Introduction
This report compares procurement proposals with advantages and a disadvantage described for each method chosen, and also recommends a solution for the project DX2335.
Factors influencing procurement method
For every project there are numerous externalities to consider before choosing a suitable procurement method, before making a selection the following factors should be considered;
• Clients resources,
Client’s knowledge of the construction industry and building procurement will dictate choice of procurement.
• Project details,
Location, Form, Function, Complexity and Uniqueness will influence time, cost and risk.
• External factors,
Consider the potential impact of Social, Political, Economical, Commercial, Technological, and Legal factors which influence the client, the project and the design team throughout the project timescale/lifecycle.
• Ability to make changes,
The client’s needs should be identified as early on as possible in the project to eliminate changes from arising later on in the design but this is not always possible, advances/changes in technology could bring altercations to the design or changes to the specifications, changes in scope undoubtedly effect time and cost.
• Timing, most projects are required to be finished as soon as possible, but it is important that adequate time for design is allowed, particularly if the design is required to be completed before construction. Planning approvals also influence procurement method. If
Choosing the most suitable procurement method for the specified construction project is a long term hard decision; it is a
This paper includes a description of the procurement planning process. The most valuable output of the plan procurement process will be identified. Furthermore, the various contract types will be explained. A source criterion that would be applicable to any project will be described and three criteria that would apply to most projects will be identified. An analysis of the ethical
Through tendering it should be conducted systematically and involve a score matrix with standardised to bid/or not bid questions that will assist in determining whether to advances whilst removing personal opinion from the equation. It is vital that the mandatory requirements are reviewed for the bid some of which may include contractors
Procurement by public entities is guided by primary law principles of transparency, equal treatment and non-discrimination, procurement laws sets up an extensive legal framework regarding the procurement of work, supply and service contracts. There are two main reasons for the use of specific procedures i.e. why contracting authorities do not just negotiate or simply buy from the closest supplier. First, it provides for more public accountability and therefore less cases of corruption practices. Additionally, tendering procedures aim to ensure the best value for money by making it necessary for suppliers to act highly competitive. As a result, market mechanisms will help in facilitating the best possible practices. In situations where market mechanisms are not effective, tender procedures might lose their effectiveness as well. If for example there is lack of competition due to certain complexities or as a result of lower bidder interest, negotiations with just one or two suppliers may be the most efficient manner to handle the process. Therefore, we discuss the inherent advantages and disadvantages of sealed bidding and contracting by negotiation as procedural frameworks for tendering.
Lai and Lam noted that construction projects require concise planning, and are divided between the consultant and the contractor. However, each party plays a significant part in the projects’ success. The difference between the client and the contractor; the client usually push for timely completion and would offer an incentive bonus for timely completion, however, the contractor would prefer a reasonable duration of time, therefore to avoid penalities to the contractor.
While taking all business and project parameters into consideration, make quality assumptions to support the following requirements.
In order to institutionalize best procurement and acquisition practices in an organization, I would begin by forming a cross-functional team made up of supply management personnel, finance personnel, attorneys, human resources, engineers, and other subject matter experts. As was highlighted in chapter ___ of the class text, this is the best approach for ensuring that the broadest possible range of ideas and perspectives are incorporated early into the planning process. Additionally, it ensures that a great idea conceived of by one functional area is viewed from within the restrictions and/or limitations imposed by another. As with specifications development, this process allows the team to develop a reasonable, effective, and implementable plan that works across functional areas and provides the greatest return on investment.
The Source Selection Evaluation Plan acts as a guide for the agency’s contracting team like that of the Technical Evaluation Plan. The choice of which configuration to utilize relies upon the intricacy and cost of the proposed venture and contract. A straightforward contract would utilize a technical evaluation plan while a more perplexing and costly venture may require a lawfully controlled source selection evaluation plan.
Primary and secondary sources are ways in which data can be retrieved. As Serakan (2006) stated, “Primary data refer to information obtained by the researcher on the variables of interest for the specific purpose of the study”. Various evidence suggesting to what methods of primary research can be conducted and which are most effective for the previously mentioned problem description are stated in this chapter.
When comparing competitive bids for a particular price or service, some systematic method of price comparison is essential. Of course, in some instances, it will be stipulated that a particular price ceiling is in place which will limit the number and types of bidders, or a particular relationship with a contractor has already been established for a series of contracts. However, when this is not the case, it is essential to use a method that offers the most effective way to find the best possible quality of service at the lowest possible cost. The simplest and most effective way is to compare the bids of a variety of competitive bidders.
Procurement intends to explore supply market opportunities and to implement resourcing strategies that deliver the best possible supply outcome to the organization, its stakeholders and clients (Kidd, 2005). Therefore, construction procurement exists to purchase a construction project as requirement of firms or organizational entities to achieve its goals. However, the choice to use external resources is the part of firms’ decision-making
Client and the contractor have same priorities. Basically, contractor will make the decision in turnkey approach and client will just accept in silent. In this project, the contractor and the client have the same focus and priorities therefore the relationship between the contractor and client is good and there is no overruns or communication problems between both sides.
All of the 11 projects are primarily ranked based on quantitative measurements. We have to also take into consideration of other quantitative aspects like length of the project, initial investment and anticipated payback period. Moreover, this
All projects involve the need to determine whether the project work will be done in-house, external to the organization (outsourced), or a combination of the two. This is called “make-or-buy analysis” and is an essential part of project planning, as well as a tool/technique integral to procurement planning
Morledge, R, Smith, A, Kashiwagi, D (2006) Publisher; Blackwell, Place of Publication; Oxford, Building Procurement, p6.