Procurement Strategy and Contract Analysis for Enviro Park Project

This report provides a detailed analysis of the procurement strategies for the Enviro Park project, focusing on selecting the most appropriate procurement system based on client objectives, project constraints, and risk assessment. The report evaluates various delivery models, including traditional, design-build, and alliance approaches, to determine the optimal choice for the environmentally sensitive project. It compares different contract conditions, such as FIDIC, JBCC2000, NEC3, and GCC, to assess their impact on time, cost, and quality parameters. Furthermore, the report examines supply chain relationships and partnering schemes, emphasizing the importance of long-term commitments and mutual trust for achieving project success. Strategies for managing various stakeholders involved in the construction industry are also developed. The report leverages both academic theories and practical field experience to provide a comprehensive understanding of the procurement process and its implications for the Enviro Park project. The project aims to be a cutting-edge sustainable development. The report includes an executive summary, introduction, development plan, analysis of procurement systems, contract conditions, supply chain relationships, stakeholder strategies, conclusions, and a reference list.

CONTENTS
1.0 EXECUTIVE SUMMARY
2.0 INTRODUCTION
3.0 DEVELOPMENT PLAN / ENVIORENMENTALLY SENSITIVE DESIGN/
CONSTRUCTION CONCEPT
4.0 DETERMINING THE APPROPRIATE PROCUREMENT SYSTEM BASED ON
EVALUATING CLIENTS OBJECTIVES AND STRATERGIES FOR DESIGN AND
CONSTRUCT SERVICES.
5.0 APPROPRIATE CONDITION OF CONTRACT AND IMPACT OF CONDITION
OF CONTRACT FOR TIME, COST & QUALITY PARAMETERS.
6.0 SUPPLY CHAIN RELATIONSHIPS & PARTNERING SCHEMES EVALUATING.
7.0 STRATERGIES FOR VARIOUS STAKEHOLDERS IN THE CONSTRUCTION
INDUSTRY
8.0 CONCLUSIONS
9.0 REFERENCE LIST.

1.0 Executive Summary
In this report the analysis will be related to the perfect procurement selection
systems for the park project related to environment and also provide a comparison
of the contract on how to deal with the problems of timing, costing and also quality
related parameters. In addition to all of these this project is also selected to
understand the relationship between the supplying chains and the schemes related
to partnering for any kind of future projects and also develop the techniques for
stakeholders related issues.
The intension of the client is to do the project as the cutting-edge sustainable
development, and also implement best and the most innovative and updated
practices.
Requirement of the project, the constraints, dangers, and the capability of the client
and the marketing position was analyzed in order to determine the perfect system of
procurement and also show a comparison between various delivery models such as
traditional, build and design, directly managed , alliance and many more in order to
identify the most appropriate model for the project related to enviro park. The necessary
steps and approaches to the market include the tender processing , pricing strategies
and the contract form were analyzed.
The designing and the build structure were detected as the most appropriate approach
to get the opportunity to the employer in order to select a appropriate design by quality
maximization within the budgetary constraints and also to proceed with a continuation of
the designing effort. Further the clients are preferring to remove all the inefficiencies and
the delay related to the preparation of the designs and also to speed up the project in
order to get the best value related to the return on the investment, transfer the
responsibility of the contractor for a large fixed pricing and bespoke designing, and also
utilize the technique in order to select a perfect design to establish a landmarking
construction and also to immediately commence the projects. The most common type of
contacts like the FIDIC, JBCC2000 , NEC3 and the GCC are compared among each
other in order to find the most appropriate form on order to make the contract. After
comparing all the contacts, the FIDIC Yellow Book- Conditions is chosen in case of the
Plant and Design-Build for the electrical as well as the mechanical plants and also for
building of works that were planned by the service contract taker. In the recent module
of the contract the saying “electrical and mechanical works” moves away from title of the
assignments and which is aligned with that of FIDIC suite and attention is much on what
is the procurement type rather than the nature of the work.
The relation between the supply chain and also the schemes that is related to
partnering were evaluated that was based on the long duration commitment that
embraces the business philosophy that was basically described with the help of the
elements of the mutual trust, long-term perspective, communication, solving of the
problems, mutual targets and also the equity. As all the clients are eager, so that they
can expand their portfolio and are also searching for two different potential sites that are
under development of similar kind of nature in the country of Sri Lanka, it is very

