Construction Procurement Coursework: Mega Project Impact in the UK

This report explores the multifaceted implications of mega infrastructure project procurement at local, national, and international levels, with a focus on sustainability, carbon financing, political issues, the impact of the COVID-19 pandemic, corruption, and Chinese financing. It delves into how these factors influence project outcomes and economic growth. Furthermore, the report proposes an innovative procurement ecosystem for mega infrastructure projects in the UK, aiming to enhance value for money by addressing challenges such as sustainability integration, corruption mitigation, and effective risk management. The analysis considers the perspectives of various stakeholders, including government entities, construction companies, and end-users, emphasizing the importance of transparency, ethical practices, and strategic planning in ensuring the success and long-term benefits of mega infrastructure investments. Desklib offers similar solved assignments and resources for students.

Construction
Procurement Coursework

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
The local, national and international implications/impact on mega infrastructure project procurement
.................................................................................................................................................................3
Outline proposal of an innovative procurement ecosystem of mega infrastructure projects in the UK in
pursuance of superior Value for Money..................................................................................................9
CONCLUSION.............................................................................................................................................11
REFERENCES..............................................................................................................................................12

INTRODUCTION
Procurement describes the process of having direct access in the framework of a building
project, as well as in several other business situations. It is a method of distributing engineering
and building responsibilities on an infrastructure project. Choosing and assigning legal obligation
for a development's design and construction, for instance. The various techniques of determining
that assignment are referred to as "procurement channels" by construction companies
(particularly building attorneys). This is distinct from "government contracts," which governs
how public entities must handle their agreements. By necessity, procurement in building projects
entails procuring all of the items and resources required to bring a building project to a prompt
and satisfactory conclusion. This report based on the large infrastructure initiatives are
progressively being used as the favored delivery method for products and utilized in a variety of
industry segments around the world, including infrastructure, fuel and power,
telecommunications, manufacturing industrial plants, quarrying, distribution networks, ERP
system, company's strategic proposals, and switch careers. In this report consist of local, nation
and international impact n mega infrastructure. Along with, propose of innovative procurement
ecosystem of mega infrastructure in the UK.
MAIN BODY
The local, national and international implications/impact on mega infrastructure project
procurement
Sustainability: The notion of sustainable development has only lately been introduced to the
evaluation of infrastructural megaprojects. New physical infrastructure, on the other hand, is
critical to the ongoing and increased amount of neighborhoods, civilizations, and, eventually, the
global financial system and ecology.
 Local impact: The various state and public parties engaged in projects like train
intersections and buildings, as well as the varied viewpoints of designers, builders,
purchasing professionals, end consumers, and many others, interested in determining in
green architecture difficult. Though there are many players on the team, there has been
some worldwide agreement in the construction projects on how to provide sustainably

and procurement became the key cultural and scientific transformation by which more
green construction techniques are implemented.
 National: Actions that are enduring assist to make a significant change on society.
Becoming environmentally conscious will lower their carbon emissions and the quantity
of contaminants discharged into rivers, making it safer. When we concentrate on
sustainability, the entire planet gains and lives in cleaner, healthier environments.
 International: The project was financed mostly using local funds, including loans,
property capturing funding, and toll income. Leading to a shortage of foreign investment,
there was no room for international guidelines or mandates to include sustainable
strategies into the architecture. The CAG audit cited a number of financial irregularities
in the project's implementation, such as the lack of a formal research proposal or a
viability assessment for the best facility location.
Carbon financing: Carbon financing is a broad phrase that refers to funds allocated to projects
that generate or are projected to yield greenhouse gas (GHG) emissions decreases in the shape of
marketable reducing emissions on the carbon market. This is termed a branch of environment
finance which involves financial tools like carbon emission trading to reduce impacts of
greenhouse gases on the environment by providing carbon emission a price. While doing mega
projects, this is an important factor that needs to consider as it helps to manage business
activities and projects at lower cost and improve the insights of society regarding particular
project.
 Local impact of Carbon financing on mega project – To managing a project there is
need to focus on carbon emission as it helps to managing the business activities and clean
environment. Carbon financing on mega project is impacting positively locally as it helps
to provide clean environment and lives to residing people and uses the finance optimally.
 National impact of Carbon financing on mega project – Clean development
mechanism and carbon emission tool is using by mega project based organizational at
national level that get finance to reduce the pollution, creating an effective and safe
environment and managing all functions appropriately. This can help to develop the
business activities and image in changing environment and maintain higher performance.

