PPMP20011 Contract and Procurement Management Assessment 2

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PPMP20011 - CONTRACT AND PROCUREMENT
MANAGEMENT (ASSESSMENT 2)
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Contents
Introduction......................................................................................................................................3
Procurement strategy.......................................................................................................................4
Analysis of Case Study Factors.......................................................................................................5
2. Propose the most appropriate route for each sub-project and explain why the proposed route
is suitable to make the project successful....................................................................................7
3. You may need to address the factors including but not limited to the following:...................8
References......................................................................................................................................10

Introduction
Deep knowledge is being enhanced in the whole world through education. An effective & unique
perspective is being developed for looking at life. Therefore, it is necessary to update the
technologies in educational institutions with the changing environment. The educational
institution, "TopEd” which was developed around 25 years ago in Sydney. Various courses are
being run by the institution such as the Bachelor & Master Courses in the department of
information technology, Accounting, Business, Management, Law & Medical Science for not
only the domestic but also for the international students.
The main aim of the complete written report is to demonstrate & deeply understand the basic
needs & requirements of the project along with the objectives which are to be achieved with the
changing & dynamic environment. The main objectives of the project includes the renovation &
refurbishment of the complete campus, demolishing the internal walls & partitions of the
building, aligning all the offices as per the vertical floors and rebuilding the whole building/
campus to meet the future requirements of all the international students along with adapting the
required changes in the context of flexible teaching spaces.

Procurement strategy
An effective & efficient procurement strategy needs to be developed & implemented so that all
the defined aims & objectives of the project can be met by the TopEd Campus. The construction
will begin by the year 2020 & the renovation will be enhanced by considering certain
assumptions, such as that the number of international students will increase, the high-tech
teaching space will be enhanced & higher growth of the whole educational institution will be
ensured (Olsen & Guffey, 2016). Following are some of the characteristics or factors which are
to be considered, essentially:
 The refurnished campus will include the attractive welcoming.
 The traffic management will be optimized properly of the personnel, equipment & all the
goods.
 Creation of the flexible teaching spaces
 Providing all the staff with an opportunity to have access to all the meeting rooms for
facilitating the plan of an open working environment.
 The whole campus will be technologically future-proofed (Ishii, et.al. 2014).
 Application of the suitable & best practices for managing the noises & developing the
teaching spaces little away from those spaces where the cultural & other social programs
will be conducted.
In the consideration of all these factors/ characteristics, the suitable procurement strategy will
include the gathering of appropriate numbers of required resources for refurbishing all the
buildings of the whole campus, proper identification, evaluation & analysis of all the risks which
can create hurdles during the plan implementation & designing up the suitable activities in
accordance to the developed budget of the whole project which is $ 25 million dollars. The
procurement strategy will be implemented by deeply analyzing & evaluating all the
characteristics & other risks involved in the project (Ishii, et.al. 2014). All the factors are being
properly mapped with the factors & activities to be involved in the procurement strategy.

Analysis of Case Study Factors
Analysis of Requirements
The requirements of the project are that it wants to renovate 16 floors of the campus. To do this
there would be a lot of processes that would need to be conducted and a proper procurement
route would need to be decided. The problem here is that this would be done while continuing
with the classes. This would be a hard task to manage as both require the certain number of
maintenance to be done. There would also be demolition and rebuilding of offices that would
move employees from one place to another (Sung-Hwan, & Lee, 2018).
Analyses of Constraints and Givens
The refurbishments would need to be in accordance with the teaching that is going on. From this,
it can be seen that the noise pollution and safety needs of the staff or students need to be kept in
mind. Each of the sub-projects would be done differently or can be done in the same manner
only if the proper plans are present. If both of the plans occur in a simultaneous manner then they
would cause more noise to occur and further issues with the students and staff. The budget would
also be mismanaged as the expenses can go over in one project that would affect the activities in
the other project.
Analysis of Exclusions
The cost will be saved if the lifts are not replaced because they are fairly new. If these were to be
replaced then they would be causing the costs to rise for the project. Also, these expenses saved
here would be used for the lab equipment. This shows that expenses saved in one place can be
used in the other place. The only drawback is that the lifts are not fully new and are only quite
new and would have to be replaced further down the road.
Analysis Assumptions
High tech. teaching centers are being developed around the world which means that the
competition level is very high. The good thing about the refurbishments is that it would attract
more students and would be able to fit them without having too much problems. The change in
culture is a big problem as most of the faculty would not be able to attach themselves to different

values and beliefs. But if this is done then there would be a growth and development for the
education center (Teno, 2012).
Analysis of Limitations
One of the limitations is that only one lift is being given for the projects. This would mean that
the project would go slow as the renovation is being done on the top floors and one lift would not
suffice for the use. More focus is being put on the implementation of new technology but it has
not been mentioned that any training would be provided to teachers. They would need to know
how to operate such technologies. Another problem is that the teaching would be affected by the
construction that is going on even despite the best noise-canceling practices that would be used.

