Strategic Construction Management: Procurement and VFM Analysis Report

This report critically analyzes strategic construction management, focusing on the value for money (VFM) concept within procurement processes. It examines three articles to understand the importance of organizational needs in monitoring qualitative and quantitative factors. The report delves into determining project costs, quality, and the required analysis of utility derived from project undertakings. Key areas covered include strategic planning, supply chain functionality, risk assessment, and the application of VFM in public-private partnerships (PPP). The analysis emphasizes the importance of procurement strategies, the role of alliances, and the impact of risk factors in achieving VFM. The conclusion highlights the significance of implementing VFM concepts for efficient business management and sustainable growth within the construction industry.

Running head: STRATEGIC CONSTRUCTION MANAGEMENT
STRATEGIC CONSTRUCTION MANAGEMENT
Name of the student
Name of the university
Author note

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Executive summary
The report aims at understanding the value for money element of the project management
procurement, through the critical analysis of three articles. It helps in the understanding of the
organizational needs to monitor over the qualitative and the quantitative factors of the project. It
helps in determining the costs and the quality of the projects and the analysis that the
organization is required to undertake of the utility that can be derived from the undertaking of the
project.

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Table of Contents
Introduction......................................................................................................................................3
Critical Review 1.............................................................................................................................4
Critical Review 2.............................................................................................................................5
Critical Review 3.............................................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7
Appendix..........................................................................................................................................9

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Introduction
The growth of the companies is based on the requirements of the organization to bring in
improvements in the organizational structure. The organizations, which aim at making a
progress, must consider certain steps in order to manage the resources of the organization and the
financial investments made by the organization for manufacturing the products and services. The
strategic planning of the elements involved in the production process determines the expectations
of the chief stakeholders of the organization and thereby determines the situation of the
organization. It helps in determining the risks that the organization might face due to the
improvements that are being undertaken by the organizations.
The most important step that is being undertaken by the organizations while undertaking
the strategic analysis is determining the functionality of the supply chain (Gatti 2013). Moreover,
the organization must also focus on the quality of the projects and the costs that are being
incurred. It helps in the clear understanding of the contingencies that the organization might face
while implementing the change based on the needs and the requirements of the organization. The
strategies help the organization in undertaking different procedures, which affects the growth of
the organization. The purpose of undertaking this analysis is to understand the different concepts
and examine their applicability in the proper construction management of the organization. The
report will evaluate the principles and the theories of the strategic procurement and observe their
applicability on the supply chain of the organization. The effects that are being enumerated is
based on the factors of the change that the organization seeks to undertake.

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Critical Review 1
How to Attain Value for Money: Comparing PPP and Traditional Infrastructure Public
Procurement
Philippe Burger and Ian Hawkesworth
The Author in this paper investigated on the strategies that are being undertaken by the
companies in order to procure the value for money. Every organization functions on the basis of
the value that the organization holds for money. It is a measure that is being taken by the
organizations in order to facilitate the quality of the products and the services in a lower cost
(MacDonald, Walker and Moussa 2012). The effectiveness of the products even at a lower cost
and the utility that is being derived from the products and the services helps in the understanding
of the organizational value for money.
The steps that are being undertaken by the organization on the basis of the procurement is
based on the requirements of the organization to understand the values of the PPP (Purchasing
Power Parity). The PPP refers to the theory of the exchange rate between the two currency based
on their purchase power. The most important step that is being undertaken by the organizations
in making suitable decisions for their project is based on the steps that are being undertaken by
the organization (Refer to the Appendix). It helps the organization in undertaking analysis on the
scope of the feasibility of the project that is being undertaken (Jackson 2012). On the other
hand, project procurement strategies refer to a set of steps that are being undertaken by the
organization in order to undertake a successful project management. The steps that are being
undertaken by the organization are based on the requirements of the type of project. According to
Kerzner (2013), the value for money is based on the understanding of the private-public