essential to keep a focus on the relationship between the supply chains and also the
partnering schemes to achieve high cost, time benefits as well as quality.
Identification of the stakeholders who are involved in the project, and to set up a perfect
coordination and also facilitation in order to manage their prospects by applying a
practical approach starting from the initial stages of project were illustrated. By
identifying the possible threats and then taking the necessary approach which will be
resulting in the delay of the project is very important in order to avoid any kind of
unnecessary delay. Before setting up the time line the project management team should
analyze these factors.
2.0 Introduction
This assignment or rather considered as report is basically created as one of the
part of the graduation academic task. The intention over creating this report is
mentioned below.
 In order to create a different between short as well as long-term advantages
of taking numerous contractual conditions
 Must be able to determine the correct system of procurement for the enviro
parking project which is based on the client target.
 Be able to give the suggestion on the developing techniques for the
partnering as well as the stakeholders of project.
In this study comparison is made between the different models of delivery and
also different forms of the contract in order to choose the perfect procurement
system for the project related to the enviro park with the objective of the client
related to the time, quality and the costing parameters.
In this report we have included the proper justification of the procurement
systems and how relationship with that of the suppliers or the subcontractors
partners suppose to create a relation with the future projects.
In this report the description is provided related to the different stakeholders and
also their expectations with the help of a proactive approach by maintaining a
strong relationship with project.
The author in this report have a total experience of 15 years within the
construction industry in numerous company of the country Srilanka and the past
4 years were commenced as – Tenders Estimation & Post Contract Cost
Management in Al Tasnim Enterprises LLC, which is considered to be the

leading and an excellent grading construction organization situated in Oman.
This report is also based on academic theories as well as field experience.
3.0 DEVELOPMENT OF PLAN AS WELL AS ENVIROMENTALLY DESIGN WHICH IS
SENSIVE/ CONSTRUCTIONAL CONCEPT
Energy Trust can be defined as an international company with investors in the
flagship proposals for the green technological center, sporting center also commonly
known to be Enviro park and conservation locality. With the help of proposal
development 3000 full time jobs and an assumed constriction of over 100 million US
dollar can be developed. This approach has obtained the outlining planning
approvals.
The sports complex will be the principle aspects of the development , which is
situated at the new home to Kalutara Cricket Club(KCC). The club will be
complemented as well as supported by green technological club of the northern site.
This club will be basically used as a funding of sporting complex on southern site.
The conservation area that is situated in the western site will be basically used for
the biological immigration as per the approach to ensure the substantial
improvement of the biodiversity crossways the whole site. This site is established at
the southern expressway E01 which is near to dodangoda exit in kalutara district
perfectly 50 km to the si]outh of the Colombo. It is at present used for agricultural
purpose.
Project Employer
1. Energy Trust
2. Kalutara Cricket Clud
3. Sports Ministry(Srilanka)
The Enviro Park consist of three appropriate but elements that are
complementary
1. Green Technology Hub(GTH) (the northern area) (34 x (900-3800 sq. m)
blocks
2. Sports Complex (SC) (the southern area)
a. Indoor pitch
b. Transport hub
c. Cricket Stadium 3000 capacity
d. Athletic pitch
e. Training pitches
f. Supporting facilities
3. Nature Conservation Area(NCA) (western area). (5 hectares)

The location basically cosists of the three rudiments that are distinct blue
area(GTH) , green area(NCA), red area(SC)
Fig-1- Extracting of the ‘Land Use Parameter Plan’ with different elements
color coding. The NCA (West) in Green, the GTH(North) in blue and the SC
(South) in Red.
Dimensions of the Environments
Several environmental activities are displayed in this project
1. Backfilling should be done with the help of Site excavated material /
Without disposal of the earthwork material
2. Flood controlling should be done with the help of proper drainage
system/ with the permanent waste watering system of treatment.
3. Minimize the consumption of the energy with the help of natural lights ,
AC systems that are efficient , using trees and also provide natural
ventilation in order to reduce the heating loads for foot prints with low
carbon.
4. Solar photovoltaic energy by the usage of the roof areas, cars park
having electric car with the charging points and also power plant of the
wind turbine.
5. Garbage re-cycling or Waste managing strategies
6. Environment effect watering spray for controlling the dust or eithn the
help of proper hoardings to boundary of site.
Specified designing proposals will be emerging from evolution of outlining
planned Revised Concept Design and also will be subjected to the reserving
matters. Outlined below are the principles considering the Enviro Park
design. The benchmark related that is basically used in the Enviro Park is
expected LEED Certified. United State s Green Building Council administers
the quality of leadership in the Energy and Environmental Design(LEED) as
the globalized market leader in the systems related to rating.

