PPMP20011: TopEd Campus Refurbishment Project Report

This report provides a detailed analysis of the TopEd Campus Refurbishment project, focusing on contract and procurement management. The project involves the complete refurbishment of a 16-story educational building in Sydney, aiming to transform the campus into a smart learning environment. The report explores various aspects, including procurement strategies, routes, and contract types such as design-bid-build, considering time, cost, quality, and potential risks. It also delves into budget breakdowns, contract methodologies, negotiation procedures, and the management of claims and disputes. The analysis considers the needs of the educational institution, including the increasing number of students and technological advancements, to ensure a successful and efficient project execution within a budget of $25 million AUD.

Running head: TOPED CAMPUS REFURBISHMENT
TopEd Campus Refurbishment
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction................................................................................................................................2
Procurement Strategy.............................................................................................................3
Procurement Route.................................................................................................................5
Contract Type.........................................................................................................................8
Risks associated with the proposed routes and contract types...............................................9
Budget breakdown...............................................................................................................11
Contract methodology, negotiations and procedures...........................................................12
Conclusion................................................................................................................................14
References................................................................................................................................16

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Introduction
Understanding of project contracts and procurement management, it is required that
and understanding is setup for the organisation to identify all the factors that are associated
with a project being held by a contract and procurement management. Before establishing
any project for an organisation, it is essential that management of the contracts and also the
procurement is done before hand. Contract management is nothing but a part of legal
documentation process so that the work relationships that an organisation has with the
vendors, partners and even the customers and legalised and managed well. This also includes
several terms and conditions that and negotiated within the documentation and is agreed by
both the people and groups of people between which the contract is being made (Opoku et al.
2015). At the same time procurement management for an organisation is a form of managing
the goods and services which would be required for a particular project for the organisation
from different sources. Starting from the raw materials to the finished goods, all the item
requirements, purchased orders and services needs to be handled extremely well with the help
of a project procurement plan. Therefore for TopEd campus refurbishment project, there
would be a detailed project report below that would include the complete refurbished mint,
renovation and overhaul of the entire campus consisting of 16 floors, the handling of all the
features within the project comprising of the refurbishment of the lecture rooms, computer
rooms, special purpose laboratories, and other frequent establishments that the campus uses.
The educational institute would also be looking forward to the stacking of the flowers and
other future requirement that might be required by TopEd. With the proper understanding of
the strategy that could be utilised for the procurement plan and also the route that would be
followed considering the type of contract made and the budget breakdown, the following
report would be represented.

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Procurement Strategy
There are several stages that need to be considered before making a proper plan for
having and executed procurement strategy plan for any organisation and its project. Since this
is an educational institute that is in question, it has several running courses. For a
procurement strategy plan develop for construction project there are several single projects
that need to be considered that would further provide a wholesome project for the
identification of best objectives that TopEd would like to achieve through the project
establishment plan (Lou, Lee and Welfle 2017). The 16-storey building that the project would
like to refurbish is facing the problem that it requires the establishment of the project to
accept the changing technologies each day. The transformation is going to be occurring into a
smart campus that will provide a huge establishment for the students and also the stuff with
industry-leading courses and integrated personal and career development strategies. This
should also include all the probable issues that the institution might face with the increasing
number of students and also house for handling all the information and data.
For this is the primary concern that the institution needs to understand is to develop a
procurement strategy. Following would be the expectation and the supposed procurement
strategy established as per the requirement of the plan for the refurbishment program of
TopEd:
 Examination of the current situation: Right at this point of time institution
is identified to be one of the most popular educational institute but it was
established near about 25 years ago. This is why the current situation requires
refurbishment of the 16-storey building consisting all the batches for Bachelor
and Masters Course in information technology, business, law, accounting,
management and medical sciences for both the domestic and international
students, which has not yet been refurbished for over the last 20 years.