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partnership and the assessment of the risk factors that has helped in the growing period of the
projects. The most important changes that are being undertaken by the units are based on the
requirements of the organizations to procure with the help of the bidders (Lloyd-Walker and
Walker 2015). The quantitative measures helps in determining the costs and the investments that
are required in order to undertake steps for the better understanding of the value that the
organization holds for money.
Critical Review 2
Value for money in project alliances
Charles MacDonald, Derek H.T. Walker and Neveen Moussa
The Authors have added the view of the application of the VFM in understanding the
organizational requirements to form alliances. Value for money helps the procurement agencies
in considering the steps that are required to be taken in order to have a check on the utility of the
projects and ensure the proper delivery of the services in order to achieve the common goal of
the business. The planning process makes use of the proper assessment on the applicability of the
project and the efficiency and the utility of the project. It helps in determining the effectiveness
of the projects through organizing the directions and control over the objectives of the project.
The most important consideration undertaken by the organization is based on the improvements
of the organizations to bring in the progress through the proper management of the projects. It
helps the organization in achieving the short-term goals of the organization for the success. The
procurement steps helps in determining the significant work functions of the individuals in order
to measure the effectiveness of the projects that are being undertaken by the organization.

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Moreover, the risk factors that are being included in the context is based on the requirements of
the organization to make its continuous growth in the projects and their respective procurements
(Harris and McCaffer 2013).
Critical Review 3
Value for Money and Risk in Public–Private Partnerships
Matti Siemiatycki and Naeem Farooqi
The value for money, according to the authors, the VFM helps in the understanding of the
risks that are being involved in the process of public-private collaboration. It helped the
organizations in making their continuous progress in procuring the projects and bidding their
appropriate values (Siemiatycki and Farooqi 2012). It helps the organizations in understanding
the different stages that are being undertaken in order to resemble the changes. The quality of the
projects and the costs that are being undertaken by the organizations in order to improve the
availability of the projects is an important concern and the basic concept of the value for money
(Yeow and Edler 2012). It is the creation of the utility that is being focused on by the
organizations in order to make significant progress in the market.
The sustainable growth of the organizations in order to make inputs in the value is based
on the steps that are being undertaken by the units. The policies and the aims of the organization,
undertaking a project, are based on the sustainable approach of the organization in the market.
Sustenance can be proclaimed through the maintenance of the quality of the projects in the lesser
costs (Kelly, Male and Graham 2014). The cost benefits that are being analyzed by the
organizations before buying a project is an important consideration that is being undertaken in
order to ensure the sustenance in the market (Eadie, Millar and Toner 2013).

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Conclusion
Therefore, from the above analysis it can be stated that the organizations undertake the
strategic construction procurement through the proper implementation of the concepts of value
for money. It helps in understanding the required changes that the organization must undertake in
order to make the business more proficient. The various steps that are being undertaken by the
company based on the planning, control and the implementation of the plans is being discussed
in this report. It helps in the understanding of the management that the organization must
undertake in order to make its progress in the market. Moreover, the sustainable approach of the
organizations through the contemplation of the green project management has helped in the
enhancement of the situations. The report aims at understanding the basic theories and concepts
that helps in the proper management of the business organizations.

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References
Eadie, R., Millar, P. and Toner, L., 2013. Public private partnerships, reevaluating value for
money. International Journal of Procurement Management, 6(2), pp.152-169.
Gatti, S., 2013. Project finance in theory and practice: designing, structuring, and financing
private and public projects. Academic Press.
Harris, F. and McCaffer, R., 2013. Modern construction management. John Wiley & Sons.
Jackson, P., 2012. Value for money and international development: Deconstructing myths to
promote a more constructive discussion.
Kelly, J., Male, S. and Graham, D., 2014. Value management of construction projects. John
Wiley & Sons.
Lloyd-Walker, B. and Walker, D., 2015, April. Collaborative project procurement arrangements.
Project Management Institute.
MacDonald, C., Walker, D.H. and Moussa, N., 2012. Value for money in project
alliances. International journal of managing projects in business, 5(2), pp.311-324.
Siemiatycki, M. and Farooqi, N., 2012. Value for money and risk in public–private partnerships:
Evaluating the evidence. Journal of the American Planning Association, 78(3), pp.286-299.
Yeow, J. and Edler, J., 2012. Innovation procurement as projects. Journal of public
procurement, 12(4), p.472.

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Zimina, D., Ballard, G. and Pasquire, C., 2012. Target value design: using collaboration and a
lean approach to reduce construction cost. Construction Management and Economics, 30(5),
pp.383-398.

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Appendix
Figure 1: Value for money
(Source: Gatti 2013 )