4.0 DETERMINATION OF THE APPROPRIATE PROCUREMENT SYSTEM WHICH IS
BASED ON THE EVALUATING CLIENTS OBJECTIVES AND STRATEGIES
RELATED TO THE DESIGN AND CONSTRUCT SERVICES
Determination of the perfect contract or the procurement strategies will be becoming
apparent as there is a progress in the evaluation progress starting from the initial
appraisals to that of the full analysis, includes the consideration of the potential
structure in case of dispute because of the unknown and the known dangers. The
client must ensure that perfect risk strategy is chosen before entering into the
contractual relationship, and are also reflected by the structure of the organization
and the payment methods as well. Smith (1995)
Procurement strategy in three stages:
a. Determination of the delivery model that are perfect such as design and build,
traditional, direct managed, alliance and others.
b. Gathering and analyzing of the project information
c. Approaching to the market which includes the pricing strategies, tendering
process and forms of the contract (New Zealand government procurement guide
2015)
Analysis of the Key procurement issues
Factors that are considered to be out of control of the project team
1. Performance and quality
2. Client resources
3. Costing issues
4. Project character
5. The need to accommodate to the changes, variation
6. Risk management
7. Timing issue
These are the factors that needs consideration for determination of the
procurement systems for the Enviro park project by the analysis of the
project related data.
a. Constructed budget already estimated
b. Project controlling design completed
c. Energy Trusting company profile and the experience (founded in 1995 as world
first green energy company)
d. Project classifies the several packages (Ex; Green technology hub (GTH)/ Sports
Complex (SC)/, the Solar PV, wind turbines power plants and Natural
Conservation Area(NCA)/ Infrastructure & landscaping)
e. Project designing concept is almost completed
f. Complexity in design and complexity
g. Environment sensitive construction and design

h. Returning of the investment(ROI)
i. Desired milestones target dates
j. Unforeseen factors of risk (Ex Soil condition, impact of flood due to heavy rain,
earth slips and others)
k. Requirements in the quality standards
l. Future maintenance and the operation requirements
m. Site conditions
n. Flexibility for the changes during the construction
o. Client involvement
p. Accountability
q. Boundaries of the technology
r. Project assurance quality
Concern of the clients in project achievements
1. Return of the investment(ROI)
2. Client budget
3. Minimization in claims or vacation
4. Minimize and also share risk with the contractor
5. Unique design in order to build a landmark project
6. Elimination of delays and inefficiencies
7. Environment sensitive design
8. Faster in delivery
9. Relationship for the future expansions
10. Safety and Health aspects
Involvement of the client and the initial inputs that are required for the delivery of
the project
a. Establishment of the process or the mechanism in instruction to monitor the
project process and also the excellence
b. Preparation of the client requirement and the necessary speciation’s by the
client in house contractors and the teams
c. Preparation of the project program and time lines
d. Preparation of the organizational structure
e. Ensure the understanding of the entire context before the evaluation of the
deigns or the technology or materials quality and also to satisfy with every
performance levels and also meet the requirements of the project
Steps to become a successful Enviro Park project
In order to make the projects successful, certain steps should be taken
a. Distribute the requirement of the project to all the parties that include the
employer, delivery partners and the stakeholders
b. Creation of the project mechanism and also to meet the requirement of
the project
c. Achieve the project timing targets
d. Managing of the projects within that of the financial budgets

e. Appointment of experienced and commitment employee to the project
f. Use all the resources that are available in the inhouse or outside as well
g. Proper coordination of the relavent authorities for the necessary
approvals.
h. Management of the risks and also identification of the risk in early stage
i. Arrangement of the required developing and the delivery models and
the procurement strategies for the designing and the construction of the
Enviro park project.
Identification of the delivery models related to the project and the
procurement strategies for the enterprise and the building of the Enviro
park development.
1. In order to develop the necessary strategies employer team must
follow the necessary steps. There should be identification of the
proper delivery models in order to achieve the project requirements
on time, quality related matters and also to minimize the danger to
the client.
2. As it is considered as a huge project which is split into numerous
packages such as the Sport Complex(SC), Green technology
hub(GTH), Natural Conservation Area(NCA) , solar PV,
Landscaping & Infrastructure, Wind Power plants), proceeding with
the different delivery models and the procurement strategies.
Interconnection between the packages must be documented with
the help of the procurement strategies.
The objectives of the project must be translated in the procurements
objectives. This gives a relation between the delivery of the product
or that can be promoted with the help of the product delivery. The
primary target can be also related to the budget, quality or the
performance , delivery rate , environmental or the health of the
safety aspects , involvement of the client in the project, end-user
satisfaction also the maintenance and the satisfaction of the project
and the operational Scope work Develop concept Develop and the
documentation design Constructs works Hand over work Parties
agree in the target pricing and the sufficient data is also available to
do(Watermeyer, 2010)
Procurement Method Construction or the Model Selection
The feature of this method in the project management structure or
the client’s consultant decisions is to choose the perfect method that
is based on time, quality, cost and the project complexity.
All the above issues has resulted in a need to conduct a process of
selection in a systematic as well as in a disciplined manner. Some of
the factors needs to be taken into consideration before making any
kind of informed decision on the correct choice of that of the PM.

