurement and Post-Contract Management 1
PROPOSAL REPORT ON THE PROCUREMENT AND POST-CONTRACT
COMMERCIAL MANAGEMENT
A Report Paper on Procurement By
Student’s Name
Name of the Professor
Institutional Affiliation
City/State
Year/Month/Day

Procurement and Post-Contract Management 2
INTRODUCTION
This proposal paper focuses on the company that has just been shortlisted to give QS
services that are professional in nature for a project by a client who has just arrived in the
state. There is need to give a proposal to this client by giving the procurement and post-
contract commercial management of the project belonging to the client both in overseas and
within the country. The client is a civil engineer by profession and is currently working in a
Samco Construction Company which is involved in the construction of buildings and other
related structures globally, the client would wish to procure a project in the construction of a
hotel in Australia. Currently, I am working under Bidco Construction Company which is also
a construction company located in Australia.
The objectives of this research proposal are to find out how the project in which the
client is interested in can be procured optimally by incorporating the how different categories
of subcontractors that will be used would impact on the price and how the role and
experience of the professional cost manager can affect such an advice. The primary necessity
of the client would focus on the cost control system such as the importance of future and
initial costs and benefits involved with the entire life of a construction and also the
approaches recommended to value engineering and value management (Ashworth, 2015).
The aspect of scientific management of decision-making in risk management and risk
analysis should also be considered as applied to the entire processes of construction execution
and development and also considering the professional ethics in the construction context and
industries of build environment to the wider profession of global surveying. Since the client
is interested in procuring a project of construction of a hotel, there are some of the important
factors that he should put into consideration while procuring a contract in Australia, their
factors are explained below (Ashworth, 2012).

Procurement and Post-Contract Management 3
Procurement of the Hotel Construction Project
This section deals with the ways through which the project of hotel construction can
be optimally procured by the client’s organization of Samco Construction Company. The
different categories of the subcontractors that will be used would affect the cost and how the
experience and roles of the professional cost manager will influence such as advice. The
management of project procurement involves the process of closing, maintaining, and
establishing the relationship with the services and goods suppliers for the project.
The processes for the Hotel construction project by the Samco Construction Company
are outlined in this section of the report as well as the model for the management of supply
chain which would be developed for the industry of construction (Baron, 2011). There are
four basic processes that would be involved in the optimal procurement of the hotel
construction project, these processes include close procurement, administer procurement,
conduct procurement, and plan procurement. These processes are explained below:
Plan Procurement
The initial process of procurement is plan procurement process which involves the
creation of the plan of project procurement management. Decisions will be made through
which construction items would be made available to the project team as well as the items
that will be purchased. The documents of procurement should then be prepared and the
principles will then be established upon which the vendors’ selection base. This plan will
contain the requirement analysis for the hotel construction project, documents of the
consultation like risk register, project schedule, and scope baseline. These documents will
provide the data that is required (Battaglini, 2011).
Conduct Procurement

Procurement and Post-Contract Management 4
In this process, the vendors are chosen and the contracts or procurement will then be
given out. The resource calendars which will state the time when the resources will be
utilized are then created and the plan of project management will be updated based on the
resources availability. Numerous techniques and tools are utilized for conducting the process
of procurement. The conferences will be held with bidders with an aim of briefing them on
answer questions and requirements of the construction project. The proposals will then be
evaluated carefully, followed by the advertisement which will be done by bidders that are
solicited, searches on the internet will also be utilized as well as negotiations will also be
performed (Brook, 2016).
Administer Procurement
This is the third process in this procurement of this hotel construction project. These
are methods that are utilized in administering the relationship amongst the vendors during the
construction of the hotel project. This administering process would lead to the creation of the
documents for procurement and may lead to the variations in the project. A system of the
change in the contract will be utilized to determine and analyse carefully if the variations in
the contract are actually required. The reviews will then be performed of the performance of
the procurement, audits and inspection will be utilized, the reports of performance will be
produced, and the systems utilized to make sure that the payments on contractors when the
need arises (Building, 2010).
Close Procurement
This is the final process of the hotel construction procurement process. These entail
all the methods that are required to terminate the contracts of procurement, after the
completion of the inspection and/or previously when it is necessary. Audits will be performed