Cleaning Contract: Procurement Plan, SOW & Performance Report

This document provides a comprehensive procurement management plan and statement of work (SOW) for a hypothetical project involving ABZ Private Limited, a construction company planning to renovate existing societies. The plan outlines the procurement management approach, defining the roles of the procurement team and emphasizing strong communication. It includes a procurement definition table, listing required items like bricks, cement, and equipment, along with their quantities and project phases. The document also specifies the type of contract to be used, procurement risks, and risk management strategies. Further, it details procurement constraints, the contract approval process, decision criteria, and vendor management. The SOW outlines the project's scope of work, approach, timeline, terms and conditions, and roles and responsibilities, along with performance requirements and a performance matrix. The document concludes with references to relevant sources.

Project Management

Contents
1. Introduction.........................................................................................................................2
2. Project Background.............................................................................................................2
3. Procurement Management plan..........................................................................................2
Procurement management approach.......................................................................................2
Procurement definition...........................................................................................................3
Type of contract to be used....................................................................................................4
Procurement risks...................................................................................................................4
Procurement risks management..............................................................................................6
Procurement constraints.........................................................................................................9
Contract approval process......................................................................................................9
Decision criteria....................................................................................................................10
Vendor management.............................................................................................................11
Project Stakeholder Sign off.................................................................................................12
4. Statement of Work Agreement.........................................................................................12
Scope of Work......................................................................................................................13
Approach..............................................................................................................................13
Time Table............................................................................................................................14
Terms and Conditions...........................................................................................................15
Role and Responsibilities.....................................................................................................16
5. Performance Requirement................................................................................................17

Performance Matrix..............................................................................................................17
6. IN REFERENCES............................................................................................................19

1. Introduction
The procurement management plan is prepared for developing the contract closure with the
contractor and sub-contractor. The timelines and type of contract should be specifically
mentioned so that the chaotic environment can be avoided at top priority. The contractor
should comply with terms and condition of the client to manage the supply of resources on
time. The purpose of this paper is to develop a procurement management plan and statement
of work to specify the role and responsibilities of the participating parties and team members.
2. Project Background
The ABZ private limited is the construction company which is going to plan to renovate their
existing societies so that customers are provided with the quality of service and new
advanced features in their apartments. The organization wants to develop a procurement plan
so that contract can be signed with the contractor and sub-contractor to avoid conflict and
chaos during the project development lifecycle.
3. Procurement Management plan
Procurement management approach
The procurement team is constructed for managing the demand and supply of the resources at
the construction site. The key players of the procurement team are buyer, procuring officer,
procurement manager, purchasing director, and procurement analyst. The strong
communication links between the member participants are developed so that flow of
information and handling of purchasing operations can be effectively done which helps in

maintaining the working operations on the construction site by making the balance between
the supply and demand of resources and raw material1.
Procurement definition
The table below shows the list of item which is required to complete the renovation program
of the undertaken project of ABZ Company.
Procurement Items Quantity Project Phase
Bricks 2000 Construction Phase
Cement 100 kg Construction Phase
Sand 100 kg Construction Phase
Road Rollers 4 Construction Phase
Cranes 6 Construction Phase
Cement Mixers 6 Construction Phase
Excavators 3 Construction Phase
Electrical Equipment 10 Construction Phase
Insurance Cover 2 Designing fees
Engineering fees 5000 per head Cost estimation plan
Human Resource 35 During the project
initiation phase
1 Awozum, S. The impact of procurement planning on the supply chain management in public
organization. Ebook. 1st ed. Aston university.2016

Type of contract to be used
The fixed type of contract should be signed with the contractor and sub-contractors so that
the supply of resources can be maintained on the construction site2. The 2 years contract
should be signed between the client and contractor so that demand of the resources can be
fulfilled adequately. The resources are required according to the work breakdown structure
developed for the proposed project. The contract can be extended for 3 years if the project
owner wants for controlling the project monitoring and maintenance phase.
Procurement risks
 Payment is not specified during the project initiation phase and in the contract: The
quotation for completing the project is not clearly specified which can result in the
loss of tender. The contract is signed with the parties whose quotation value is lowest.
 Terms and conditions are not clearly defined: The scene of chaos and contradiction
occurs between the contractor and client due to the unclear terms and condition in the
project procurement plan
 Historical records of the contractor are not searched and analysed: The client
company does not searched the historical records of the contractor which can create
incompetence among the working parties
 Scarcity of raw material availability: The availability of the raw material is not
checked before signing the contract
 Timeline of the project is not specified: The project start and finish date of the project
is not mentioned in the contract which can directly affect the delivery of the end
product3
 Division of role and responsibilities is not done: The distribution of responsibilities
not done will create the scenario of chaos and contradictory environment
 Delivery date of the project is not compiled: The proper scheduling of activities is not
done since no proper work breakdown structure is developed
 Insurance cover terms and conditions is not properly defined: It can create the chaos
and conflict since terms and condition for getting insurance cover is not given
 Working hours of the labour is not specified: The labour can present their resistance
since they are not known about their dedicated working hours4
2 Habib, M. 2014 Supply chain management: Its future implications. Open journal of social
science, 2014(2)
3 Halil, F., Nasir, N., Hassan, A., Shukur. Feasibility study and economic assessment in green
building projects. International journal of social and behavioural science. 2016.
4 Hyari, K, and Kandil, A. Validity of feasibilities studies for infrastructure construction
projects. International journal of civil engineering 3 (1). 2009.