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 Understanding the information in input from the people involved for the
project: The establishment includes the refurbishment structure and also
understanding the requirement of the employees of the institution, the students
and also the staff. Therefore, each of them would be included as a stakeholder
for the project both direct and indirect, such that their involvement within the
project would be counted as general information and they would be further
asking for providing several insights to the otherwise identified problems
(Österreicher and Geissler 2016). They would also generate their feedback on
how the building has been providing several issues or providing positive
institutional atmosphere to them so that identifying the issues that the people
might be facing there can be establishment of a mitigation strategy which
would be included in the procurement plan.
 Imagine the future perspectives: It is extremely necessary to understand how
the development of the 16-storey building or its refurbishment what provide
benefit to the organisation, both from the perspective of the institution and
from the perspective of the student and staff.
 Determine the priorities: This is extremely important to understand how the
project requirements for all the 16 storied levels would provide the prioritised
plan going through out the refurbishment for the entire institute (Lupton
2019). This would also understand and take into consideration about the
different inputs according to the budget for the project that needs to be
improved.
 Creating attainable objectives: The setting of priorities would give rise to
the thought of having a proper plan so that TopEd campus can have all the hi-
tech establishment both for the teaching purposes and for the organisation to

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handle its daily activities and business operations. The requirement of the
project is to make sure that the rise in the student number that is most probably
going to occur in the next 10 years and all the high technology advancements
that is going to be made in the near future, the construction plan and
establishment and refurbishment for the institute considers all of them.
 Integrating the plan and monitoring the results: It is not just important to
understand what needs to be done for the project but it is also required to
understand how the integration of the plant that has been developed is going to
be implemented. After the implementation plan there is also a requirement of
handling all the activities that goes on within the organisation related to the
construction project and also so understanding if every day to day business
operation as per the plan for the implementation is carrying on in a feasible
way. Therefore, monitoring is also required to be done in the most authentic
and effective way possible for the organisation.
Procurement Route
The primary idea behind attaining a procurement route is to have a design bid built
single stage strategy. This is a project that needs to be fully design and needs to be developed
in detail with the advertisement that the team working for the client consultant has to be
making and also by implementing a construction contract that also includes the requirement
and imposition of several penalties applied when the project is late then its usual established
due date. This is why before construction contract is made with TopEd and the construction
company they need to make sure that the procurement plan that the organisation has been
making along with the project plan for refurbishing all the stories understand the project
exclusions the features and characteristics for the established campus and also so
understanding the experiences and resources that the institute has for doing the complete

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refurbishment of the buildings (Strulovici 2017). As per the findings, there are several factors
that needs to be included within the contract so that the sum projects in the light of the
requirements, constraints, exclusions, provisions, assumptions and limitations are considered
while the procurement route is attained.
Following would be a detailed procurement route that would be understood to be
established by the organisation handling the refurbishment of all the 16 stories:
Time: The time that is required for attaining the refurbishment includes the timestamp
of 3 years and needs to understand that this is the time where the project need to complete the
refurbished mint plant, renovate the buildings and create overhaul for all the 16th floor of the
campus. This is the time that would include the lecture rooms, the computer and the special
purpose labs, the admin and academic offices and the demolishing and rebuild for the offices
for all the future requirements of TopEd. The requirement that topic wants to attain in these 3
years is to have a proper establishment and complete renovation of the buildings with the 16
storeys and also continuing with the stacking for the floors from ground level to level 15. It
would have a systematic output continuing to house all the requirements of having and high
Technology building plan for the future of education and also understanding the requirement
of more and more students.
Cost: The primary reason for the establishment of the plan for refurbishment of all the
16 stories includes the maximum allocation of 25 million AUD. The refurbishment plan
cannot go beyond this sum and the procurement route has to go through designing of the
project developed in detail and also the client and the contractor should then be appointed for
a lump sum construction in contract.
Quality of level of service: Quality needs to be absolutely important as a constant of
this project as it is not looking forward to just establish and refurbished the entire building but

