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Chapter 4 the procurement process exercise 04-02
Chapter 4 the procurement process exercise 04-02
Procurement case study
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PROCUREMENT AND CONTRACT MANGEMENT:
GREEN PROCUREMENT
How the procurement process can be implement procurement within the construction project to reduce the costs in the project life cycle
Project life cycle (construction)
A typical building project life cycle operates through different stages, and these stages may include; the initiation and design stages, construction stage and commission stage (The Federal Transit Administration, 2007, p.1-6). The initiation and design stage are the first stages that building project life cycle starts with (The Federal Transit Administration, 2007, p1-6). The final design is reached or established during the design stage where through the efforts of analysing and defining the preferred alternative for the
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(Guo, Li, Skitmore, p.5).
• Construction: at this phase the construction drawing are interpreted and converted into physical structure and facilities. The project resources at this phase are been utilised and organised these resources include labour, construction equipment, permanent and temporary supports, supplies, materials, etc. (Guo, Li, Skitmore, p.5).
• Commission (operation and utilisation): at this stage the client or the owner is involved, for an example utilising of the final product of the project, also doing maintenance in the construction (Guo, Li, Skitmore,
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(2012). EIA and Green procurement: Opportunities for strengthening their coordination. [Online] Science Direct Database 33. p.1-7. Available from: http://0-www.sciencedirect.com.innopac.wits.ac.za/science?_ob=ArticleListURL&_method=list&_ArticleListID=-762587333&_sort=r&_st=13&view=c&md5=328248631eff23205bb9d8d69a528200&searchtype=a . [Accessed: 25 March 2015]
• Varnas, A., Balfors, B., Faith-Ell, C. (2009). Environmental consideration in the procurement of construction contracts: current practice, problems and opportunities in green procurement in the Swedish construction industry. [Online] Science Direct Database 17. p.1-9. Available from: http://0-www.sciencedirect.com.innopac.wits.ac.za/science?_ob=ArticleListURL&_method=list&_ArticleListID=-762587333&_sort=r&_st=13&view=c&md5=328248631eff23205bb9d8d69a528200&searchtype=a . [Accessed: 25 March 2015]
• THE FEDERAL TRANSIT ADMISTRATION. (2007) Construction Project Management Handbook.
• GUO, H.L., LI, H. & SKITMORE. Life cycle management of construction projects based on Virtual Prototyping
Selecting the right procurement route can have a direct impact on the level of success to a project. There are various items that must be factored before making a decision including: size of the project,
For more than 25 years, The Little Black Book of Project Management has been introducing project managers to the incredibly effective and logical project management skill and methods to help them achieve their goal. This book has been flooded with very nee project management techniques as well as the latest standards of the Project management body of Knowledge (PMBOK) .accepted by PMI (Project Management Institute).
Environmental criteria are developed for procurement. For example, purchase environmentally preferable good and service from local suppliers. This also generate economic benefits to NZ local farms and businesses.
The construction of a building or buildings is a complex process which includes numerous parties and various different activities. Large projects need the cooperation of many organizations including clients, architects, engineers, financiers, builders and subcontractors while even small projects are beyond the extent of a single organization to complete in isolation. The domain knowledge of involved parties are different and effective completion of the project requires intense cooperation during design, manufacture and maintenance/management of the system.
It is observed that finding out the technique that can be utilized to manage the cost lifecycle of the project. There is a high probability that cost management are conducted better result can be obtained.
To select a suitable procurement strategy for a construction project, there are some issues which need to consider. From all of those issues, there are 3 big issues that mainly affect the selection decision which are time, cost and quality. There is several type of procurement strategy available in market that commonly used for construction project and each of the common method will be analyze and compare to find the most appropriate method for this project. The choice of procurement strategy is very important to the success of a construction project. Therefore, the characteristic of each strategy have to analyze and also its relative advantages and disadvantages. A recommendation of most appropriate procurement strategy will be made after analyzed the all factor that affect the procurement selection.