Procurement risks management
Identified
Risks
Risks
Severity
Risks
Likelihood
Risk
Ranking
Risk
Priority
Risk
Management
plan
Payment is not
specified
during the
project
initiation phase
and in the
contract
3 3 6 Medium The quotation
for the
proposed
project should
be clearly
defined in the
procurement
management
plan
Terms and
conditions are
not clearly
defined
2 1 3 Low The terms and
condition
should be
clearly defined
Historical
records of the
contractor are
not searched
and analysed
1 4 5 Medium Market
analysis of
historical
record should
be done so that
good will and
reputation of
the contractor

can be judged
Scarcity of raw
material
availability
4 3 7 High Material
Availability of
the raw
material
should be
measured
before signing
the contract
Timeline of the
project is not
specified
1 2 3 Low Start and finish
date of the
project should
be clearly
defined by
developing the
effective Work
breakdown
structure
Division of role
and
responsibilities
is not done
3 1 4 Medium Stakeholder
register should
be developed
Delivery date
of the project is
not compiled
2 4 6 Medium Start and finish
date of the
project should

be clearly
defined by
developing the
effective Work
breakdown
structure
Insurance
cover terms
and conditions
is not properly
defined
2 1 3 Low Terms and
condition of
the insurance
cover should
be clearly
mentioned
Working hours
of the labour is
not specified
4 4 8 High Working hours
of the labour
should be
clearly
defined5
Procurement constraints
Procurement constraints of the project are mentioned below:
 Project Schedule: The start and finish date of the activities is not clearly mentioned
 Project Cost: The cost estimation plan is not accurately prepared due to the difference
between estimated cost and market cost of the resources used
5 Jackson, J., and Ombui, K. "Effects Of Procurement Planning on service delivery in state
corporation". International Journal Of business and change management 5 (3). 2012.

 Scope: The in-scope and out-of-scope activities is not clearly defined
 Resources: The criteria of resource selection process is not developed6
 Technology: The resistance can be shown by the employees for not using the new
technology
 Client-contractor relationship: The relationship between the working parties can be
get chaotic due to the unavailability of resources and raw material.
Contract approval process
The contract approval process is depends on workflow management plan for tracking the
request and response on the new contact. The review form should be filled by the stakeholder
on the contract signed with the contractor.
6 James, A. A new Introduction To Supply Chain And Supply Chain Management: Definition
And Theories Perspectives. International Journal Of International Business Research 5 (1).
2012

(Source: James, A. A new Introduction To Supply Chain And Supply Chain Management:
Definition And Theories Perspectives. International Journal Of International Business
Research)
Decision criteria
Decision criteria for the procurement management plan depend on the following factors:
 Delivery Speed: The historical records of the contractors are checked to analyse the
speed of raw material and resources delivery at site location

 Price: The quotation of price to complete the undertaken project is taken from the
contractor. The contractor who quote minimum price for the project will be selected
 Time: The date of project delivery with the specification of start and finish date of the
project should be given by the contractor
 Flexibility: The construction design can be changed according to the desire of the
project owner
 Division of role and responsibilities: The stakeholder register with the specification of
role and authorised responsibilities should be clearly mentioned7
 Grievance handling program: The grievance handling program used by the contractor
for managing the disputes of its working authorities should be analysed
 Quality: The reputation and good will of the contractor company should be analysed
so that the quality of output can be measured
 Risk Identification: The contractor should be highly skilled and expert so that the
risks can be identified in the project initialization and respective action plan can be
prepared to resolve it.
Vendor management
 Buyer: He is responsible for the selection of the desired contractor and issuing
relevant purchasing orders. The strategic plans are developed so that procurement
procedures and processes can be effectively completed.
 Procuring officer: He directly communicate with the contractor for negotiating price
and cost of the resources
7 Joesbury, P. Improving The Effectiveness Of Procurement. Ebook. 1st ed. Aston university.
2016.