Procurement and Supply Chain: School Construction Project

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AI Summary
This report provides a detailed procurement plan for a school construction project funded by the Capital Spending Program. The project aims to build a new school with facilities for health science and digital technology, expected to be completed by 2020. The report outlines procurement and supply chain strategies, including the procurement process, systems, and management contract procurement. It highlights the project team and participants, defining their roles and responsibilities, and emphasizes the importance of ethical conduct and professional ethics. The report addresses property context, including the facilities, teaching and learning facilities, and the selection of experts like project managers, contractors, and architects. It also covers procurement strategies, such as understanding the organizational mission, identifying important procurement items, and defining success metrics. The procurement process, including investigation of various sectors, selection of procurement processes, and the implementation of a correct procurement framework based on time, quality, and cost is also detailed. The report emphasizes the need for effective procurement systems and the importance of aligning procurement strategies with project and organizational objectives, ensuring cost-effectiveness, quality, and timely delivery.
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Running head: Procurement and Supply Chain 1
Procurement and Supply Chain
Student’s Name
University
Course
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Procurement and Supply Chain 2
Executive Summary
In this report, provides procurement report on the development of a construction project.
The project is about the construction of the school which is funded by Capital Spending Program
form the department of education. The funds released was £60m to develop this project by
coming up with the economic factor of education in health science and digital technology. The
project is expected to be completed by the year 2020, which will enhance both the students and
management to relocate and operates from the new premises.
This report provides procurement and supply chain strategies to be used in the project.
These strategies will be an encouragement towards achieving the organizational and procurement
goals and objectives. Procurement process also will be outlined by providing a clear way of how
the project requirements will be absorbed and used in this project. The client’s requirements to
run the project successfully are mentioned in details by this report. This includes the ethical and
professional code to be applied. All the required team including, the project manager, contractor,
architect and procurement team are employed completely according to the project requirements.
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Table of Contents
Introduction....................................................................................................................................2
Property Context...........................................................................................................................3
Procurement strategy....................................................................................................................4
Procurement process.....................................................................................................................7
Procurement systems.....................................................................................................................8
Management contract procurement............................................................................................9
Project Team and Participants...................................................................................................10
Roles and Responsibilities of Participants.................................................................................11
Ethical conduct and professional ethics.....................................................................................13
Summary and conclusion............................................................................................................14
Reference......................................................................................................................................15
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Procurement and Supply Chain 4
Introduction
This is a procurement plan for the project of school construction in the state. This project
is funded by the “Capital spending program from the education department”, this is to develop a
school program which is not under the management of the local authority. In this project, it
requires a well-planned procurement and supply plan, so as to ensure the success of the project.
Different materials, skills, knowledge and experts in the different field of specialization are
required to be involved in the project. The client needs a quality procurement report which will
convince the team to accept the proposed plan. The client has a high demand to work close with
available contractor throughout the project time. This contractor is required to offer a timely
completion of the project and the budget by proving facilities of high first class. More than one
part is required in this project to make the project successful (Mostafa and Chileshe, 2018). The
major requirements includes peoples like experts in project management, construction contractor
and other useful consultant who will make completion of the project successful. The client will
require to maintain the first architecture. This report will help in getting quality and reliable
services and product from the selected team, therefore, maximizing the value of every product to
be used in all stages. The following report will show out the strategic procurement processes that
will be used, client requirement will be captured and all responsibilities of the consultants
employed will outline out (Phillips, 2018).
The school will offer a Health and digital education in the technology sector. The project
is expected to be complete by the year 2020 and this will enhance the students and the
management to relocate and carry out their operations from the new premises.
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Procurement and Supply Chain 5
Property Context
This procurement report will outline all required properties, including personnel which
will be employed in the project. The construction of the school will start from scratch since the
selected local architect has not completed everything (Herbert, 2018). The reason being that, the
developed design was not approved by the school principal. This stage involves the following
elements:
- Teaching and learning facilities.
- Accommodation.
- Staff offices.
- Laboratory facilities.
- 3D, VR, and digital universe.
- Dining and canteen facilities.
- Multi-purpose hall and indoor games arena.
- Outdoor play and learning areas.