Therefore, it was republished online – incorporating flexibility in stages such as planning permission and procurement allowing them to be moved to suit the project’s schedule. It also supports BIM modelling applications allowing project plans to be created and shared easily and focusses heavily on the sustainability of buildings. The work stages were also re-structured and re-named providing the user with core objectives, strategies, and suggested BIM and Procurement tasks for each stage. The first stage (stage 0) is strategic definition, here
Particularly, the construction industry has shown a lot of difficulties to be able to cope with the increasing complexity of projects, there’s need to be a change from the traditional approach to deal with future challenges and requirements (Cooke-Davies, Cicmil, Crawford, & Richardson, 2008). Each building constructions just happens once, in other words, there doesn’t exist the same situation
Definitions of ESI and EBI are arrived at based on extensive literature review and highlighted in block diagrams. ESI is perceived as an outcome of long- term relations and well managed permanent supply-chains which lead to knowledge integration, trust and cooperation and proactiveness. EBI on the contrary is perceived as an initiative to accumulating ‘relational capital’ which leads to ‘product perfection’. Evaluation of applicability and non-applicability of ESI to the four roles of SCM in construction by Vrijhoef and Koskela, 2000 is carried out. ESI is also pictured as ‘early supplier inputs’ as well as ‘early supplier intervention’. The script has been fairly positive on the application of ESI to the 4 roles other than to improve the supply chain. Within a buyer-supplier framework and the life span of a project, ESI has its limitations in contributing to SCM.
The physical- financial entity is a balance of two different components working towards the same common goal. Each one has their areas of focus and attributes to contribute to the project. If one has more influence than the other, an imbalance could occur and result in problems with the development and its success. The physical side must work with the architects, engineers, and construction team to create the schematic design and budget possibilities for the project in the predevelopment stage. This will include alternatives and rough preliminary designs. When the development moves over to the document development stage, they become responsible for the construction documents, budgeting, and schedules for the actual construction of the project. The financial side of the development involves the business side of the project. This is where the market and marketability studies will be conducted and various feasibility and investment analysis reports will be submitted. The financial entity of the development will continue to work through the predevelopment and document development stages to put forth the best suited analysis for the market, feasibility, and marketability studies.
(2014) deduced that procurement performance can be assessed by focusing ondelivery,flexibility, quality, cost and technology. Optimal performance attainment is dependent onhow current suppliers`relationships aremanaged so asto ensure constant availability of needed quality supplies at the organization. This will ensure that sourced materials are indeed procured at the right costand atthe right time. Procurement performancestrives toenable improvements in the procurement process at the organizationso as to improve on qualitydelivery of firm products and servicesatleast possible time and
In general, there are different types of procurement type for various situations due to no one method can be suitable under the all different construction project. In this case, there are four procurement paths, which are traditional, design and build, management and design and manage, will be advised to use. However, each method has different aspects of advantages and disadvantages.
Therefore, it can reduce the time overlap of the design and the construction, and it will not waste time to wait the design. The client willing to solve any problems with the contractors when compared with the other contracts, therefore, the decision of any changes can be more efficiently. Moreover, the contractor early to participate in the combining design and construction stage, it enhances the buildability and lets the progressive planning to achieve a faster construction. The client and the contractors are pre-agreed the arrangement of the changes, therefore it can reduce the claims and the disputes between
This paper examines the legal aspects of procurement management and specifically how procurement management can be used as an effective tool for the overall management of a project. This paper focuses on the basics of common contract laws, the basics of agency law, the Uniform Commercial Code (UCC), and some aspects of that pertaining to the Federal Acquisition Regulations (FAR). A summation of the company’s position in relation to a given supplier (provided the company decides not to procure all of the material in a contract) will be examined along with how that position is strengthened by understanding the legal aspects of procurement management. Finally, the paper will analyze how the project manager is supported by the contract management function. Fleming (2003) posited that there is a clear and important distinction that should be made that delineates the work of the project from the inside work of the company.
middle of paper ... ... Therefore, the application of the EIA in such public projects is a critical aspect in project developments, especially in promoting environmentally sustainable projects and public participation in the EIA process. Also, the public members are supposed to be actively involved in the EIA process so as to ensure that a cost effective method of conducting the EIA is chosen.