2. Propose the most appropriate route for each sub-project and explain why the proposed
route is suitable to make the project successful.
The two Subprojects which are identified in the case study are;
Subproject 1: all the teaching classrooms and hangout areas or break out areas available for the
students.
Subproject 2: Reception area, a library of the new campus, and other utilities.
The construction of the new campus will take place according to these 2 sub-projects.
For the subproject 1 including classrooms and break out areas, the traditional procurement route
is proposed. In this proposed procurement route complete design of the building or campus will
be based on the consultants of the client. Once the consultant approves the design then only the
tender is passed to the contractor.
This traditional procurement route is perfect for the subproject 1 inclusive, because due to the
approval of the consultant the quality of construction is as expected by the client or the college
management.
For Subproject 2, Design and build procurement route is proposed. In this particular procurement
route, all the design and construction are the responsibility of a single contractor. A big
advantage of this type of procurement route is that it can allow overlapping of the key
procedures.
This particular procurement route will justify the construction of the subproject 2, because of a
single contractor in the construction design and construction can be overlapped which will save
time in the construction (Gottschling, 2018).

3. You may need to address the factors including but not limited to the following:
• Time
The traditional procurement route is time-consuming, the reason being design is completely
dependent on the consultant of the client, which will take time, while on the other hand the
design and build procurement route won't take time much, because the construction and design
are dependent on the only single builder.
• Cost
The traditional procurement route for subproject 1, will be more costly reason being the
consultancy of the client will charge their consultancy charges, upon the quality of the cement,
bars, and other construction-related materials whereas the design and build procurement route
will not be costly in comparison to the traditional procurement route, because design and
manufacturing both are done by a single contractor.
• Quality (level of service)
In the traditional procurement route, the quality or we can say the level of service will be high
because the client will consult with the construction consultancy. It will provide a high level of
quality service. But in design and build procurement route, since only one contractor will be
available for work, the quality of service will be weak.
• Changing orders
In design and build procurement route, changing in orders will be easy because one contractor
will be given the complete tender for design and construction purpose which will be difficult,
which is not in case of traditional procurement route because the client will consult others
(Farshid Rahmani, 2016).
• Claims, disputes & negotiations
It is difficult in traditional procurement route to claiming any changes because all the claims and
disputes should be considered first by the client and them to the contractor, which is not in case

of Design and build procurement route. Any dispute or claim will be easy to address in this type
of procurement route.
• Management capacity, responsibilities, etc.
This traditional procurement route is perfect for the subproject 1 inclusive, because due to the
approval of the consultant the quality of construction is as expected by the client or the college
management.

References
Farshid Rahmani, Malik M A Khalfan, & Tayyab Maqsood. (2016). Lessons learnt from the
use of relationship-based procurement methods in Australia: Clients’
perspectives. Construction Economics and Building, 16(2), 1-13.
DOI: 10.5130/AJCEB.v16i2.4634
Gottschling, P. (2018). Architectural scripts: Construction procurement within the user
worlds of building events. Social & Cultural Geography, 19(5), 626-646.
DOI: 10.1080/14649365.2017.1296178
Ishii, Takano, & Muraki. (2014). An order acceptance strategy under limited engineering
man-hours for cost estimation in Engineering–Procurement–Construction
projects. International Journal of Project Management, 32(3), 519-528.
DOI: 10.1016/j.ijproman.2013.07.009
Olsen, T., & Guffey, S. (2016). Intentional Process for Intentional Space: Higher Education
Classroom Spaces for Learning. Journal of Learning Spaces, 5(1), 41-51. DOI: 2158-6195
Sung-Hwan, J., & Lee, E. (2018). Integrating a Procurement Management Process into
Critical Chain Project Management (CCPM): A Case-Study on Oil and Gas Projects, the
Piping Process. Sustainability, 10(6), 1817. DOI: 10.3390/su10061817
Teno, J. (2012). Time for change in culture. Intensive Care Medicine, 38(11), 1736-1737.
DOI: 10.1007/s00134-012-2667-0