Contracts and Procurement Management Assessment 2 Report - PROJ6004

This report, prepared for a PROJ6004 Contracts and Procurement course, examines project procurement management, emphasizing its critical role in project success, especially in the context of the English National Stadium Project at Wembley. It outlines the project procurement components, i...Read More

Running head: PROCUREMENT AND CONTRACTS: ASSESSMENT 2
Procurement and Contracts: Assessment 2
Name of the Student
Name of the University
Author Note

1PROCUREMENT AND CONTRACTS: ASSESSMENT 2
Table of Contents
Assessment 2:.............................................................................................................................2
Part A:....................................................................................................................................2
Introduction and summarization of the procurement context and scope...........................2
Identification of the project procurement components and tender evaluation...................4
Part B:.....................................................................................................................................5
Description of the complexities and the key issues and risks............................................5
Discussion about the project environment and organisation aspects, leadership and
governance and how these have influenced outcomes.......................................................6
Part C:.....................................................................................................................................9
Identification of the key mitigations and possible learnings..............................................9
Identification of the dependencies and common themes...................................................9
References................................................................................................................................11

2PROCUREMENT AND CONTRACTS: ASSESSMENT 2
Assessment 2:
Part A:
Introduction and summarization of the procurement context and scope
Project Management is the specific planning that a person takes in to make sure that
the development of the resources that are specifically provided to the person from different
sources are managed and organized to complete the project. It is not regarded as a piece of
work or it is not even considered as a process or a part of operation. This is because, a
planned project has their own starting, several goals and their ending. Project Management
also considers the input of the knowledge areas that is considered by the Project Management
Institute’s published book, which is known as the Guide to the Project Management Body of
Knowledge or the PMBOK Guide. This book is considered as the staple or the bible of
project management that also recognizes the Procurement Management as considered to be
one of the nine Knowledge Areas in project management. This is because there are various
numbers of ways by which the Procurement Management in a project are identified to be the
important aspect of the Process Groups as it has been described (Biedron, 2019). Therefore,
all these ideas would be involved in the development of the English National Stadium Project
at Wembley where the project would specifically be obtained by preserving the appropriate
procurement plan. The supplies that would be required for the project would be dependent
upon what would be the products and services that needs to be outsourced from the vendors
and suppliers about the Stadium to be established at a new site. Therefore, it was required to
have a proper idea about the procurement plan and develop the system to have a proper
collection about the required system needed to establish the system.
As per the findings by Marchewka, (2016), it has been identified that procurement
management is taken from the relationship between the outside vendors and the suppliers of

3PROCUREMENT AND CONTRACTS: ASSESSMENT 2
the goods, the services and the raw materials to the people within the organization that were
in responsibility of the completion of the project. The process of procurement management is
also identified to be one of the primary reasons behind the maintenance of the proper
management of relationship between an organization, which in this case in and the supply
chain (Jo, Lee & Pyo, 2018). Therefore, the vendors and suppliers need to have good
relationship with the organizers of the stadium construction project for English National
Stadium Project at Wembley. The process behind the management of supply chain to regard
it as a binder of the relationship between the supplier and the organization to help the
organization in having a proper opportunity of understanding the execution of the products
and services of the organization according to the standards requested by the purchasing
organization.
This process is regarded as a proper planning of a project and understanding what is
regarded to be considered for the proper acquiring of the activities that has to be carries out
through and entire project right from the beginning to the end. The series of the procurement
activities that are required to be carried out throughout the project happens to provide some
amount of proper understanding of the interdependency of the resources to one another.
However, it is also needing to be mentioned that the procurement management of a project is
completely dependent on the project goals and objectives and it forms the fundamental part of
the project (Meredith, Mantel & Shafer, 2017). If the procurement activities of the project are
properly planned according to the appropriate requirements, it would be much easier for the
project to reach the goals and objectives and achieve success in no time. Therefore, from the
description of the project management as mentioned as above would be considered as the
proper management of the procurement and would identify that the proper handling of the
procurement plan would lead to the successful outcome of any project.