These factors can be categorized in as the internal as well as the
external factors factors (Love et al., 1998; Luu, and Chen, 2005), as
presented in Fig. 1 (Ratnasabapathy et al., 2006).”
Figure 2 Source: Ratnasabapathy et al., 2006
The employers has to choose a delivery model that are suitable and
also create a usual agreement form in order to solemnize which is
grounded on the delivery model. Proffering processes and also the
evacuation process that re based on the contract. Activities such as
Government services purchasing and also the evacuation process
that is related to the infrastructure works requires parallel activities
and also to incorporate with the working program.
Type of delivery models that are widely used in the project
procurements
a. Construction systems that are traditional
b. Managed Contracts (Construction Management or the
Management Construction)
c. Construction & Design or the Engineer Procure Construct(EPC)
d. Private-public relationship (PPP)
e. Relationship related contracts Ex. Early contractor involvement ,
alliance
f. Early contractor involvement
g. Alliance
This step is related to the initiative that is aimed at the
standardization in order to boundary the high-quality of the
contractual procedures. The forms of the contract that are
suggested includes the following series data:
 FIDIC (French acronym for International Federation of Consulting Engineers)
1999
Construction
procurement
selection
External
environment
Internal
environment
Project
characteristics
Client
characteristics
Client
requirements
Cost related Quality related
Time related
Natural disasters
EconomicPolitical & legal

 General Conditions of Contract for Construction Works (GCC 2004)
 JBCC Series 2000 ·
 NEC3 family of normal bonds
FIDIC, NEC3 and GCC can be considered as the forms of the contracts that is
basically used for every types of construction and the engineering bonds. JBCC 2000
is, confined to the structure the whole thing.
(BEST PRACTICE GUIDELINE #C2 Choosing an appropriate form of contract for engineering
and construction works September 2005 Second edition of CIDB document 1010)
Selection of the perfect contract form
These are the factors that needs to be considered while creating of the decision for a
suitable contract form (FIDIC, GCC, JBCC or NEC3).
1. Working is complex
2. Capability of Management, capabilities and the expectation of the agents and
also the parties.
3. Requires the specific pricing and contracting strategies
4. Compatibility with the administrative procedures with that of the company.
5. Requirements that are related to :
a. The management as well as the assignment danger
b. Engagement back to back for all the types of the subcontractors and also
managing the time and the cost overruns.
6. In order to grip the diverse managerial techniques in case of the construction and
the civil engineering agreements the ability and also the capacity of the skilled
resources.
7. Single system standardization which has the capacity to handle the disciple and
also the contracting strategies within a single documents with respect to the
construction and the building works and all the procurements.
8. Requirements in training

Fig 3 Selection of a perfect contract
Fig 4 Average supplies in each contract relating to valuing and diminishing approaches
NEC3
Engineeri
ng and
Construct
ion
Contract
(ECC2)
NEC
3Engineer
ing and
Constructi
on
Short
Contract.
(ECSC)
FIDIC
Conditions
of
Contract
for
Construc
tion and
Building
and
Engineering
Works
Designed
by the
Employer
(Red
Book)
FIDIC
Conditio
ns of
Contrac
t for
Plant
and
Design
(Yellow
Book)
FIDIC
Conditio
ns of
contract
for EPC
Turnkey
Projects
(Silver
Book)
FIDIC
Short
Form of
Contrac
t
General
Conditio
ns
(Short
Form)
JBCC
Principal
Building
Agreeme
nt
JBCC
Minor
Works
Agreem
ent
GCC
2004
Contract √ × × × × × ×

strategy
Construction
Management
× ×
Design by
Employer
√ √ √ × × √ √ √ √
Managemen
t Contract
√ × × × √ × × × ×
Design and
Build
√ √ × √ √ √ × × ×
Develop and
Construct
√ √ × √ √ √ × × ×
Pricing
strategy
Activity
schedule
Bill of
quantitie
s
Cost
reimburs
able
Target
cost
√
√
√
√
√
√
×
×
×
√
×
×
√
Not fully
develop
ed
×
×
√
×
×
×
No
standar
d
provisio
ns
√
√
×
×
√
√
×
×
√
√
×
×
Backtoback
subcontracts
Two
standard
subcontract
s available
(Engineerin
g and
Constructio
n
Subcontract
(ECS) and
the
Engineering
and
Construction
Short
Subcontract
ECSS)).
ECC2 and
ECSC can
also be
used as
subcontract
documents.
None available Nominat
ed /
selected
subcontr
act
agreeme
nt
available
.
None
availa
ble
(BEST PRACTICE GUIDELINE #C2 Picking an suitable form of agreement for engineering and
building works September 2005 Second edition of CIDB document 1010)
5.0 SUITABLE CONTRACT DISORDER AND IMPACT OF THE AGREEMENT
COMPLAINT FOR TIME, QUALITY & COST LIMITATIONS.
Delivery selection method under FIDIC forms of the contract