Therefore, due to the above reason, the school principal and promoters were limited to carry out
the project requirements complete. The caretaker, chairperson and five members were selected
by the promoters to be included in the procurement committee. Admission manager, Principal
PA, and manager of the Business Liaison were selected also. In this selected team, no person had
technical or operational know-how of construction concept, therefore the team is responsible to
select another team of experts who will run the project until completion. The required experts
includes:
- Full-time project manager. This person should be available throughout the project time,
monitoring the progress of the project.
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- Construction contractor. This expert will organize various elements in the project to be
performed within the construction site.
- The architect was needed. This area was not fully decided since the original architect
might continue with the original design or the promoters employ another one, who will
start a new design or continue with the original design.
- Consultants. These are another experts who will be required to collect and deliver useful
information about the project, also, can be called assistant team.
Procurement strategy
Procurement involves the acquisition of the materials, services, supplies and other
requirements which will be used in the targeted project and make it successfully completed.
Therefore, when it becomes to the procurement strategies it means that these are already planned
methodology on how to get cost-effective purchase for the project materials from different
suppliers under consideration (Mena, Van Hoek, and Christopher, 2018). Several factors will be
considered when setting out procurement strategies like timeline, the budget, and funding project
opportunities. These procurement strategies will define the goals and objective of the project to
be achieved with time. The selected team should plan an effective procurement strategies which
will assist them in getting viable materials of the project. In this process of decision making cost
factor is important to be under considerations plus the quality of the materials to be used (Bag,
Venkatesh, Luthra and Anand, 2018).
The building of this school, the selected team should come up with the procurement
strategy which will facilitate successful completion of the project. The selected team should sit
down and exchange ideas on how to achieve the project completion successful (School). These
strategies may be on the quality of the product used and certain measure should be met by all
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materials to be used in this project. Another factor to be considered is time this includes duration
the project will take and timely delivery of the materials from different sources should be
considered. Also, the price of the materials and other personnel should be quoted according to
the budget of the project (Ahmadi, Pishvaee and Torabi, 2018). Therefore, the requirement to
meet should be cost-effective, therefore, encouraging to achieve procurement goals smoothly.
The following are the key steps for developing strong and effective procurement
strategies:
1. Understand the Mission of the organization. Is very important for the team to
understand the organizational mission when coming up with procurement strategies.
This will help to know the stand of the organization and what is required in the future.
If is impossible to measure the organization progress today also, will be hard to
achieve future goals. Therefore, in procurement, the team should understand the
procurement sector is currently accumulating value and understand on how to operate
effective. These includes payment terms and conditions, procurement lifecycle,
contract compliance, investment in procurement returns and others.
2. Identifying and evaluating what is important to procure for the project. Once the
mission of the procurement is clear to the team, now the opportunity is identified. The
most important items are the one to be procured first because they will motivate the
achievement of the organizational and procurement strategies effectively.
3. Define the success of the product to be procured. The procurement strategy must be
able to identify the quality of the product. Will the product assist to add a certain
percentage of progress in the project, therefore, attaining the procurement strategies
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Procurement and Supply Chain 8
in and outside the project? This will help to measure the procurement ability on the
products.
4. Develop target that defines success in a measurable way. This is done after
procurement is determined, this where the quality of product can be measurable only.
The measurable of the strategy will cooperate with different objectives in
procurement. Also, will allow prominence on quality, cost, and services. This is
important since it provides progress improvement when the goal is measurable.
5. Implement and measure of the strategy. The strategies developed now is required to
be implemented in the project system. After implementation, the team should ensure
progress is still monitored across the project activities.
The use of an effective procurement strategy in this project on the purchase of services and
materials, it will enhance effective cost, quality maintained and timely delivered (Oke,
Aigbavboa, and Tong, 2018). As procurement strategies are achieved also the organization and
project objectives will be successfully attained.
Procurement process
In every procurement report, there is a procurement process to be carried out in the project. For
example, in this project of school construction, the team should select effective procurement
processes. The selected team of experts should carry out a detailed investigation of the various
sectors which are going to be involved in the project of school construction (Ajayi and Oyedele,
2018). The following areas need the investigation before selecting procurement process:
transportation of items available for the construction, site and environment survey, structural
design investigation and the analyses of the materials to be used in construction. Also, the
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required methodology in the whole processes of project construction is required to be
investigated.