4PROCUREMENT AND CONTRACTS: ASSESSMENT 2
The scope of the project management is also necessary in terms of the identification
of the different amount of the work that the project contains about the identification of the
work that needs to be done inside a project and also the work that needs to be done outside a
required project based on the vendors and the suppliers. The work or the services that is
provided by the vendors or the suppliers that would help in the supply of the goods or
services required for the project. The information about the supply of the products or services
to the organization defines the proper way by which the appropriateness of the supply chain
management is justified (Nicholas & Steyn, 2017). Therefore, with the help of the project
procurement, it is extremely easy to find out that even with increased complexity about the
project, the information about every stage of the project procurement management is
providing the organization with the ability to understand how much the difference has been
with the understanding of the requirements of the company and the deliverables of the supply
chain management.
Identification of the project procurement components and tender evaluation
There are various components in the project management plan. However, in this
section, the 12 most important and primary solution of the project management components
are required to be listed as below:
1. The project scope statement
2. The critical success factors of the project
3. The project deliverables
4. The work breakdown structure
5. The schedule planned for the project initially
6. The budget provided for the project
7. The quality of the project
8. The plan required for the Human Resource Management Department

5PROCUREMENT AND CONTRACTS: ASSESSMENT 2
9. The list of stakeholders involved
10. The plan for communication within the project
11. The risk register for the project
12. The project procurement plan
The project procurement plan is a component of the project management plan.
However; they are capable of having the components that mostly are required for the project
procurement plan to be understood by the organization to identify if the proper management
of the acceptance criteria of the resources provided (Macbeth et al., 2012). These include two
sections in the project procurement plan. One being the input components and the other being
the outside components. The input components include the WBS or Work Breakdown
Structure, which assures the resources externally. The WBS components are required to
produce each of the deliverables to understand the working of the supply chain management.
At the same time, the output component can be regarded as the procurement management
plan that would describe how the project would acquire the provided good and services from
the suppliers as they are not present within the organizations and mostly have to be found out.
The making of the contract also falls as a component.
It may appear that the changes in the different areas where the vendors and suppliers
require to change their goods and services and at the same time it becomes difficult for the
organization to take care of the change request (Araújo Alencar & Mota, 2017). Therefore,
this is also regarded as one of the primary procedures in a project management where change
management propagates during the deliverables being provided to the end users as well.

6PROCUREMENT AND CONTRACTS: ASSESSMENT 2
Part B:
Description of the complexities and the key issues and risks
The project procurement management face also faces various difficulties when it
becomes evident that the specification for a project is difficult for the project is an innovative
one. It becomes a much higher risks for the suppliers for vendors for event organisation to
provide the degree of competition that is required for the project be invited as there has been
no prior implementation of the applications that are needed to be provided. When and a
product is extremely innovative comma it may appear that the project has not yet seen any
implementation of the products that are being utilised for the project (Fewings & Henjewele,
2019). Therefore, it may also appear that the project is becoming much more complex to
handle about its procurement to understand what exactly the vendors of the suppliers has to
provide the organisations in the end.
There are various common types of risk associated with procurement that might
include the risk of delivery, product quality, cost of the product and fraud from the end of
both the organisation or the vendors and suppliers further affecting the English National
Stadium Project at Wembley. They have been many instances found where the compliance
risk is also associated with procurement risk since the purchase and practices are mostly
developed by the Anti-corruption laws set by the government about an organisation. There
have been many potential failures where the procurement processes and the risk associated
with it has resulted the business in having extreme amount of losses and disruption
(Chapman, 2016). the procurement risk are the occurrences of potential failures that may
provide the entire management of the procurement process to be vulnerable to the attacks on
the potential risks that might harm the organisation or the vendors and suppliers who are
associated with the organisation. It may orchid that an executive has granted a contract to his
or her friend that has resulted in high cost and low quality results.it may also occur that a