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also has to change the entire structure by which the past 25 years were for TopEd. It is not
this becoming a refurbished building but the business operations are going to be changed as
well to house all the inclusion of the numerous number of student that has been infiltrating
the building and also show the requirement of the high Technology educational system that
various organisations have been using for their educational institution purposes. This is
another reason why the institution is also looking forward to a proper quality where the
technology of the projects is also included with the division of all the subprojects continuing
to monitor every project under the refurbishment plan.
The change of orders: Changing orders can occur when the requirement that was
established right at the initiation face before the project begin can be susceptible to several
problems that has occurred during the project procurement plan. Therefore, the project
construction contract should always implement how the different negotiations and infiltration
of some projects and the changes made according to the previous establishment and the new
establishment plan is considered. The previous ways by which the institute used to operate its
business systems is not going to be added to any more. The changes in the technology would
also bring about the change in order that were followed in the traditional forms.
Claims, disputes and negotiations: Another reason for understanding the claims,
disputes and negotiations for a project is to include them with the contract on how the claims
of the clients, disputes reported by them and negotiations done by them would be taken into
consideration. Since this is a huge amount project that also related to the refurbishment of an
entire educational institution the project needs to be handled in a different way. This also
includes several stages of the step by step procurement plan that might have various claims of
disputes and the clients might negotiate in an unethical way, what the clients have to be
listened to first and then their feedback needs to be implemented charging either to be claim
for a dispute or any other negotiations related to the cost of the project.

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Management capacities and responsibilities: Since this is a huge project, they need
to be a proper establishment of understanding that finds out how the different project and
subprojects is to affect the total project in the end (Brook 2016). They need to be a proper
procurement route attained through the satisfaction of the main goals regarding the cost, time
and quality. The contractual arrangement should consider all these for the institute, the
consultant contractors and subcontractors.
Contract Type
The procurement plan that is trying to be achieved with the type of contract for this
project is the traditional design bid-built contract. This is a contract where the procurement
route is followed through a single stage where the fully design project is developed in detail
with the help of a consultant. After the consultant provides a procurement plan for the project
to the institute, the contract states that it is at that point of time when the client approves the
contractor to provide the construction contract with a huge sum of money which would also
include the general penalties and the late competition penalties for the project (Shang and
Yang 2015). The design and building of the refurbishment plant would be set up entirely by
the consultant after which the contractor that is going to be appointed leading to the teams
handling the refurbishment plan has to take the responsibility of the entire project. The
contractor and the employees coming from the contractors would have no responsibilities for
handling any types of design in the project other than the changes that might have included or
other changes regarding the temporary works. Although there are several advantages and
disadvantages for the traditional contract, it seems exclusively possible for this particular
project since the type of establishment that TopEd is trying to have is the refurbishment of the
traditional building with new technologies as per the requirement. However, it is not
specified that the procurement construction work need to follow new technology for having a
clarity on the requirement project for the refurbishment as well. Therefore, the traditional

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procurement construction work and the contract regarding them can be followed for this as
well.
Figure 1: Design-bid-built Contract
(Source: Ismail et al. 2018)
It is important to understand that the appropriate contract type that has been proposed
for this project has several satisfactory points that includes the project cost, quality and time.
There are several ways by which the contractual arguments and arrangements is feasible
handle for the institute, the consultant, the contractors and the subcontractors as well.
However, there are several risks as well as identified by the procurement plan and the
contract which would be explained in the next section.
Risks associated with the proposed routes and contract types
There are several ways by which the traditional procurement route for the design bid
built is referred to as the best way by which the organisation, in this case, the educational
institution of TopEd can benefit a lot from the involvement of this traditional process.
However, it also needs to be understood that there are also several ways by which it might not