The mega project also participates in renewable energy and produce certified emission
tool by using available fund properly.
 International impact of Carbon financing on mega project – Mega project affected
positively at international level by arranging carbon finance which support to provide
clean and safe environment to people. This also helps reduce the morality rate and
increase higher performance. This also support to managing all activities and function in
relation to environment and develop various opportunity to creating awareness between
people.
Political issues: This refers to controversies debate within the political system from divisive
social problems like changes in government regulation, fiscal policy, taxation, spending, and
foreign currency that directly affected the organization and project. In relation to Megaproject,
the political issue might be arises that impact locally, nationally, and internationally such as:
 Local impact of Political Issue on megaproject – While running a business or project it
is important to take government approval that can help to manage all functions and
activities. The meaning of political issue means government intervention or strict
regulation that has been regulated and needs to follow by the business industry. This can
impact negatively as inadequate operational and maintenance capacity while running a
project.
 The national impact of Political Issues on megaproject – Megaproject is playing a key
role at the national level where it can provide job opportunities to people and improve the
economy. If a political issue has risen at the national level, then it would affect the
national economy negatively. The government should be understanding the importance of
megaprojects and give approval that could be beneficial for a company, country, and
national economy.
 International impact of Political Issue on megaproject – Political issue of on
megaproject at international level to construct building and hospitals across the border
that will impact negatively such as reduction in job opportunities, lack of services, and
low economical condition of the country.
COVID 19 pandemic: The World Bank Group is taking a comprehensive, rapid reaction to
assist developing countries in strengthening their epidemic reaction, increasing surveillance

system, improving health policies, and assisting the private sector in continuing to function and
maintain jobs. The Bank Group has invested more than $157 billion to combat the pandemic's
effects since the outbreak of COVID-19. It contains more than $50 billion in IDA funds
delivered on loan and substantially tax concessions conditions from April 2020 to June 2021.
 Local impact: Industrial and construction experts in all areas questioned indicated a
significant decrease in workload and activities in the first quarter of 2020. The degree of
the delay, on the other hand, seemed to be dependent on the outbreak's time and intensity,
and also when fire drills were implemented.
 National impact: When COVID-19 began banging on the door, infrastructure-related
budget gaps were already unexpectedly significant in certain regions. For instance, many
state and municipal budgets in the United Kingdom never rebounded from the effects of
the Global Recession. During 2007 and 2017, massive public infrastructure investment
declined by approximately $10 billion in real terms, with a bigger percentage of the
leftover cash going to upkeep rather than new projects. COVID-19 is a market supply
crisis that has caused development halts or disruptions around the globe owing to a lack
of workers, supply chain problems, or difficulties in government clearances. In numerous
areas, assets that rely on user fees have seen a significant drop in demand, resulting in
significant income losses for key stakeholders. Failure occurrences, cancellation,
bankruptcy, or authorities violating contracts have all grown as a result of this.
 International impact: Prior to the pandemic, the worldwide construction sector was
expected to increase at a 3% annual pace until 2020, but this projection was lowered
when COVID-19 spread over the world. The worldwide epidemic has transformed the
overall building business in a variety of ways, and we'll go through the headlines below.
Leading to decreased congestion, infrastructure improvements connected to mass
transportation are progressing quite swiftly in many areas. But since outbreak, aviation,
rail, and road projects have indeed been able to improve construction. On a brighter note,
many property individuals have taken advantage of the cheap financing rates to start
renovations instead of postpone them.
Corruption: Corruption has the potential to stifle expansion by reducing the effectiveness of
current infrastructure. Traffic, power failures, and disasters all enhance the operational costs for

both the government and private sector, resulting in poorer economic growth. Corruption in
public infrastructure projects has especially devastating consequences for poorer nations.
Incorrect planning process, high pricing, inferior quality, significant time and budget overrun,
lack of maintenance, and poor yields, among some other issues, have a detrimental influence on
economic progress. Corruption in the start of the development cycle, when initiatives are
assessed, created, and funded, may pave the way for further bribery further on.
 Local impact: Corruption is rampant in the local contracting business, with negative
consequences for projects and community, including the development of monopolies,
higher purchasing and repair requirements, and worse quality goods. The findings also
found that the construction industry considers corruption to be desirable since it avoids
timing differences and helps inspire workers. The latest results help to provide a deeper
insight of corruption in infrastructure projects, particularly in developing countries. Such
data will be beneficial to project staff, customers, and the professional society in making
people aware about the need to eliminate corruption in the building projects. It is the first
research of its kind on bribery in the local setting, to the knowledge of the researcher'
understanding.
 National impact: Corruption in infrastructure projects has particular devastating
consequences for poorer nations. Improper planning process, high pricing, inferior
quality, significant time and budget increased costs, insufficient maintenance, and poor
yields, among other issues, have a detrimental influence on growth in the economy.
Corruption in the start of the development lifecycle, while initiatives are assessed,
created, and funded, may pave the way for further dishonesty later on. The following
illustration shows how distorted motivations throughout project planning might promote
corruption during execution (and create further negative impacts on project value). The
processes around judgement throughout initial planning should be the emphasis of
strategies to encourage openness. However, in areas wherein corruption is widespread,
severing ties between stakeholders at different phases of the construction implementation
may be the only option to improve project preparatory management.
 International impact: Corruption arises in all industries and has universally bad
consequences, but problem in public infrastructure is especially harmful to low-income
nations. Infrastructure makes up a larger proportion of GDP, and regulatory arrangements