7PROCUREMENT AND CONTRACTS: ASSESSMENT 2
government procurement agent has been a former employee in a supply organisation with a
huge difference in the interests of the procurement agent and supplier resulting in huge cost
bids to be accepted.
Discussion about the project environment and organisation aspects, leadership and
governance and how these have influenced outcomes
There are various factors that have the ability to affect the project procurement
management within an organisation regarding the various form of factors that has the ability
of influencing the management of procurement within the organisations and the people who
are regarded as the vendors and suppliers for the company (Ite, 2016). The following would
be the effect of project environment, organisational aspects, leadership and governance on the
outcomes of a project management procurement plan:
Project environment: The impact of project environment factors can be extremely e
effective as it may even have an impact on the procurement management when the project
environment is relatively stable in nature. There might be occurrences from access to capital
where the different influences and order and even the political influences may form several
contracts to be made for public procurement (Friday et al., 2018). Therefore, for projects like
this, the success of the failure of the process is based upon the procurement entity or the
procurement managers who have the ability of making the maximum use of the resources
provided to them.in addition to that they also need to understand the unanticipated changes
within the project environment which may have the ability to ruin the momentum of even the
well managed and smoothly preceding projects. It becomes much more difficult to handle
when the procurement of small organisations occurs beyond the control of the procuring
entity. There are even various occurrences and changes in the environmental factors
according around the project that may influence the project as a whole.

8PROCUREMENT AND CONTRACTS: ASSESSMENT 2
Organisation aspects: The impact that the organisational aspects has on the
procurement management in any project is clearly dependent upon the availability of the
different amounts of resources that the company can provide the vendors and the suppliers to
provide them with proper information about the requirement of the services or products that
they would want to gain from the suppliers (Turner, 2016). This is related to the factors by
which large scale organisation can provide their suppliers and a small-scale product can
provide the suppliers. As much as the capital amount is concerned, a large organisation has
the capability of providing much prominent resources to their suppliers where a small-scale
organisation would usually fall short of finance if they invested like the large organisations
(Tonchia & Mahagaonkar, 2018). Therefore, it is required that the organisation recognises the
sides and business aspects to understand the factors that are dependent upon the procurement
management for having the best services and best products from the suppliers and vendors at
the same time tending to a good relationship between the organisation and the vendors.
Leadership: Various researchers have previously been conducted for the evaluation
of the effect that leadership and management support have towards procurement of any
project as defined by the organisation to establish relationship between the vendors and the
organisation. Public procurement has been provided to the organisation and stands as one of
the most important structures behind the economic development of the countries (Fleming,
2019). Leadership is required at higher levels where the transparency of business is not seen
and efficiency decreases rather than the enhancement of the project with the help of public
procurement.
Governance: The procurement activities cannot be conducted without a proper
utilisation of a framework that understands all the legalized standards of the ways by which
procurement needs to be done. Therefore, every country in which several organisations are
set in and has to perform the procurement management for the organisations and its projects

9PROCUREMENT AND CONTRACTS: ASSESSMENT 2
has to follow a proper framework that it happens to be dance floor proper framework for
allocating all the accountabilities, communicating with everybody involved in the
procurement management, gathering the standards and following the major practices and
including the responsibilities that an organisation should follow for a particular procurement
plan (Bradley, 2016). The effect of the governance on procurement plant is such that the
process of developing a framework and following through has to take place with the help of
an extended framework required for effectiveness of the procurement plan.
Part C:
Identification of the key mitigations and possible learnings
Risk in a project management process which has been impacting upon the
procurement management is capable of achieving all the functional and business objectives
and stall it forever (Schwalbe, 2015). Every supply chain management and the relationship
between the vendors and the organisation has risks where it is difficult to achieve the value of
enhancement that every business organisation required from its vendors. It might even occur
that the risks identified by the assessment and effective management of the procurement plan
is followed by the mitigation plans to reduce the effect of the risks or mitigate the risks at
once (Lee et al., 2017). Therefore, it is regarded as a good practice for procurement
management in having a proper risk management plan developed before the project
procurement plan is put into action for the development of the stadium as the English
National Stadium Project at Wembley. This would help the management of the project and
management of the supply chain to understand what are the potential risk, how severe are the
risks capable of creating threat to the plan, having the capability of jeopardizing the plan
altogether and how much of it can be removed as per the severity and the probability of
appearing in the plan.