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be possible and there might be occurrences of risks as per the plan that has been made.
Divided by occurrences of several risk associated with the procurement plan and the contract
that would be describe in details (Yacob, Saruwono and Ismail 2018).
There are several ways by which this contract is identified to be the most used
procurement construction contract where the client which in this case is TopEd appointed the
consultant for the design and the detail for the project. The contractor that has to make sure
that a proper tender documentation is made for the project that would include the quality
requirement, the working schedule, the cost requirements and the design for the plan. The
idea of the sixteen-story refurbishment considering all the inclusion of the different
technologically advanced establishment needs to be in the tender documentation.
The contractor then is invited for taking part in the submission of the tenders for the
construction project, which in this case is the refurbishment project. This would include the
constructors coming one after another and providing their tenders taking participation in a
single stage competitive project procurement route. The design and the build are entirely
decided by the consultant therefore the contractor is not at all responsible behind the design.
The only responsibility that the contractor is going to take is about the temporary works.
However, there can be several changes made where this project contract can also include the
contractors into designing several parts of the work which are specific to the usefulness. One
of the main advantages that this traditional project contact method would provide is the
certainty of the contractors. This can be said because the design is finalized much before the
contractor sir finally appointed for the refurbishment plan and therefore there is a clarity that
the contractor food only goes about the planets that has been made by the consultant
including the involvement of all the product qualities and cost (Lemmon et al. 2016). They
are also aware of how the project is trying to reach goals in a specific cost. The design-built
procurement route includes the tendering process before even the design is completed and

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therefore this one is considered as the faster forms of contracting where the contractor has to
be appointed only after the design is complete. However, the consultant is essentially
responsible for the entire design as there would be no involvement of the contractors to help
and improve the build ability for the design for the refurbishment plan even if they might find
several problems and issues regarding the construction plan. there might be several
disadvantages to the traditional methods in there might be occurrences where large number of
changes to the original design might bring about cost variances regarding the specified design
that the consultant had previously made.
Having the constant of cost, the flexibility is not there for the contractor to make
several changes according to the requirement plan and therefore there might be no chances
that within the appointed price there might be better involvement of value added to the
refurbishment plan.
Budget breakdown
RMO Cost/Benefit Analysis for TopEd Refurbishment
Planning for implementation of refurbishment plan 3960
Conduction of total 16 floor refurbishment 6270
Total Cost for the project 10230
Year of Project
year 0 year1 year 2 year 3 year 4 year 5 TOTALS
Net economic benefit $0.00 $8,500.00 $6,500.00 $8,500.00 $7,500.00 $3,500.00
Discount Rate 8% 1 0.9259 0.8573 0.7938 0.7350 0.6806
PV Of Benefits $0.00 $7,870.37 $5,572.70 $6,747.57 $5,512.72 $2,382.04
NPV of all BENEFITS $0.00 $7,870.37 $13,443.07 $20,190.65 $25,703.37 $28,085.41 $95,292.87
One Time Costs $10,230.00
Recurring Costs $0.00 $400.00 $400.00 $400.00 $400.00 $400.00
Discount Rate 8% 1.0000 0.9259 0.8573 0.7938 0.7350 0.6806
PV Of Recurring Costs $0.00 $370.37 $342.94 $317.53 $294.01 $272.23
NPV Of All Costs $10,230.00 $10,600.37 $10,943.31 $11,260.84 $11,554.85 $11,827.08 $66,416.45
Overall NPV $28,876.42
Overall ROI = (Overall NPV / NPV Of All Costs 0.43
Break-Even Analysis
Yearly NPV Cash Flow $0.00 $7,500.00 $5,229.77 $6,430.04 $5,218.71 $2,109.81
Overall NPV Cash Flow $10,230.00 ($2,730.00) $2,499.77 $8,929.81 $14,148.52 $16,258.33
Project break-even occurs between years 2 and 3
Use 1st year of positive cash flow to calculate break-even fraction 2.3888 years
Total Cost for the project