Therefore, the team of an expertly selected for the school construction should be ready to select
the suitable procurement processes after the investigation is done on those sectors. The correct
procurement framework must be implemented in the project. This framework will be based on
the main terminologies of procurement, that is time, quality and cost. The success of the project
activities will depend on the selected procurement process to be used in the construction of this
school. Also, this will help the team to meets client and final user requirements and needs to
design the project (Ghazali, Rashid, and Sadullah, 2018). The expert team should be ready to
develop, implement and control the selected procurement processes. The school construction
team has identified several qualities which should be met by the project, therefore, satisfying the
client’s and all parties requirements involved in their needs accordingly. These qualities they
include:
- The cost of construction material. The standards cost according to the material quality
should be agreed by both parties involved.
- Time. The required time for project completion should under heavy consideration.
- Competition of the price. Is very important to analyze well the price competition on the
market before procuring anything for the project.
- Quality. The quality of the material, ideas, and expert must kindly be investigated.
- Responsibilities. As the team of experts is selected, should be assigned different roles
which each individual will participate to ensure successful completion of the project.
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- Complexity. The project processes should be complicated due to the use of a complicated
procurement process selected. This must be avoided at the highest rate as the project is
concern.
- Risk. The exchange of various risk within the different activities in the project, will it
possible within the project of school construction?
Using the above qualities, will enable the team to select an effective procurement processes
and implement the process according to the project requirement of the client and to the final user
of the school developement. A successful project is based on the perfect and effective selection
of the procurement process.
Procurement systems
This is the same as the procurement framework to be used in the project development.
This system of procurement will lay out several duties and responsibilities to be undertaken by
several selected experts (Awuzie, Farag and McDermott, 2018). Therefore, effective
implementations of the procurement framework will involve scheduling and planning cost saving
in all project operations and put a commitment on the procurement team. This will facilitate cost
reduction in the project activities but increase the profitability level.
Procurement system is classified into four categories, as mentioned below:
- Traditional.
- Design and construction.
- Management.
- Collaborative.
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Most orders of this project have multiplied much in the market due to the high demand of the
material. The development of suitable procurement system will be depending on the school
project and the procurement techniques to be used in acquiring materials (Daoud, Othman,
Robinson, and Bayyati, 2018). The risk is a very important factor to be considered in the project,
as well as the involvement of the client in general. The selected system implemented in this
project should facilitate contract strategy, methodology and team selected knowledge on how to
processed and finish the project within the time limit.
Management contract procurement
Several parties, like buyers and sellers, are most important to be involved in the
procurement processes. The school team of experts, contractors, suppliers and any party involved
in this project development must work under certain contract of agreement. The existence of
those several parties should sign up the contract which will help the project to run effectively.
Also, they is existence of a general worker in the project which they need to be managed by the
experts, therefore, requiring management contract between these casual employees in the project
(De Marco, 2018). The management which is selected by promoters of the school must supervise
the project until it’s over according to the legal requirement they agreed together. They are many
contracts of agreement involved in this project like management construction contract, design
and implementation contract, employees and management contract and these all contracts will
help and encourage the technical and procurement framework to implemented and managed well
in achieving procurement and organizational objective (Kumar, Pal, and Dash, 2018). All the
management contract they have advantages towards the procurement processes. These
advantages they include:
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- The selected Team of experts and school team they will encourage each other to
coordinate and combine all efforts between the contractors, consulters, and designer of
the project.
- The developed plan will be implemented according to since each party will focus to work
according to the agreed contract.
- Set of responsibilities, roles and areas of specialization are well defined by the contract.
- Terms and condition governing the project and the participants are well elaborated in
case of any change. This helps to maintain the good relationship between all parties
involved in the management.
- Use of quality contract, it will enhance the use of quality and timely delivered materials.
The contact between a supplier and the contractor is very important for successful project
development.
Project Team and Participants
Project team and participants are the groups of peoples and individuals who are involved
in the development of a successful project. The team of experts like architects, contractors and
consulters are required in the project development processes (Eftekhar, Masini, Robotis and Van
Wassenhove, 2018). The project owner and his management team are also involved. The
outsiders’ participants like suppliers, local government and competitor for the tender in one way
or the other they motivates the success towards the development of the project. For the local
government, the authority has provided £60m towards the school development. This team is
ranked according to the mandate it has in the project. The following is a structure towards this
project team selected.
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