10PROCUREMENT AND CONTRACTS: ASSESSMENT 2
Identification of the dependencies and common themes
Dependency can impact on the performance of procurement management based on
the quality of the relationship between the stakeholders that is the organisation and the
vendors while managing the dependencies and figuring out the ability of the organisation and
the vendors for managing the dependencies. It is impossible for a procurement management
plan to analyse and determine the strategies as well as the policies required for isolation of
the dependency from the procurement plan that is present within the organisation (KPMG,
2015). Therefore, it is important that the organisation develops and isolationism strategy that
would help in gaining a lack of credibility e and determination by others for undermining the
procurement process. Therefore, the key performance indicators must be found out to
enhance the quality of the specification and the ability of the procurement plan to result into
high quality tenders so that the negotiations can also be of high quality and appropriate
contracts can be put into place (Turner, 2016). In addition to that, ideal procurement
management must engage within a process when the project is being contemplated of being
purchased. It is also vital that early engagement of the procurement plan needs to be invested
to blend the approach of the organisation into the supply market and understanding the
information sharing about the organisation to the vendors for the project of developing the
English National Stadium Project at Wembley.

11PROCUREMENT AND CONTRACTS: ASSESSMENT 2
References
Biedron, R. (2019). Procurement Risks & How to Mitigate Them. [Web Log Post]
Purchasecontrol. Retrieved from
Https://www.purchasecontrol.com/blog/procurement-risks/.
Bradley, S. (2016). Cross-cultural factors impacting successful project procurement
management implementations.
Chapman, R. J. (2016). The rules of project risk management: Implementation guidelines for
major projects. Routledge.
De Araújo, M. C. B., Alencar, L. H., & de Miranda Mota, C. M. (2017). Project procurement
management: A structured literature review. International Journal of Project
Management, 35(3), 353-377.
Fewings, P., & Henjewele, C. (2019). Construction project management: an integrated
approach. Routledge.
Fleming, Q. W. (2019, January). Project procurement management: contracting,
subcontracting, teaming. Project Management Institute.
Friday, D., Ryan, S., Sridharan, R., & Collins, D. (2018). Collaborative risk management: a
systematic literature review. International Journal of Physical Distribution &
Logistics Management, 48(3), 231-253.
Ite, U. E. (2016, August). Non-Technical Risks Management: A Framework for Sustainable
Energy Security and Stability. In SPE Nigeria Annual International Conference and
Exhibition. Society of Petroleum Engineers.

12PROCUREMENT AND CONTRACTS: ASSESSMENT 2
Jo, S. H., Lee, E. B., & Pyo, K. Y. (2018). Integrating a Procurement Management Process
into Critical Chain Project Management (CCPM): A case-study on oil and gas
projects, the piping process. Sustainability, 10(6), 1817.
Kpmg, (2015). Public Private Partnerships. [Web Log Post] Cutting through
complexity. Retrieved from Kpmg.com.au.
Lee, C. Y., Chong, H. Y., Liao, P. C., & Wang, X. (2017). Critical review of social network
analysis applications in complex project management. Journal of Management in
Engineering, 34(2), 04017061.
Macbeth, D., Williams, T., Humby, S., & James, K. (2012, June). Procurement and Supply in
Projects: Misunderstood and Under Researched. Project Management Institute.
Marchewka, J. T. (2016). Information technology project management: Providing
measurable organizational value. John Wiley & Sons.
Meredith, J. R., Mantel Jr, S. J., & Shafer, S. M. (2017). Project management: a managerial
approach. John Wiley & Sons.
Nicholas, J. M., & Steyn, H. (2017). Project management for engineering, business and
technology. Routledge.
Schwalbe, K. (2015). Information technology project management. Cengage Learning.
Tonchia, S. & Mahagaonkar. (2018). Industrial project management. Springer.
Turner, R. (2016). A handbook for project management practitioners. In Gower handbook of
project management (pp. 31-46). Routledge.
Turner, R. (2016). Gower handbook of project management. Routledge.