will be less secure. Corruption expenses in building, which are upstream from
purchasing, have been estimated to exceed as 45 percent of cost of construction. We
suggest in our worldwide study, Improving Governmental Performance and Openness:
The Fight Against Bribery, that if policymakers committed to applying a series honesty
safeguards throughout the building cycle, it'll have a structural and working in these
areas.
Chinese financing: China is funding infrastructure projects all over the globe, many of which
might affect the environment and Native populations. China's Belt and Road, a billion dollar
worldwide Endeavour to build connections China to the entire globe via commerce and
transportation, is reshaping the path of economic development. China is supplying nearly 100
nations with finance for highways, trains, hydroelectric dams, harbors, and other infrastructure
improvements through in this effort. The group of scholars and practitioners and environmental
biologists analyzed the threats that Chinese mainland development financial initiatives present to
Indigenous lands, vulnerable animals, nature reserves, and prospective important sites for global
biological diversity in a recently published paper. Upwards of 60% of China's development
initiatives threaten animals or indigenous communities, according to our findings.
 Local impact: Megaprojects are frequently viewed as lengthy development accelerators
since they distribute not just cash and labor, but also technical innovations. Megaprojects
are characterized as expenditures of much more than one billion dollars with a 50-year
lifespan. High complexity, specific expertise, extensive effects, or inter participation are
some of the other characteristics. Megaprojects can be of any type, however they are
frequently affected by physical infrastructures (mega infrastructure), increased factory
output, or resource exploitation.
 National impact: Even though it is common for infrastructure projects to be funded by
the national government and tiny ones by local authorities, the Chinese Budget Law's
fiscal framework prohibits local authorities from taking loans or creating budget
shortfalls. Throughout that period, the institutions committed about US$462 billion in
development finance to 93 countries, virtually equaling the amount pledged by the World
Bank, the longstanding leading name in project financing.

 International impact: Nigeria, Gabon, and Mauritania have seen the most trades. Under
first stage of Nigeria's railway modernization programme, the Chinese have agreed to
funding the building of the Abuja Rail Mass Transit System as well as the restoration of 1
315 kilometers of the Lagos-Kano line. Almost half of the initiatives supported by these
two banks are in areas that may be considered important habitats. As per the Bank for
International, a World Bank entity that supports private sector investment in emerging
economies, these really are sites that may be critical for protection and require specific
safe guards.
Outline proposal of an innovative procurement ecosystem of mega infrastructure projects in the
UK in pursuance of superior Value for Money
Created an extremely and instilling change in behavior are two of the most complicated jobs
that anybody in any company can do, and the larger the company, the more challenging it
becomes. Agreements for procurement may be a great way to encourage innovation.
Incorporating innovation at any stage of a project entails a set of dangers and uncertain
consequences, but it also has the potential to provide dividends with broad and long-term
implications. Although specifications are important, they should not be unduly rigid, enabling for
the introduction of goods and services into government contracts. Whenever a customer sends an
amazing design, the distribution system is offered the opportunity to create new concepts and
promote them to the market.
In two sections, the elevated rail network from London to the Tube Network was
constructed. The tunnel was linked to Waterloo Station in stage one, and the route was expanded
to St Pancras Airport in phase 2. On the intended route, the proposal included have included
rehabilitation of current stops. The main goal of HS1 was to build a good transportation link
between the Channel Tunnel and downtown London, as well as to boost regional growth along
the Thames Bridge. During the two-year public comment process, the project sparked
widespread opposition.
• A clear awareness of the phases of the project with a good description of the parts of the job
was important components which were incorporated into the planning process and were
important to success.

• Having the appropriate personnel with the correct mindsets and competencies;
• Great leader from the customer, London and Continental Trains;
HS1 focused on the principle of developing from inside the and had a mentality of getting things
right in the first place. The main crew, many of whom had worked extensively for British Rail,
created a project for 20 years. The following are some of the significant lessons acquired from
HS1 that may be used to the HS2 project:
• It's critical to have defined functions and responsibility.
• Having a project manager and designer who were both supported by the company and had the
authority to act worked effectively.
Why Having a limited, targeted customer base is beneficial and successful.
• A streamlined approval procedure is essential, as is a concerted effort to avoid duplicating
method descriptions.
• It's critical to have a solid on-time attitude with early supplier participation.
• The design must consider construction and operation.
• Careful logistical preparation is required.
In the scenario of major infrastructure purchasing, there have been instances so it's more
constructive to bargain the entire operation to the largest individual institution, which will then
disperse the tasks with their own subcontracting, in order to maximise the possibility for non-
competitive and way to integrate. In during development of the railroad, every single structural
and infrastructural development was specifically contracted to a constructor, which might then
outsource various pieces of the operation to their own suppliers.
Like ICT, engineering and development require huge companies that can take on the risks and
expert indemnification that come with massive federal agreements. Those huge corporations can
however pass the job along to their own distribution chain, allowing smaller businesses to
participate in government procurement initiatives.

CONCLUSION
As per the above report it has been included that mega infrastructure projects are affected by
different things at different levels at positive as well as negative manner. For this require to
prepare plan B and effective strategies to reduce these problems.