Case Study: Contract Procurement Management for CQU - PPMP20011

This case study examines the contract procurement management strategies for a Central Queensland University (CQU) project, identified as PPMP20011, which involves the construction of a new campus at Melbourne. The project includes four main elements: a lecture building, computer and engineering laboratories, a motel, and a conference hall. It covers the project's lifecycle from initiation to operations, highlighting the roles of various stakeholders such as the project manager, architect, and engineers. Different procurement routes and methods are discussed, with a focus on the suitability of a fixed fee contract due to the project's well-defined scope, timeframe, and pre-determined costs. The analysis includes risk allocation and a detailed project budget, providing a comprehensive overview of the financial aspects of the project. The document concludes with a reference list of relevant sources used in the analysis.

Contract Procurement Management for CQU
Contractor: PPMP20011
Company
1
Construct four Elements:
• Lecture Building
• Computer and Engineering Labs
• Conference hall
• Motel
2
3
Budget
Fixed Budget:
CAD: Timelines for the Works
•The Project must be ready for
occupation by January 2020
Project
Characteri
stics

Project Life Cycle
Project
Initiati
on
Plannin
g and
Fundin
g
Environ
mental
Impact
Assess
ment
(EIA)
Project
Design
Legal
and
Regula
tory
Permit
s
Real
Property
Acquisiti
on
Bidding
and
Contract
Awarding
Constr
uction
Works
Commi
ssionin
g
Operat
ions

The Role of Project management
CQU
(Agency)
Quality
Assurance
Project
Manager
Contractor
(PPMP20011
Company )
Archit
ect
Structural
Engineers
Geotechni
cal
Engineers
Civil
Engineers
Procurement

Procurement Routes for CQU
“The design-build-operate-
maintain(DBOM) model
combines the design and
construction responsibilities
of design-build procurements
with operations and
maintenance”.
Principal Routes
• Traditional /
conventional design led
• Design and construct
• Management (Fee)

Procurement Methods

Procurement Methods – Cont’d

Procurement Methods – Cont’d

Ideal Contract Type
Contract Types
▶ Fixed
▶ Cost Reimbursable
(CR)
▶ Time & Material
(T&M)
▶ Labor Hour (LH)
Fixed Fee Contract
is the most ideal
type of contract for
this kind of project.

Justification for Fixed Fee Contract
The scope is properly defined.
The timeframe is known.
The cost is pre – determined.
Risks are transferred to the contractor.
Project requirements are defined at the design
stage.
The quality of the project is charged on the
contractor as a single point of contact with th
eclient.

Risk Analysis

Risk Allocation

Project Budget
BUDGET FOR CENTRAL QUEENLAND UNIVERSITY PROJECT
(Amount Quoted in 10,000' US Dollars)
ELEMENT
PROJECT ITEM MAIN LECTURE
BUILDING
COMPUTER AND
ENGINEERING
LABORATIRIES MOTEL CONFERENCE
HALL TOTAL
Project Initiation $ 200.00 $ 200.00 $ 200.00 $ 200.00 $ 800.00
Planning and
Funding $ 1,000.00 $ 2,500.00 $ 1,000.00 $ 500.00 $ 5,000.00
Environmental
Impact Asessment $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 40.00
Design $ 500.00 $ 1,000.00 $ 500.00 $ 500.00 $ 2,500.00
Regulatory
Permits $ 10.00 $ 20.00 $ 10.00 $ 10.00 $ 50.00
Real Property
Acquisition $ - $ - $ - $ - $ -
Bidding & Award $ - $ - $ - $ - $ -
Comisssioning $ 2.00 $ 2.00 $ 2.00 $ 2.00 $ 8.00
Operations $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 40.00
Construction $ 17,320.00 $ 37,420.00 $ 17,320.00 $ 12,320.00 $ 8,438.00
Totals $ 19,052.00 $ 41,162.00 $ 19,052.00 $ 13,552.00 $ 92,818.00
Grand Totals $ 190,520,000.00 $ 411,620,000.00 $ 190,520,000.00 $ 135,520,000.00 $ 928,180,000.00